Legislature(2009 - 2010)

04/14/2010 05:02 PM L&C


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                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         April 14, 2010                                                                                         
                           5:02 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Joe Paskvan, Chair                                                                                                      
Senator Joe Thomas, Vice Chair                                                                                                  
Senator Bettye Davis                                                                                                            
Senator Kevin Meyer                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Con Bunde                                                                                                               
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 363(FIN)                                                                                
"An  Act relating  to  the membership  of  the Alaska  Industrial                                                               
Development and Export Authority."                                                                                              
                                                                                                                                
     - MOVED CSHB 363(FIN) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE CONCURRENT RESOLUTION NO. 16                                                                                             
Creating  and  relating  to  the  Economic  Development  Planning                                                               
Commission.                                                                                                                     
                                                                                                                                
     - MOVED CSSCR 16(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 294                                                                                                              
"An  Act  amending  the  termination  date  of  certain  statutes                                                               
relating  to  the use,  operation,  and  regulation of  boats,  a                                                               
uniform state  waterway marking system,  and civil  liability for                                                               
boat  owners; providing  for an  effective date  by amending  the                                                               
effective date of secs.  3, 5, 7, 9, 11, 14, 16,  18, 20, 23, 26,                                                               
and  27, ch.  28,  SLA 2000,  as amended;  and  providing for  an                                                               
effective date."                                                                                                                
                                                                                                                                
     - PENDING REFERRAL                                                                                                         
                                                                                                                                
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 363                                                                                                                  
SHORT TITLE: AIDEA MEMBERSHIP                                                                                                   
SPONSOR(s): COMMUNITY & REGIONAL AFFAIRS                                                                                        
                                                                                                                                
02/23/10       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/23/10       (H)       L&C                                                                                                    
03/17/10       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/17/10       (H)       Heard & Held                                                                                           
03/17/10       (H)       MINUTE(L&C)                                                                                            
03/22/10       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/22/10       (H)       Moved CSHB 363(L&C) Out of Committee                                                                   
03/22/10       (H)       MINUTE(L&C)                                                                                            
03/23/10       (H)       L&C RPT CS(L&C) 5DP 1NR                                                                                
03/23/10       (H)       DP: NEUMAN, LYNN, BUCH, T.WILSON, OLSON                                                                
03/23/10       (H)       NR: HOLMES                                                                                             
03/23/10       (H)       FIN REFERRAL ADDED                                                                                     
04/07/10       (H)       FIN AT 9:00 AM HOUSE FINANCE 519                                                                       
04/07/10       (H)       Heard & Held                                                                                           
04/07/10       (H)       MINUTE(FIN)                                                                                            
04/07/10       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/07/10       (H)       Moved CSHB 363(FIN) Out of Committee                                                                   
04/07/10       (H)       MINUTE(FIN)                                                                                            
04/08/10       (H)       FIN RPT CS(FIN) 6DP 4NR                                                                                
04/08/10       (H)       DP: THOMAS, GARA, AUSTERMAN, KELLY,                                                                    
                        N.FOSTER, JOULE                                                                                         
04/08/10       (H)       NR: DOOGAN, SALMON, STOLTZE, HAWKER                                                                    
04/09/10       (H)       RLS RPT CS(FIN) 4DP 2NR                                                                                
04/09/10       (H)       DP: HERRON, NEUMAN, OLSON, DAHLSTROM                                                                   
04/09/10       (H)       NR: KERTTULA, GARDNER                                                                                  
04/09/10       (H)       RETURNED TO RLS COMMITTEE                                                                              
04/09/10       (H)       RLS AT 9:00 AM CAPITOL 120                                                                             
04/09/10       (H)       Moved CSHB 363(FIN) Out of Committee                                                                   
04/09/10       (H)       MINUTE(RLS)                                                                                            
04/10/10       (H)       TRANSMITTED TO (S)                                                                                     
04/10/10       (H)       VERSION: CSHB 363(FIN)                                                                                 
04/11/10       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/11/10       (S)       L&C, FIN                                                                                               
04/14/10       (S)       L&C AT 1:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SCR 16                                                                                                                  
SHORT TITLE: ECONOMIC DEVELOPMENT PLANNING COMMISSION                                                                           
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
03/15/10       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/15/10       (S)       L&C, FIN                                                                                               
03/25/10       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/25/10       (S)       Heard & Held                                                                                           
03/25/10       (S)       MINUTE(L&C)                                                                                            
04/14/10       (S)       L&C AT 1:30 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ROB EARL                                                                                                                        
Staff to Representative Bob Herron                                                                                              
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Presented HB 363 for the sponsor.                                                                         
                                                                                                                                
TED LEONARD, Executive Director                                                                                                 
Alaska Industrial Development and Export Authority (AIDEA)                                                                      
POSITION STATEMENT: Supported HB 363.                                                                                         
                                                                                                                                
JEFF STEPP                                                                                                                      
Staff to Senator Paskvan                                                                                                        
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Explained the CS for SCR 16.                                                                              
                                                                                                                                
ERIN HARRINGTON                                                                                                                 
Staff to Representative Alan Austerman                                                                                          
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Commented on HB 363 and was available to                                                                  
answer question on SCR 16.                                                                                                      
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
5:02:24 PM                                                                                                                  
CHAIR JOE PASKVAN called the Senate Labor and Commerce Standing                                                               
Committee meeting to order at 5:02 p.m. Present at the call to                                                                  
order were Senators Davis, Thomas, and Paskvan.                                                                                 
                                                                                                                                
                    HB 363-AIDEA MEMBERSHIP                                                                                 
                                                                                                                                
5:03:52 PM                                                                                                                    
CHAIR PASKVAN announced HB 363 to be up for consideration.                                                                      
[Before the committee was CSHB 363(FIN), version P].                                                                            
                                                                                                                                
5:04:00 PM                                                                                                                    
ROB EARL, staff to Representative Bob Herron, Erin Harrington,                                                                  
staff to Representative Alan Austerman, introduced themselves.                                                                  
                                                                                                                                
5:04:24 PM                                                                                                                    
SENATOR MEYER joined the committee.                                                                                             
                                                                                                                                
MR. EARL said  that the Alaska Industrial  Development and Export                                                               
Authority  (AIDEA) is  a public  development finance  corporation                                                               
whose  mission  is  to  promote  economic  growth  in  Alaska  by                                                               
providing various  means of financing an  investment. If fulfills                                                               
this  mission  by providing  Alaskan  businesses  with long  term                                                               
financing options at  a reasonable cost. Each  year 25-50 percent                                                               
of the return  on its assets are redistributed back  to the state                                                               
general fund as a dividend; this year it was $23 million.                                                                       
                                                                                                                                
He  said  the  AIDEA  board  also serves  as  the  Alaska  Energy                                                               
Authority (AEA)  Board. Currently there  are five members  on the                                                               
AIDEA Board: the commissioner of  the Department of Revenue (DOR)                                                               
and Department  of Commerce,  Community and  Economic Development                                                               
(DCCED). Those  two commissioners are  on it by statute.  A third                                                               
discretionary  commissioner  is  appointed by  the  Governor  and                                                               
currently he is with the  Department of Transportation and Public                                                               
Facilities (DOTPF); two public members  are also appointed by the                                                               
Governor. This bill  adds three more public members  to the board                                                               
expanding it from  five to seven members. HB  363 also stipulates                                                               
that  public  members  must   possess  business  and/or  industry                                                               
expertise and leadership skills.                                                                                                
                                                                                                                                
The reasons  for expanding  to a seven-member  board are  that it                                                               
would  give  AIDEA  more flexibility  in  forming  subcommittees,                                                               
which  they  have  expressed  a  desire  for,  and  increase  the                                                               
potential  for  more diverse  experience  in  specialties on  the                                                               
board while also increasing the  potential for broader geographic                                                               
and industry representation.  It will also allow  for the general                                                               
thrust  of  the bill,  which  is  to  create a  preponderance  of                                                               
private sector input in AIDEA's governance.                                                                                     
                                                                                                                                
5:06:49 PM                                                                                                                    
MS. HARRINGTON added  that this bill, like SCR 16,  responds to a                                                               
need that was identified through the  course of the Interim to be                                                               
more  proactive   about  the   state's  resources   for  economic                                                               
development  and  to  bring more  private  sector  oversight  and                                                               
guidance in to the way the state deploys its resources.                                                                         
                                                                                                                                
CHAIR PASKVAN asked if they knew of any opposition.                                                                             
                                                                                                                                
MR. EARL answered no; it passed the house with a vote of 40-0.                                                                  
                                                                                                                                
5:07:47 PM                                                                                                                    
TED LEONARD,  Executive Director,  AIDEA, said they  supported HB
363. Getting a  quorum is sometimes a  problem during legislative                                                               
sessions  and  fishing  seasons  with  a  five-member  board,  he                                                               
explained. They  also support having  more private  sector input;                                                               
it   is  necessary   and  important.   He  remarked   that  their                                                               
commissioners have given them very good advice.                                                                                 
                                                                                                                                
5:09:16 PM                                                                                                                    
CHAIR  PASKVAN,  finding  no   further  comments,  closed  public                                                               
testimony.                                                                                                                      
                                                                                                                                
SENATOR  MEYER  moved  to  report  HB  363  from  committee  with                                                               
individual  recommendations and  attached  fiscal note(s).  There                                                               
were  no  objections  and  it  was  so  ordered.  Therefore  CSHB
363(FIN) moved from committee.                                                                                                  
                                                                                                                                
5:10:28 PM                                                                                                                    
CHAIR PASKVAN announced an at ease from 5:10-5:11 p.m.                                                                          
                                                                                                                                
        SCR 16-ECONOMIC DEVELOPMENT PLANNING COMMISSION                                                                     
                                                                                                                                
5:11:25 PM                                                                                                                    
CHAIR PASKVAN  announced SCR  16 to be  up for  consideration. He                                                               
moved  to  adopt  CSSCR  16  (L&C),  version  S.  There  were  no                                                               
objections and it was so ordered.                                                                                               
                                                                                                                                
5:12:08 PM                                                                                                                    
JEFF STEPP,  staff to  Senator Paskvan,  explained that  they had                                                               
worked  closely with  the  companion sponsors  in  the House  and                                                               
agreed to  keep the Senate version  of the bill identical  to the                                                               
other. Some of the changes made in this committee are:                                                                          
   · Page 1, line 16, changed "Alaska Legislative Council" to                                                                   
     "Legislature".  So,  the  Alaska Legislature  shall  provide                                                               
     adequate staffing to  the commission. This was  done so that                                                               
     the  Alaska  Legislature  could provide  the  administrative                                                               
     support to  this committee and  that would  effectively zero                                                               
     out the fiscal  note. Since that fiscal note  was zeroed out                                                               
     by the House  Finance Committee Chairs, they  couldn't get a                                                               
     zero fiscal  from the department.  So, the CS still  has the                                                               
     $130,000 fiscal  note, but  when this  bill goes  to Finance                                                               
     those committee chairmen will zero it out as well.                                                                         
   · Page 2, various lines, changes so that legislative members                                                                 
     are  appointed by  the presiding  officers  rather than  the                                                               
     Finance co-chairs. It also  added another public appointment                                                               
     to the  Finance co-chairs  from each  body to  be consistent                                                               
     with protocol  for appointments  made by  presiding officers                                                               
     not Finance co-chairs.                                                                                                     
   · Page 2, lines 6-8 and 10-12, gave one public appointment                                                                   
     each  to  the  Senate  and House  minority  leaders  out  of                                                               
     respect  to those  individuals serving  in the  legislature.                                                               
     They  moved  one public  appointment  each  from the  Senate                                                               
     President and the House Speaker.                                                                                           
   · Page  2,   lines  23-34,  added  the   president  of  Alaska                                                               
     Partnership for Economic Development  or their designee as a                                                               
     commission member,  recognizing the status  and contribution                                                               
     this person could make to  the committee, bringing the total                                                               
     membership from 10 to 11.                                                                                                  
   · Page  2, sections  2,4  and 6  remove  the requirement  that                                                               
     appointees can't  be "officers of  the state or  employed by                                                               
     officers  of  the   state"  in  order  to   leave  open  the                                                               
     opportunity  for appointments  by qualified  individuals who                                                               
     are  employed  by  the  state.  While  they  are  trying  to                                                               
     encourage participation from the  private sector, they don't                                                               
     want  to   automatically  exclude  somebody  who   might  be                                                               
     qualified.                                                                                                                 
   · Page 3,  lines 9-11,  direct the commission,  as recommended                                                               
     by  this committee,  to report  to the  Legislative Council,                                                               
     the Senate  and the  House Labor  and Commerce  Committee in                                                               
     addition to LB&A.                                                                                                          
   · Page 3, line  12, changed the first  reporting deadline from                                                               
     June 30,  2011 to January  30, 2011 to correct  an oversight                                                               
     and to make  sure the legislature had a report  prior to the                                                               
     beginning  of next  legislative session  rather than  at the                                                               
     end.                                                                                                                       
   · Page 3,  lines 20-21,  inserted a second  reporting deadline                                                               
     of December 15, 2011.                                                                                                      
   · Page  3, line  24,  changed commencement  of the  commission                                                               
     work from March 15, a date in  the past, to April 30, a date                                                               
     in the future.                                                                                                             
   · Page 3,  line 25, changed the  sunset from June 30,  2011 to                                                               
     June  30, 2012  giving this  commission another  year to  do                                                               
     their important work.                                                                                                      
                                                                                                                                
5:17:11 PM                                                                                                                    
ERIN HARRINGTON, staff to Representative Alan Austerman, sponsor                                                                
of SCR 16, said she was available to answer questions.                                                                          
                                                                                                                                
5:17:38 PM                                                                                                                    
CHAIR PASKVAN, finding no further discussion, closed public                                                                     
testimony.                                                                                                                      
                                                                                                                                
SENATOR MEYER moved to report CSSCR 16(L&C) from committee with                                                                 
individual recommendations and attached fiscal note(s). There                                                                   
were no objections and it was so ordered.                                                                                       
                                                                                                                                
5:18:43 PM                                                                                                                    
CHAIR PASKVAN found no further business to come before the                                                                      
committee and adjourned the meeting at 5:18 p.m.                                                                                

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