SENATE BILL NO. 92 "An Act relating to removal of members of the board of trustees of the Alaska Permanent Fund Corporation; and providing for an effective date." This was the second hearing for this bill in the Senate Finance Committee. Amendment # 1: This conceptual amendment changes the effective date of the legislation to January 1, 2004, both in the language and in the title of the bill. Co-Chair Donley moved for adoption. Senator Austerman objected for an explanation. Co-Chair Donley explained the delayed effective date gives the public time to review the issue. He stressed this is because Governor Tony Knowles "felt so strongly" against it as reflected in the veto message accompanying earlier legislation passed by the legislature but vetoed by the governor approximately five years prior. Co-Chair Donley surmised, "There must be some good meritorious reason for being so strongly opposed to this." Co-Chair Kelly opined that Governor Tony Knowles "fought" against the earlier legislation because he wished to replace the existing trustees with members he chose. Co-Chair Kelly remarked, now that the governor's appointees are seated, the governor supports the current legislation to prevent these trustees from being removed without just cause. Co-Chair Kelly remarked this amendment allows the legislation to "start with a clean slate with a new governor." Senator Wilken expressed concern, saying this amendment politicizes the matter further, when the intent of the legislation is to remove politics from the process. He remarked that the current board is a "functioning board" by all accounts regardless of the governor who appointed the members. Co-Chair Kelly commented, "There has never been any way in the history of the State of Alaska that we could have ever predicted a governor so political as this. The use of the statutes to gain his political agenda dealing with the permanent fund board was, I think, very egregious when he vetoed something that I think was in the best interest of the state. Now that it protects the people that he has in place, he wants those people protected." Co-Chair Kelly said he supports the amendment, as it is enacted for a "new governor-new rules". He expressed he did not want the dismissal for just cause provision to apply to "all the people that were in under the old layers of politics with the guy who pushed the envelope at every level." He continued, "This is the guy who put his name/picture on the permanent fund check." Senator Austerman stated that if the effective date on the bill is to be so far into the future, why the legislation is not voted down. He agreed with Senator Wilken, that this amendment would further politicize the issue. He agreed dismissal for just cause is a worthy issue. AT EASE 6:22 PM / 6:22 PM AT EASE 6:22 PM / 6:24 PM Senator Hoffman understood the question before the Committee is whether it is good public policy to remove a trustee only for just cause. He stated he supports this concept, which he also supported when the earlier legislation was considered. However, he asserted he opposes the amendment. Senator Wilken referred to the Board's membership roster and noted the terms of all four public members expire by the effective date of the amendment, thus making the effective date mute. Co-Chair Donley disagreed and explained that beginning in 2004, removal of trustees for just cause only, would become law. A roll call was taken on the motion. IN FAVOR: Senator Green, Senator Leman, Senator Ward, Co-Chair Donley and Co-Chair Kelly. OPPOSED: Senator Austerman, Senator Hoffman, Senator Olson and Senator Wilken. The motion PASSED (5-4) Co-Chair Donley offered a motion to move SB 92, 22-LS0462\A, as amended, from Committee with accompanying zero fiscal note from the Department of Revenue. Senator Austerman objected, saying he thought the bill as amended is "useless". A roll call was taken on the motion. IN FAVOR: Senator Green, Senator Leman, Senator Ward, Senator Wilken, Co-Chair Donley and Co-Chair Kelly OPPOSED: Senator Hoffman, Senator Olson and Senator Austerman The motion PASSED (6-3) The bill MOVED from Committee. AT EASE 6:27 PM / 6:30 PM [Note: The following portion of the meeting failed to record on Committee equipment. The Legislative Information Office made an alternate recording; see tapes titled SFC-01 #86/II and SFC-01 #86/III. However, the sound quality of these tapes is poor.]