Legislature(1999 - 2000)
04/01/1999 08:07 AM Senate FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 33
"An Act relating to the Task Force on Privatization;
and providing for an effective date."
This was the fifth hearing for this bill in the Senate
Finance Committee. Co-Chair John Torgerson noted that the
Committee had adopted a committee substitute, Version "N"
as a Workdraft in an earlier hearing but there was a new
proposed committee substitute before members for
consideration.
Co-Chair John Torgerson reminded the Committee that the
first committee substitute amended the language relating to
items not subject to bargaining and the unrestricted
authority of the employer to enter into contracts with the
private sector to perform certain public functions. He also
noted that two amendments proposed by Senator Loren Leman
were adopted. Senator Loren Leman detailed the changes made
by the amendments, saying one amendment inserted "or to
perform more efficiently" after each provision relating to
debt consolidation. The other amendment, he noted, allows
the commissioner to appoint an unpaid advisory council.
Co-Chair John Torgerson pointed out that the proposed
committee substitute incorporates those amendments.
Senator Sean Parnell moved for adoption as a Workdraft, CS
SB 33, 1-LS0317/S, 3/25/99. The committee substitute was
adopted without objection.
MARK HODGINS, staff to the bill sponsor, Senator Jerry Ward
testified. He noted that the legislation had evolved from
establishing a task force to a commission, but reassured
the Committee that the committee substitute is compatible
with the sponsor's intent for privatization of services and
savings for the State. He stated that several individuals
wished to testify on this legislation but have been unable
due to the rescheduling of hearings. Therefore, he
presented written testimony from some of those people. He
referred to a letter supporting the bill from The Alliance
dated March 18, 1999 and a resolution in support of the
bill from the Alaska State Chamber of Commerce adopted
December 4, 1998. (Copies on file)
Tape: SFC - 99 #78, Side B
JUANITA HENSLEY, Department of Administration, testified to
the section of the committee substitute that amends the
Public Employee Relations Act (PERA). She stated that the
Administration has concerns with the PERA changes and
believed that at this time, making changes of this
magnitude affects the ability to enter into negotiations in
the remaining term contract.
She stressed the Administration's first priority in
negotiation of contracts is cost containment and attempting
to reach a zero cost contract. Changing PERA in the middle
of the contract negotiations, she warned, could jeopardize
the cost objectives.
She added that the current contract with the state
employees does not prohibit the State from outsourcing
services if cost effectiveness for the State can be shown.
She used the Division of Motor Vehicles as an example of
the State entering a partnership with the private sector to
enhance services to the public.
Senator Lyda Green referred to the practice of outsourcing
Division of Motor Vehicle services saying that the division
could not expand privately administered services into the
Mat-Su area was because of an inadequate cost savings as
required under current statute.
Juanita Hensley responded that the division outsources
services when it can be shown to be cost effective. She
listed Tok, Talkeetna and Glennallen as communities where
the private sector is providing the services and the
division has been able to eliminate the government
positions.
Senator Gary Wilken supported the legislation but was
concerned that it contains an item that caused a similar
bill to be vetoed the previous year. Co-Chair John
Torgerson explained that the item in question is a
provision allowing the governor to appoint a member to the
commission. Senator Gary Wilken referred to the governor's
veto message raising concerns about the separation of
powers. Senator Gary Wilken hoped this bill would not be
vetoed for the same reason and stressed that the Committee
needs to recognize that possibility and perhaps address the
issue.
Co-Chair John Torgerson commented that the previous
legislation gave subpoena power to the commission, which
caused concern for the governor. He assured that provision
is not in the current bill. He added that if the governor
chooses to not participate in the process by vetoing this
bill, it sends a strong message that the governor is not
interested in working toward consolidation or
privatization.
Senator Loren Leman offered a motion to report from
Committee, CSSB 33 (FIN) and without objection it was
reported out with an indeterminate fiscal note from the
Office of the Governor.
Co-Chair John Torgerson noted the Committee would stand in
recess and come back to order if someone arrived wishing to
testify on the long-range budget situation.
AT EASE 9:20AM/10:22AM
Co-Chair Sean Parnell noted there was no one present to
testify.
ADJOURNED
Co-Chair Sean Parnell adjourned the meeting at 10:22 AM.
SFC-99 (16) 4/1/99
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