Legislature(2013 - 2014)CAPITOL 120

04/08/2014 05:00 PM RULES


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05:02:20 PM Start
05:02:29 PM HB383
05:20:48 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 383 AK GASLINE DEVELOPMENT CORP. MEMBERSHIP TELECONFERENCED
Moved CSHB 383(RLS) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
                 HOUSE RULES STANDING COMMITTEE                                                                               
                         April 8, 2014                                                                                          
                           5:02 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Craig Johnson, Chair                                                                                             
Representative Kurt Olson, Vice Chair                                                                                           
Representative Mike Chenault                                                                                                    
Representative Mike Hawker                                                                                                      
Representative Bob Herron                                                                                                       
Representative Wes Keller                                                                                                       
Representative Max Gruenberg                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 383                                                                                                              
"An Act relating to the membership of the board of the Alaska                                                                   
Gasline Development Corporation; and providing for an effective                                                                 
date."                                                                                                                          
                                                                                                                                
     - MOVED CSHB 383(RLS) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 383                                                                                                                  
SHORT TITLE: AK GASLINE DEVELOPMENT CORP. MEMBERSHIP                                                                            
SPONSOR(s): RULES BY REQUEST                                                                                                    
                                                                                                                                
04/04/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/04/14       (H)       RLS                                                                                                    
04/08/14       (H)       RLS AT 5:00 PM CAPITOL 120                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
TOM WRIGHT, Staff                                                                                                               
House Majority Office                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  During hearing of HB 383, explained                                                                      
Amendment 1.                                                                                                                    
                                                                                                                                
HILARY MARTIN, Attorney                                                                                                         
Legislative Legal Services                                                                                                      
Legislative Affairs Agency                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:     During  hearing  of   HB  383,  answered                                                             
questions.                                                                                                                      
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
5:02:20 PM                                                                                                                    
                                                                                                                                
CHAIR  CRAIG JOHNSON  called the  House Rules  Standing Committee                                                             
meeting to order at 5:02  p.m.  Representatives Chenault, Hawker,                                                               
Herron,  Keller, Olson,  Gruenberg, and  Johnson were  present at                                                               
the call to order.                                                                                                              
                                                                                                                                
         HB 383-AK GASLINE DEVELOPMENT CORP. MEMBERSHIP                                                                     
                                                                                                                                
5:02:29 PM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON announced that the  only order of business would be                                                               
HOUSE BILL  NO. 383, "An  Act relating  to the membership  of the                                                               
board  of   the  Alaska  Gasline  Development   Corporation;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
5:02:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CHENAULT  informed the  committee that HB  383 was                                                               
sponsored by the House Rules  Standing Committee per his request.                                                               
The   legislation  amends   AGDC   [Alaska  Gasline   Development                                                               
Corporation]  statute in  order to  allow for  out-of-state board                                                               
appointments.  He  opined that AGDC statute should  be amended to                                                               
fix  a  technical  oversight  and   reflect  the  intent  of  the                                                               
legislature, which was  clear in testimony [regarding  HB 4] last                                                               
year.   That intent last  year was  to provide the  governor with                                                               
the ultimate  discretion in appointing the  most qualified people                                                               
to serve on the AGDC Board  and develop projects that move gas to                                                               
Alaskans.     Furthermore,  the  Framers  of   the  Alaska  State                                                               
Constitution amended  Section 26  to replace the  state residency                                                               
requirement with the  U.S. [residency] requirement.   In fact, on                                                               
page 2239  of the  Alaska Constitutional  Convention proceedings,                                                               
Delegate Hellenthal  and Delegate  McNees were quoted  as saying,                                                               
respectively:                                                                                                                   
                                                                                                                                
     I  have faith  in the  executive, I  have faith  in the                                                                    
     legislative,  and  I  am  sure   that  they  will  pick                                                                    
     qualified men.   It might  be that those  qualified men                                                                    
     would  be   men  of  residence  elsewhere   and  recent                                                                    
     arrivals or  they might even  be sought  out elsewhere.                                                                    
     I  would be  worried  if such  a restrictive  provision                                                                    
     limiting board  appointments to residents of  the state                                                                    
     were included in the constitution.                                                                                         
                                                                                                                                
     An executive should not be  limited in reaching out and                                                                    
     picking  the best  available  man,  irrespective as  to                                                                    
     where that might be.                                                                                                       
                                                                                                                                
REPRESENTATIVE  CHENAULT then  informed  the  committee that  the                                                               
AGDC Board is  currently comprised of two  commissioners and five                                                               
public  members appointed  by  the governor.    The governor,  he                                                               
highlighted, is  encouraged to appoint individuals  with specific                                                               
qualifications  and  expertise  in pipeline  construction,  large                                                               
project  management, and  etcetera.   By statute,  AGDC's mission                                                               
requires  the  board and  the  corporation  to  act in  the  best                                                               
interest of Alaskans.  Currently,  the AGDC Board is comprised of                                                               
all  Alaskans, save  one appointee.    House Bill  4 was  complex                                                               
legislation that specifically laid out  a structure for AGDC as a                                                               
corporation and defined  what the legislature wanted  in terms of                                                               
board  appointments, which  is generally  addressed  in AS  39.05                                                               
relating  to public  officers  and employees.     Alaska  Statute                                                               
39.05.100  requires  board  appointments to  be  Alaskans  unless                                                               
otherwise specified.   House Bill 4  addressed board requirements                                                               
without specifically stating whether  members had to be Alaskans.                                                               
Legal  guidance at  the  time  and testimony  related  that HB  4                                                               
allowed for individuals from out-of-state  as well as Alaskans to                                                               
serve.   The legislation, however, failed  to specifically exempt                                                               
AGDC from AS  39.05.100, which he characterized  as an oversight.                                                               
Therefore, HB 383 addresses that oversight.                                                                                     
                                                                                                                                
5:06:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE OLSON moved that  the committee adopt Amendment 1,                                                               
28-LS1656\A.1, Martin, 4/7/14, which read:                                                                                      
                                                                                                                                
     Page 1, following line 14:                                                                                                 
          Insert a new bill section to read:                                                                                    
        "*  Sec.  2. The  uncodified  law  of the  State  of                                                                
     Alaska is amended by adding a new section to read:                                                                         
          RETROACTIVITY. Section 1 of this Act is                                                                               
     retroactive to September 1, 2013."                                                                                         
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
CHAIR JOHNSON objected for discussion purposes.                                                                                 
                                                                                                                                
5:07:07 PM                                                                                                                    
                                                                                                                                
TOM   WRIGHT,  Staff,   House  Majority   Office,  Alaska   State                                                               
Legislature,    explained    that    after    discussions    with                                                               
Representative Gruenberg, [the sponsor]  he felt it was important                                                               
to check  with Legislative Legal  Services regarding  whether the                                                               
legislation should  be retroactive.   Legislative  Legal Services                                                               
felt  an amendment  specifying retroactivity  would clarify  that                                                               
the  legislation applies  back  to September  1,  2013, when  the                                                               
governor made  his appointments.   Therefore,  there would  be no                                                               
question  as to  whether  the appointments  [to  the AGDC  Board]                                                               
would be lost on a technicality.                                                                                                
                                                                                                                                
5:08:10 PM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON  withdrew his  objection.   There being  no further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
5:08:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG   moved  Amendment   2,  28-LS1656\A.3,                                                               
Martin, 4/8/14, which read:                                                                                                     
                                                                                                                                
     Page 1, line 14, following "state.":                                                                                   
          Insert "If the governor appoints a public member                                                                  
     to  the board  who is  not  a registered  voter in  the                                                                
     state or  a resident of  the state, the  governor shall                                                                
     send a  written statement  to the legislature  with the                                                                
     notice   of  appointment   explaining  the   governor's                                                                
     reasons for making the appointment."                                                                                   
                                                                                                                                
     Page 1, following line 14:                                                                                                 
          Insert a new bill section to read:                                                                                    
        "*  Sec.  2. The  uncodified  law  of the  State  of                                                                
     Alaska is amended by adding a new section to read:                                                                         
          APPLICABILITY.       The      requirement       in                                                                    
     AS 31.23.020(b), amended  by sec.  1 of this  Act, that                                                                    
     the  governor send  a written  statement explaining  an                                                                    
     appointment  of a  person to  the board  of the  Alaska                                                                    
     Gasline   Development   Corporation   who  is   not   a                                                                    
     registered  voter in  the state  or a  resident of  the                                                                    
     state applies  to a  person appointed  on or  after the                                                                    
     effective date of this Act."                                                                                               
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
CHAIR JOHNSON objected for discussion purposes.                                                                                 
                                                                                                                                
5:09:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  explained   that  Amendment  2  simply                                                               
requires that if the governor appoints  a member to the board who                                                               
isn't an  Alaska registered  voter nor a  resident of  the state,                                                               
the  governor   must  submit  a  statement   to  the  legislature                                                               
regarding why he/she  is doing so.  He likened  this statement to                                                               
that required with  a veto by the governor.   Because Mr. Rabinow                                                               
has  already  been  appointed,   the  applicability  section  was                                                               
necessary   to   include  so   that   wouldn't   apply  to   him,                                                               
Representative  Gruenberg  explained.   The  requirement  of  the                                                               
statement will be 90 days after the governor signs it.                                                                          
                                                                                                                                
5:10:31 PM                                                                                                                    
                                                                                                                                
MR. WRIGHT  stated that he has  no objection to Amendment  2, but                                                               
highlighted  that  the  legislature has  a  confirmation  hearing                                                               
process during  which an appointee's residency  can be determined                                                               
and whether  the appointee is fit  for the appointment.   He then                                                               
inquired as  to whether the  applicability clause of  Amendment 2                                                               
has   a  typo   such  that   the  statutory   reference  to   "AS                                                               
31.23.020(b)" should be replaced with "AS 31.25.020(b)".                                                                        
                                                                                                                                
5:11:28 PM                                                                                                                    
                                                                                                                                
HILARY MARTIN, Attorney,  Legislative Legal Services, Legislative                                                               
Affairs Agency, confirmed that Mr.  Wright is correct in that the                                                               
reference  to  "AS  31.23.020(b)"  in  the  applicability  clause                                                               
should be replaced with "AS 31.25.020(b)".                                                                                      
                                                                                                                                
5:11:51 PM                                                                                                                    
                                                                                                                                
MR. WRIGHT  said he wanted to  be sure that the  retroactive date                                                               
doesn't apply to these sections.                                                                                                
                                                                                                                                
REPRESENTATIVE   GRUENBERG   related    his   intent   that   the                                                               
retroactivity does  not to  apply [to those  sections].   He then                                                               
related his  understanding that  if Amendment  2 is  adopted, the                                                               
retroactivity clause  won't apply  to the  message that  would be                                                               
sent more than 90 days after the governor signs it.                                                                             
                                                                                                                                
MS. MARTIN clarified that [the  retroactivity clause] would apply                                                               
after  the effective  date of  the  act, which  has an  immediate                                                               
effective date.  Therefore, it does not apply retroactively.                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  acknowledged that it would  apply after                                                               
the effective date.                                                                                                             
                                                                                                                                
5:12:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER expressed the  need to ensure that although                                                               
there is  an immediate effective  date, the  retroactivity clause                                                               
embodied in  Amendment 1  will not  conflict with  the statements                                                               
made  in  Amendment  2  and  somehow  disqualify  the  individual                                                               
appointed in September [2013].                                                                                                  
                                                                                                                                
MS.  MARTIN clarified  that the  effective  date and  retroactive                                                               
date  are  two  different  things.    Therefore,  [the  statement                                                               
required  of the  governor] as  laid out  in Amendment  2 doesn't                                                               
apply retroactively.                                                                                                            
                                                                                                                                
5:14:03 PM                                                                                                                    
                                                                                                                                
CHAIR   JOHNSON   questioned   whether  the   governor's   letter                                                               
specifying that he has appointed  the most qualified person would                                                               
be the  same [as  the requirement in  Amendment 2]  regardless of                                                               
residency.  Therefore, the governor  wouldn't have to specify the                                                               
residency of the appointee.                                                                                                     
                                                                                                                                
REPRESENTATIVE GRUENBERG pointed out  that all of the transmittal                                                               
letters  for the  governor's  appointees  state the  individuals'                                                               
[residency].                                                                                                                    
                                                                                                                                
CHAIR JOHNSON asked then if  the transmittal letter would suffice                                                               
for the letter [specified in Amendment 2].                                                                                      
                                                                                                                                
REPRESENTATIVE GRUENBERG replied yes,  but like the veto messages                                                               
would include  a sentence or  two.   He clarified that  he wanted                                                               
[the   letter]  to   place  members   on  notice   regarding  the                                                               
appointee's [residency].                                                                                                        
                                                                                                                                
5:15:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GRUENBERG  moved   Conceptual  Amendment   1  to                                                               
Amendment  2 such  that  the reference  to  "AS 31.23.020(b)"  is                                                               
deleted  and replaced  with "AS  31.25.020(b)".   There being  no                                                               
objection, Conceptual Amendment 1 to Amendment 2 was adopted.                                                                   
                                                                                                                                
5:16:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON  asked whether Amendment 2,  as amended, is                                                               
necessary.                                                                                                                      
                                                                                                                                
REPRESENTATIVE GRUENBERG opined that  it's helpful to ensure that                                                               
everything  is  disclosed,  the process  is  preserved,  and  the                                                               
matter can be addressed on its merits.                                                                                          
                                                                                                                                
5:17:05 PM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON  withdrew his  objection.   There being  no further                                                               
objection, Amendment 2, as amended, was adopted.                                                                                
                                                                                                                                
5:17:47 PM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON opened public testimony.                                                                                          
                                                                                                                                
5:18:16 PM                                                                                                                    
                                                                                                                                
MR. WRIGHT  pointed out that the  testimony of Mr. Burns  and Mr.                                                               
Fauske during the  April 3, 2014, House  Rules Standing Committee                                                               
meeting is included in the committee packet.                                                                                    
                                                                                                                                
5:18:49 PM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON, upon determining no  one wished to testify, closed                                                               
public testimony.                                                                                                               
                                                                                                                                
5:19:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER  noted that HB  383 is accompanied  by zero                                                               
fiscal notes.                                                                                                                   
                                                                                                                                
5:19:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  mentioned  his  appreciation  for  the                                                               
legislation as well  as the addition of amendments as  it cures a                                                               
problem.                                                                                                                        
                                                                                                                                
5:20:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE OLSON moved  to report HB 383, as  amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
zero fiscal notes.   There being no objection,  CSHB 383(RLS) was                                                               
reported from the House Rules Standing Committee.                                                                               
                                                                                                                                
5:20:48 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Rules Standing Committee meeting was adjourned at 5:20 p.m.                                                                     

Document Name Date/Time Subjects
HB 383 A.pdf HRLS 4/8/2014 5:00:00 PM
HB 383
HB 383 Sponsor Statement.pdf HRLS 4/8/2014 5:00:00 PM
HB 383
AGDC Board of Directors.pdf HRLS 4/8/2014 5:00:00 PM
HB 383
Art. 3, Section 26-AK Constitution.pdf HRLS 4/8/2014 5:00:00 PM
HB 383
AS 31.25.020.pdf HRLS 4/8/2014 5:00:00 PM
HB 383
AS 39.05.100.pdf HRLS 4/8/2014 5:00:00 PM
HB 383
HRES Testimony on Qualifications.pdf HRLS 4/8/2014 5:00:00 PM
HB 383
hrls 040314 Burns Fauske.pdf HRLS 4/8/2014 5:00:00 PM
HB 383
Amendment 28-LS1656. A.1.pdf HRLS 4/8/2014 5:00:00 PM
HB 383
Alaska Gasline Moves Forward with AGDC Board.pdf HRLS 4/8/2014 5:00:00 PM
HB 383
28-LS1656.A.3 Amendment 2.pdf HRLS 4/8/2014 5:00:00 PM
HB 383
Information for Amendment 2.pdf HRLS 4/8/2014 5:00:00 PM
HB 383