04/13/1993 09:30 AM Senate FIN

                                                                               
  CS FOR SENATE BILL NO. 148(TRA):                                             
                                                                               
       An Act relating to legislative approval of certain acts                 
       of the Alaska Railroad Corporation; taxation of certain                 
       property of the Alaska Railroad Corporation; members of                 
       the board  and chief  executive officer  of the  Alaska                 
       Railroad  Corporation;   meetings  of   the  board   of                 
       directors  of  the  Alaska  Railroad  Corporation;  and                 
       providing for an effective date.                                        
                                                                               
  Co-chair Pearce announced that CSSB  148(TRA) was before the                 
  committee.   Co-chair Frank  said that  amendment 3  further                 
                                                                               
                                                                               
  clarifies the definition of non-transportation activity.                     
                                                                               
  DAVID SKIDMORE, staff to Co-chair  Frank, spoke to amendment                 
  3.    He said  that points  A  and B  were identical  to the                 
  original definition that was  in the transportation CS.   He                 
  said point C is the clarifying point which provides that the                 
  railroad is prohibited from obtaining  an equity position in                 
  an  activity  that  occurs  before   or  subsequent  to  the                 
  movement,  handling, or distribution  of people  or personal                 
  property not withstanding activities  that were conducted by                 
  the corporation  on the  date of  transfer to  the state  or                 
  activities  that  are  directly  related  to  the  movement,                 
  handling,  or distribution  of people or  personal property.                 
  Mr. Skidmore  said that the amendment was acceptable to Mark                 
  Hickey.                                                                      
                                                                               
  Senator  Kelly   asked  if  the  railroad   corporation  was                 
  grandfathered in the  equity position in the  existing hotel                 
  somewhere in the  bill.  Mr.  Skidmore said that action  had                 
  not been taken regarding the existing hotel.                                 
                                                                               
  MARK HICKEY, Alaska Railroad Corporation,  said that in CSSB
(FIN) work  draft, page 4, lines 21 through 24, addresses                 
  specific activities  engaged in by the  railroad corporation                 
  and  "does  not apply  to specific  activities in  which the                 
  corporation  is  engaged  on  the  effective  date  of  this                 
  section..."                                                                  
                                                                               
  Co-chair  Pearce  announced  that CSSB  148(FIN)  work draft                 
  dated April 12, 1993 had been adopted by the committee.                      
                                                                               
  Co-chair  Frank  MOVED  for adoption  of  amendment  3.   No                 
  objections being heard, amendment 3 was ADOPTED.                             
                                                                               
  Co-chair  Frank  MOVED  for passage  of  CSSB  148(FIN) from                 
  committee  with individual  recommendations.   Senator Kelly                 
  OBJECTED.  He  questioned the  filling of a  vacancy on  the                 
  board  of  directors for  the  railroad corporation  by this                 
  legislation.                                                                 
                                                                               
  Co-chair Pearce  said that  the next  vacancy  of the  board                 
  would come up this  fall.  She said the  railroad would have                 
  to appoint an outside director at that time.  She went on to                 
  explain  the  Governor's role  in  the appointments  and his                 
  options.  Senator Kelly voiced his opposition to a change in                 
  the  board.  Co-chair Pearce  explained that there never had                 
  been an expectation that the CEO  of the railroad would also                 
  hold the position of outside railroad expert.  She felt that                 
  outside expert should be someone other  than the CEO.  Since                 
  there was a seat that was becoming vacant, she felt it was a                 
  good opportunity to accomplish this change.                                  
                                                                               
  Senator Kelly asked Mr. Hickey what the fee was for board of                 
  directors of the railroad.  Mr. Hickey said the law provided                 
                                                                               
                                                                               
  for $400 a day plus per diem.   Co-chair Pearce said that it                 
  was the highest paid board in the state.  It was pointed out                 
  that  it  was  modeled  after the  permanent  fund  board of                 
  director's fees.                                                             
                                                                               
  Senator Kelly reiterated  his opposition to a  change in the                 
  board of directors for the railroad corporation.                             
                                                                               
  Co-chair Frank withdrew his motion to move CSSB 148(FIN) out                 
  of committee.  Co-chair Pearce  announced that CSSB 148(FIN)                 
  would be held in committee.                                                  
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was adjourned at approximately 10:32 a.m.