Legislature(2013 - 2014)BUTROVICH 205
04/12/2014 09:00 AM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB383 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 383 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
April 12, 2014
8:59 a.m.
MEMBERS PRESENT
Senator Fred Dyson, Chair
Senator Cathy Giessel, Vice Chair
Senator John Coghill
Senator Bill Wielechowski
MEMBERS ABSENT
Senator Bert Stedman
COMMITTEE CALENDAR
CS FOR HOUSE BILL NO. 383(RLS)
"An Act relating to the membership of the board of the Alaska
Gasline Development Corporation; and providing for an effective
date."
- MOVED CSHB 383(RLS) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 383
SHORT TITLE: AK GASLINE DEVELOPMENT CORP. MEMBERSHIP
SPONSOR(s): RULES BY REQUEST
04/04/14 (H) READ THE FIRST TIME - REFERRALS
04/04/14 (H) RLS
04/08/14 (H) RLS AT 5:00 PM CAPITOL 120
04/08/14 (H) Moved CSHB 383(RLS) Out of Committee
04/08/14 (H) MINUTE(RLS)
04/09/14 (H) RLS RPT CS(RLS) 7DP
04/09/14 (H) DP: HAWKER, GRUENBERG, HERRON, OLSON,
CHENAULT, KELLER, JOHNSON
04/09/14 (H) TRANSMITTED TO (S)
04/09/14 (H) VERSION: CSHB 383(RLS)
04/11/14 (S) READ THE FIRST TIME - REFERRALS
04/11/14 (S) STA
04/12/14 (S) STA AT 9:00 AM BUTROVICH 205
WITNESS REGISTER
REPRESENTATIVE MIKE CHENAULT
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 383 that was introduced by
House Rules at his request.
TOM WRIGHT, Staff
Representative Mike Chenault
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided supporting testimony for HB 383.
JOHN J. BURNS, Chair
Alaska Gasline Development Corporation (AGDC)
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 383.
ACTION NARRATIVE
8:59:59 AM
CHAIR FRED DYSON called the Senate State Affairs Standing
Committee meeting to order at 8:59 a.m. Present at the call to
order were Senators Wielechowski, Coghill, Giessel, and Chair
Dyson.
HB 383-AK GASLINE DEVELOPMENT CORP. MEMBERSHIP
9:00:17 AM
CHAIR DYSON announced the consideration of HB 383."An Act
relating to the membership of the board of the Alaska Gasline
Development Corporation; and providing for an effective date."
This was the first hearing. [CSHB 383(RLS) was before the
committee.]
9:00:51 AM
REPRESENTATIVE MIKE CHENAULT, Alaska State Legislature, Juneau,
Alaska, introduced HB 383, which was sponsored by House Rules at
his request. He explained that the bill amends the Alaska
Gasline Development Corporation (AGDC) statute to allow for out-
of-state board appointments, which was the intent of the
legislature when it considered and passed House Bill 4 last
year. The intent of that bill was that the governor should have
the ultimate discretion in appointing the most qualified people
in leading AGDC in carrying out its mission to develop projects
that get gas to Alaskans.
REPRESENTATIVE CHENAULT highlighted that during the Alaska
Constitutional Convention, the framers amended Section 26 to
replace the state residency requirement with the U.S. citizen
requirement. Delegate John Hellenthal said he had faith in the
executive and the legislature to pick qualified men, and he
would be worried if such a restrictive provision limiting board
appointments to residents of Alaska were included in the Alaska
Constitution. Representative Chenault noted he was citing the
convention minutes on page 2239. He then cited delegate John
McNees who said that the executive should not be limited in
reaching out to appoint the best available man, irrespective of
where that may be.
REPRESENTATIVE CHENAULT explained that the AGDC Board includes
two commissioners and five public members appointed by the
governor. The governor is encouraged to appoint people who bring
particular qualifications and expertise. By statute the AGDC
mission requires the board and corporation to act in the best
interest of Alaska. He noted that all but one member of the
current board are Alaskans.
REPRESENTATIVE CHENAULT continued to discuss HB 383 speaking to
the following sponsor statement:
Committee Substitute for House Bill 383(RLS) amends
the Alaska Gasline Development Corporation's (ADC)
statutes to allow for out of state appointments. Last
session, the legislature passed House Bill 4. This
extensive legislation laid out a structure for AGDC as
a corporation, defining what the legislature wanted
and included language to define board appointments,
items generally addressed in AS 39.05, existing
statutes related to public officers and employees. AS
39.05.100 requires board appointees to be Alaskans,
unless otherwise provided. House Bill 4 articulated
board requirements, without specifically stating
whether members had to be Alaskans or not, with the
understanding that by not specifying, appointments
could be U.S. citizens as stated in the Alaska
Constitution. Legal guidance at the time, plus
testimony, was that House Bill 4 language allowed both
out-of-state citizens and Alaskan residents to serve.
What the sponsors neglected to do, and this was an
oversight, is specifically exempt AGDC from AS
39.05.100.
CSHB 383(RLS) corrects this oversight.
9:04:23 AM
CHAIR DYSON noted That Dan Fauske and Miles Baker with AGDC were
available to answer questions.
SENATOR WIELECHOWSKI asked if there was an opinion from
Legislative Legal that this legislation falls under AS
39.05.100, because AGDC is a corporation.
9:05:11 AM
TOM WRIGHT, Staff, Representative Mike Chenault, affirmed that
it does.
SENATOR WIELECHOWSKI asked if there was an opinion from
Legislative Legal that legislative confirmation is required for
this position.
MR. WRIGHT affirmed that this position would require legislative
confirmation.
SENATOR WIELECHOWSKI asked if he disagrees with the statement
that has been made that the governor could appoint anyone he
wants without legislative approval.
MR. WRIGHT offered his belief that confirmation is required
under AS 31.25.020. It says "public members of the board shall
be appointed by the governor and are subject to confirmation by
the legislature."
CHAIR DYSON opened public testimony.
9:06:33 AM
JOHN BURNS, Chair, Alaska Gasline Development Corporation
(AGDC), Fairbanks, Alaska, testified in support of HB 383. He
said this legislation will correct an oversight in House Bill 4
and will ensure that the board will be able to achieve the
mission and responsibility conferred on AGDC by the passage of
House Bill 4. He described this legislation as one of the most
comprehensive, enabling pieces of legislation that has passed in
many years. It embodies the hopes of Alaskans and commitment
that Alaskan's gas will be developed and made available to
Alaskans. The responsibility to achieve that objective was
conferred on AGDC, and the board is committed to deliver on that
responsibility.
MR. BURNS stated that if SB 138 passes it will add to AGDC's
responsibility, because it will be its role to conduct a
thorough evaluation and recommend which of the two gas projects
to sanction. The ability for AGDC to achieve its mission is
dependent on the composition of the board. Its members must have
the required skillset. The composition of a board is
particularly important when the subject is highly technical and
specialized. HB 383 will empower the board to achieve the
mission to develop and construct a gasline.
He pointed out that the committee knows who the governor intends
to appoint to the board and the work he has done on behalf of
AGDC in the six months since his appointment. He posited that
Mr. Rabinow exemplifies why the passage of the bill makes sense
and is in the state's best interest as the owner of AGDC. Mr.
Rabinow has four decades of pipeline experience and expertise in
large project development, implementation and management. He
attested to Mr. Rabinow's integrity, commitment to AGDC's
mission and objectives, and his active participation during
board meetings. He provides an owner's perspective and insight
about pipeline construction, management, and financing that is
invaluable.
MR. BURNS spoke to Mr. Rabinow's loyalty. He took an oath of
office and signed a confidentiality agreement, just like all
other AGDC board members. Mr. Burns said that without exception,
our loyalty is to the state and our fiduciary responsibility is
to AGDC. He emphasized that appointments to the AGDC Board
should focus on a person's ability rather than their residency.
He concluded that HB 383 is in the best interest of the state
and should go forward.
9:14:24 AM
SENATOR COGHILL asked if the Act is retroactive to September 1,
2013 because that's when Mr. Rabinow was appointed.
MR. WRIGHT clarified that the appointments were made on
September 13, 2013.
SENATOR COGHILL asked if the expectation under House Bill 4 was
that the appointment was legitimate, but later it was found that
wasn't the case.
REPRESENTATIVE CHENAULT affirmed that is reason for the bill.
SENATOR COGHILL expressed appreciation that the sponsor brought
the legislation forward. He said he often struggles with
retroactivity, but in this circumstance it's warranted.
REPRESENTATIVE CHENAULT responded that the intent is to see the
confirmation process go forward.
CHAIR DYSON observed that this legislation is consistent with
the sponsor's understanding of the intent of House Bill 4.
MR. WRIGHT agreed that the intent of HB 4 was to allow the best
and brightest to serve on the AGDC Board regardless of
residency, as long as they are a U.S. citizen.
SENATOR GIESSEL noted that some boards and commissions don't go
through the confirmation process yet subsection (b), page 1,
lines 5-6, specifically leaves a political process in place. She
asked if it was left for a reason.
MR. WRIGHT affirmed that the intent is to have a confirmation
process for this board.
CHAIR DYSON said this state has a citizen legislature and most
boards are expected to be made up of citizens, but expertise is
needed with a board like AGDC. He opined that it's shortsighted
to think that Mr. Rabinow can't be objective.
MR. WRIGHT said the board is fortunate to have two members who
have an understanding of pipelines: Albert N. Bolea and Richard
A. Rabinow.
CHAIR DYSON commented on the importance of expertise and
experience.
MR. WRIGHT added that a large number of consultants the state
relies on aren't residents.
CHAIR DYSON found no further questions or discussion and
solicited a motion.
9:19:29 AM
SENATOR GIESSEL moved to report CSHB 383(RLS), labeled 28-
LS1656\U, from committee with individual recommendations and
attached zero fiscal note(s).
9:19:47 AM
SENATOR WIELECHOWSKI objected.
CHAIR DYSON asked for a roll call.
A roll call vote was taken. Senators Giessel, Coghill, and Dyson
voted in favor of moving HB 383. Senator Wielechowski voted
against it. Therefore, CSHB 383(RLS) was reported out of the
Senate State Affairs Standing Committee by a vote of 3:1.
9:20:20 AM
There being no further business to come before the committee,
Chair Dyson adjourned the Senate State Affairs Standing
Committee meeting at 9:20 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSHB 383 (RLS) - Sponsor Statement-CSHB 383 (RLS).pdf |
SSTA 4/12/2014 9:00:00 AM |
HB 383 |
| CSHB 383 (RLS) - Legislation.pdf |
SSTA 4/12/2014 9:00:00 AM |
HB 383 |
| HB 383 Fiscal Note-AGDC.pdf |
SSTA 4/12/2014 9:00:00 AM |
HB 383 |
| HB 383 - AGDC Board Oath of Office.pdf |
SSTA 4/12/2014 9:00:00 AM |
HB 383 |
| HB 383 - Alaska Gasline Moves Forward with AGDC Board.pdf |
SSTA 4/12/2014 9:00:00 AM |
HB 383 |
| HB 383 - AS 31 25 020.pdf |
SSTA 4/12/2014 9:00:00 AM |
HB 383 |
| HB 383 - AS 39 05 100.pdf |
SSTA 4/12/2014 9:00:00 AM |
HB 383 |
| HB 383 - AGDC Board of Directors.pdf |
SSTA 4/12/2014 9:00:00 AM |
HB 383 |
| HB 383 - Art 3 Section 26-AK Constitution.pdf |
SSTA 4/12/2014 9:00:00 AM |
HB 383 |