CS FOR SENATE BILL NO. 207(L&C) "An Act relating to the membership on the board of directors of the Alaska Aerospace Development Corporation." This was the second hearing for this bill in the Senate Finance Committee. Senator Stedman moved for adoption of CS SB 207, 24-LS1208\I, as a working document. 9:08:15 AM Vice Chair Bunde objected to the motion to explain that the committee substitute represents a compromise and would enable the fiscal note to be zero. The committee substitute would provide a requirement that residents of Kodiak would hold two seats on the board of the Alaska Aerospace Development Corporation (AADC). If no local residents applied for a seat, another Alaskan resident could fill the vacancy. 9:08:55 AM SENATOR GARY STEVENS, sponsor of the bill, supported the requirement that Kodiak residents would hold two seats. This has been the historical practice. Local representation is important due to the issues regarding access and impacts to beaches and other areas near the launch facility. He had held a non-voting seat on the board but found it difficult to serve without voting privileges and therefore resigned from the position. This legislation would have no fiscal impact. The practice of local representation has been successful in the past and no reason exists why it would not be successful in the future. 9:10:33 AM Senator Stedman asked if the seats held by local residents would be designated. 9:10:44 AM Senator G. Stevens replied that a Kodiak resident could hold any seat on the board provided that local residents hold two seats. 9:11:03 AM Vice Chair Bunde called upon testifiers. 9:11:20 AM NORM WOOTEN, Member, Kodiak Chamber of Commerce, testified via teleconference from Kodiak in support of the bill and in support of the specification that local residents would hold seats. 9:11:50 AM SUE JEFFERY, Member, Kodiak Chamber of Commerce, testified via teleconference from Kodiak to the importance of designating two seats on the board for local residents. This would ensure that the board has a "closer ear to the ground in Kodiak" to abate problems before they arise. Oftentimes, conflicts are due to a lack of communication that led to the problems. 9:12:58 AM PAT BRANSON, President, Kodiak Chamber of Commerce, and Assembly Member, Kodiak Island Borough, testified via teleconference from Kodiak, that the AADC has a significant impact on the local community, economically and in other ways. The designated seats provide a link between the board and the community. It also somewhat relieves the chair and the chief executive officer of the burden of attempting to ascertain and meet the needs of the community. The AADC is an important aspect of Kodiak Island. 9:15:19 AM Senator Olson asked how often board decisions were divided and the presence of two locals would "tip the balance". 9:15:57 AM Senator G. Stevens responded that traditionally the board membership has always been comprised of two local residents. Only recently, with the resignation of a member who was a local resident and the replacement of that seat by a non-local resident, has this not been the case. In the two years that Senator G. Stevens served on the board, no issues were decided by a close vote. The board has usually agreed on matters before it. The purpose of the designated seats is to receive community input and to provide feedback to the community on AADC activities and to inform the community of when and why access closures are necessary. 9:17:20 AM Senator Olson asked why the bill sponsor found serving as a non- voting member frustrating. 9:17:32 AM Senator G. Stevens explained that he held one of two non-voting seats designated for legislators. His frustration was borne from his interest in having a voice in decision making, not because of any controversy in board actions. 9:18:11 AM Vice Chair Bunde removed his objection to the adoption of the committee substitute and Version "I" was ADOPTED without further objection. Senator Dyson offered a motion to report CS SB 207, 24-LS1208\I, from Committee with individual recommendations and a new fiscal note. 9:18:39 AM There was no objection and CS SB 207 (FIN) was MOVED from Committee with a zero fiscal note dated 2/28/06 from the Department of Commerce, Community and Economic Development. 9:18:50 AM