SENATE BILL NO. 54 "An Act establishing the Alaska Veterans Advisory Council; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. LADDIE SHAW, Special Assistant, Office of Veteran Affairs, Department of Military and Veterans Affairs, testified this bill establishes in statute, the Alaska Veterans' Advisory Council. He noted this organization was created under Administrative Order #164 in 1996. Mr. Shaw explained this organization assists the Department in identifying the needs and concerns of veterans in the State of Alaska, their dependants and survivors, as well as identifying methods to better address those needs. He detailed the Council's duties including making recommendations concerning veterans' priority service, needs, developing public and private partnerships to meet those needs and providing coordination and information regarding veterans' benefits and services in the State. Mr. Shaw stated that the Council consists of 20 members appointed by the governor. He listed that one or more members are affiliated with a veterans' organization; one or more members represent a State agency that manages programs affecting veterans; and one or more members of the general public "familiar with veterans' issues". He emphasized that members serve without compensation beyond per diem and travel expenses. PAT CAROTHERS, Chair, Alaska Veterans Advisory Council, and Lieutenant Colonel, US Marine Corps, Retired, testified in support of establishing the Council in statue. He cautioned that a future governor could "abolish" this Council and that the efforts of the past seven years undertaken on behalf of Alaska's veterans would be "just about down the tube" with the exception of legislation already adopted. Lt. Col. Carothers remarked the Council operates on a statewide basis and he described the process whereby "problems within the veterans' community" are brought before service officers of the veterans' organizations and handled on an individual basis. He noted the Council has representation in each veteran organization and that each veteran organization has representation on the Council. Therefore, he informed that many issues are presented to the Council, and if it is determined that a problem affects more than the individual, the Council addresses the matter. He explained the Council makes recommendations and pointed out that most of these recommendations have been implemented by the appropriate State agencies. He characterized this process as the Council serving as "the eyes and ears of the Administration" as well as the Legislature. Lt. Col. Carothers asserted the $3,500 cost of this legislation is minimal. He informed that the Council holds three meetings annually: one each in Anchorage and Juneau, plus one teleconference meeting. Lt. Col. Carothers stressed the importance of an entity to coordinate veteran service organizations to receive suggestions for improvement. He remarked, "A healthy veteran community is a good asset for any legislator to have in his constituency." Lt. Col. Carothers stressed that the members of the Council would be "very very disappointed" if this bill did not pass and the Council were eliminated. He stated the Council is bi-partisan, assuring that he is "not in the Administration's club" and that he serves the veterans of Alaska, as do the other Council members. Senator Wilken was concerned with the assertion that the new governor would choose to eliminate the Council as it has been in place since 1996. He asked why the witness surmised this would occur. Lt. Col. Carothers informed that Governor Wally Hickel had abolished the Council when he took office. Senator Wilken commented that a 20-member Council appears large, although he did not object if the Council is able to operate with a budget of $3,500. He commented that the Council could reduce its membership to ten seats and hold more efficient meetings more frequently. Co-Chair Kelly suggested that the governor should appoint ten members with the remaining ten appointed by the legislature. Senator Olson commended Lt. Col. Carothers and other members of the Council for their involvement. He wanted to know the number of veterans in Alaska. Lt. Col. Carothers replied that 68,000 veterans reside in Alaska, which is more per capita than in any other state. Senator Olson asked the geographical distribution of veterans in the State. Mr. Shaw answered that approximately 43 percent of the veterans in Alaska reside in Anchorage and the Mat-Su Valley; the second largest concentration is in Fairbanks, with the remaining 25 to 27 percent living elsewhere in the State. Senator Olson commented, "It sounds like a very good bill Mr. Chairman." Co-Chair Kelly asked if the witnesses would object to amending the legislation to provide that five Council members are appointed by the President of the Senate, five by the Speaker of the House and ten by the governor. Amendment #1: This conceptual amendment provides that appointment of the 20 Council members shall be determined by the following entities: governor, ten seats; Senate leadership, five seats; House of Representatives leadership, five seats. This amendment also provides this change takes effect as the Council members' current terms expire. Senator Leman moved for adoption. Senator Ward clarified this would not impact current Council memberships. The amendment was ADOPTED without objection. Senator Hoffman asked the percentage of rural members serving on the Council. Mr. Carothers responded that approximately one-third of the membership reside in Bethel, and other small communities. Co-Chair Kelly thanked the witnesses and those members of the public for their service in combat. Senator Hoffman asked how the appointment of the Council positions would be rotated. Co-Chair Kelly suggested the next vacancy could be filled by an appointee of the governor, the second vacancy by the Senate and the third vacancy by the House of Representatives, with the process repeating in this manner for subsequent vacancies. Senator Leman agreed to this process. Mr. Shaw stated this method is possible. He pointed out that currently appointments are made based on the recommendations of local veterans organizations. He assumed this process could continue regardless of the appointing authority. Co-Chair Kelly surmised that the rotation of appointing authority would assure fair consideration of the veteran organizations' recommendations. Co-Chair Kelly suggested the amendment should be conceptual to allow the drafter to conform the language to the intent of the Committee. Amendment #2: This conceptual amendment provides that the first vacant seat would be filled by appointment of the governor, the second vacant seat would be filled by appointment of the Senate leadership, the third vacant seat would be filled by appointment of the House of Representatives leadership, and subsequent vacancies would be filled in this rotating order. Senator Leman moved for adoption of this conceptual amendment to accommodate the Committee's intent to provide fair distribution of Council membership. There was no objection and the amendment was ADOPTED. Senator Ward offered a motion to "move Senate Bill number 54 amended out of Committee with individual recommendations and the accompanying note." Without objection, CS SB 54 (FIN) with accompanying $3,500 fiscal note #2 from the Department of Military and Veterans Affairs dated 2/9/02, MOVED from Committee.