Legislature(1995 - 1996)
03/08/1995 09:00 AM Senate FIN
Audio | Topic |
---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE JOINT RESOLUTION NO. 14 Proposing an amendment to the Constitution of the State of Alaska relating to certain public corporations. Co-chair Halford stated that SJR 14 did not go through Judiciary Committee. He asked Senator Taylor for information regarding SJR 14. Senator Taylor stated that the bill is straight forward and didn't feel it was necessary to go to Judiciary. Senator Phillips asked State Affairs and wanted to get it on the record that it didn't go through Judiciary. Co-chair Halford stated that it could go to Judiciary after Finance as long as the fiscal notes do not change. Co-chair Halford asked Jim Baldwin, Dept. of Law, to step forward. Jim Baldwin stated his concern. In 1955-56 the framers got together and produced a spectacular state constitution. It is considered the best in the nation if not in the world, some very fine distinctions were made. A system was set up of checks and balances, which was very finely balanced. One of the checks on the governor's power of appointment is the legislature's ability to confirm certain appointments. He contends that the framers made some very specific decisions to make it a limited check on a broad power because the governor should be responsible for the management of the executive branch of state government. Since the adoption of the constitution, there have been some very good amendments. He would ask the committee to proceed very deliberately on a further amendment of the constitution in this area because it does tip the balance in a way that was not intended by the original framers. Mr. Baldwin spoke about the ambiguities. He stated that a public corporation that manages state assets is ambiguous. He would encourage Judiciary to look at it with the thought in mind to fine tune the language. He cited as an example, he heard the amendment being described as one that would apply to all public corporations. He stated that he wasn't sure that was the case because the public corporations, as the court has observed, are of varying degrees of under state control. The enabling act of AHFC, says that it is a public corporation with a legal existence that is separate and independent from the state. If the language is applied literally, then are the assets of AHFC really state assets, or are they the assets of a political subdivision of the state? Senator Rieger asked what is the definition of a public corporation? Mr. Baldwin stated that there isn't one definitely. Basically, it is a corporate body that is chartered by the state itself. Private corporations have a code that specifies how to be chartered. The state does not have articles of incorporation other than state law that creates it. It's a corporate body established either by law, such as AHFC, or the constitution, such as the university. Co-chair Halford stated that this is exactly the definition that this bill reaches. He stated that Mr. Baldwin's definition of public corporation is just as he described it, and it manages state assets. Senator Rieger asked if a board could be set up without it being a corporation to manage a billion dollars of state assets? He stated that theoretically it would escape this constitutional provision. Mr. Baldwin stated that it could. There are two different entities that can issue bonds within the state. Public corporations issue revenue bonds. State agencies issue bonds for example, international airports. He stated that the assets that belong to AHFC for example, are not assets that the state would want to have. Mr. Baldwin stated that he recommended that SJR 14 go to Judiciary. Co-chair Halford asked that the resolution go to the Judiciary Committee. He felt it should be returned in two weeks to the committee. ADJOURNMENT The meeting was adjourned at approximately 10:25 a.m.
Document Name | Date/Time | Subjects |
---|