SB 125-LEGISLATIVE MEMBERS OF AGDC BOARD  1:41:48 PM CHAIR COSTELLO announced the consideration of SB 125. She passed the gavel to Vice Chair Giessel. SENATOR MIA COSTELLO, Alaska State Legislature, sponsor of 125, explained that the bill expands the membership of the Alaska Gasline Development Corporation (AGDC) Board by adding one ex officio, nonvoting member appointed by the president of the Senate and one ex officio, nonvoting member appointed by the speaker of the House of Representatives. The purpose of the bill is to facilitate communication and a teamwork approach between the AGDC Board and the legislature and help move the AKLNG Project forward. 1:44:07 PM WESTON EILER, staff, Senator Mia Costello, Alaska State Legislature, stated that the bill amends Title 31 adding the aforementioned new members who are appointed annually. This substantive change is on page 1, line 11, through page 2, line 2. Sections 2-6 are conforming changes within Title 31 clarifying that elections within the board will be selected from among the voting members. He added that the AGDC Board currently consists of five public members appointed by the governor and serving at his pleasure and two commissioners of state departments appointed by the governor and serving at his pleasure. The commissioners of the Department of Revenue and the Department of Natural Resources are prohibited from serving. That change in the law was enacted with the passage of Senate Bill 138. MR. EILER stated that as the AKLNG Project moves forward the State of Alaska will face increasingly complex policy and financing decisions. It is thus essential to have a transparent and clear decision-making process in place. SB 125 helps accomplish this. Having legislators participate in an advisory capacity adds experience and continuity to the AGDC Board. Legislators currently serve on over a dozen state boards and commissions and state corporations so this model has precedent in statute. The legislators will provide perspective and insight and lets Alaska's elected policy makers better understand aspects of state policymaking that AGDC is currently undertaking. This will help improve their process for important business decisions and the Project will be aided by legislative service on the board. Adding the two legislators is a natural step as the board is still grappling with large policy decisions. He concluded the introduction saying SB 125 strengthens and diversifies the AGDC Board in advancing the AKLNG Project. 1:48:40 PM SENATOR STEVENS asked why the bill says "nonvoting" rather than ex officio because other appointments to boards and commissions use the latter term. He also asked why the members are appointed annually when other board and commission appointments are for two years. MR. EILER answered that the language on page 1 was provided by Legislative Legal. He explained that he refers to the members as ex officio or advisory to illustrate the role that is envisioned and intent of the bill. The sponsor can work with the committee to address the length of the appointment. SENATOR COSTELLO said she was willing to work with the committee on the duration of the appointment and to look into the reason that the term "nonvoting" was used as opposed to "ex officio." SENATOR MEYER agreed with Senator Stevens that a two-year appointment would provide more consistency. VICE CHAIR GIESSEL noted that the suggestions came from a presiding officer and a former presiding officer. She asked Mr. Baker to briefly review the fiscal note. 1:50:58 PM MILES BAKER, Vice President, External Affairs and Government Relations, Alaska Gas Development Corporation (AGDC), Anchorage, Alaska, stated that the fiscal note for SB 125 is zero. AGDC does not expect the bill to affect the operating budget of the corporation. Board expenses including the honorarium and estimated travel expenses are built into the operating budget. The expectation is that the legislative members would be handled similar to two commissioners on the board. They travel under their own budgets and are not entitled to the honorarium. AGDC principally pays for just the public members. VICE CHAIR GIESSEL opened public testimony and finding none, closed it. [SB 125 was held in committee.]