Legislature(2005 - 2006)

05/04/2005 04:52 PM FIN

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* first hearing in first committee of referral
+ teleconferenced
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HOUSE BILL NO. 283                                                                                                            
     "An Act relating  to the compensation for  board members                                                                   
     of   the  Alaska   Housing   Finance  Corporation;   and                                                                   
     providing for an effective date."                                                                                          
MIKE O'HARE, STAFF, REPRESENTATIVE PETE KOTT, explained                                                                         
spoke in support of the legislation and read from the                                                                           
sponsor statement.                                                                                                              
     House Bill 283, an Act relating  to the compensation for                                                                   
     board   members   of   the    Alaska   Housing   Finance                                                                   
     Corporation,  would  increase  the  per  diem  from  the                                                                   
     current level of $100 to $400.                                                                                             
     The current  level of  $100 per diem  has been  in place                                                                   
     since  the inception  of the Corporation  in 1971.  This                                                                   
     legislation would provide  a much needed increase in the                                                                   
     amount of  per diem commensurate with the  importance of                                                                   
     the work being done. HB 283  would increase the per diem                                                                   
     compensation to $400, which  is the currently the amount                                                                   
     received by the Alaska Permanent  Fund Corporation Board                                                                   
     of Trustees.                                                                                                               
     The Board  of Directors  of AHFC  is required  to review                                                                   
     and  consider  topics having  to  do with  bonding,  the                                                                   
     mortgage  industry,  public   housing,  and  many  other                                                                   
     technical issues. In any  given year, the Board is asked                                                                   
     to consider  and approve $600  million to $1  billion in                                                                   
     bond programs and millions  of dollars in tax credit and                                                                   
     other federal  grants. The  workload is such  that board                                                                   
     members must  spend a great deal of their  personal time                                                                   
     studying  and   educating  themselves   about  corporate                                                                   
     activities.  These are just some  of the reasons  why it                                                                   
     is important  to do  what is necessary  to help  keep as                                                                   
     capable a board as possible.                                                                                               
     The compensation  is only applicable to  the four public                                                                   
     members  of  the  Corporation's seven  member  Board  of                                                                   
     Directors.  It is  estimated  that the  increase in  per                                                                   
     diem  would cost the  Corporation approximately  $15,000                                                                   
     in corporate receipts per fiscal year.                                                                                     
5:42:17 PM                                                                                                                    
Representative Hawker  observed that the pension  rates would                                                                   
be brought into the 21 Century.                                                                                                 
Vice-Chair Stoltze  observed that  the Alaska Permanent  Fund                                                                   
Corporation Board  receives $400 a day and  expressed support                                                                   
for the legislation.                                                                                                            
5:44:13 PM                                                                                                                    
BRYAN BUTCHER,  LEGISLATIVE LIAISON,  ALASKA HOUSING  FINANCE                                                                   
CORPORATION, spoke  in support  of the legislation.  He noted                                                                   
that  the  Alaska  Railroad  Corporation  (ARRC)  Board  also                                                                   
receives  $400 a  day  and pointed  out  that  AHFC is  self-                                                                   
supporting.  Alaska  Housing   Finance  Corporation  receipts                                                                   
would be used, not the General Fund.                                                                                            
5:44:41 PM                                                                                                                    
Representative  Hawker   MOVED  to  report  HB   283  out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note. There  being NO OBJECTION,  it was                                                                   
so ordered.                                                                                                                     
CSHB  283 (STA)  was REPORTED  out  of Committee  with a  "do                                                                   
pass" recommendation  and with  a new  fiscal impact  note by                                                                   
the Department of Revenue.                                                                                                      
DAN  FAUSKE,  EXECUTIVE  DIRECTOR,   ALASKA  HOUSING  FINANCE                                                                   
CORPORATION,  DEPARTMENT  OF  REVENUE,  (via  teleconference)                                                                   
thanked the committee.                                                                                                          
5:46:08 PM                                                                                                                    

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