02/02/2016 01:30 PM Senate LABOR & COMMERCE

            SB 125-LEGISLATIVE MEMBERS OF AGDC BOARD                                                                        
                                                                                                                                
1:41:48 PM                                                                                                                    
CHAIR COSTELLO announced the consideration of SB 125.                                                                           
                                                                                                                                
She passed the gavel to Vice Chair Giessel.                                                                                     
                                                                                                                                
SENATOR MIA  COSTELLO, Alaska State  Legislature, sponsor  of 125,                                                              
explained  that the  bill  expands the  membership  of the  Alaska                                                              
Gasline  Development Corporation  (AGDC)  Board by  adding one  ex                                                              
officio,  nonvoting  member  appointed  by the  president  of  the                                                              
Senate  and one  ex  officio, nonvoting  member  appointed by  the                                                              
speaker of the  House of Representatives. The purpose  of the bill                                                              
is to  facilitate communication  and a  teamwork approach  between                                                              
the  AGDC  Board and  the  legislature  and  help move  the  AKLNG                                                              
Project forward.                                                                                                                
                                                                                                                                
1:44:07 PM                                                                                                                    
WESTON   EILER,  staff,   Senator  Mia   Costello,  Alaska   State                                                              
Legislature,  stated that  the  bill amends  Title  31 adding  the                                                              
aforementioned  new  members  who  are  appointed  annually.  This                                                              
substantive change  is on page  1, line  11, through page  2, line                                                              
2.  Sections   2-6  are   conforming  changes   within  Title   31                                                              
clarifying that elections  within the board will  be selected from                                                              
among the voting members.                                                                                                       
                                                                                                                                
He added  that the  AGDC Board currently  consists of  five public                                                              
members  appointed by  the governor  and serving  at his  pleasure                                                              
and  two  commissioners  of state  departments  appointed  by  the                                                              
governor and  serving at  his pleasure.  The commissioners  of the                                                              
Department  of Revenue  and the  Department  of Natural  Resources                                                              
are prohibited  from serving. That  change in the law  was enacted                                                              
with the passage of Senate Bill 138.                                                                                            
                                                                                                                                
MR.  EILER stated  that as  the  AKLNG Project  moves forward  the                                                              
State  of  Alaska  will  face  increasingly   complex  policy  and                                                              
financing decisions.  It is thus  essential to have  a transparent                                                              
and  clear  decision-making   process  in  place.   SB  125  helps                                                              
accomplish  this. Having  legislators participate  in an  advisory                                                              
capacity  adds  experience  and  continuity  to  the  AGDC  Board.                                                              
Legislators  currently serve  on  over a  dozen  state boards  and                                                              
commissions  and state corporations  so this  model has  precedent                                                              
in statute. The  legislators will provide perspective  and insight                                                              
and  lets  Alaska's   elected  policy  makers   better  understand                                                              
aspects   of   state   policymaking   that   AGDC   is   currently                                                              
undertaking. This  will help improve  their process  for important                                                              
business decisions  and the Project  will be aided  by legislative                                                              
service  on the board.  Adding the  two legislators  is a  natural                                                              
step  as   the  board  is   still  grappling  with   large  policy                                                              
decisions.                                                                                                                      
                                                                                                                                
He  concluded  the  introduction  saying SB  125  strengthens  and                                                              
diversifies the AGDC Board in advancing the AKLNG Project.                                                                      
                                                                                                                                
1:48:40 PM                                                                                                                    
SENATOR STEVENS  asked why the  bill says "nonvoting"  rather than                                                              
ex officio  because other appointments  to boards  and commissions                                                              
use the latter term.  He also asked why the members  are appointed                                                              
annually  when other  board and  commission  appointments are  for                                                              
two years.                                                                                                                      
                                                                                                                                
MR. EILER  answered that the  language on  page 1 was  provided by                                                              
Legislative Legal.  He explained that he refers to  the members as                                                              
ex officio or  advisory to illustrate the role  that is envisioned                                                              
and intent  of the bill. The  sponsor can work with  the committee                                                              
to address the length of the appointment.                                                                                       
                                                                                                                                
SENATOR COSTELLO said  she was willing to work  with the committee                                                              
on the  duration of the  appointment and  to look into  the reason                                                              
that the term "nonvoting" was used as opposed to "ex officio."                                                                  
                                                                                                                                
SENATOR  MEYER  agreed  with  Senator   Stevens  that  a  two-year                                                              
appointment would provide more consistency.                                                                                     
                                                                                                                                
VICE  CHAIR  GIESSEL  noted  that  the  suggestions  came  from  a                                                              
presiding officer  and a former  presiding officer. She  asked Mr.                                                              
Baker to briefly review the fiscal note.                                                                                        
                                                                                                                                
1:50:58 PM                                                                                                                    
MILES  BAKER,  Vice President,  External  Affairs  and  Government                                                              
Relations, Alaska  Gas Development Corporation  (AGDC), Anchorage,                                                              
Alaska,  stated that  the fiscal  note for  SB 125  is zero.  AGDC                                                              
does not  expect the bill  to affect the  operating budget  of the                                                              
corporation.   Board  expenses   including   the  honorarium   and                                                              
estimated  travel expenses  are built into  the operating  budget.                                                              
The expectation is  that the legislative members  would be handled                                                              
similar  to two  commissioners  on the  board.  They travel  under                                                              
their own  budgets and  are not entitled  to the honorarium.  AGDC                                                              
principally pays for just the public members.                                                                                   
                                                                                                                                
VICE  CHAIR GIESSEL  opened  public  testimony and  finding  none,                                                              
closed it.                                                                                                                      
                                                                                                                                
[SB 125 was held in committee.]