Legislature(2005 - 2006)CAPITOL 106
04/28/2005 08:00 AM House STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB22 | |
| HB161 | |
| HB283 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 22 | TELECONFERENCED | |
| + | HB 161 | TELECONFERENCED | |
| *+ | HB 283 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 283-AK HOUSING FINANCE CORP BOARD COMP. 10:01:31 AM CHAIR SEATON announced that the last order of business was 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." 10:01:45 AM MIKE O'HARE, Staff to Representative Pete Kott, Alaska State Legislature, on behalf of Representative Kott, sponsor, stated that HB 283 would increase the per diem levels of public board members from $100 to $400. The current level of $100 has been in place since the inception of the Alaska Housing Finance Corporation (AHFC) in 1971. Mr. O'Hare paraphrased from a portion of the sponsor statement, which read as follows [original punctuation provided]: 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. 10:03:29 AM BRIAN BUTCHER, Director, Government Relations and Public Affairs, Alaska Housing Finance Corporation (AHFC), noted that AHFC is a totally self-supporting corporation that receives no state general funds and pays a dividend of $103 million to the state. He said, "The small increase would be in corporate receipts." 10:04:11 AM MR. BUTCHER, in response to a question from Representative Lynn, said there are an estimated 12 board meetings a year for only 4 board members. At a $300-per-member increase, the additional cost would be $15,000. 10:04:32 AM CHAIR SEATON asked what other per diem rates are, for example, for the Board of Fisheries and the Board of Game. 10:04:36 AM MR. BUTCHER responded that he does not know. He said, "This was the same amount that the Permanent Fund Board receives, and we felt that - seeing as our board has oversight over [a] $5 billion corporation, there were many of the same responsibilities." In response to a follow-up question from Chair Seaton, he confirmed that the Permanent Fund Board currently pays a $400 per diem to its members. 10:05:17 AM MR. BUTCHER, in response to a question from Representative Elkins, said hotel costs are not included in the compensation. In response to a question from Chair Seaton, he explained that the hotel costs depend on the number of board members from out of town that attend the meeting in person rather than by teleconference. If a member were to attend the meeting in person, there would be airfare and one night at an hotel, if necessary. 10:05:25 AM CHAIR SEATON said, "So, those are actual expenses, not a per diem expenditure?" 10:05:43 AM MR. BUTCHER answered that's correct. 10:06:31 AM REPRESENTATIVE ELKINS said he would like to offer an amendment so that the level of the per diem be fixed to the federal rate, like the legislature's is. He said he doesn't see much need to pay any board member more per diem than the legislature pays itself. 10:07:08 AM CHAIR SEATON asked Representative Elkins to hold the amendment, because the committee does not have a quorum. He noted that the per diem given to legislators pays for expenses incurred for having a second residence in the capital and living expenses. The per diem for the AHFC Board members would be for pay only, with expenses being a separate issue. 10:07:46 AM REPRESENTATIVE ELKINS stated that when he travels to Anchorage on legislative business, he is paid at a federal rate "for that travel up there." He indicated that included in the per diem is: hotel, plane fare, and tax. 10:08:10 AM CHAIR SEATON asked Mr. O'Hare to supply a fact sheet listing the compensation rate of other boards. [HB 283 was heard and held.]
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