Legislature(2009 - 2010)CAPITOL 106
03/30/2010 08:00 AM House STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| Overview(s): Division of Elections | |
| SB43 | |
| HB241 | |
| HB128|| HCR8 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 43 | TELECONFERENCED | |
| += | HB 241 | TELECONFERENCED | |
| += | HB 128 | TELECONFERENCED | |
| += | HCR 8 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 241-DIVEST INVESTMENTS IN IRAN
9:17:22 AM
CHAIR LYNN announced that the next order of business was HOUSE
BILL NO. 241, "An Act relating to certain investments of the
Alaska permanent fund, the state's retirement systems, the State
of Alaska Supplemental Annuity Plan, and the deferred
compensation program for state employees in companies that do
business in Iran, and restricting those investments; and
providing for an effective date."
The committee took an at-ease from 9:17:27 AM to 9:19:19 AM.
[Due to technical difficulties with the official recording, the
testimony from 9:20 a.m. through 9:28 a.m. was reconstructed
from an alternative audio source.]
9:20:34 AM
REPRESENTATIVE GATTO, sponsor, moved that the committee rescind
its action, on 2/16/10, in failing to report from committee the
proposed committee substitute (CS) for HB 241, Version 26-
LS0680\S, Kane, 2/15/10, as amended.
9:20:44 AM
REPRESENTATIVE JOHNSON objected.
9:21:33 AM
A roll call vote was taken. Representatives Seaton, Wilson,
Gatto, Gruenberg, Petersen, and Lynn voted in favor of the
motion to rescind the committee's action in failing to report
from committee the proposed committee substitute (CS) for HB
241, Version 26-LS0680\S, Kane, 2/15/10, as amended.
Representative Johnson voted against it. Therefore, the motion
to rescind the committee's action passed by a vote of 6-1.
9:21:51 AM
REPRESENTATIVE GATTO spoke to the reason to pass HB 241. He
said the State of Alaska currently has approximately $1 billion
invested in Iran. The federal government has clearly stated
that it wants sanctions on Iran, to put pressure on the country.
He indicated that the bill would not require investigation of
every mutual stock in every fund, but would establish a $20,000
threshold. He reminded the committee that the Permanent Fund
Corporation had indicated that it has no issue with the proposed
legislation. Investments would be transferred to other
investments, he said. Representative Gatto offered his
understanding that Iran will have the capability to send a
nuclear weapon via missile to the U.S. within the next 10 years.
9:25:22 AM
PATRICK GALVIN, Commissioner, Department of Revenue, testified
that the department appreciates the bill sponsor's efforts to
minimize the administrative costs and burden in the structure of
the bill. He said the governor recognizes that there are
instances where it is appropriate to make investment decisions
in response to national security issues. In response to Chair
Lynn, he said the governor has not taken a position on HB 241,
but recognizes that there are instances when it is appropriate
for the state to "join with others in isolating nations that are
not taking actions that are in our national interest." In
response to a follow-up question, he indicated that the governor
would not take action on his own, but would cooperate if the
bill passed.
9:26:15 AM
REPRESENTATIVE JOHNSON spoke to his objection. He said if he
thought the proposed legislation would effectively prevent the
construction of nuclear weapons or even "do any good at all," he
would support it. He said the cost per share difference, at two
cents, will not impact Iran. He opined that if the State of
Alaska really wants to have an effect on Iran, it would refuse
to do business with companies that do business in Iran. He
offered an example. He stated that he does not like what is
happening to soldiers in Iran, but reiterated that he does not
think the proposed legislation will do one bit of good.
9:29:44 AM
REPRESENTATIVE GATTO speculated that soldiers overseas follow
the actions of their government, and the federal government is
saying pressure on Iran is needed. He mentioned companies in
Alaska that are pulling out their investments in Iran, and he
asked, "Is it economics or is it public pressure?" He stated,
"This is where the public pressure originates." He said the
state has the ability to put public pressure "on people who kill
our soldiers."
9:31:17 AM
REPRESENTATIVE GRUENBERG remarked, "A journey begins with a
single step."
9:31:23 AM
REPRESENTATIVE SEATON stated that the fighting is in Pakistan,
which is also where the Taliban is. He related that there are
500,000-800,000 Afghani refugees in Iran. He said he has not
heard of cross-border conflicts or missiles being fired into
Iran. He stated that there is concern about potential nuclear
weaponry, but the testimony by the Chief of Staff and commanders
in the field has not shown that Iranians are shooting American
soldiers.
REPRESENTATIVE SEATON mentioned companies from around the world,
which Alaska has tried to work with in developing the state's
oil fields. He questioned how moral the state would be in
divesting from all these companies while still being in
partnership with them and giving them tax credits to develop oil
fields and leases on Alaska lands.
9:35:22 AM
REPRESENTATIVE GATTO stated that HB 241 is not an omnibus bill,
but it is a powerful first step, "especially in light of the
fact that we've seen major oil companies pull out of Iran." He
said parts for improvised explosive devices are being made in
Iran and then being shipped out and sold. He stated, "So, while
they're not actually throwing the bombs at us, they're making
the parts."
9:36:28 AM
REPRESENTATIVE JOHNSON said he trusts Representative Gatto to
accurately report that there are companies pulling out of Iran,
but he is not comfortable concluding that the reason those
companies are leaving is in response to public opinion.
9:37:18 AM
REPRESENTATIVE GATTO read some news release headlines indicating
that Iran is tied to the killing of U.S. soldiers and involved
in supplying weapons to the Taliban.
9:37:42 AM
REPRESENTATIVE GRUENBERG moved [to report the proposed committee
substitute (CS) for HB 241, Version 26-LS0680\S, Kane, 2/15/10,
as amended, from the House State Affairs Standing Committee.]
9:37:54 AM
REPRESENTATIVE JOHNSON objected.
9:37:58 AM
A roll call vote was taken. Representatives Wilson, Gatto,
Gruenberg, Petersen, and Lynn voted in favor of the motion to
report the proposed committee substitute (CS) for HB 241,
Version 26-LS0680\S, Kane, 2/15/10, as amended, from the House
State Affairs Standing Committee. Representatives Johnson and
Seaton voted against it. Therefore, CSHB 241(STA) was reported
out of the House State Affairs Standing Committee by a vote of
5-2.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 01-A second CS for HB 241 Version S.pdf |
HSTA 3/30/2010 8:00:00 AM |
HB 241 |
| Explanation of changes from CS HCR 8 P to C versions.pdf |
HSTA 3/30/2010 8:00:00 AM |
HCR 8 |
| CS for HCR 8 ( ) C version.pdf |
HSTA 3/30/2010 8:00:00 AM |
HCR 8 |
| HB128-REVISED FISCAL NOTE GOV-OMB-3-29-10.pdf |
HSTA 3/30/2010 8:00:00 AM |
HB 128 |