Legislature(1999 - 2000)

02/23/2000 01:50 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
HOUSE BILL NO. 159                                                                                                              
                                                                                                                                
"An Act granting certain employees in correctional                                                                              
facilities status as peace officers under the public                                                                            
employees' retirement system."                                                                                                  
                                                                                                                                
DEB DAVIDSON, STAFF, REPRESENTATIVE DAVIS testified on                                                                          
behalf of the sponsor in support of HB 159. House Bill 159                                                                      
pertains to the retirement system for correctional facility                                                                     
employees. She noted that the Committee was provided with a                                                                     
proposed committee substitute, work draft 1-LS0699\D,                                                                           
2/21/00. The legislation allows non-correctional officer                                                                        
employees the opportunity to retire after 20 years of                                                                           
credited service with a facility, providing they pay the                                                                        
full actuarial cost of converting the service to service as                                                                     
a police officer. The legislation was introduced after                                                                          
speaking to several employees at correctional facilities.                                                                       
Any type of employment within a correctional facility is                                                                        
stressful and carries certain elements of risk regardless of                                                                    
the type of job. Employees who work in the kitchens,                                                                            
administration, maintenance, medical profession and other                                                                       
areas are in daily contact and often work side by side with                                                                     
inmates in their jobs. Additionally, there are certain                                                                          
skills that employees must have to work in a correctional                                                                       
facility. Employees must be able to react to potentially                                                                        
dangerous situations. She maintained that the stress level                                                                      
leads to a high rate of turnover within these fields. The                                                                       
legislation would provide incentive to remain in these jobs.                                                                    
The intent is to reduce turnover and the cost of recruitment                                                                    
and training. There is no cost to the state of Alaska, since                                                                    
employees would pay the full actuarial cost.                                                                                    
                                                                                                                                
In response to a question by Vice Chair Bunde, Co-Chair                                                                         
Therriault noted that the fiscal note would be zero because                                                                     
the employee would pick up the cost.                                                                                            
                                                                                                                                
Vice Chair Bunde questioned if stress is compensated through                                                                    
salary. Ms. Davidson stated that the employees at                                                                               
correctional facilities are paid the same rate as other                                                                         
state employees in the same job class.                                                                                          
                                                                                                                                
In response to a question by Representative Austerman, Ms.                                                                      
Davidson clarified that the legislation would apply to any                                                                      
correctional facility where employees are members of the                                                                        
Public Employees Retirement System (PERS), including                                                                            
municipalities.                                                                                                                 
                                                                                                                                
JOE REEVES, DEPUTY DIRECTOR, DIVISION OF ADMINISTRATIVE                                                                         
SERVICES, DEPARTMENT OF CORRECTIONS provided information                                                                        
regarding the legislation. Institutional staff are                                                                              
considered class I employees and receive a slight                                                                               
differential. He noted that there are 288 staff in the                                                                          
combined institutions that include administrative clerks,                                                                       
managers, nurses, health practitioners, and electricians.                                                                       
                                                                                                                                
Co-Chair Therriault questioned the amount of turnover. Mr.                                                                      
Reeves indicated that there is a high turnover. In the last                                                                     
year, 44 of 288 non-correctional officer employees were                                                                         
replaced. Civilian staff accounts for about 15 percent of                                                                       
the employees. The legislation would benefit the department                                                                     
if it succeeded in reducing turnover.                                                                                           
                                                                                                                                
Representative Austerman noted that the legislation would                                                                       
cover all other employees in correctional facilities. He                                                                        
observed that employees of the Kodiak Police Department                                                                         
would fall under the program. That would result in the clerk                                                                    
of the chief of police in being eligible for 20-year                                                                            
retirement. Representative Austerman indicated that he would                                                                    
be supportive of allowing correctional employees but                                                                            
expressed concern with the level of expansion.                                                                                  
                                                                                                                                
Representative Davis stated that he did not intend to cover                                                                     
police department administrative staff under the definition.                                                                    
                                                                                                                                
Representative Phillips noted that community jails would be                                                                     
covered under the definition. Mr. Reeves acknowledged that                                                                      
community jails have a variety of staff.                                                                                        
                                                                                                                                
GUY BELL, DIRECTOR, DIVISION OF RETIREMENT AND BENEFITS,                                                                        
DEPARTMENT OF ADMINISTRATION did not know which community                                                                       
jail non-correctional employees would be affected by the                                                                        
legislation. He agreed that the line needs to be drawn. He                                                                      
noted that an issue might develop, in community jails,                                                                          
regarding how much of an employee's time is associated with                                                                     
correctional duties vs. their administrative police duties.                                                                     
                                                                                                                                
Representative G. Davis read the definition of a                                                                                
correctional facility as defined in AS. 33.30.901:                                                                              
                                                                                                                                
 (4) "correctional facility" or "facility" means a                                                                              
prison, jail, camp, farm, half-way house, group home,                                                                           
or other placement designated by the commissioner for                                                                           
the custody, care, and discipline of prisoners; a                                                                               
"state correctional facility" means a correctional                                                                              
facility owned or run by the state;                                                                                             
                                                                                                                                
Representative G. Davis observed that the intention is to                                                                       
adopt the definition of a "state" correctional facility and                                                                     
recommended that the legislation be amended.                                                                                    
                                                                                                                                
Mr. Bell provided members with a spreadsheet demonstrating                                                                      
the indebtedness that would result under different scenarios                                                                    
(copy on file). The committee substitute would require the                                                                      
employee to pay the full actuarial cost. Employees can elect                                                                    
to pay off the indebtedness in full or take a monthly                                                                           
benefit adjustment. Tier I employees are employees that                                                                         
entered PERS before July 1, 1986. Tier II covers employees                                                                      
that entered the system after July 1, 1986. A Tier I                                                                            
employee with 20 years of service at age 55 would have a                                                                        
retirement liability of $228,940 dollars if they were a                                                                         
Police/fire employee and $216,221 if they were a non-                                                                           
police/fire employee. The employee could make a lump sum of                                                                     
$12,719 and have a monthly base of $1,875 thousand dollars                                                                      
or reduce their benefits by $104 dollars a month.                                                                               
                                                                                                                                
(Tape Change, HFC 00 - 39, Side 2)                                                                                              
                                                                                                                                
Mr. Bell continued to review the spreadsheet. At younger                                                                        
ages a Tier II employees would have a higher indebtedness.                                                                      
Their indebtedness is higher because the normal retirement                                                                      
age for Tier II employees in 60, while the retirement age                                                                       
for a Tier I employee is 55.                                                                                                    
                                                                                                                                
Mr. Bell observed that if a person began work at 25 years of                                                                    
age and were a Tier I employee that they could retire at 45-                                                                    
years-old if they paid their $174 thousand dollars                                                                              
indebtedness. Vice Chair Bunde noted that it would be                                                                           
expensive and questioned whom would take advantage of the                                                                       
option. Mr. Bell explained that the choice currently is to                                                                      
take their benefit and not receive anything in the future or                                                                    
to wait and not receive any benefit until they are at                                                                           
retirement age.                                                                                                                 
                                                                                                                                
Representative G. Davis pointed out that there would be a                                                                       
benefit to remain in the job for a longer period.                                                                               
                                                                                                                                
PATRICIA HURT, REGISTERED NURSE, MATSU CORRECTIONAL                                                                             
FACILITY, MATSU testified via teleconference in support of                                                                      
the legislation. She emphasized the high risk of infectious                                                                     
disease and abuse that she encounters on the job. She                                                                           
stressed that she cannot remain in the job for 30 years, but                                                                    
felt she would remain on the job if she could retire after                                                                      
20 years. There is a high turnover of correctional nurses.                                                                      
She makes less money than nurses at local hospitals do.                                                                         
                                                                                                                                
MIKE HARBAUGH, MAINTENANCE, MATSU PRETRAIL CORRECTIONAL                                                                         
FACILITY testified via teleconference in support of HB 159.                                                                     
He echoed concerns regarding job hazards and occupational                                                                       
risk. He noted that it takes a minimum 10 years of                                                                              
experience in maintenance, plumbing and electrical                                                                              
activities and is subject to additional rules for                                                                               
correctional institutions. He pointed out that he daily                                                                         
encounters bodily fluids that could contain infectious                                                                          
disease.                                                                                                                        
                                                                                                                                
BRUCE MAIN, CORRECTIONAL OFFICER, DEPARTMENT OF CORRECTIONS,                                                                    
ANCHORAGE testified via teleconference. He stated that he                                                                       
supports the legislation for those that work inside of                                                                          
correctional facilities. He questioned if employees in youth                                                                    
correctional facilities and the Alaska Psychiatric Institute                                                                    
(API) would be covered under the legislation. He began work                                                                     
as a nursing aide in API. He noted that he switched to a                                                                        
correctional officer in the same facility to enter the 20-                                                                      
year retirement system. His job was reclassified back to a                                                                      
30-year retirement system. He stressed that he did the same                                                                     
work in both jobs. He observed that he does not have                                                                            
retirement credit even though he has 27 years of services                                                                       
since he only has 19.5 years as a correctional officer. He                                                                      
stressed that his health has suffered in his job. He pointed                                                                    
out that he is a Tier I employee that could be replaced with                                                                    
a more inexpensive employee.                                                                                                    
                                                                                                                                
Representative G. Davis stated that the legislation does not                                                                    
cover youth correctional facilities, but thought that there                                                                     
was other legislation that would covered youth facilities.                                                                      
Co-Chair Therriault was unaware of other legislation and                                                                        
indicated that he would prefer that HB 159 not be broadened.                                                                    
                                                                                                                                
RAYMOND MAGPANTEY, CORRECTIONAL OFFICER, UNALASKA testified                                                                     
via teleconference. He questioned if the legislation would                                                                      
cover municipal facilities.                                                                                                     
                                                                                                                                
Co-Chair Therriault explained that the intent was to cover                                                                      
municipal facilities but that concerns have been raised                                                                         
regarding their inclusion.                                                                                                      
                                                                                                                                
GAIL SELA, NURSE SUPERVISOR, SPRING CREEK CORRECTIONAL                                                                          
CENTER, SEWARD testified via teleconference in support of HB
159. She noted that force is sometimes used to restrain                                                                         
inmates. Nurses must accompany tactical teams during                                                                            
application of pepper spray. Tactical teams are clothed for                                                                     
protection, while nurses remain in their uniforms without                                                                       
protection. Nurses must treat the prisoner afterwards. She                                                                      
emphasized that nurses in correctional facilities do not                                                                        
receive as high a salary as nurses in private hospital                                                                          
facilities. They do not receive hazardous pay. She pointed                                                                      
out that, of the employees she supervises, there are only 4                                                                     
out of 13 remaining after 3 and a half years. She maintained                                                                    
that the legislation allows equal benefits for equal risk.                                                                      
Nurses are exposed to inmates without protection. She                                                                           
stressed the threat of becoming a hostage in a riot or                                                                          
hostile situation.                                                                                                              
                                                                                                                                
Vice Chair Bunde commented that the more stressful and                                                                          
unpleasant the job the more it should command in wages.  He                                                                     
expressed surprise that nurses at Providence Hospital are                                                                       
paid a higher hourly wage and questioned if they receive                                                                        
comparable benefits.  Ms. Sela thought that health benefits                                                                     
were similar and comparable. She acknowledged that the state                                                                    
of Alaska has a good benefit system.                                                                                            
                                                                                                                                
RANDY BLUM, FOOD SERVICE SUPERVISOR, SPRING CREEK                                                                               
CORRECTIONAL CENTER, SEWARD testified via teleconference in                                                                     
support of HB 159. He observed that he supervises eight                                                                         
staff positions and has had 12 different employees in those                                                                     
jobs over the past five years (150 % turnover). He observed                                                                     
that correctional officers work seven days on and seven days                                                                    
off and questioned if this accounted for a difference in the                                                                    
rate of turnover. He stressed the need to reduce turnover.                                                                      
He spoke to the fiscal note. He maintained there would be                                                                       
savings to the state and that correctional staff is under                                                                       
paid by $175 thousand dollars. He asked that HB 159 be                                                                          
supported by committee members.                                                                                                 
                                                                                                                                
Representative Phillips asked for clarification.  Co-Chair                                                                      
Therriault noted explained that the figure that Mr. Blum                                                                        
quoted is the amount that a 45-year-old employee with 20                                                                        
years of experience would have to pay to opt into the 20                                                                        
retirement.                                                                                                                     
                                                                                                                                
CARRIE QUIRING, ADMINISTRATIVE CLERK, SPRING CREEK                                                                              
CORRECTIONAL CENTER, SEWARD testified via teleconference in                                                                     
support of the HB 159. She stressed the high level of                                                                           
turnover and the expense of training and the difficulty of                                                                      
finding employees. She observed that the indebtedness                                                                           
requirement could be paid previous to retirement by                                                                             
additional withholding payments. Once the 20-year retirement                                                                    
is established employees will pay the same as others.                                                                           
                                                                                                                                
DON ETHERIDGE, LOBBYIST, AFL/CIO, JUNEAU testified in                                                                           
support of HB 159. He noted that class I and II Local 71                                                                        
wage earners make the same wages. Union nurses in private                                                                       
institutions have comparable retirement packages to state                                                                       
employees. He stressed that employees work directly with                                                                        
inmates and have encountered dangerous conditions.                                                                              
                                                                                                                                
BRUCE LUDWIG, BUSINESS MANAGER, ALASKA PUBLIC EMPLOYEES                                                                         
ASSOCIATION (APEA) spoke in support of the legislation. He                                                                      
maintained that employees are placed in dangerous situations                                                                    
and receive no extra compensation. He noted that non-                                                                           
correctional employees are often involved in riots and                                                                          
hostage situations. He observed that the state's                                                                                
contribution would be reduced by a half of a percent.                                                                           
                                                                                                                                
Representative G. Davis MOVED to ADOPT, work draft 1-                                                                           
LS0699\D, 2/21/00. There being NO OBJECTION, it was so                                                                          
ordered.                                                                                                                        
                                                                                                                                
Representative G. Davis stressed that conditions in state                                                                       
correctional facilities are, in most part, more difficult                                                                       
than in community jails. He noted that the intent would be                                                                      
to narrow the legislation to state correctional facilities.                                                                     
                                                                                                                                
MIKE TIBBLES, STAFF, REPRESENTATIVE THERRIAULT explained                                                                        
that legislative legal counsel indicated that the state                                                                         
correctional facility definition is reference in AS                                                                             
33.30.901.                                                                                                                      
                                                                                                                                
Representative G. Davis MOVED to ADOPT a conceptional                                                                           
amendment to add "state" before "correctional" on page 1,                                                                       
line 1 and on page 1, line 7; and to add "as defined in AS                                                                      
33.30.901" on page 1, line 7. There being NO OBJECTION, it                                                                      
was so ordered.                                                                                                                 
                                                                                                                                
Co-Chair Mulder noted that the Commissioner of the                                                                              
Department of Corrections expressed concern regarding the                                                                       
affect of employees that are transitioning from correctional                                                                    
officers to supervisors.                                                                                                        
                                                                                                                                
CANDACE BROWER, LEGISLATIVE LIAISON, DEPARTMENT OF                                                                              
CORRECTIONS observed that there are 4 positions in                                                                              
administration that corrections that are under a 30-year                                                                        
retirement including: the director of institutions and the                                                                      
director of community. She stressed that as correctional                                                                        
officers they receive a 20-year retirement. When they are                                                                       
promoted they lose the 20-year retirement. There is a                                                                           
disincentive to promote.                                                                                                        
                                                                                                                                
Co-Chair Mulder clarified that the provision would only                                                                         
apply if the employee did not yet have 20 years of                                                                              
employment under the 20-year retirement provision. Ms.                                                                          
Brower noted that three of the four positions could take                                                                        
advantage of the provision if it were passed.                                                                                   
                                                                                                                                
Tape Change, HFC 00 - 40, Side 1                                                                                                
                                                                                                                                
Vice Chair Bunde observed that employees that are eligible                                                                      
for 20-year retirement would have an incentive to remain in                                                                     
their positions until they reach their 20-year retirement                                                                       
before they are promoted.                                                                                                       
                                                                                                                                
Ms. Brower explained that employees would have to give up                                                                       
their 20-year retirement to promote. They would not have the                                                                    
option to buy their retirement credit if they were not                                                                          
included in the legislation. She stressed that the                                                                              
department did not want to see people penalized for being                                                                       
promoted.                                                                                                                       
                                                                                                                                
Representative G. Davis indicated that he would support an                                                                      
amendment to address the issue on the floor or further in                                                                       
the process.                                                                                                                    
                                                                                                                                
Representative J. Davies expressed concern with the                                                                             
amendment to limit the legislation to state correctional                                                                        
facilities. He stressed that there would be an equity issue.                                                                    
                                                                                                                                
Representative Phillips MOVED to report CSHB 159 (FIN) out                                                                      
of Committee with the accompanying fiscal note.                                                                                 
                                                                                                                                
Vice Chair Bunde suggested that the state could provide the                                                                     
retirement benefit in lieu of higher wages.                                                                                     
                                                                                                                                
There being NO OBJECTION, CSHB 159 (FIN) was reported from                                                                      
Committee.                                                                                                                      
                                                                                                                                
CSHB 159 (FIN) was REPORTED out of Committee with "no                                                                           
recommendation" and a new zero fiscal note by the Department                                                                    
of Corrections.                                                                                                                 

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