04/15/2004 08:01 AM House STA
| Audio | Topic |
|---|
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
April 15, 2004
8:01 a.m.
MEMBERS PRESENT
Representative Bruce Weyhrauch, Chair
Representative Jim Holm, Vice Chair
Representative John Coghill
Representative Bob Lynn
Representative Paul Seaton
MEMBERS ABSENT
Representative Ethan Berkowitz
Representative Max Gruenberg
COMMITTEE CALENDAR
CS FOR SENATE BILL NO. 309(JUD) am
"An Act relating to testing the blood of prisoners and those in
custody for bloodborne pathogens."
- MOVED HCS CSSB 309(STA) OUT OF COMMITTEE
HOUSE CONCURRENT RESOLUTION NO. 26
Relating to investments in Alaska by corporate America in which
the permanent fund invests.
- HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 309
SHORT TITLE:BLOOD PATHOGENS TESTING OF PRISONERS
SPONSOR(S): SENATOR(S) WAGONER
Jrn-Date Jrn-Page Action
02/09/04 2114 (S) READ THE FIRST TIME -
REFERRALS
02/09/04 2114 (S) STA, JUD
03/04/04 (S) STA AT 3:30 PM BELTZ 211
03/04/04 (S) Moved SB 309 Out of Committee
03/04/04 (S) MINUTE(STA)
03/05/04 2428 (S) STA RPT 3DP
03/05/04 2428 (S) DP: STEVENS G, COWDERY,
STEDMAN
03/05/04 2428 (S) FN1: ZERO(COR)
03/17/04 2536 (S) JUD RPT CS 4DP SAME TITLE
03/17/04 2537 (S) DP: SEEKINS, FRENCH, OGAN,
THERRIAULT
03/17/04 2537 (S) FN1: ZERO(COR)
03/17/04 (S) JUD AT 8:00 AM BUTROVICH 205
03/17/04 (S) Moved CSSB 309(JUD) Out of
Committee
03/17/04 (S) MINUTE(JUD)
03/19/04 2569 (S) RULES TO CALENDAR 3/19/2004
03/19/04 2569 (S) READ THE SECOND TIME
03/19/04 2569 (S) JUD CS ADOPTED UNAN CONSENT
03/19/04 2569 (S) ADVANCED TO THIRD READING
UNAN CONSENT
03/19/04 2570 (S) READ THE THIRD TIME CSSB
309(JUD)
03/19/04 2570 (S) RETURN TO SECOND FOR AM 1
UNAN CONSENT
03/19/04 2570 (S) AM NO 1 ADOPTED UNAN CONSENT
03/19/04 2570 (S) AUTOMATICALLY IN 3RD READING
03/19/04 2570 (S) PASSED Y18 N- E2
03/19/04 2570 (S) WAGONER NOTICE OF
RECONSIDERATION
03/19/04 2577 (S) COSPONSOR(S): DYSON
03/22/04 2604 (S) RECON TAKEN UP - IN THIRD
READING
03/22/04 2604 (S) RETURN TO SECOND FOR AM 2
UNAN CONSENT
03/22/04 2604 (S) AM NO 2 ADOPTED UNAN CONSENT
03/22/04 2604 (S) AUTOMATICALLY IN THIRD
READING ON RECON
03/22/04 2604 (S) PASSED ON RECONSIDERATION Y19
N- E1
03/22/04 2604 (S) COSPONSOR(S): LINCOLN
03/22/04 2607 (S) TRANSMITTED TO (H)
03/22/04 2607 (S) VERSION: CSSB 309(JUD) AM
03/24/04 3043 (H) READ THE FIRST TIME -
REFERRALS
03/24/04 3043 (H) STA, JUD
04/08/04 (H) STA AT 8:00 AM CAPITOL 102
04/08/04 (H) Heard & Held
MINUTE(STA)
04/15/04 3343 (H) CROSS SPONSOR(S): HOLM
04/15/04 (H) STA AT 8:00 AM CAPITOL 102
BILL: HCR 26
SHORT TITLE:PFUND: ENCOURAGE INVESTMENTS IN ALASKA
SPONSOR(S): REPRESENTATIVE(s) WOLF
Jrn-Date Jrn-Page Action
01/20/04 2340 (H) READ THE FIRST TIME -
REFERRALS
01/20/04 2340 (H) STA
04/08/04 (H) STA AT 8:00 AM CAPITOL 102
04/08/04 (H) Heard & Held
MINUTE(STA)
04/15/04 (H) STA AT 8:00 AM CAPITOL 102
WITNESS REGISTER
SENATOR TOM WAGONER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as sponsor of SB 309.
REPRESENTATIVE KELLY WOLF
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As sponsor of HCR 26, offered an overview
of the proposed resolution.
BOB BARTHOLOMEW, Chief Operating Officer
Alaska Permanent Fund Corporation (APFC)
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on
HCR 26.
ACTION NARRATIVE
TAPE 04-63, SIDE A
Number 0001
CHAIR BRUCE WEYHRAUCH called the House State Affairs Standing
Committee meeting to order at 8:01 a.m. Representatives Holm,
Seaton, Lynn, and Weyhrauch were present at the call to order.
Representative Coghill arrived as the meeting was in progress.
SB 309-BLOOD PATHOGENS TESTING OF PRISONERS
Number 0058
CHAIR WEYHRAUCH announced that the first order of business was
CS FOR SENATE BILL NO. 309(JUD) am, "An Act relating to testing
the blood of prisoners and those in custody for bloodborne
pathogens."
[Although no formal motion was made, the House committee
substitute (HCS) for CSSB 309, Version 23-LS1597\H, Luckhaupt,
4/7/04 was treated as adopted and before the committee as a work
draft.]
Number 130
REPRESENTATIVE HOLM asked if [the proposed legislation] is
available for cross-sponsorship.
Number 0136
SENATOR TOM WAGONER, Alaska State Legislature, testifying as
sponsor of SB 309, answered yes.
Number 0149
REPRESENTATIVE LYNN indicated that he thinks [SB 309] is an
excellent idea that benefits all parties.
Number 0172
REPRESENTATIVE HOLM moved to report HCS CSSB 309, Version 23-
LS1597\H, Luckhaupt, 4/7/04, out of committee with individual
recommendations and the accompanying fiscal notes.
Number 0196
REPRESENTATIVE SEATON objected. He reminded the committee that
at the last hearing on SB 309, there were some questions
regarding notification of the spouse. He offered his
understanding that, according to current law, if a guard was
inspected [for bloodborne pathogens, for example], and didn't
notify his/her spouse, then that would be a felony if he/she had
unprotected sex with his/her spouse.
REPRESENTATIVE SEATON removed his objection.
Number 0268
SENATOR WAGONER, with respect to concerns regarding
confidentiality, expressed by the committee during the previous
hearing, clarified that "there doesn't have to be an
identification for a third party to be notified that the second
party has been, possibly, contaminated."
Number 0291
CHAIR WEYHRAUCH announced that, there being no further
objection, HCS CSSB 309(STA) was reported out of the House State
Affairs Standing Committee.
HCR 26-PFUND: ENCOURAGE INVESTMENTS IN ALASKA
Number 0300
CHAIR WEYHRAUCH announced that the last order of business was
HOUSE CONCURRENT RESOLUTION NO. 26, Relating to investments in
Alaska by corporate America in which the permanent fund invests.
Number 0316
REPRESENTATIVE HOLM moved to adopt the committee substitute (CS)
for HCR 26, Version 23-LS1469\Q, Cook, 4/8/04, as a work draft.
CHAIR WEYHRAUCH objected. He turned attention to page 1, lines
8-10 [in Version Q], which read as follows:
WHEREAS investments made by the permanent fund in
corporations are of substantial value, and, therefore,
it is understood that corporate America also has an
interest in the economic well-being of the permanent
fund; and
Number 0365
REPRESENTATIVE SEATON proffered that the intent [of the
language] is to leverage companies that the permanent fund has
invested in to make investments in Alaska.
CHAIR WEYHRAUCH concurred. He stated that he thinks
corporations beyond America have an interest in the economic
well being of the permanent fund. He suggested that "corporate
America" has somewhat of a pejorative connotation in some
circles; therefore, he would like to make the language more
neutral.
Number 0535
CHAIR WEYHRAUCH [moved to adopt Amendment 1], as follows:
On page 1, line 9
Between "that" and "also"
Delete "corporate America"
Insert "corporations in which the permanent fund
invests"
Between "also" and "an interest"
Delete "has"
Insert "have"
CHAIR WEYHRAUCH clarified that, with Amendment 1, page 1, lines
8-10 read as follows:
WHEREAS investments made by the permanent fund in
corporations are of substantial value, and, therefore,
it is understood that corporations in which the
permanent fund invests also have an interest in the
economic well-being of the permanent fund; and
CHAIR WEYHRAUCH announced that, there being no objection,
Amendment 1 was adopted.
Number 0557
CHAIR WEYHRAUCH directed the committee's attention to page 1,
line 11, which read as follows:
WHEREAS, because the economic well-being of the
permanent fund is inexorably tied to the economic
well-being of the state as a whole, each corporation
that the fund invests in has an interest in a strong
and stable Alaska economy; and
CHAIR WEYHRAUCH read a definition of "inexorable" as follows:
"Relentless; not to be moved by entreaty." He said he thinks
that the permanent fund, through its prudent investment rules
and various policies, can buy and sell based on management,
without entreaty, and "they can be moved." He offered his
understanding that the intent of the language is that there is a
connection between the health of the permanent fund and the
health of the state as a whole.
Number 0642
REPRESENTATIVE HOLM suggested deleting "inexorably".
CHAIR WEYHRAUCH stated, "So, the conceptual Amendment [2] is
[to] delete 'inexorably'. Is that all right with the
committee?"
CHAIR WEYHRAUCH announced that, hearing no objection, [Amendment
2] was so ordered.
Number 0699
REPRESENTATIVE KELLY WOLF, Alaska State Legislature, as sponsor
of HCR 26, offered an overview of the proposed resolution. He
noted that the value of the permanent fund is nearly $28
billion. There are 2,000 corporate stocks in America and over
1,000 corporate stocks overseas in which the permanent fund is
invested. He stated that, as a grant writer and businessperson,
he knows that seeking funds for non-profit organizations and
encouraging contracts with businesses is an ongoing occurrence.
He indicated that [HCR 26] would give non-profit organizations
"the tool to go to corporate America and ask them for a
contribution." He indicated that it would help the
organizations free themselves from having to depend on the
government's handout of money. He also pointed out that it
would mean less funds that the state has to provide for those
organizations; therefore, it would help the state. He offered
examples of how the corporations that Alaska supports could
support Alaska in return. The proposed legislation, he
explained, would show that the legislature supports this.
Number 1015
REPRESENTATIVE SEATON directed attention to page 2, [beginning
on line 1], which read as follows:
WHEREAS, by adopting this resolution, the member's
[sic] of the legislature recognize that we are
providing an opportunity for Alaska's nonprofit and
for profit sectors to declare their independence
through encouraging those sectors to recognize the
powerful buying support the $24,000,000,000 permanent
fund represents;
REPRESENTATIVE SEATON suggested a change in the language as
follows:
WHEREAS, by adopting the resolution, the legislature
encourages Alaska's nonprofit and profit sectors to
seek financial support from the companies in which the
permanent fund invests $24 billion
Number 1055
REPRESENTATIVE COGHILL offered his understanding that the
sponsor's intent is to encourage the corporations in which
Alaska invests to invest in [nonprofit organizations] in Alaska,
rather than having the nonprofit [organizations] seek out the
corporations.
REPRESENTATIVE WOLF clarified that the intent is to get the two
entities together.
REPRESENTATIVE SEATON asked for clarification of the permanent
fund corporation's and legislature's roles in the resolution.
Number 1140
REPRESENTATIVE WOLF said the resolution is not asking the
permanent fund dividend corporation to "ask corporations that
they invest in to do anything." He continued:
This is the sole discretion of the business sector in
Alaska and the nonprofit sector in the state of Alaska
to do this. We as the legislature -- there's a line
here that we can't cross, and we wouldn't want to
cross, because then it would become very, very
political.
REPRESENTATIVE WOLF indicated that the resolution provides for a
letter to be given to the permanent fund corporation.
Number 1250
CHAIR WEYHRAUCH, in response to questions from Representative
Seaton, clarified that the letter would just be sent to the
Board of Trustees of the Alaska Permanent Fund Corporation and
that corporation has no duty to provide the letter to
corporations, but would make it "available to the public on
request". He noted that the public could be broadly defined as
an individual or a corporate entity.
REPRESENTATIVE WOLF concurred.
Number 1303
CHAIR WEYHRAUCH suggested that the last "WHEREAS" on page 2,
lines 1-4 could be changed to read as follows:
WHEREAS corporations that the permanent fund invests
in have an opportunity to invest in Alaska's nonprofit
and profit sectors in order to flourish and grow those
sectors by encouraging the corporations invested in by
the permanent fund recognize the powerful buying power
that is represented by the permanent fund.
REPRESENTATIVE WOLF indicated that although the intent of the
resolution was simple, what came back from Legislative Legal and
Research Services was a lot different. He suggested deleting
"by adopting this resolution, the member's [sic] of the
legislature recognize that", thereby abbreviating the language.
Number 1452
REPRESENTATIVE HOLM referred to [a one page handout included in
the committee packet] entitled, "Grant Stocks." He asked what
grant stocks are.
REPRESENTATIVE WOLF explained that the list is comprised of
names of corporations in the U.S. that issue grants to nonprofit
[organizations] and have a community relations contribution
program. He noted that the columns on the handout show the
number of shares, the cost at purchase, and the market value.
He added, "And this is as of last year."
Number 1488
REPRESENTATIVE COGHILL questioned how the legislature would
encourage something that is probably already happening to a
large degree. He said he is struggling not only with the
wording, but also with the concept, because many [corporations]
"may see this as an affront, because some of them do heavily
support many nonprofit organizations in Alaska." He noted that
many corporations have shown support of Alaska by coming up to
the state to do business and have been heavily involved in the
communities. He offered examples. He said he understands that
"there are companies that are invested in by the permanent fund
who aren't in Alaska who may be large organizations that issue
grants." He cautioned against making a negative statement.
REPRESENTATIVE WOLF related that, during the last Alaska
gubernatorial inauguration, the Safeway Corporation presented a
check to the governor and first lady for $105,000 for a portable
mammogram unit. Representative Wolf noted that many large
corporations set aside budgets for community giving. He
indicated that a legislator had given him the idea for this
resolution six years ago, and it has taken years to develop the
idea and explain it to corporate America. He said many
nonprofit organizations struggle to find funds every day. He
told the committee that, in 2002, he came across a report
showing that over a hundred million corporate dollars had gone
unasked for. He added that he cannot substantiate the report,
but he said he found it to be "absolutely appalling."
Number 1797
REPRESENTATIVE LYNN suggested adding language to the resolution
thanking those corporations that are "already doing this." He
suggested that may remove some of the objections voiced by
Representative Coghill.
REPRESENTATIVE WOLF said he would have no problem with that.
Number 1825
REPRESENTATIVE HOLM noted that when Fred Meyer opened in
Fairbanks in 1984, 222 small businesses went out of business
over the next three years. He stated, "I don't have a great
desire to tell corporate America how wonderful they're doing
when you can go into Wall Mart and almost everything you see is
from China." He said, "I can assure you the percentage of grant
money given by the large corporations compared to a corporation
my size is absolutely infinitesimally small."
Number 1935
BOB BARTHOLOMEW, Chief Operating Officer, Alaska Permanent Fund
Corporation (APFC), Department of Revenue, in response to a
remark by Chair Weyhrauch, confirmed that the current amount of
the fund, as of yesterday, was $27.9 billion.
Number 1947
REPRESENTATIVE SEATON asked if the grant stocks [listed on the
previously mentioned sponsor's handout] are something that are
made available to nonprofit [organizations] in the state.
MR. BARTHOLOMEW answered no. He explained, "We haven't done any
research as far as which corporations have a giving program, so
I think this was prepared by the sponsor."
Number 1964
CHAIR WEYHRAUCH stated that he thinks it's probably prudent to
bring another committee substitute before the committee the next
time it hears the resolution.
Number 1982
REPRESENTATIVE SEATON said he has a problem with some of the
assumptions that are being made in the language on page 1, lines
8-10 [text provided previously]. He expressed, "I'm not sure
that the corporations that I buy stocks in really are looking at
me as an investor and saying that they're reliant or they're
really interested in my economic health beyond the stock value
that they're supposed to maintain or dividends that they may
provide." He asked that that "jump in logic" be considered when
making a new committee substitute.
Number 2036
REPRESENTATIVE HOLM said there's a disconnect between what the
permanent fund corporation managers can do regarding how they
can affect the policies of the corporation they're buying
[stocks from].
Number 2051
CHAIR WEYHRAUCH opined that the entities that have the most
significant stake in the management of the permanent fund and
how the money's invested are really the money managers, as
opposed to the corporations that they invest in.
Number 2069
REPRESENTATIVE WOLF said he doesn't disagree with Chair
Weyhrauch; however, the legislature can't cross the line and
dictate to the permanent fund corporation where to invest. In
response to Representative Seaton's concern, he listed several
corporations and indicated that there is a connection. He
clarified, "If the State of Alaska's in an economic downturn,
people don't buy," thus, the corporations do depend on economic
well being.
[HCR 26 was heard and held.]
ADJOURNMENT
Number 2137
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at 8:45
a.m.
| Document Name | Date/Time | Subjects |
|---|