Legislature(2021 - 2022)GRUENBERG 120

04/19/2022 03:00 PM House STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 3:20 pm --
+= HB 271 AIDEA: MEMBERSHIP; RESPONSIBILITIES TELECONFERENCED
Heard & Held
+= HB 66 ELECTIONS, VOTING, BALLOTS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 251 BD OF TRUSTEES OF THE AK PERM. FUND CORP. TELECONFERENCED
Moved HB 251 Out of Committee
+= HB 396 DIVEST INVESTMENTS IN RUSSIAN ENTITIES TELECONFERENCED
Scheduled but Not Heard
**Streamed live on AKL.tv**
           HB 271-AIDEA: MEMBERSHIP; RESPONSIBILITIES                                                                       
                                                                                                                                
3:36:03 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS  announced that  the next order  of business                                                               
would  be HOUSE  BILL NO.  271, "An  Act relating  to the  Alaska                                                               
Industrial Development  and Export  Authority; and  providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
3:36:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CLAMAN  moved  to adopt  the  proposed  committee                                                               
substitute (CS) for HB 271,  labeled 32-LS1364\I, Klein, 4/15/22,                                                               
as the working document.                                                                                                        
                                                                                                                                
CHAIR KREISS-TOMKINS objected.                                                                                                  
                                                                                                                                
3:37:00 PM                                                                                                                    
                                                                                                                                
XANNIE  BORSETH, Staff,  Representative Jonathan  Kreiss-Tomkins,                                                               
Alaska State  Legislature, provided a  summary of changes  in the                                                               
proposed  CS for  HB 271  ("Version  I"), which  read as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Deletes Sections 3, 4, 7, 8, 9, 10, 11, and 13.                                                                          
                                                                                                                                
     Section 4    Page  2, line 10  adds "by  publishing the                                                                  
     notice  on  the  authority's Internet  website"  to  AS                                                                    
     44.88.085(d)  which   requires  public   notice  before                                                                    
     adoption,  amendment, or  repeal of  an AIDEA  proposed                                                                    
     action.                                                                                                                    
                                                                                                                                
     Sections renumbered accordingly                                                                                          
                                                                                                                                
3:38:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY  wondered whether  a two-minute  minimum for                                                               
public testimony would be too prescriptive.                                                                                     
                                                                                                                                
CHAIR  KREISS-TOMKINS  sought  to  confirm  that  the  two-minute                                                               
minimum was unchanged from the original version of the bill.                                                                    
                                                                                                                                
MS. BORSETH  answered yes,  noting that  the language,  "not less                                                               
than two minutes", was on page 2, line 19.                                                                                      
                                                                                                                                
REPRESENTATIVE STORY  expressed concern that the  chair would not                                                               
have discretion.                                                                                                                
                                                                                                                                
CHAIR  KREISS-TOMKINS   advised  the  committee  to   table  this                                                               
discussion until final comment, as  the provision in question was                                                               
not new to Version I.                                                                                                           
                                                                                                                                
3:40:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CLAMAN  sought to confirm that  under the proposed                                                               
legislation, Alaska  Industrial Development and  Export Authority                                                               
(AIDEA) membership  would be staggard five-year  terms that, once                                                               
confirmed  by  the  legislature,  could not  be  removed  by  the                                                               
governor.                                                                                                                       
                                                                                                                                
MS. BORSETH deferred to the bill sponsor.                                                                                       
                                                                                                                                
3:41:40 PM                                                                                                                    
                                                                                                                                
ELISE  SORUM-BIRK, Staff,  Representative Andy  Josephson, Alaska                                                               
State   Legislature,  confirmed   that  Representative   Claman's                                                               
understanding was accurate.                                                                                                     
                                                                                                                                
REPRESENTATIVE  CLAMAN said  he liked  the provision  because the                                                               
AIDEA board members would serve  independently from the executive                                                               
branch.                                                                                                                         
                                                                                                                                
3:42:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN reiterated his  previous concern about the                                                               
language  on page  2, line  22, such  that the  Alaska Industrial                                                               
Development  and  Export  Authority   ("the  authority")  may  be                                                               
required  to  publish written  responses  to  a large  number  of                                                               
public comments.                                                                                                                
                                                                                                                                
MS. SORUM-BIRK said  she did not have a response  to that concern                                                               
at this time.                                                                                                                   
                                                                                                                                
CHAIR  KREISS-TOMKINS   noted  that  similar   to  Representative                                                               
Story's inquiry, the language in  question was unchanged relative                                                               
to the original version of the bill.                                                                                            
                                                                                                                                
3:43:33 PM                                                                                                                    
                                                                                                                                
CHAIR  KREISS-TOMKINS  removed his  objection.    There being  no                                                               
further  objection,   Version  I  was  adopted   as  the  working                                                               
document.                                                                                                                       
                                                                                                                                
REPRESENTATIVE STORY redirected her  original line of questioning                                                               
regarding the two-minute minimum for public testimony.                                                                          
                                                                                                                                
3:45:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ANDY JOSEPHSON,  Alaska State  Legislature, prime                                                               
sponsor  of HB  271, opined  that a  minimum of  two minutes  for                                                               
public  testimony  was a  vast  improvement  compared to  current                                                               
practices.                                                                                                                      
                                                                                                                                
3:45:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  commented on the  history of abrupt  time or                                                               
agenda changes in AIDEA's scheduled  meetings.  She asked whether                                                               
the  current language  adequately addressed  the expectations  of                                                               
transparency.   She  suggested  adding  language that  prohibited                                                               
last minute meeting changes, which  had shattered public trust in                                                               
the past.                                                                                                                       
                                                                                                                                
REPRESENTATIVE JOSEPHSON  pointed out  that the  goal was  not to                                                               
tie the  board's hands completely.   He  indicated that it  was a                                                               
policy call.                                                                                                                    
                                                                                                                                
3:48:24 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS  invited general comments from  Mr. Weitzner                                                               
on Version I.                                                                                                                   
                                                                                                                                
3:48:49 PM                                                                                                                    
                                                                                                                                
ALAN WEITZNER,  Executive Director, AIDEA, directed  attention to                                                               
the  meeting agendas,  which were  published  on the  authority's                                                               
website and available  for public review.  He  contended that the                                                               
public was consistently  allotted two minutes per  person for one                                                               
hour,  as defined  on  the agenda.   He  stated  that AIDEA  took                                                               
public  comment extremely  seriously, adding  that the  authority                                                               
would  be receptive  to suggestions  for improvement.   Regarding                                                               
Version I,  he directed  attention to  Section 5,  which repealed                                                               
AIDEA's confidentiality  statutes, arguing  that the  language in                                                               
AS 44.88.215 was  necessary for AIDEA's operation.   He cautioned                                                               
the committee  that repealing the confidentiality  statutes would                                                               
publicize all the information submitted  by parties with business                                                               
operations or  loans with AIDEA,  both current  and historically.                                                               
He urged the committee to take a closer look at Section 5.                                                                      
                                                                                                                                
3:53:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CLAMAN  asked whether Mr. Weitzner  was suggesting                                                               
that Section 5 should be excluded.                                                                                              
                                                                                                                                
MR. WEITZNER answered yes.                                                                                                      
                                                                                                                                
REPRESENTATIVE CLAMAN  directed attention to the  language "shall                                                               
publish written  responses to public  comments" on page  2, lines                                                               
21-22  of  Version  I  and  asked  how  AIDEA  would  treat  that                                                               
provision  in  practice.   Specifically,  he  questioned  whether                                                               
AIDEA would respond to similar  comments with a general response,                                                               
as opposed to responding to each individual comment separately.                                                                 
                                                                                                                                
MR.  WEITZNER  explained  that   under  current  practice,  AIDEA                                                               
provided  a  written response  to  written  public comment.    He                                                               
maintained that  AIDEA had the  capacity to meet  the requirement                                                               
in question.   He asked the committee how the  provision would be                                                               
put into  practice, questioning whether  AIDEA would  be required                                                               
to address each individual public comment before taking action.                                                                 
                                                                                                                                
REPRESENTATIVE  CLAMAN   remarked,  "I  understand   the  current                                                               
practice  is that,  internally,  you have  some  memo that  says,                                                               
'here's  how  we  respond  to  these  100  comments,'  but  those                                                               
comments don't go anywhere other than internally?"                                                                              
                                                                                                                                
MR.  WEITZNER   responded  that   internal  staff   reviewed  and                                                               
responded to the parties that send public comment.                                                                              
                                                                                                                                
3:57:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  recalled that  last minute changes  had been                                                               
made  to the  agenda of  a specific  AIDEA meeting  regarding the                                                               
purchase  of leases  for  drilling in  the  Arctic refuge,  which                                                               
impacted  people's ability  to provide  public  testimony on  the                                                               
issue.  She asked Mr. Weitzner to comment on that circumstance.                                                                 
                                                                                                                                
MR.  WEITZNER said  the meeting  in  question was  declared as  a                                                               
"special meeting  of the board."   He explained that  the meeting                                                               
was on short notice  because of the need to make  a decision in a                                                               
short period of  time due to a limited opportunity  to act on the                                                               
leases.  He  reiterated that under current  practice, two minutes                                                               
of public  testimony was allotted  per person  for one hour.   He                                                               
shared  his understanding  that  only the  public testimony  that                                                               
would have exceeded the one-hour time period was cut off.                                                                       
                                                                                                                                
3:59:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR opined that prior  actions had led the public                                                               
to call for  a reform of the enabling statutes.   She opined that                                                               
it would be in the public's  best interest to extend the time for                                                               
public testimony  past one  hour, as  cutting people  off planted                                                               
the seeds  of mistrust.  She  expressed her hope that  absent the                                                               
passage  of the  proposed legislation,  AIDEA would  consider the                                                               
impact of its actions relative to the public's trust.                                                                           
                                                                                                                                
CHAIR  KREISS-TOMKINS pointed  out  that  the existing  statutory                                                               
language on public  comment pertaining to AIDEA  stated, "a total                                                               
period of at  least on hour".  He asked  why public testimony had                                                               
been cut off after completing the  bare minimum and who made that                                                               
decision.                                                                                                                       
                                                                                                                                
MR. WEITZNER stated  that it was common practice of  the chair to                                                               
extend that time period.   He emphasized that, ultimately, it was                                                               
the  chair's decision.    He shared  his  understanding that  any                                                               
party  who did  not get  a chance  to testify  was encouraged  to                                                               
email their testimony to AIDEA.                                                                                                 
                                                                                                                                
CHAIR  KREISS-TOMKINS   redirected  his  question  back   to  the                                                               
incident  described by  Representative Tarr.   He  asked why  the                                                               
chair  had  decided  to  stop public  testimony  after  one  hour                                                               
despite there being  additional members of the public  in the que                                                               
to testify.                                                                                                                     
                                                                                                                                
MR. WEITZNER said it was the  chair's decision to stop the agenda                                                               
item.                                                                                                                           
                                                                                                                                
CHAIR  KREISS-TOMKINS acknowledged  the  interest in  efficiency;                                                               
however, he pointed out that  a legislative committee would never                                                               
cut public testimony short if there were people in the queue.                                                                   
                                                                                                                                
4:05:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR inquired about  special meetings of the board                                                               
and  asked  how  the  process for  public  notice  differed  from                                                               
regular meetings.                                                                                                               
                                                                                                                                
MR. WEITZNER  reported that public  testimony for the  meeting in                                                               
question  was noticed  for 1.5  hours.   He explained  that AIDEA                                                               
followed the Open Meetings Act,  per AS 44.62.310, which required                                                               
"reasonable public  notice" for open  meetings.  In  practice, he                                                               
stated that AIDEA  made agendas available to the  public one week                                                               
prior to  the scheduled  board meetings.   For  special meetings,                                                               
AIDEA  was  required to  provide  notice  at  least 48  hours  in                                                               
advance.   In  regard to  the  specific meeting  in question,  he                                                               
recalled that the agenda was provided three days in advance.                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON addressed  Mr.  Weitzner's comments  on                                                               
Section 5,  indicating that his intent  was for the effect  to be                                                               
prospective, as opposed to retroactive.                                                                                         
                                                                                                                                
4:08:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CLAMAN  associated  himself  with  Representative                                                               
Tarr's  comments  regarding  public  testimony.   He  shared  his                                                               
understanding that the intent of  the proposed legislation was to                                                               
require AIDEA to listen to public testimony in its entirety.                                                                    
                                                                                                                                
4:10:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAUFMAN asked  Mr. Weitzner  to elaborate  on his                                                               
concerns about Section 5.                                                                                                       
                                                                                                                                
MR. WEITZNER reiterated his belief  that Section 5 would have the                                                               
broadest impact  on ADIEA's operations.   He maintained  that the                                                               
existing  language under  AS 44.88.215  specifically limited  the                                                               
amount of information  that AIDEA was allowed to  hold and define                                                               
as confidential.   He pointed  out that Section 5  would directly                                                               
impact AIDEA's  loan programs and  the way the  authority engaged                                                               
with the  financial service  industry within  Alaska.   He argued                                                               
that    eliminating    the   confidentiality    statutes    would                                                               
significantly  impact  AIDEA's  capacity  to  continue  with  its                                                               
current operations and the issuance of dividends.                                                                               
                                                                                                                                
4:13:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN  drew a comparison between  limited public                                                               
testimony  and campaign  finance  limits, arguing  that it  could                                                               
discourage people from participating in the public process.                                                                     
                                                                                                                                
CHAIR  KREISS-TOMKINS asked  the  bill sponsor  to  speak to  the                                                               
intent of [Section 5].                                                                                                          
                                                                                                                                
4:14:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  conveyed that it was  a "core principle                                                               
of AIDEA's critics."  He explained  that his intent was to herald                                                               
and champion  the public's ability to  meaningfully interact with                                                               
the board.   He  recalled that transparency  was afforded  to the                                                               
public for decades,  as AIDEA was founded in  1967; however, now,                                                               
transparency appeared to be lacking.   He indicated that enabling                                                               
more transparency was an important feature of Version I.                                                                        
                                                                                                                                
CHAIR KREISS-TOMKINS acknowledged  that a blanket confidentiality                                                               
proviso  could  be overkill;  however,  businesses  may not  want                                                               
their  intimate details  and financial  information to  be public                                                               
record.  He expressed his interest in finding a middle ground.                                                                  
                                                                                                                                
4:16:20 PM                                                                                                                    
                                                                                                                                
MS.  SORUM-BIRK said  a  more detailed  legal  analysis could  be                                                               
obtained  and distributed  to the  committee.   Nonetheless,  she                                                               
recalled    that   numerous    federal    laws   protected    the                                                               
confidentiality of  sensitive financial  records.   She explained                                                               
that the bill  sponsor's intent was for records to  be subject to                                                               
the Alaska Public Records Act.                                                                                                  
                                                                                                                                
CHAIR  KREISS-TOMKINS  confirmed  that  a  legal  analysis  would                                                               
provide him some comfort and  better understanding.  He suggested                                                               
looking  at an  analogue of  how public  records laws  interacted                                                               
with   the  Department   of   Commerce,   Community  &   Economic                                                               
Development's  (DCCED's)   Division  of   Economic  Development's                                                               
revolving loan  fund programs, given  that much of  the financing                                                               
went through that entity.                                                                                                       
                                                                                                                                
CHAIR KREISS-TOMKINS announced that HB 271 was held over.