SENATOR KELLY returned SB 208 (CANDIDATES MUST RESIGN STATE                   
 EMPLOYMENT) and asked his Aide, JOSH FINK, to discuss the proposed            
 committee substitute, before additional comments from the sponsor,            
 SENATOR DONLEY.                                                               
                                                                               
 MR. FINK explained the proposed committee substitute for SB 208               
 makes sure the Alaska Railroad is covered, since it is a separate             
 legal entity from the state, but he said there was some ambiguity             
 about the Alaska Housing Finance Corporation, so they were listed.            
 He described the search prepared by Legislative Counsel, which                
 found all were except the Alaska Railroad and some ambiguity with             
 AHFC.                                                                         
                                                                               
 MR. FINK reported two were specifically added to those entities               
 with separate legal existence and were checked to ensure their                
 employees, described as state employees in statute, were added to             
 the prohibition.                                                              
                                                                               
 SENATOR DONLEY spoke in support of the committee substitute and               
 praised the search done by Legislative Counsel.  He expressed some            
 concern at the inclusion of the lower range of employees, those               
 below a range 15, and asked if the committee wanted to consider               
 exempting these employees.  After some discussion it was decided              
 not to allow the exemption for any employees.                                 
                                                                               
 SENATOR SHARP moved to adopt the new committee substitute for SB              
 208.  Without objections, so ordered.                                         
                                                                               
 SENATOR SHARP moved to pass CS FOR SENATE BILL NO. 208(L&C)                   
 (CANDIDATES MUST RESIGN STATE EMPLOYMENT) from committee with                 
 individual recommendations.  Without objections, so ordered.