SSTA - 3/9/95 SB 89 PERMANENT FUND BOARD MEMBERS & STAFF SENATOR SHARP brings up SB 89 as the next order of business before the Senate State Affairs Committee and calls the first witness. Number 360 SENATOR RIEGER briefly summarizes the sponsor statement. Senator Rieger summarizes the feedback from the Alaska Permanent Fund Corporation (APFC), saying the corporation is neutral on SB 89. He has received two suggestions for amendments. The first suggestion was that the language, "recognized competence and wide experience in investment portfolio management" is to demanding a requirement for all members of the board to have. So Senator Rieger asks that the bill be changed to require just two members of the board to have that kind of experience. The second suggestion was that the term, "for cause" was very broad and vague. So in the second amendment, Senator Rieger attempts to spell out what that term would entail. He models the definition of "for cause" on other definitions already in Alaska Statutes. SENATOR LEMAN wants to know under the term, "for cause" if there would be instances of personal behavior or activities for which a board member could be removed. SENATOR RIEGER states the definition is modeled after references to the Commissioner of the Department of Education, and address only performance in office and performance related to the duties in office. Where "for cause" is spelled out, performance has to do with performance in office, and not performance outside of office. SENATOR LEMAN comments there are some things that are so vile, he thinks everyone would want to see that person removed from office. SENATOR RIEGER states the more broad that definition is, the harder it will be to determine whether the removal really was done for cause. At some point, the outside action of a member may trigger dismissal under paragraph (1), which addresses inability to perform duties. SENATOR LEMAN comments, such as if the person was in jail. Number 440 CHAIRMAN SHARP also adds a governor could probably dismiss a member with the reason that there was an overwhelming lack of public confidence in a member's performance or ability to perform. SENATOR LEMAN makes a motion to adopt the amendment to SB 89. CHAIRMAN SHARP, hearing no objection, states the amendment has been adopted. Number 450 SENATOR DUNCAN asks if there has been any response requested from the administration. SENATOR RIEGER responds there has been no response requested from the administration, other than the response from APFC. SENATOR DUNCAN thinks a response should be requested from the administration. CHAIRMAN SHARP agrees with Senator Duncan. The chairman asks that a response from the administration be requested so that the next committee of referral (Senate Finance Committee) will have that. Number 470 SENATOR LEMAN makes a motion to discharge SB 89 from the Senate State Affairs Committee with individual recommendations. Number 472 CHAIRMAN SHARP, hearing no objection, orders SB 89 released from committee with individual recommendations.