Legislature(2009 - 2010)CAPITOL 120

04/09/2010 09:00 AM RULES


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HB 363 AIDEA MEMBERSHIP
Moved CSHB 363(FIN) Out of Committee
SB 163 FISHERMEN'S FUND
Moved HCS SB 163(RLS) Out of Committee
SJR 28 ECUMENICAL PATRIARCHATE OF TURKEY
Moved Out of Committee
Bills Previously Heard/Scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
                 HOUSE RULES STANDING COMMITTEE                                                                               
                         April 9, 2010                                                                                          
                           9:04 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Nancy Dahlstrom, Chair                                                                                           
Representative Bob Herron, Vice Chair                                                                                           
Representative Mark Neuman                                                                                                      
Representative Kurt Olson                                                                                                       
Representative Berta Gardner                                                                                                    
Representative Beth Kerttula                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Charisse Millett                                                                                                 
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 363                                                                                                              
"An Act relating to the membership of the Alaska Industrial                                                                     
Development and Export Authority."                                                                                              
                                                                                                                                
     - MOVED CSHB 363(FIN) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 163                                                                                                             
"An Act increasing the allowances for injury, disability, or                                                                    
heart attack payable from the fisherman's fund; and providing                                                                   
for an effective date."                                                                                                         
                                                                                                                                
     - MOVED HCS CSSB 163(RLS) OUT OF COMMITTEE                                                                                 
                                                                                                                                
SENATE JOINT RESOLUTION NO. 28                                                                                                  
Relating to the Ecumenical Patriarchate and religious rights.                                                                   
                                                                                                                                
     - MOVED SJR 28 OUT OF COMMITTEE                                                                                            
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 363                                                                                                                  
SHORT TITLE: AIDEA MEMBERSHIP                                                                                                   
SPONSOR(s): COMMUNITY & REGIONAL AFFAIRS                                                                                        
                                                                                                                                
02/23/10       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/23/10       (H)       L&C                                                                                                    
03/17/10       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/17/10       (H)       Heard & Held                                                                                           
03/17/10       (H)       MINUTE(L&C)                                                                                            
03/22/10       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/22/10       (H)       Moved CSHB 363(L&C) Out of Committee                                                                   
03/22/10       (H)       MINUTE(L&C)                                                                                            
03/23/10       (H)       L&C RPT CS(L&C) 5DP 1NR                                                                                
03/23/10       (H)       DP: NEUMAN, LYNN, BUCH, T.WILSON, OLSON                                                                
03/23/10       (H)       NR: HOLMES                                                                                             
03/23/10       (H)       FIN REFERRAL ADDED                                                                                     
04/07/10       (H)       FIN AT 9:00 AM HOUSE FINANCE 519                                                                       
04/07/10       (H)       Heard & Held                                                                                           
04/07/10       (H)       MINUTE(FIN)                                                                                            
04/07/10       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/07/10       (H)       Moved CSHB 363(FIN) Out of Committee                                                                   
04/07/10       (H)       MINUTE(FIN)                                                                                            
04/08/10       (H)       FIN RPT CS(FIN) 6DP 4NR                                                                                
04/08/10       (H)       DP: THOMAS, GARA, AUSTERMAN, KELLY,                                                                    
                        N.FOSTER, JOULE                                                                                         
04/08/10       (H)       NR: DOOGAN, SALMON, STOLTZE, HAWKER                                                                    
04/09/10       (H)       RLS AT 9:00 AM CAPITOL 120                                                                             
                                                                                                                                
BILL: SB 163                                                                                                                  
SHORT TITLE: FISHERMEN'S FUND                                                                                                   
SPONSOR(s): PASKVAN                                                                                                             
                                                                                                                                
03/25/09       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/25/09       (S)       L&C, FIN                                                                                               
04/02/09       (S)       L&C AT 1:00 PM BUTROVICH 205                                                                           
04/02/09       (S)       Moved  SB 163 Out of Committee                                                                         
04/02/09       (S)       MINUTE(L&C)                                                                                            
04/03/09       (S)       L&C RPT  5DP                                                                                           
04/03/09       (S)       DP: PASKVAN, MEYER, THOMAS, BUNDE,                                                                     
                         DAVIS                                                                                                  
02/08/10       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
02/08/10       (S)       Heard & Held                                                                                           
02/08/10       (S)       MINUTE(FIN)                                                                                            
02/23/10       (S)       FIN AT 2:30 PM SENATE FINANCE 532                                                                      
02/23/10       (S)       Moved SB 163 Out of Committee                                                                          
02/23/10       (S)       MINUTE(FIN)                                                                                            
02/24/10       (S)       FIN RPT   5DP 1NR 1AM                                                                                  
02/24/10       (S)       DP: STEDMAN, HUGGINS, THOMAS, EGAN,                                                                    
                         ELLIS                                                                                                  
02/24/10       (S)       NR: HOFFMAN                                                                                            
02/24/10       (S)       AM: OLSON                                                                                              
03/15/10       (S)       TRANSMITTED TO (H)                                                                                     
03/15/10       (S)       VERSION: SB 163                                                                                        
03/17/10       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/17/10       (H)       FIN                                                                                                    
03/17/10       (H)       FIN REFERRAL REMOVED                                                                                   
03/17/10       (H)       (HB 207 COMPANION BILL)                                                                                
04/09/10       (H)       RLS AT 9:00 AM CAPITOL 120                                                                             
                                                                                                                                
BILL: SJR 28                                                                                                                  
SHORT TITLE: ECUMENICAL PATRIARCHATE OF TURKEY                                                                                  
SPONSOR(s): MEYER                                                                                                               
                                                                                                                                
02/18/10       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/10       (S)       JUD                                                                                                    
03/26/10       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/26/10       (S)       -- MEETING CANCELED --                                                                                 
03/29/10       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/29/10       (S)       Heard & Held                                                                                           
03/29/10       (S)       MINUTE(JUD)                                                                                            
03/31/10       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/31/10       (S)       Moved SJR 28 Out of Committee                                                                          
03/31/10       (S)       MINUTE(JUD)                                                                                            
04/01/10       (S)       JUD RPT   3DP                                                                                          
04/01/10       (S)       DP: FRENCH, COGHILL, WIELECHOWSKI                                                                      
04/05/10       (S)       TRANSMITTED TO (H)                                                                                     
04/05/10       (S)       VERSION: SJR 28                                                                                        
04/06/10       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/06/10       (H)       RLS                                                                                                    
04/09/10       (H)       RLS AT 9:00 AM CAPITOL 120                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ROB EARL, Staff                                                                                                                 
Representative Bob Herron                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:    As  staff for  the  House  Community  and                                                             
Regional Affairs Standing  Committee, which Representative Herron                                                               
co-chairs, explained  the changes  embodied in CSHB  363, Version                                                               
26-LS1503\C, Cook, 4/8/10.                                                                                                      
                                                                                                                                
JAN SIEBERTS, Director                                                                                                          
Real Estate                                                                                                                     
Washington Capital Management                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Discussed the changes embodied in CSHB 363,                                                              
Version C.                                                                                                                      
                                                                                                                                
TED LEONARD, Executive Director                                                                                                 
Alaska Industrial Development & Export Authority (AIDEA)                                                                        
Department of Commerce, Community, & Economic Development                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Expressed concern with CSHB 363, Version C.                                                              
                                                                                                                                
SENATOR JOE PASKVAN                                                                                                             
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Spoke as the sponsor of SB 163.                                                                          
                                                                                                                                
JAKE HAMBURG, Staff                                                                                                             
Senator Joe Paskvan                                                                                                             
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   On behalf of the  sponsor, Senator Paskvan,                                                             
reviewed the changes embodied in HCS CSSB 163, Version R.                                                                       
                                                                                                                                
SENATOR MEYER                                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Spoke as the sponsor of SJR 28.                                                                          
                                                                                                                                
CHRISTINE MARASIGAN, Staff                                                                                                      
Senator Kevin Meyer                                                                                                             
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:     During  hearing  of   SJR  28,  answered                                                             
questions.                                                                                                                      
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
9:04:30 AM                                                                                                                    
                                                                                                                                
CHAIR NANCY  DAHLSTROM called the House  Rules Standing Committee                                                             
meeting to order at 9:04  a.m.  Representatives Dahlstrom, Olson,                                                               
Neuman, Kerttula, and Gardner were  present at the call to order.                                                               
Representative Herron arrived as the meeting was in progress.                                                                   
                                                                                                                                
9:05:04 AM                                                                                                                    
                                                                                                                                
CHAIR DAHLSTROM  mentioned that at  the last meeting  she allowed                                                               
legislators quite a  bit of leeway in terms of  discussion of the                                                               
legislation.    She reminded  members  that  the purpose  of  the                                                               
committee is to consider technical  changes to ensure legislation                                                               
is in its proper form for the entire body to consider.                                                                          
                                                                                                                                
                    HB 363-AIDEA MEMBERSHIP                                                                                 
                                                                                                                                
9:05:32 AM                                                                                                                    
                                                                                                                                
CHAIR  DAHLSTROM then  turned the  committee's  attention to  the                                                               
first order of business, HOUSE BILL  NO. 363, "An Act relating to                                                               
the membership  of the Alaska  Industrial Development  and Export                                                               
Authority."  [Before the committee is CSHB 363(FIN).]                                                                           
                                                                                                                                
9:05:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE OLSON moved to adopt CSHB 363, Version 26-                                                                       
LS1503\C, Cook, 4/8/10, as the working document.                                                                                
                                                                                                                                
REPRESENTATIVE KERTTULA objected for discussion.                                                                                
                                                                                                                                
9:06:43 AM                                                                                                                    
                                                                                                                                
ROB  EARL,   Staff,  Representative  Bob  Herron,   Alaska  State                                                               
Legislature, reviewed the changes incorporated  in Version C.  He                                                               
paraphrased   from  the   following  written   remarks  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     The  only change  is the  addition of  Section 5  (p.2,                                                                    
     line 20).   This Section deals with  [Alaska Industrial                                                                    
     Development   &   Export    Authority]   AIDEA's   Loan                                                                    
     Participation Program.                                                                                                     
     AIDEA  is  not  a   direct  lender,  but  through  this                                                                    
     Program, AIDEA  purchases a portion  of a loan  that is                                                                    
     sponsored  and  originated  by  an  eligible  financial                                                                    
     institution.  (This  allows  AIDEA  to  offer,  on  its                                                                    
     portion  of  the loan,  a  lower  interest rate  and  a                                                                    
     longer term.)                                                                                                              
                                                                                                                                
     Section   5  expands   the   definition  of   "eligible                                                                    
     financial institutions"  that are eligible  for AIDEA's                                                                    
     loan participation program as loan "originators."                                                                          
                                                                                                                                
     Currently who is eligible is  not addressed in statute,                                                                    
     but  in regulation.   And currently  (1) and  (2) (p.2,                                                                    
     lines   25  &   26)  (CFAB   [Commercial  Fishing   and                                                                    
     Agriculture Bank]  and commercial banks, etc.)  - those                                                                    
     are  already  in  the  list   of  who  is  eligible  in                                                                    
     regulation, but (on p.3, line  3, subsection (3)) these                                                                    
     entities are not:                                                                                                          
        · An investment manager regulated by the [U.S.                                                                          
          Securities    and    Exchange   Commission]    SEC                                                                    
          (including managers to pensions and other                                                                             
          retirement funds)                                                                                                     
                                                                                                                                
       So it would seem the salient points to consider in                                                                       
     adopting the RULES CS would be:                                                                                            
                                                                                                                                
        1. Whether to elevate from regs into statute who is                                                                     
          eligible for AIDEA's loan participation program                                                                       
          (which would obviously reduce AIDEA's flexibility                                                                     
          on changing in the future who is eligible); and                                                                       
        2. Whether investment management entities described                                                                     
          in subsection (3) should be eligible at all                                                                           
                                                                                                                                
9:08:58 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KERTTULA surmised  that Version  C would  allow a                                                               
loan  to be  made to  an individual  with an  income of  $200,000                                                               
annually and  $1 million  in the  bank.  She  inquired as  to who                                                               
would be eligible for the loans.                                                                                                
                                                                                                                                
MR. EARL deferred to AIDEA.                                                                                                     
                                                                                                                                
9:09:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  asked if  the change on  page 3,  line 3,                                                               
was discussed in committee.                                                                                                     
                                                                                                                                
MR.  EARL  answered that  today  would  be  the first  time  it's                                                               
discussed.                                                                                                                      
                                                                                                                                
9:09:45 AM                                                                                                                    
                                                                                                                                
CHAIR DAHLSTROM noted that she  had agreed to hear this amendment                                                               
in this committee.   In response to  Representative Neuman, Chair                                                               
Dahlstrom  confirmed  that Version  C  includes  an amendment  to                                                               
Version A that he had seen prior.                                                                                               
                                                                                                                                
9:10:28 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GARDNER  asked   if   the  change   establishing                                                               
eligibility  in  statute  rather  than  regulation  was  done  to                                                               
include Section 3, which expands the eligibility.                                                                               
                                                                                                                                
MR. EARL answered that he believes that is correct.                                                                             
                                                                                                                                
9:11:23 AM                                                                                                                    
                                                                                                                                
JAN   SIEBERTS,  Director,   Real   Estate,  Washington   Capital                                                               
Management,  began by  informing  the  committee that  Washington                                                               
Capital  Management is  an investment  advisor to  pension funds.                                                               
He  further  informed the  committee  that  he  has been  in  the                                                               
finance  industry  for  42  years,   and  thus  has  considerable                                                               
knowledge of the AIDEA programs.   He clarified that although his                                                               
comments  reflect Washington  Capital Management,  the discussion                                                               
is about a  class of potential participants in  the AIDEA program                                                               
being  all  pension  funds.    The  aforementioned  could  expand                                                               
AIDEA's  capacity to  create economic  development in  the state.                                                               
Mr. Sieberts then provided the following comments:                                                                              
                                                                                                                                
     Our interest  in becoming a participant  with AIDEA and                                                                    
     creating economic  development in the State  of Alaska,                                                                    
     we believe  our experience,  knowledge of  [the] Alaska                                                                    
     market  and technical  systems meet  the qualifications                                                                    
     to  become  an  AIDEA  originator.   As  an  investment                                                                    
     advisor,   we  currently   manage  approximately   $1.7                                                                    
     billion  in real  estate  investments  for our  pension                                                                    
     fund  clients.   Many of  these beneficiaries  of these                                                                    
     funds are  residents of the  State of Alaska  and we've                                                                    
     made  numerous  real   estate  investments  within  the                                                                    
     state.  Our  income fund would likely  be a participant                                                                    
     with AIDEA.  Question  Capital is an investment advisor                                                                    
     to the  fund.  Bank of  New York Mellon is  the trustee                                                                    
     of these  funds.   A mortgage income  fund is  an open-                                                                    
     ended co-mingled  fund with 40 investors,  all of which                                                                    
     are pension funds.  The  income fund is funded by cash;                                                                    
     there is  no leverage.   To my  knowledge, there  is no                                                                    
     bank headquartered in  Alaska that has this  large of a                                                                    
     capital account.  And by  nature, the banks are heavily                                                                    
     leveraged.                                                                                                                 
                                                                                                                                
     Many  of  the beneficiaries  of  our  funds are  Alaska                                                                    
     residents.   It is clear to  us that the intent  of the                                                                    
     founding  AIDEA legislation  anticipated the  inclusion                                                                    
     of pension  and retirement funds.   Under section 44.88                                                                    
     it  states:    "Stimulating commercial  and  industrial                                                                    
     growth  and expansion  by  encouraging  an increase  of                                                                    
     private   investment  by   banks,  investment   houses,                                                                    
     insurance companies, and  other financial institutions,                                                                    
     including  pension   and  retirement  funds,   to  help                                                                    
     satisfy the need for economic expansion.                                                                                   
                                                                                                                                
     I do not  find any language in this  chapter that leads                                                                    
     me  to believe  there is  any intent  to limit  pension                                                                    
     fund  participation in  AIDEA programs.   On  the other                                                                    
     hand, in AIDEA  regulations financial institutions mean                                                                    
     a federally or  state chartered institutions authorized                                                                    
     to  perform  banking  functions  within  the  State  of                                                                    
     Alaska.                                                                                                                    
                                                                                                                                
     It limits  the participation in the  programs to banks.                                                                    
     This  seems  in  conflict  with the  intention  of  the                                                                    
     original law.   We would  recommend changes to  the law                                                                    
     so   that   participants    could   include   financial                                                                    
     institutions, including  pension and  retirement funds.                                                                    
     The  underwriting  expertise,  historical  performance,                                                                    
     knowledge  of  the  market  to  underwrite  loans,  and                                                                    
     license to  do business  within the  state, and  in our                                                                    
     case,  we have  an  office  in the  state.   AIDEA  has                                                                    
     become  an  important  secondary  source  of  long-term                                                                    
     financing for  businesses in Alaska.   And in  the late                                                                    
     '80s and early '90s  precipitated the economic recovery                                                                    
     from  an  era   when  half  the  banks   in  the  state                                                                    
     (indisc.).    It seems  that in these  uncertain times,                                                                    
     it would be  desirable for AIDEA to  have partners that                                                                    
     are structured differently  than the commercial banking                                                                    
     system that has struggled nationwide.                                                                                      
                                                                                                                                
9:15:58 AM                                                                                                                    
                                                                                                                                
MR.  SIEBERT, in  response  to  Representative Neuman,  explained                                                               
that Washington Capital  is an investment advisor,  such as those                                                               
to the permanent fund and the  state retirement system.  For many                                                               
of  its clients,  Washington Capital  pools together  real estate                                                               
investments.   The two  primary funds  of Washington  Capital are                                                               
the real  estate investment fund  and the real estate  loan fund.                                                               
The loan funds  would be the participant with AIDEA.   He pointed                                                               
out  that  Washington Capital  put  up  over $30  million,  which                                                               
facilitated  building   the  JL  Towers  in   Midtown  Anchorage.                                                               
Washington Capital is  the largest owner of that  building and is                                                               
a 90  percent owner of  St. Elias Long-term Acute  Care Hospital.                                                               
Washington Capital, he noted, has loans on numerous projects.                                                                   
                                                                                                                                
9:17:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN surmised then  that Washington Capital is a                                                               
broker  of   banking  opportunities.     He   questioned  whether                                                               
Washington Capital is an investment capital group.                                                                              
                                                                                                                                
MR. SIEBERT  specified that  under the  US SEC  rules, Washington                                                               
Capital  is an  investment  advisor.   He  explained  that as  an                                                               
investment advisor,  Washington Capital put together  real estate                                                               
investments for pension  funds.  The assets of the  fund are held                                                               
by the Bank of New York in a trust.                                                                                             
                                                                                                                                
9:18:02 AM                                                                                                                    
                                                                                                                                
CHAIR  DAHLSTROM  acknowledged  that   Version  C  embodies  very                                                               
substantive changes, and therefore she  would like to continue to                                                               
hear testimony.                                                                                                                 
                                                                                                                                
9:18:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE OLSON  asked if the  amendment incorporated  in HB
363 is something he has considered for some time.                                                                               
                                                                                                                                
MR. SIEBERT replied  yes, adding that he began  speaking with the                                                               
AIDEA board in 2006.                                                                                                            
                                                                                                                                
REPRESENTATIVE OLSON  inquired then  why this amendment  is being                                                               
presented so late in the process  rather than at the beginning of                                                               
the process  when it  could've been vetted  by the  committees to                                                               
which the legislation was referred.                                                                                             
                                                                                                                                
MR.  SIEBERT   said  that  he  hadn't   anticipated  legislation.                                                               
However,  he  related  that  when   he  talked  to  a  number  of                                                               
legislators  regarding the  problem and  trying to  get AIDEA  to                                                               
change  its regulations  to include  the participants  originally                                                               
anticipated in  the underlying legislation.   Ultimately,  it was                                                               
suggested  that an  amendment be  made to  the legislation.   Mr.                                                               
Siebert ensured the  committee that this isn't  a devious attempt                                                               
to propose this at the last moment.                                                                                             
                                                                                                                                
9:19:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE OLSON  pointed out  that first  reading of  HB 363                                                               
was March  2nd, which is over  a month ago.   Therefore, bringing                                                               
this  amendment  forward  the   day  before  the  legislation  is                                                               
scheduled for the  floor seems suspect.  He opined  that it's not                                                               
the proper way to go about this.                                                                                                
                                                                                                                                
MR. SIEBERT interjected  that he isn't a lobbyist or  part of the                                                               
legislative process.   He then related that he  has been involved                                                               
in  this  process  and  stone-walled for  four  years,  and  then                                                               
members of the legislature suggested  he offer an amendment.  Mr.                                                               
Siebert  specified that  what the  amendment  proposes isn't  any                                                               
more than what was the original underlying intent of the law.                                                                   
                                                                                                                                
9:21:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  OLSON   asked  if   Mr.  Siebert   discussed  the                                                               
amendment with the sponsor.                                                                                                     
                                                                                                                                
MR. SIEBERT said he isn't sure who all the sponsors are.                                                                        
                                                                                                                                
9:22:08 AM                                                                                                                    
                                                                                                                                
TED LEONARD, Executive Director,  Alaska Industrial Development &                                                               
Export Authority  (AIDEA), Department  of Commerce,  Community, &                                                               
Economic Development,  expressed concern with  putting provisions                                                               
in  statute that  need the  flexibility of  being in  regulation,                                                               
[particularly]  in  light  of the  fact  that  financial  markets                                                               
change.    As  mentioned  earlier, there  are  several  different                                                               
entities   identified   in   [AS  44.88],   including   insurance                                                               
companies, investment  houses.   Mr. Leonard  opined that  all of                                                               
the aforementioned entities  should be reviewed by  ADIEA if they                                                               
approached AIDEA requesting  to be loan originators.   He further                                                               
opined that the proper vehicle  would be through regulation.  Mr.                                                               
Leonard noted that  AIDEA has met with Mr. Sieberts  and AIDEA is                                                               
willing  to discuss  this  matter.   He  further  noted that  Mr.                                                               
Sieberts  has   been  reviewing  this  matter   for  many  years.                                                               
However, AIDEA is in the  process of changing and recognizing the                                                               
investment of pension funds would be  a valuable source.  He then                                                               
highlighted that AS  44.88.010 goes throughout the  program.  Mr.                                                               
Leonard opined that he isn't  sure that loan participation is the                                                               
best  program or  whether statute  should include  a new  program                                                               
that could better address those types  of companies.  The goal of                                                               
AIDEA is to bring new investment  into the state.  In conclusion,                                                               
Mr. Leonard reiterated  that his main concern is  with placing in                                                               
statute  a provision  that would  limit AIDEA's  ability, through                                                               
regulation, to bring  in new capital.  Therefore, he  said he was                                                               
worried  that the  result of  the amended  language would  be the                                                               
opposite of what is intended.                                                                                                   
                                                                                                                                
9:24:58 AM                                                                                                                    
                                                                                                                                
CHAIR DAHLSTROM  remarked that  CSHB 363,  Version C,  needs more                                                               
vetting than this committee has  the authority to do.  Therefore,                                                               
she  indicated the  need  to consider  CSHB  363(FIN), which  she                                                               
requested Mr. Earl address.                                                                                                     
                                                                                                                                
9:25:38 AM                                                                                                                    
                                                                                                                                
MR.  EARL  explained that  CSHB  363(FIN)  merely added  language                                                               
specifying that  members of  the AIDEA board  would serve  at the                                                               
governor's pleasure in order to  ensure that the governor has the                                                               
ability to appoint and remove public members.                                                                                   
                                                                                                                                
9:26:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  asked if  the language  regarding serving                                                               
at  the pleasure  of the  governor is  found elsewhere  for other                                                               
authorities, commissions, or boards.                                                                                            
                                                                                                                                
MR.  EARL  answered  that  the language  is  found  elsewhere  in                                                               
statute.                                                                                                                        
                                                                                                                                
9:27:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  OLSON  withdrew his  motion  to  adopt CSHB  363,                                                               
Version  26-LS1503\C,  Cook,  4/8/10, as  the  working  document.                                                               
There being no objection, the motion was withdrawn.                                                                             
                                                                                                                                
9:27:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  OLSON  moved  to  report  CSHB  363(FIN)  out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHB  363(FIN)  was                                                               
reported from the House Rules Standing Committee.                                                                               
                                                                                                                                
9:28:05 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 9:28 a.m. to 9:30 a.m.                                                                       
                                                                                                                                
                                                                                                                                
                    SB 163- FISHERMEN'S FUND                                                                                
9:30:17 AM                                                                                                                    
                                                                                                                                
CHAIR DAHLSTROM announced  that the next order  of business would                                                               
be SENATE  BILL NO.  163, "An Act  increasing the  allowances for                                                               
injury, disability, or heart attack  payable from the fisherman's                                                               
fund; and providing for an effective date."                                                                                     
                                                                                                                                
9:30:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE OLSON  moved to  adopt HCS  CSSB 163,  Version 26-                                                               
LS0781\R, Bailey, 4/7/10,  as the working document.   There being                                                               
no objection, Version R was before the committee.                                                                               
                                                                                                                                
9:30:47 AM                                                                                                                    
                                                                                                                                
SENATOR JOE PASKVAN, Alaska State  Legislature, explained that SB
163  updates  the  Alaska  Fishermen's   Fund  benefit  limit  to                                                               
$10,000,  which   would  result   in  the  program   providing  a                                                               
meaningful level of  assistance.  He characterized the  fund as a                                                               
payer  of  last resort  for  commercial  fishermen and  crew  who                                                               
sustain injuries or illness while fishing.                                                                                      
                                                                                                                                
9:31:41 AM                                                                                                                    
                                                                                                                                
JAKE   HAMBURG,  Staff,   Senator  Joe   Paskvan,  Alaska   State                                                               
Legislature,  speaking on  behalf  of the  sponsor, reviewed  the                                                               
changes embodied in  HCS CSSB 163, Version R.   He explained that                                                               
although  under  current  statute  the commissioner  is  to  make                                                               
decisions on  claims and appeals,  the practice has been  for the                                                               
council  to make  those decisions.    Therefore, one  of the  two                                                               
changes in  Version R would  allow the Fishermen's  Fund Advisory                                                               
and  Appeals Council  to  continue  the aforementioned  practice.                                                               
The other change embodied in  Version R would allow vessel owners                                                               
with indemnity insurance with a  deductible of $10,000 or more to                                                               
seek a 50 percent reimbursement  for the deductible of an injured                                                               
crewmember's claim against that insurance.   He explained that 50                                                               
percent  was chosen  in order  to  provide an  incentive for  the                                                               
vessel owner to maintain a safe vessel.                                                                                         
                                                                                                                                
9:32:56 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER inquired  as to whom would  pay the vessel                                                               
owner for  the claim.   If  the claim was  paid by  the insurance                                                               
company, would it  reduce the amount of the claim  awarded to the                                                               
injured worker, she asked.                                                                                                      
                                                                                                                                
SENATOR PASKVAN  explained that the  fund is funded by  a portion                                                               
of the  license fees that  are collected.   If the  deductible is                                                               
$10,000, the  fund would  only pay  up to  $5,000 to  the injured                                                               
crewmember.   He echoed  earlier testimony that  the fund  is the                                                               
payer of last resort.                                                                                                           
                                                                                                                                
REPRESENTATIVE GARDNER  surmised then  that the  payment wouldn't                                                               
impact a crew member.                                                                                                           
                                                                                                                                
MR. HAMBURG related that the vessel  owner is required to pay the                                                               
deductible.    The  vessel  owner  would  be  reimbursed  by  the                                                               
fishermen's  fund in  the  amount  of up  to  50  percent of  the                                                               
deductible [or $5,000,  whichever is less].   Therefore, the only                                                               
impact would be to the fund.                                                                                                    
                                                                                                                                
9:34:41 AM                                                                                                                    
                                                                                                                                
CHAIR DAHLSTROM  related her understanding  then that  the second                                                               
change being discussed was strictly to the dollar amount.                                                                       
                                                                                                                                
SENATOR PASKVAN replied yes.                                                                                                    
                                                                                                                                
9:35:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KERTTULA  requested an  explanation of  Section 3.                                                               
She  related  her  understanding  that  the  legislation  doesn't                                                               
control what  the insurance  company gives  to the  vessel owner,                                                               
but rather how much the fund pays the vessel owner.                                                                             
                                                                                                                                
SENATOR PASKVAN answered that is correct.                                                                                       
                                                                                                                                
9:36:32 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE OLSON  moved to report  HCS CSSB 163,  Version 26-                                                               
LS0781\R,  Bailey,  4/7/10,  out  of  committee  with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no  objection, HCS  CSSB  163(RLS) was  reported  from the  House                                                               
Rules Standing Committee.                                                                                                       
                                                                                                                                
9:36:50 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 9:36 a.m. to 9:39 a.m.                                                                       
                                                                                                                                
9:39:45 AM                                                                                                                    
                                                                                                                                
            SJR 28-ECUMENICAL PATRIARCHATE OF TURKEY                                                                        
                                                                                                                                
9:39:51 AM                                                                                                                    
                                                                                                                                
CHAIR  DAHLSTROM turned  the committee's  attention to  the final                                                               
order of  business SENATE  JOINT RESOLUTION  NO. 28,  Relating to                                                               
the Ecumenical Patriarchate and religious rights.                                                                               
                                                                                                                                
9:39:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  OLSOM  moved  to  adopt SJR  28  as  the  working                                                               
document.  There being no objection, it was so ordered.                                                                         
                                                                                                                                
9:40:19 AM                                                                                                                    
                                                                                                                                
SENATOR MEYER, Alaska State Legislature,  related that SJR 28 has                                                               
helped him  to learn  about the  religious challenges  in Turkey.                                                               
He  informed  the  committee  that  25  state  legislatures  have                                                               
adopted resolutions  similar to  SJR 28.   This  resolution urges                                                               
the  U.S.,  the  European  Union,   and  the  United  Nations  to                                                               
encourage the government of Turkey  to end its discrimination and                                                               
pledge  to   uphold  and   safeguard  religious   rights  without                                                               
compromise.   The  State  of Alaska  has  a substantial  Orthodox                                                               
Christian  community.   This fall  the US  State Department  will                                                               
deliver  copies  of  these resolutions  that  have  been  adopted                                                               
throughout the state to the Turkish Foreign Minister.                                                                           
                                                                                                                                
9:42:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   HERRON   mentioned   that  there   are   several                                                               
communities  in his  district in  which Orthodox  Christianity is                                                               
the  dominant faith.   He  asked  if the  prejudice against  [the                                                               
Ecumenical Patriarchate]  is a recent  phenomenon or a  long time                                                               
phenomenon.                                                                                                                     
                                                                                                                                
9:43:30 AM                                                                                                                    
                                                                                                                                
CHRISTINE  MARASIGAN, Staff,  Senator Kevin  Meyer, Alaska  State                                                               
Legislature,  speaking on  behalf of  the sponsor,  answered that                                                               
this prejudice has being going on  for quite some time.  In fact,                                                               
every  president  since  President  Carter has  sent  envoys  and                                                               
messages  to  the government  of  Turkey  regarding this  matter.                                                               
There has been progress in the  last five years and thus there is                                                               
the desire to continue pressure on the matter.                                                                                  
                                                                                                                                
9:44:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER, drawing  upon her  experience in  Turkey                                                               
last  year,  related  that  this  prejudice  started  before  the                                                               
Crusades.                                                                                                                       
                                                                                                                                
9:44:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KERTTULA  asked if  the Secretary of  State, since                                                               
she will  deliver these  resolutions, should  be included  in the                                                               
list to which the resolutions are sent.                                                                                         
                                                                                                                                
MS. MARASIGAN related her understanding  that the resolution will                                                               
be provided to the ambassador of the area.                                                                                      
                                                                                                                                
9:45:38 AM                                                                                                                    
                                                                                                                                
CHAIR DAHLSTROM  commented that she  has many constituents  and a                                                               
church of this faith in her district.                                                                                           
                                                                                                                                
9:45:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  OLSON moved  to report  SJR 28  out of  committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being no objection,  SJR 28 was reported  from the                                                               
House Rules Standing Committee.                                                                                                 
                                                                                                                                
9:46:06 AM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Rules Standing Committee meeting was adjourned at 9:46 a.m.                                                                     

Document Name Date/Time Subjects