Legislature(1993 - 1994)

04/13/1993 09:30 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                         April 13, 1993                                        
                            9:30 a.m.                                          
                                                                               
  TAPES                                                                        
                                                                               
  SFC-93, #56, Side 1 (415-500)                                                
  SFC-93, #58, Side 1 (000-end)                                                
  SFC-93, #58, Side 2 (end-255)                                                
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator  Drue  Pearce,  Co-chair,  convened the  meeting  at                 
  approximately 9:30 a.m.                                                      
                                                                               
  PRESENT                                                                      
                                                                               
  In  addition  to  Co-chair Pearce,  Senators  Jacko,  Kelly,                 
  Kerttula, Rieger, Sharp,  and were present.   Co-chair Frank                 
  arrived while the meeting was in progress.                                   
                                                                               
  ALSO ATTENDING:   Senators Robin Taylor and  Randy Phillips,                 
  Jerry  Burnett, staff  to  Senator  Phillips; Sherrie  Goll,                 
  Alaska  Women's Lobby  &  KIDPAC; Donna  Schultz,  Associate                 
  Coordinator,  Division   of  Family   and  Youth   Services,                 
  Department   of  Health  &  Social  Services;  Mark  Hickey,                 
  Contract  Lobbyist,  Alaska   Railroad  Corporation;   David                 
  Skidmore, staff to Co-chair  Frank; Jim Coate,  Unemployment                 
  Insurance Program Manager,  Division of Employment Security,                 
  Department  of Labor;  Judy  Knight,  Director, Division  of                 
  Employment  Security;  Randy  Welker,  Legislative  Auditor,                 
  Legislative Audit Division; Shelby Stastny, Director, Office                 
  of  Management  & Budget;  Mike  Greany, Director  and David                 
  Tonkovich, Jeff Hoover, and Karen  Rehfeld, Fiscal Analysts,                 
  Legislative  Finance   Division;  and  aides   to  committee                 
  members.                                                                     
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  CSSB 45(HES)-  An Act relating to persons  under 21 years of                 
                 age;  providing  for designation  of shelters                 
                 for runaway minors; relating to the detention                 
                 and  incarceration  of minors;  and providing                 
                 for an effective date.                                        
                                                                               
                 Testimony   was   heard   by  Senator   Randy                 
                 Phillips, sponsor of SB 45, in support of the                 
                 bill.  Sherrie Goll, Alaska Women's Lobby and                 
                 KIDPAC,  voiced  concern  over sections  3-8.                 
                 Donna    Schultz,   Associate    Coordinator,                 
                 Division of Family  and Youth Services;  gave                 
                 information in  regard to the  bill.  Senator                 
                 Frank MOVED a conceptual  amendment regarding                 
                                                                               
                                                                               
                 the non-custodial  parent.   CSSB 45(FIN)  as                 
                 amended  was  MOVED  out  of  committee  with                 
                 individual recommendations.                                   
                                                                               
  SB 162 -       An Act relating to  the implementation of the                 
                 federal  emergency unemployment  compensation                 
                 program;   making    changes   relating    to                 
                 unemployment compensation under  the extended                 
                 benefits program and  the supplemental  state                 
                 benefits  program;  and   providing  for   an                 
                 effective date.                                               
                                                                               
                 Testimony was heard by Judy Knight, Director,                 
                 Employment Security Division, and  Jim Coate,                 
                 Unemployment   Program  Manager,   Employment                 
                 Security  Division,  Department of  Labor, in                 
                 support of  SB 162.   Discussion  was had  by                 
                 Senators  Kelly  and  Kerttula in  regard  to                 
                 federal  moneys,  and  questioned  additional                 
                 cost to the state.   Amendment 1 was ADOPTED.                 
                 CSSB  162(FIN)  as amended  was MOVED  out of                 
                 committee with individual recommendations.                    
                                                                               
  CSSB 148(TRA)- An  Act relating  to legislative  approval of                 
                 certain   acts   of   the   Alaska   Railroad                 
                 Corporation; taxation of certain  property of                 
                 the Alaska Railroad  Corporation; members  of                 
                 the board and chief executive  officer of the                 
                 Alaska Railroad Corporation; meetings  of the                 
                 board  of directors  of  the Alaska  Railroad                 
                 Corporation; and providing  for an  effective                 
                 date.                                                         
                                                                               
                 Testimony was heard by  Mark Hickey, Contract                 
                 Lobbyist,  Alaska  Railroad  Corporation, and                 
                 David  Skidmore,  staff   to  Senator   Frank                 
                 regarding  an  amendment  offered by  Senator                 
                 Frank.  Amendment 3  was ADOPTED.  Discussion                 
                 was held  between Co-chairs Pearce  and Frank                 
                 and Senator  Kelly regarding  changes to  the                 
                 railroad  board  as set  forth  in the  bill.                 
                 CSSB 148(TRA) was held in committee.                          
                                                                               
  CSSB 128(STA)- An Act relating to legislative audits.                        
                                                                               
                 The  committee  RESCINDED its  action PASSING                 
                 the bill  out of  committee.   Discussion was                 
                 held   between   Randy   Welker,  Legislative                 
                 Auditor, Legislative  Audit Division;  Shelby                 
                 Stastny,  Director,  Office  of management  &                 
                 Budget; Senator Kelly,  Co-chairs Pearce  and                 
                 Frank,  regarding  a  new  fiscal  note  from                 
                 Office of  Management & Budget  in the amount                 
                 of   $210.6.  CSSB   128(STA)  was   held  in                 
                                                                               
                                                                               
                 committee until April 14, 1993.                               
                                                                               
  The following bills were scheduled but not heard:                            
                                                                               
       SB  76 -  CHARITABLE GAMING RESTRICTIONS                                
                                                                               
       SB  88 -  CAPITAL PROJECT GRANTS                                        
                                                                               
       SB 106 -  AUTHORIZING POWER TRANSMISSION INTERTIES                      
                                                                               
       SB 126 -  APPROP: POWER TRANSMISSION INTERTIES                          
                                                                               
       SB 129 -  POWERS OF CHIEF PROCUREMENT OFFICER                           
                                                                               
       SB 163 -  POWER COST EQUALIZATION                                       
                                                                               
                                                                               
  CS FOR SENATE BILL NO. 45(HES):                                              
                                                                               
       An Act  relating  to persons  under  21 years  of  age;                 
       providing  for  designation  of  shelters  for  runaway                 
       minors; relating to the detention and  incarceration of                 
       minors; and providing for an effective date.                            
                                                                               
  CO-CHAIR DRUE PEARCE announced that  CSSB 45(FIN) work draft                 
  "K"  was before the  committee.  SENATOR  GEORGE JACKO MOVED                 
  for adoption of the "K" version  of CSSB 45(FIN) work draft.                 
  Hearing no objections, IT WAS SO ORDERED.                                    
                                                                               
  JERRY BURNETT, staff to Senator Phillips, sponsor of SB  45,                 
  spoke to the  CSSB 45(FIN) work draft "K".  He said that the                 
  amendment adopted  at the  last Senate  Finance meeting  had                 
  been  incorporated  into this  work draft.   In  Section 14,                 
  changes  were  made giving  a  police officer  discretion in                 
  deciding whether a minor  should be given a choice  of going                 
  home or entering a runaway home or program.                                  
                                                                               
  End SFC-93 #56, Side 1                                                       
  Begin SFC-93 #58, Side 1                                                     
                                                                               
  SHERRIE GOLL, Alaska  Women's Lobby & KIDPAC,  spoke to CSSB
  45(FIN).    She said  that  the  bill seeks  to  address the                 
  growing,   serious  problem  of   homeless  youth   in  many                 
  communities  of  the state.   She  spoke  in support  of the                 
  system of safe homes  this bill would create.   However, she                 
  said that she had serious concerns with Sections 3 through 8                 
  which pertain to the emancipation of a minor, and said these                 
  sections carried a serious policy change for the state.  She                 
  explained  that in  these sections,  parents  may emancipate                 
  their child  at 16  years of  age, basically  divorcing them                 
  when they become a teenager.  She explained that this can be                 
  done  without  the consent  of the  minor  and is  a serious                 
  change in Alaska statute and spoke in opposition to it.  Ms.                 
                                                                               
                                                                               
  Goll  felt  that  the  a   non-custodial  parent  should  be                 
  contacted  and  that  option  should   be  included  in  the                 
  legislation.                                                                 
                                                                               
  CO-CHAIR  STEVE  FRANK asked  Senator  Phillips to  speak to                 
  Sections  3  through 8.    SENATOR  RANDY PHILLIPS  said  he                 
  recognized  that  CSSB 45(FIN)  was not  perfect but  was an                 
  intent to address a  problem, and try to balance  the rights                 
  of the parent and child in difficult situations.                             
                                                                               
  Co-chair Pearce  said that  she shared  Ms. Goll's  concern.                 
  She said she understood that the  judge would continue to go                 
  through the same  procedure even if this  legislation should                 
  pass  and that  the minor  would not be  emancipated without                 
  being included in the procedure.   The judge would decide if                 
  it was in the  best interests of all parties involved.  What                 
  this bill  did was add the  ability of a parent  to petition                 
  for emancipation of a minor child.  Co-chair Frank said that                 
  his understanding  was that  the Office  of Public  Advocacy                 
  would  continue to represent children's interests before the                 
  court.   He asked  if the  Office of  Public Advocacy  would                 
  represent the minor  in these situations.   Senator Phillips                 
  said that he did not know but felt that they would do that.                  
                                                                               
  DONNA SCHULTZ, Associate Coordinator, Division of Family and                 
  Youth Services, Department of Health & Social Services, said                 
  she felt that  a minor  would have a  right to an  attorney.                 
  Ms. Goll said  that Section 7, which is part  of the current                 
  statutes, does say that the court may appoint an attorney or                 
  a guardian.  She said that in earlier legislation the Office                 
  of  Public Advocacy  would not have  been able  to represent                 
  minors.   She was opposed  to such legislation  since minors                 
  would be even more in need of representation.  She wanted to                 
  point out  that during  the children's  caucus meeting,  the                 
  Tough Love organization had given a presentation.  It seemed                 
  that even in  their description of  a case with a  difficult                 
  minor, this organization was committed to keeping the family                 
  together and  would not  want to  exacerbate the  problem of                 
  homeless youth.                                                              
                                                                               
  SENATOR JAY KERTTULA said  he understood that the Office  of                 
  Public Advocacy could handle a whole  range of problems.  He                 
  would not want the organization to be removed.  He said that                 
  he might  offer a  letter of  intent to  this effect  on the                 
  floor.                                                                       
                                                                               
  Co-chair Frank MOVED  a conceptional  amendment to say  that                 
  "in   granting  the  emancipation,  the  court  shall  first                 
  consider the non-custodial parent's  willingness and ability                 
  to  assume  custody."    No   objections  being  heard,  the                 
  amendment was ADOPTED.                                                       
                                                                               
  Co-chair Frank MOVED for passage of CSSB 45(FIN)  as amended                 
  from   committee  with   individual  recommendations.     No                 
                                                                               
                                                                               
  objections being  heard, CSSB  45(FIN) was  REPORTED OUT  of                 
  committee with a "do pass," and with three zero fiscal notes                 
  for the Department of Law, Department of  Public Safety, and                 
  Department of Labor, and fiscal notes for the Department  of                 
  Health & Social Services for $74.0, and for the Alaska Court                 
  System  for  $20.1.   Co-chairs  Frank and  Pearce, Senators                 
  Kelly, Jacko, Rieger,  and Sharp voted  "do pass."   Senator                 
  Kerttula voted "no recommendation."                                          
                                                                               
                                                                               
  SENATE BILL NO. 162:                                                         
                                                                               
       An Act relating  to the  implementation of the  federal                 
       emergency  unemployment  compensation  program;  making                 
       changes relating to unemployment compensation under the                 
       extended benefits  program and  the supplemental  state                 
       benefits program; and providing for an effective date.                  
                                                                               
  Co-chair  Peace  announced  that  SB   162  was  before  the                 
  committee.  SENATOR TIM KELLY voiced his support of the bill                 
  but asked for clarification in terms  of state dollars.  Co-                 
  chair  Pearce  invited  Jim  Coate,  Unemployment  Insurance                 
  Program Manager, Division of Employment Security, Department                 
  of Labor, and Judy Knight,  Director, Division of Employment                 
  Security, to  join the members at the table and speak to the                 
  bill.                                                                        
                                                                               
  JUDY  KNIGHT said that  SB 162  did three  main things.   It                 
  would allow the state to  continue its participation in  the                 
  emergency unemployment compensation  program which  Congress                 
  has  enacted  and  amended  for  the  fourth  time.    Prior                 
  legislation allowed  the department  to participate  in that                 
  program  and  the participation  was  limited to  two years,                 
  ending December 1993.   Currently Congress has  extended the                 
  program  to pay benefits through the middle of January 1994.                 
  Secondly,  the  other  provisions  allow  the state  law  to                 
  conform with federal  law in  the extended benefits  program                 
  (changes made last year by Congress).   The third item is an                 
  optional trigger allowing the department to pay the extended                 
  benefits program when the employment  rate reaches a certain                 
  level.  She explained emergency unemployment compensation is                 
  financed 100 percent by federal revenues.   It is being paid                 
  because of high unemployment throughout the nation.  When an                 
  individual  becomes  unemployed,  they  first  draw  regular                 
  benefits for  16 to 26  weeks, and during  a period  of high                 
  unemployment, they  may be  eligible for  extended benefits.                 
  Since   Congress   passed    the   emergency    unemployment                 
  compensation program, we have bypassed  the extended benefit                 
  program and used the federal program.                                        
                                                                               
  Senator  Kelly  asked which  fund  would pay  those extended                 
  benefits.   Ms.  Knight  said  that in  Alaska,  like  other                 
  states,  there  is  an unemployment  insurance  trust  fund.                 
                                                                               
                                                                               
  Employers and employees  are taxed and  the money goes  into                 
  that fund.   Regular unemployment  benefits are paid  out of                 
  that  fund.   Emergency unemployment  compensation is  drawn                 
  from the U.S. Department of Labor fund.  Senator Kelly asked                 
  if the state fund had a surplus.  Ms. Knight said that there                 
  was  not a  surplus  but a  sufficient  balance to  maintain                 
  solvency.    This balance  was  equal  to 3  percent  of the                 
  state's total wages.   She  explained, in case  of a  severe                 
  recession, employers' taxes  would not have to  be increased                 
  to maintain solvency of the fund.                                            
                                                                               
  JIM  COATE said that  the formula that  determines tax rates                 
  has  what is  called a solvency  adjustment.   That solvency                 
  adjustment is both positive and negative.  As the balance in                 
  the trust fund gets too large, by formula, a negative tax is                 
  applied to  the overall  tax rate,  reducing it.   It is  an                 
  automatic and controlled balance.                                            
                                                                               
  Senator Kelly asked if  SB 162 would pass this  session, how                 
  much federal money  would be distributed  throughout Alaska.                 
  Ms. Knight said that over $100 million had already been paid                 
  out  since the  state  started  the  emergency  unemployment                 
  compensation program.  It is expected that an additional $40                 
  million would be paid out between now and January 1994.  Ms.                 
  Knight  said  that the  state  would save  approximately $20                 
  million  in the  coming  year because  claims would  be paid                 
  under  the  emergency  program  and  not under  the  state's                 
  extended program.  There are other provisions that the state                 
  must pass to coincide with  federal law.  If the state  does                 
  not  pass  these  statutes  to meet  federal  law,  then the                 
  Secretary of Labor, through a hearing process could find the                 
  state  out  of   compliance,  and   the  state  would   lose                 
  administrative funds.  The administrative  funds are all the                 
  federal employment and  training dollars that come  into the                 
  state.  Those funds  come from the U.S. Department  of Labor                 
  for  administrative costs  for  unemployment insurance,  the                 
  employment service and training partnership.                                 
                                                                               
  In answer to Senator Kelly, Mr.  Coate said that the statute                 
  changes in  order to come into federal  compliance would not                 
  cost any state dollars.  However,  the six weeks of benefits                 
  that the state would not be able to pay, if SB 162  does not                 
  pass, would be  a loss of about  $1.5 million to  the state.                 
  The danger is that federal law mandates extended benefits be                 
  paid  through January  15, 1994,  and  state law  would stop                 
  payments in the first part of December 1993.  The compliance                 
  issue with the federal government  could cost the state $25-                 
  30 million in administrative funds that are expected to come                 
  into the state  to pay  for the administrative  part of  the                 
  three programs.                                                              
                                                                               
  Ms. Knight said  that the Labor  and Commerce Committee  had                 
  requested  an  amendment  that  would  repeal  the emergency                 
  compensation  provisions  and  that   was  provided  to  the                 
                                                                               
                                                                               
  committee as amendment 1.                                                    
                                                                               
  Senator Kelly MOVED amendment 1.  No objections being heard,                 
  amendment 1 was ADOPTED.                                                     
                                                                               
  Discussion was had by Mr. Knight and Senator Kelly regarding                 
  additional  costs  to  the  state   regarding  the  extended                 
  compensation.                                                                
                                                                               
  Senator  Kerttula  MOVED  for passage  of  CSSB  162(FIN) as                 
  amended from committee with individual recommendations.   No                 
  objections  being  heard,  CSSB   162(FIN)  as  amended  was                 
  REPORTED  OUT  of committee  with a  "do  pass," and  a zero                 
  fiscal note  for the Department  of Labor.   Co-chairs Frank                 
  and  Pearce,  Senators Kelly,  Rieger,  and Kelly  voted "do                 
  pass." Senators Jacko and Sharp were absent from the meeting                 
  and did not sign.                                                            
                                                                               
                                                                               
  CS FOR SENATE BILL NO. 128(STA):                                             
                                                                               
       An Act relating to legislative audits.                                  
                                                                               
  Co-chair  Pearce  said  that CSSB  128(STA)  was  before the                 
  committee. She  announced  that  Shelby  Statsny,  Director,                 
  Office of Management  & Budget, Office of the  Governor, had                 
  wanted to  prepare a  fiscal note  for the  bill.   Co-chair                 
  Frank asked  if follow-up was  being required so  that audit                 
  recommendations can be implemented.                                          
                                                                               
  RANDY   WELKER,   Legislative  Auditor,   Legislative  Audit                 
  Division,  said   that  CSSB  128(STA)  would   establish  a                 
  recommendation    monitoring    system    providing,    once                 
  recommendations are made, a system to follow up the numerous                 
  recommended   implementations,  and   report  back   to  the                 
  committee.   The basic purpose of  the bill is  to provide a                 
  mechanism  to keep  the items  before the  Budget and  Audit                 
  Committee.  He said  the fiscal note prepared by  the Office                 
  of Budget and Audit Committee was an overstatement.  He felt                 
  it is an  important proposal and  would hate to  see it  get                 
  buried by the  department's fiscal  note.  Senator  Kerttula                 
  asked if one  staff person  could accomplish this  follow-up                 
  task.  Mr. Welker said that one position within the division                 
  would be a good start in establishing a system so the impact                 
  on the  division could be  determined.  He felt  it could be                 
  handled in house.                                                            
                                                                               
  Co-chair Frank  said that follow-up on audits  by the Office                 
  of Management & Budget is a  good idea but would have to  be                 
  done on  a priority basis.   The really  dramatic situations                 
  that need attention  should be top  priority.  He felt  that                 
  this  bill  would  give  the   department  another  tool  to                 
  accomplish what they are already required to do.  He felt it                 
                                                                               
                                                                               
  was not an additional responsibility.                                        
                                                                               
  SHELBY  STATSNY, Director,  Office of  Management &  Budget,                 
  Office of  the Governor, said that  he was in  support of SB
  128.  However,  he argued  that the bill  was an  additional                 
  mandate and it would take more  employees.  He felt that his                 
  department had worked hard this last year to  come up with a                 
  program  to  follow-up on  their  own  audits.   There  is a                 
  schedule that  a minimum  of six  months after  an audit,  a                 
  follow-up is done with the audited department to insure that                 
  recommendations  have  been  done.   He  did  not  want  his                 
  department to become a division of Legislative Audit.                        
                                                                               
  In  answer  to  Senator Kelly,  Mr.  Statsny  said  that his                 
  department's  auditors  served  at   the  pleasure  of   the                 
  Governor.    Senator   Kelly  felt   that  was  the   reason                 
  Legislative Audit  had been established outside  the Officer                 
  of the  Governor.   Senator Kelly  pointed out  that in  the                 
  past, auditors had  been fired if the Governor had disagreed                 
  with the audit.                                                              
                                                                               
  End SFC-93 #58, Side 1                                                       
  Begin SFC-93 #58, Side 2                                                     
                                                                               
  Co-chair Frank said he was in  support of reducing the scope                 
  of SB  128 so that  additional employees were  not required.                 
  He  asked Mr. Welker if that would  be possible.  Mr. Welker                 
  said  that  could  be accomplished  through  Budget  & Audit                 
  policy and procedure in developing  and reviewing what items                 
  they choose to forward for follow-up.                                        
                                                                               
  Co-chair  Frank  MOVED to  rescind  the committee  action of                 
  April 12, 1993  reporting CSSB 128(STA) from  committee.  No                 
  objections  being  heard,  CSSB  128(STA)  was  returned  to                 
  committee.                                                                   
                                                                               
  Co-chair  Pearce announced that  Co-chair Frank,  Mr. Welker                 
  and  Mr.  Statsny  would  work  together  on  amending  CSSB
  128(STA), and the bill was held in committee.                                
                                                                               
                                                                               
  CS FOR SENATE BILL NO. 148(TRA):                                             
                                                                               
       An Act relating to legislative approval of certain acts                 
       of the Alaska Railroad Corporation; taxation of certain                 
       property of the Alaska Railroad Corporation; members of                 
       the board  and chief  executive officer  of the  Alaska                 
       Railroad  Corporation;   meetings  of   the  board   of                 
       directors  of  the  Alaska  Railroad  Corporation;  and                 
       providing for an effective date.                                        
                                                                               
  Co-chair Pearce announced that CSSB  148(TRA) was before the                 
  committee.   Co-chair Frank  said that  amendment 3  further                 
                                                                               
                                                                               
  clarifies the definition of non-transportation activity.                     
                                                                               
  DAVID SKIDMORE, staff to Co-chair  Frank, spoke to amendment                 
  3.    He said  that points  A  and B  were identical  to the                 
  original definition that was  in the transportation CS.   He                 
  said point C is the clarifying point which provides that the                 
  railroad is prohibited from obtaining  an equity position in                 
  an  activity  that  occurs  before   or  subsequent  to  the                 
  movement,  handling, or distribution  of people  or personal                 
  property not withstanding activities  that were conducted by                 
  the corporation  on the  date of  transfer to  the state  or                 
  activities  that  are  directly  related  to  the  movement,                 
  handling,  or distribution  of people or  personal property.                 
  Mr. Skidmore  said that the amendment was acceptable to Mark                 
  Hickey.                                                                      
                                                                               
  Senator  Kelly   asked  if  the  railroad   corporation  was                 
  grandfathered in the  equity position in the  existing hotel                 
  somewhere in the  bill.  Mr.  Skidmore said that action  had                 
  not been taken regarding the existing hotel.                                 
                                                                               
  MARK HICKEY, Alaska Railroad Corporation,  said that in CSSB
  148(FIN) work  draft, page 4, lines 21 through 24, addresses                 
  specific activities  engaged in by the  railroad corporation                 
  and  "does  not apply  to specific  activities in  which the                 
  corporation  is  engaged  on  the  effective  date  of  this                 
  section..."                                                                  
                                                                               
  Co-chair  Pearce  announced  that CSSB  148(FIN)  work draft                 
  dated April 12, 1993 had been adopted by the committee.                      
                                                                               
  Co-chair  Frank  MOVED  for adoption  of  amendment  3.   No                 
  objections being heard, amendment 3 was ADOPTED.                             
                                                                               
  Co-chair  Frank  MOVED  for passage  of  CSSB  148(FIN) from                 
  committee  with individual  recommendations.   Senator Kelly                 
  OBJECTED.  He  questioned the  filling of a  vacancy on  the                 
  board  of  directors for  the  railroad corporation  by this                 
  legislation.                                                                 
                                                                               
  Co-chair Pearce  said that  the next  vacancy  of the  board                 
  would come up this  fall.  She said the  railroad would have                 
  to appoint an outside director at that time.  She went on to                 
  explain  the  Governor's role  in  the appointments  and his                 
  options.  Senator Kelly voiced his opposition to a change in                 
  the  board.  Co-chair Pearce  explained that there never had                 
  been an expectation that the CEO  of the railroad would also                 
  hold the position of outside railroad expert.  She felt that                 
  outside expert should be someone other  than the CEO.  Since                 
  there was a seat that was becoming vacant, she felt it was a                 
  good opportunity to accomplish this change.                                  
                                                                               
  Senator Kelly asked Mr. Hickey what the fee was for board of                 
  directors of the railroad.  Mr. Hickey said the law provided                 
                                                                               
                                                                               
  for $400 a day plus per diem.   Co-chair Pearce said that it                 
  was the highest paid board in the state.  It was pointed out                 
  that  it  was  modeled  after the  permanent  fund  board of                 
  director's fees.                                                             
                                                                               
  Senator Kelly reiterated  his opposition to a  change in the                 
  board of directors for the railroad corporation.                             
                                                                               
  Co-chair Frank withdrew his motion to move CSSB 148(FIN) out                 
  of committee.  Co-chair Pearce  announced that CSSB 148(FIN)                 
  would be held in committee.                                                  
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was adjourned at approximately 10:32 a.m.                        
                                                                               

Document Name Date/Time Subjects