04/22/1997 09:15 AM Senate FIN

CS for House Bill 208 (L&C)                                                  
                                                                               
     "An Act relating to the board of directors of the Alaska                  
     Aerospace Development Corporation."                                       
                                                                             
REPRESENTATIVE ALAN  AUSTERMAN, SPONSOR,  spoke in support  of CSHB
 (L&C). He explained that when  the Alaska Aerospace Development            
Corporation (AADC) was initiated,  board members were selected as a            
scientific team  to assure that aerospace development  was feasible            
in Alaska.  He commended  the work  of the board  and noted  that a            
number  of  businesses had  started  in  Fairbanks to  support  the            
infrastructure. He  felt it was  time to change the  composition of            
the  board by  taking  off scientific  people  and adding  business            
people.                                                                        
                                                                               
Representative  Austerman provided the  committee with  a breakdown            
of the proposed  changes. He detailed that there  were four members            
from  the   University  of  Alaska   on  the  current   board;  the            
legislation  would  reduce  the   number  to  two.  The  number  of            
aerospace  members  would  be increased  by  one  commercial  space            
member.  In addition,  a business-sector  state  resident would  be            
added. He noted that the only  other significant change in the bill            
was  a  provision  to  change  the chair  of  the  board  from  the            
president of the University of  Alaska to choosing the chairman and            
vice-chairman from the elected board.                                          
                                                                               
Senator Adams observed  that there would also be a  change from two            
to three out-of-state members.                                                 
                                                                               
Senator   Pearce   questioned  whether   the   industry   positions            
(subsection  5) could  be filled  in-state.  She expressed  concern            
with the change from two to three  "outside" members and questioned            
whether  the  sponsor  would  object to  an  amendment  that  would            
prevent the three  outside members on the board  from being elected            
chair  or  vice-chair   of  the  board.   Representative  Austerman            
responded  that he  would  not have  a  problem  with the  proposed            
amendment. He did  not know whether the industry  position could be            
filled in-state; he opined that it could not at the time.                      
                                                                               
Senator Torgerson  referred to the  $100 per day  reimbursement for            
meeting  expenses  (Section  3)  listed  in  the  fiscal  note.  He            
referred to historical costs and  thought that a fiscal note should            
reflect  the costs.  Representative  Austerman  explained that  the            
board met four times  each year and that much of  the work was done            
by teleconference.  The department  felt that  it could  absorb the            
increase in costs.  The $10,000 fiscal note originally  attached to            
the bill was zeroed out because  he believed they would not need to            
bring people to the state.                                                     
                                                                               
Senator Pearce queried the position of the administration.                     
                                                                               
JEFF  BUSH,   DEPUTY  COMMISSIONER,  DEPARTMENT  OF   COMMERCE  AND            
ECONOMIC DEVELOPMENT,  spoke in support of the changes  made in the            
legislation.  He  referred to  a  letter that  recommended  further            
changes, including  decreasing membership  from outside  the state.            
The  administration  felt that  there  should be  two  out-of-state            
members  with  aerospace  experience  instead  of  three.  He  also            
suggested that public representation  be increased from one to two.            
He  observed  interest  by  the   community  of  Kodiak  for  local            
representation and  concluded that Alaskans could  have an interest            
in the  board appointments.  The department  also recommended  that            
the one university  member would be sufficient.  He emphasized that            
the  recommendations were  only  suggestions  for improvement,  and            
that in general the department approved of the provision.                      
                                                                               
Senator Pearce MOVED  to ADOPT conceptual Amendment  1, which would            
require the  board chair  and vice-chair  to be Alaskan  residents.            
There being NO OBJECTION, conceptual Amendment 1 was adopted.                  
                                                                               
Senator Pearce MOVED to ADOPT conceptual Amendment 2:                          
                                                                               
     Page 2, line 6:                                                           
     Delete "three" and insert "two"                                           
     Page 1, line 8:                                                           
     Delete "two" and insert "three"                                           
                                                                               
Senator Pearce  explained that there  would then be  three in-state            
business members with Alaskan marketing  experience and two members            
with aerospace industry expertise.  She observed that the executive            
director of the aerospace program  already had years of experience.            
She argued for further Alaskan business connections.                           
                                                                               
Representative Austerman did not object to the amendment.                      
                                                                               
There  being  NO  further OBJECTION,  conceptual  Amendment  2  was            
adopted.                                                                       
                                                                               
Senator Pearce MOVED to REPORT  SCS CSHB 208 (FIN) out of committee            
with individual  recommendations and the accompanying  fiscal note.            
There being NO OBJECTION, it was so ordered.                                   
                                                                               
SCS CSHB 208 (FIN)  was REPORTED out of committee  with a "do pass"            
recommendation  and a  zero fiscal  note,  House  Labor &  Commerce            
Committee/Department   of   Commerce  and   Economic   Development,            
4/9/97.