CS FOR HOUSE BILL NO. 283(STA) "An Act relating to the compensation for board members of the Alaska Housing Finance Corporation; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. MICHAEL O'HARE, Staff to Representative Pete Kott, the bill's sponsor, noted that a new committee substitute is being offered for consideration. Co-Chair Green moved to adopt committee substitute Version 24- LS0922\F as the working document. She objected for purposes of explanation. Mr. O'Hare explained that Sec. 2, page 1 line 10 through page 2 line 2, has been added to Version "F". This new section would amend Alaska Statute (AS) 42.04.020(f) pertaining to the salary paid to the chairperson and commissioners of the Regulatory Commission of Alaska (RCA). Existing step and range salary schedule language would be replaced with language allowing the Governor to determine those salaries. 9:27:41 AM Senator Olson asked the fiscal impact of this change. Co-Chair Green noted that the recent drafting of Version "F" has not provided sufficient time for RCA to calculate the fiscal impact. Co-Chair Green noted that in addition to the salary changes pertaining to the RCA chairperson and commissioners, Version "F" would also increase Alaska Housing Finance Corporation (AHFC) Board members compensation while attending business meetings from $100 to $400 per day. This language is depicted in Section 1(e) on page 1 line 6. 9:29:01 AM KATE GIARD, Chair, Regulatory Commission of Alaska, Department of Commerce, Community and Economic Development testified via teleconference from an offnet site and communicated that the compensation changes proposed for the four RCA commissioners would incur a fiscal impact of approximately $170,000. The fiscal impact of the compensation for the chairperson is unknown, as the Governor would make that determination. Ms. Giard stated the increased compensation proposed would expand the range of RCA commissioner candidates. The RCA Chair is appointed for a four-year term and commissioners are appointed for six-year terms. Her term as RCA chair began in 2002 and would terminate in 2006. One of her objectives as chair was "to position the RCA to move forward into the future". This included a review of commissioner compensation, as one of "the challenges" facing the Legislature is to recruit commissioners willing to work very hard during their terms and who could bring maturity and business experience to the Agency. Their decisions "would have long-term fiscal impact on the State of Alaska". Current Commissioners are paid $86,000 annually, as compared to State department commissioners who earn approximately $124,000 annually. The current base level salary paid to RCA commissioners is insufficient to attract a business executive or a department commissioner. The proposed salary would be similar to that of State department commissioners. The Governor would establish the salary for the RCA chairperson. 9:32:24 AM Senator Stedman asked whether an updated fiscal note would be provided prior to action being taken on the bill. In response to a remark by Co-Chair Green, he acknowledged Ms. Giard's testimony that the commissioners' salary increase would equate to approximately $170,000. In response to a question from Senator Olson, Ms. Giard affirmed the commissioners' salary increases would amount to $170,000 per year. 9:32:55 AM Senator Stedman observed that compensation levels for boards and commissions have been a matter of discussion in the past. "The issue is broader than just the subject matter in this bill." Thus, the compensation of other boards and commissions should also be addressed. Co-Chair Green acknowledged Senator Stedman's remarks. The bill was HELD in Committee. [NOTE: No action was taken on the motion to adopt Version "F".] 9:33:25 AM