05/02/1996 06:00 PM Senate L&C

               SENATE LABOR AND COMMERCE COMMITTEE                             
                          May 2, 1996                                          
                           6:00 P.M.                                           
                                                                               
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Senator Tim Kelly, Chairman                                                   
 Senator John Torgerson, Vice Chairman                                         
 Senator Mike Miller                                                           
 Senator Jim Duncan                                                            
 Senator Judy Salo                                                             
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
 All members present                                                           
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
 HOUSE BILL NO. 550                                                            
 "An Act relating to investments by fiduciaries; and providing for             
 an effective date."                                                           
                                                                               
  PREVIOUS SENATE COMMITTEE ACTION                                             
                                                                               
 HB 550 - No previous action to consider.                                      
                                                                               
  WITNESS REGISTER                                                             
                                                                               
 Kevin Sullivan                                                                
 Federated Securities Corporation                                              
 P.O. Box 32819                                                                
 Juneau, AK 99803                                                              
  POSITION STATEMENT:   Supported HB 550.                                      
                                                                               
  ACTION NARRATIVE                                                             
  TAPE 96-31, SIDE A                                                           
 Number 001                                                                    
                                                                               
                HB 550 INVESTMENTS BY FIDUCIARIES                              
                                                                             
 CHAIRMAN KELLY called the Senate Labor and Commerce Committee                 
 meeting to order at 6:00 p.m. and announced  HB 550  to be up for             
 consideration.  He said they had heard the bill in its Senate form.           
                                                                               
 KEVIN SULLIVAN, Federated Securities Corporation, said HB 550                 
 clarifies and updates the provisions of SB 131 which was signed               
 into law about three weeks ago.  It addresses primarily ambiguities           
 created by a narrow interpretation in some of the other states                
 regarding obligations of the U.S. Government.  Specifically this              
 bill adds to agencies and instrumentalities the Federal Home                  
 Administration, General Services Administration, U.S. Maritime                
 Administration, Small Business Association, Governmental Mortgage             
 Association, Housing and Urban Development, Obligations of the                
 Farmers Home Administration, Fanny May, Freddie Mac, Federal Land             
 Bank, Central Land Bank, Central Bank for Cooperatives, Federal               
 Intermediate Credit Bank, Student Loan Marketing, and Federal Home            
 Loan Banks.                                                                   
                                                                               
 SENATOR DUNCAN asked if this was the same as the Senate version.              
 MR. SULLIVAN replied that there are two differences, but they are             
 not substantive and regard the effective date.                                
                                                                               
 Number 55                                                                     
                                                                               
 SENATOR TORGERSON moved to pass HB 550 from committee with                    
 individual recommendations.  There were no objections and it was so           
 ordered.                                                                      
                                                                               
 SENATOR KELLY adjourned the meeting at 6:04 p.m.