04/14/2022 03:00 PM House STATE AFFAIRS

         HB 412-PERM FUND CORP & AIDEA BD CONFIRMATION                                                                      
                                                                                                                                
4:12:58 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS  announced that the first  order of business                                                               
would  be   HOUSE  BILL  NO.   412,  "An  Act  relating   to  the                                                               
confirmation  of  appointees to  the  Board  of Trustees  of  the                                                               
Alaska Permanent  Fund Corporation;  relating to  the appointment                                                               
of  public  members  of the  Alaska  Industrial  Development  and                                                               
Export Authority; and providing for an effective date."                                                                         
                                                                                                                                
4:13:38 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS moved to adopt Amendment 1, [labeled 32-                                                                   
LS1637\B.1, Nauman, 4/12/22], which read:                                                                                       
                                                                                                                                
     Page 3, line 4:                                                                                                            
          Delete "January 1, 2023"                                                                                              
          Insert "September 1, 2022"                                                                                            
                                                                                                                                
REPRESENTATIVE TARR objected for the purpose of discussion.                                                                     
                                                                                                                                
4:14:00 PM                                                                                                                    
                                                                                                                                
XANNIE  BORSETH, Staff,  Representative Jonathan  Kreiss-Tomkins,                                                               
Alaska  State Legislature,  on behalf  of Representative  Kreiss-                                                               
Tomkins, prime  sponsor of HB  412, introduced Amendment 1.   She                                                               
explained that the proposed amendment  would change the effective                                                               
date  from January  1,  2023  to September  1,  2022  to avoid  a                                                               
scenario in  which a  new or reelected  governor appointed  a new                                                               
board member to  the Alaska Permanent Fund  Corporation (APFC) or                                                               
the Alaska  Industrial Development  and Export  Authority (AIDEA)                                                               
before   the   effective   date  without   the   requirement   of                                                               
confirmation  by a  majority of  the legislature  during a  joint                                                               
session.  She noted that  the scenario was unlikely; nonetheless,                                                               
the bill sponsor wanted to be cautious.                                                                                         
                                                                                                                                
REPRESENTATIVE  TARR  removed  her  objection.   There  being  no                                                               
further objection, Amendment 1 was adopted.                                                                                     
                                                                                                                                
4:14:58 PM                                                                                                                    
                                                                                                                                
CHAIR  KREISS-TOMKINS moved  to adopt  Amendment 2,  [labeled 32-                                                               
LS1637\B.2, Nauman, 4/12/22], which read:                                                                                       
                                                                                                                                
     Page 3, line 1:                                                                                                            
          Delete "Alaska Industrial Development and Export                                                                      
     Authority"                                                                                                                 
          Insert "authority"                                                                                                    
                                                                                                                                
     Page 3, following line 2:                                                                                                  
     Insert a new subsection to read:                                                                                           
          "(d)  On or after the effective date of this Act,                                                                     
     members  of the  authority  who  are reappointed  under                                                                    
     AS 44.88.030(a),  as amended  by  sec. 4  of this  Act,                                                                    
     shall be confirmed by a  majority of the members of the                                                                    
     legislature in joint session."                                                                                             
                                                                                                                                
     Reletter the following subsection accordingly.                                                                             
                                                                                                                                
     Page 3, line 3, following "section,":                                                                                      
          Insert "(1)  "authority" has the meaning given in                                                                     
     AS 44.88.900;                                                                                                              
               (2)"                                                                                                             
                                                                                                                                
REPRESENTATIVE CLAMAN objected for the purpose of discussion.                                                                   
                                                                                                                                
REPRESENTATIVE EASTMAN objected.                                                                                                
                                                                                                                                
4:15:04 PM                                                                                                                    
                                                                                                                                
MS. BORSETH explained that Amendment  2 addressed concerns raised                                                               
at the last bill hearing  by clarifying that reappointed APFC and                                                               
AIDEA  board members  shall be  confirmed  by a  majority of  the                                                               
legislature during a joint session to reduce ambiguity.                                                                         
                                                                                                                                
4:16:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   EASTMAN  inquired   about   the  definition   of                                                               
"authority", as provided under AS 44.88.900.                                                                                    
                                                                                                                                
MS. BORSETH  defined authority, per  AS 44.88.900, as  the Alaska                                                               
Industrial Development  and Export  Authority, which  was created                                                               
by chapter 44.88.                                                                                                               
                                                                                                                                
REPRESENTATIVE CLAMAN withdrew his objection.                                                                                   
                                                                                                                                
REPRESENTATIVE EASTMAN  withdrew his  objection.  There  being no                                                               
further objection, Amendment 2 was adopted.                                                                                     
                                                                                                                                
CHAIR KREISS-TOMKINS invited final comments on the bill.                                                                        
                                                                                                                                
4:17:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  directed attention  to page 2  and expressed                                                               
an interest  in amending  the bill  to limit  the length  of time                                                               
that someone could serve in a limited interim capacity.                                                                         
                                                                                                                                
REPRESENTATIVE  CLAMAN  said he  was  pleased  to move  the  bill                                                               
forward.   Nonetheless,  he expressed  an interest  in holding  a                                                               
future  discussion  on  carryover  and longevity  to  ensure  the                                                               
board's   independence  from   the   executive  and   legislative                                                               
branches.                                                                                                                       
                                                                                                                                
REPRESENTATIVE EASTMAN  said he  was pleased  to agree  with both                                                               
statements.     He  highlighted   an  opportunity  to   move  the                                                               
confirmation date  forward in the  legislative process  to reduce                                                               
the time served by unconfirmed appointments.                                                                                    
                                                                                                                                
CHAIR   KREISS-TOMKINS   agreed   with   both   statements   from                                                               
Representative Claman  and Representative Story on  vacancies and                                                               
staggard terms.   In response  to Representative Eastman,  he was                                                               
unsure  of the  appropriate mechanism  to address  the timing  of                                                               
joint session.                                                                                                                  
                                                                                                                                
4:24:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CLAMAN moved to report  HB 412, as amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHB  412(STA)  was                                                               
reported from  the House  State Affairs  Standing Committee.   He                                                               
stated  that the  committee gave  Legislative Legal  Services the                                                               
authority to make technical and confirming changes.