03/08/1996 09:15 AM Senate FIN

                                                                               
       SPONSOR SUBSTITUTE FOR SENATE JOINT RESOLUTION NO. 14                   
                                                                               
       Proposing  amendments to the  Constitution of the State                 
  of   Alaska  relating  to  confirmation  of appointments  of                 
  public    members  who  serve  on  a  board  or   commission                 
  involved with  managing the  assets of the  Alaska permanent                 
                                                                               
                                                                               
  fund.                                                                        
                                                                               
  Co-chairman Halford said this was a constitutional amendment                 
  proposal that has gone from a generic version to a permanent                 
  fund only  version.   Senator Donley  proposed an  amendment                 
  that  adds  public  corporations and  then  allows  for that                 
  definition  to  be  essentially provided  by  statute  to be                 
  drafted as a  CS.  Senator  Rieger objected and referred  to                 
  the language  on line  15 of  the  amendment.   The way  the                 
  statutory definition  is drafted  it could  be construed  to                 
  pick  and  choose what  parts of  this  amendment are  to be                 
  applicable  to the  corporation, contort  the process,  give                 
  power to the board to appoint  an executive director that is                 
  not subject to  the approval of  the governor or some  other                 
  combination.  The  intent was  to decide which  corporations                 
  are in and which are out and if they  are in it is an all or                 
  nothing deal.  It is suggested  that the phrase "all or part                 
  of" be deleted  so that it just reads  "...the applicability                 
  of  this  section..." and  the  word "limit"  be  changed to                 
  "exclude" so  that it reads  "...the Legislature by  law may                 
  exclude  the  applicability   of  this  section...".     The                 
  presumption is  that if  it  is a  corporation that  manages                 
  assets it is in but a statutory definition may be created to                 
  carve corporations out.                                                      
                                                                               
  Senator   Donley  asked   if  the   interplay  between   the                 
  Legislature and the  executive branch regarding corporations                 
  might be  modified under  this rather  than just a  question                 
  whether to confirm or not?   Senator Rieger said the way  it                 
  is written it  is the applicability  of all or part  of this                 
  section.  It is  not all or part of  the corporation subject                 
  to this section.  The section has a lot of provisions in it.                 
  It is not only the confirmation, which this is aimed at, but                 
  it talks about whether their removal is provided for by law,                 
  whether they are citizens of the United States,  whether the                 
  confirmation  occurs  in  joint  session  or could  we  have                 
  confirmation in separate  sessions.  The  way it is  drafted                 
  one could pick and choose what parts of the section could be                 
  applied, corporation by corporation.   That goes beyond what                 
  the amendment was trying to do.                                              
                                                                               
                                                                               
  Senator  Donley   explained  that  with  regards  to  public                 
  corporations the Legislature has the authority to set up the                 
  parameters  of them by  statute because they  are created by                 
  statute.    All the  others  terms and  conditions,  such as                 
  should  the  governor be  allowed  to approve  the executive                 
  officer be removed or do the board members serve at the will                 
  of the governor, all  that can be set out in statute because                 
  they  are   not  constitutional  creatures  to  begin  with.                 
  Senator  Rieger said  the  actual constitutional  provisions                 
  regarding confirmation by the  Legislature could be modified                 
  by statute.                                                                  
                                                                               
                                                                               
  Co-chairman Halford said  he did not  think that was not  an                 
  intended consequence.    Senator Rieger  and Senator  Donley                 
  agreed that it was a reasonable suggestion to deal with that                 
  particular amendment.                                                        
                                                                               
  Senator  Rieger MOVED  the two  changes as  an amendment  to                 
  amendment  #1  and without  objection  and the  amendment to                 
  amendment  #1 was ADOPTED.    Co-chairman Halford said there                 
  being  no  objection  to  the   original  amendment  it  was                 
  therefore ADOPTED and  that it would  be drafted as  CSSSSJR
(FIN).   As do most  constitutional amendments there  is a                 
  required $2.2 fiscal note to put them on the ballot and that                 
  is the only fiscal note to go with the  resolution.  Senator                 
  Phillips MOVED CSSSSJR 14(FIN) and  without objection it was                 
  REPORTED  OUT  with  individual recommendations  and  a $2.2                 
  fiscal note from the Office of the Governor.