Legislature(2009 - 2010)HOUSE FINANCE 519

04/18/2009 08:30 AM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Meeting Adjourned --
-- Recessed to 10:15 pm Today --
+ SB 116 APPROP: ENERGY ASSISTANCE TELECONFERENCED
Moved Out of Committee
+ SB 125 AK AEROSPACE CORPORATION TELECONFERENCED
Moved Out of Committee
+ HB 36 INITIATIVES: CONTRIBUTIONS/ PROCEDURES TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ SB 72 CHILD SAFETY SEATS & SEAT BELTS TELECONFERENCED
Moved HCS CSSB 72(FIN) Out of Committee
+ HB 157 REEMPLOYMENT OF RETIREES; EXEMPT SERVICE TELECONFERENCED
Moved CSHB 157(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 157                                                                                                            
                                                                                                                                
     "An Act  amending the  State Personnel  Act to  place in                                                                   
     the  exempt  service  the   chief  economist  and  state                                                                   
     comptroller  in the  Department of  Revenue and  certain                                                                   
     professional  positions concerning  oil  and gas  within                                                                   
     the  Department   of  Natural  Resources;   relating  to                                                                   
     reemployment  of  and  benefits  for  or  on  behalf  of                                                                   
     reemployed  retired  teachers  and public  employees  by                                                                   
     providing for an effective  date by amending the delayed                                                                   
     effective date  for secs. 3, 5,  9, and 12, ch.  57, SLA                                                                   
     2001 and  sec. 19, ch. 50,  SLA 2005; and  providing for                                                                   
     an effective date."                                                                                                        
                                                                                                                                
10:19:57 AM                                                                                                                   
                                                                                                                                
Co-Chair Hawker MOVED to ADOPT  the CS for HB 157, Work Draft                                                                   
26-GH1035\S, Wayne, 4/18/09, as a working document.                                                                             
                                                                                                                                
Representative Gara objected for discussion.                                                                                    
                                                                                                                                
Co-Chair  Hawker gave  some history  of  the legislation.  He                                                                   
reported that  several amendments to  the bill had  been made                                                                   
in the  Senate, which  resolved contention between  concerned                                                                   
parties. Expedition  of the bill  would allow  the Department                                                                   
of Law to retain four attorneys,  who would otherwise be laid                                                                   
off.                                                                                                                            
                                                                                                                                
10:22:13 AM                                                                                                                   
                                                                                                                                
Representative  Gara asked  if  the bill  reflected the  most                                                                   
current version in the Senate. Co-Chair Hawker replied yes.                                                                     
                                                                                                                                
Representative Gara removed his objection.                                                                                      
                                                                                                                                
CS for  HB 157, Work Draft  26-GH1035\S, Wayne,  4/18/09, was                                                                   
ADOPTED as a working document.                                                                                                  
                                                                                                                                
GINGER  BLAISDELL,   DIRECTOR,  DIVISION  OF   ADMINISTRATIVE                                                                   
SERVICES, DEPARTMENT OF REVENUE,  explained that she had been                                                                   
asked to carry  the bill by three different  departments; The                                                                   
Department   of   Administration   (DOA),  which   does   the                                                                   
retire/rehire portion of the bill,  The Department of Revenue                                                                   
(DOR),  which  has requested  two  positions  go into  exempt                                                                   
status, and The Department of  Natural Resources (DNR), which                                                                   
was requesting  full time exemption  for 23 part  time exempt                                                                   
positions. The CS  deleted Section 1 from the  original bill,                                                                   
which  amended AS  39.24.110, moving  certain positions  from                                                                   
one  sub-section   to  another,  changing  what   was  called                                                                   
"special inquiry", and was a temporary  exempt status, into a                                                                   
full-time  exempt status.  The  positions  would be  retained                                                                   
within DNR. In the DOR, Section  2 was changed by eliminating                                                                   
the Chief  Economist position.  The position has  been vacant                                                                   
for a year due to a lack of qualified  applicants and the low                                                                   
salary   offered   for  qualified   applicants.   The   state                                                                   
comptroller   position  remains   as  originally   requested.                                                                   
Changes in the  retire/rehire sunset extension  would require                                                                   
a person  to be retired for  90 days, rather than  30, before                                                                   
rehire.  Another  change requires  the  teachers'  retirement                                                                   
system and other government PERs  participants to follow more                                                                   
rigorous  recruitment  efforts.  A  third  change  reduces  a                                                                   
minimum  of  five  eligible  applicants   to  three  eligible                                                                   
applicants, before considering  a retiree for a position. The                                                                   
fourth request  changes the sunset  of the program  from four                                                                   
years to one year.                                                                                                              
                                                                                                                                
10:25:44 AM                                                                                                                   
                                                                                                                                
Vice-Chair Thomas asked who had  requested the changes in the                                                                   
bill. Ms.  Blaisdell replied  that the  bill originated  from                                                                   
the governor's office, but several  committees contributed to                                                                   
the changes.                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze warned  that care  should be  taken to  not                                                                   
breaching bicameral prerogatives.  He felt that this bill was                                                                   
the best vehicle to please both bodies.                                                                                         
                                                                                                                                
Representative Gara  asked if the bill allows  for the rehire                                                                   
of retirees across the board without  exempting any agencies.                                                                   
Ms. Blaisdell replied in the affirmative.                                                                                       
                                                                                                                                
Representative  Gara asked  if the rehired  retiree  would be                                                                   
receiving pension benefits and  medical insurance in addition                                                                   
to   being   a   rehire.   Ms.    Blaisdell   answered   yes.                                                                   
Representative Gara  asked if there  was a cost to  the state                                                                   
in those  situations.  Ms. Blaisdell said  that the  position                                                                   
would be  filled either way,  by a retiree  or a new  hire. A                                                                   
retiree  would  only  be  rehired   if  they  were  the  most                                                                   
qualified  applicant. She  reiterated the  sideboards in  the                                                                   
bill that regulate the rehire of retirees.                                                                                      
                                                                                                                                
10:29:46 AM                                                                                                                   
                                                                                                                                
Representative  Kelly asked  if  the intent  of the  original                                                                   
bill  had been  changes by  the CS.  Ms. Blaisdell  explained                                                                   
that one  major difference is  the 90 day minimum  retirement                                                                   
requirement  before   a  retiree  is  eligible   for  rehire.                                                                   
Representative  Kelly asked  who generated  the changes.  Ms.                                                                   
Blaisdell  replied that  the changes  were  generated by  the                                                                   
administration and the Senate State Affairs Committee.                                                                          
                                                                                                                                
Representative Kelly expressed support for the bill.                                                                            
                                                                                                                                
Representative  Gara asked  if the  bill applied  to Tier  IV                                                                   
employees who retire.  Ms. Blaisdell shared that  she did not                                                                   
know of  any Tier  IV employees  that had  been eligible  for                                                                   
retirement.                                                                                                                     
                                                                                                                                
10:31:55 AM                                                                                                                   
                                                                                                                                
Representative  Joule interpreted  that  the bill  encouraged                                                                   
local rehire. Ms. Blaisdell said that was correct.                                                                              
                                                                                                                                
Representative Kelly said that  he had heard that some people                                                                   
"fell through the  cracks", he wondered what  that meant. Ms.                                                                   
Blaisdell  answered that  there  were two  provisions in  the                                                                   
bill;   the  retire/rehire   program,   which  includes   all                                                                   
participants  who are eligible  to be  retired under  PERs or                                                                   
TERs,  would  be  included  as  long  as  their  municipality                                                                   
offered  the  program.  The  elimination   of  the  positions                                                                   
considered under exempt status,  are not retired individuals,                                                                   
but positions  that have been  difficult to fill, and  do not                                                                   
fit within the classified service.                                                                                              
                                                                                                                                
Co-Chair Stoltze  opened public testimony. There  being none,                                                                   
public testimony was closed.                                                                                                    
                                                                                                                                
10:34:12 AM                                                                                                                   
                                                                                                                                
Co-Chair Stoltze commented on the three, zero fiscal notes.                                                                     
                                                                                                                                
Co-Chair Hawker  stated he would  not be supporting  the bill                                                                   
at this  time, were  it not  for the  consequences on  senior                                                                   
attorneys at the Department of  Law. He felt it would be more                                                                   
detrimental to  the state to  not continue their  employment,                                                                   
than to pass the bill at this time.                                                                                             
                                                                                                                                
Co-Chair  Stoltze   expressed  remorse   that  he   had  been                                                                   
uncomunicative with the department as of late.                                                                                  
                                                                                                                                
Co-Chair  Hawker  MOVED  to  report CS  HB  157(FIN)  out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note. There  being NO OBJECTION,  it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS  HB 157(FIN)  was REPORTED  out  of Committee  with a  "do                                                                   
pass"  recommendation  and with  attached  new  indeterminate                                                                   
fiscal note by the Department  of Revenue, zero note 2 by the                                                                   
Department  of Natural  Resources,  and zero  note  4 by  the                                                                   
Department of Administration.                                                                                                   
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
02__Sponsor_Statement_HB157_Exempt_13Mar09[1].doc HFIN 4/18/2009 8:30:00 AM
HB 157
03__HB_157_-_legislative-report-on-retiree-return-program-2-6-09.pdf HFIN 4/18/2009 8:30:00 AM
HB 157
HB036-OOG-LtGOV-4-17-09.pdf HFIN 4/18/2009 8:30:00 AM
HFIN 3/15/2010 1:30:00 PM
HFIN 3/16/2010 9:00:00 AM
HB 36
07 HB36 Legal Opinions.pdf HFIN 4/18/2009 8:30:00 AM
HFIN 2/8/2010 1:30:00 PM
HFIN 3/15/2010 1:30:00 PM
HFIN 3/16/2010 9:00:00 AM
HB 36
08 HB36 Back up.pdf HFIN 4/18/2009 8:30:00 AM
HFIN 3/15/2010 1:30:00 PM
HFIN 3/16/2010 9:00:00 AM
HB 36
SB 125 Sponsor Statement (S FIN).pdf HFIN 4/18/2009 8:30:00 AM
SB 125
SB 125 Letter of Support.pdf HFIN 4/18/2009 8:30:00 AM
SB 125
Alaska Heating Assistance Programs.ppt HFIN 4/18/2009 8:30:00 AM
SB 116
ANHB Support Letter.pdf HFIN 4/18/2009 8:30:00 AM
SB 116
AVERAGE MONTHLY TEMPERATURES FOR BETHEL ALASKA.doc HFIN 4/18/2009 8:30:00 AM
SB 116
SB 116 - gallons by comunity.xls HFIN 4/18/2009 8:30:00 AM
SB 116
CSHB 157 (FIN) Version S.pdf HFIN 4/18/2009 8:30:00 AM
HB 157
SB 125 Talking Points Sen. Paskvan.pdf HFIN 4/18/2009 8:30:00 AM
SB 125
SB 72 HFC Amendment 1 and 2.pdf HFIN 4/18/2009 8:30:00 AM
SB 72
SB72AAPSupportLetter.pdf HFIN 4/18/2009 8:30:00 AM
SB 72
SB72ABINSupportLetter.pdf HFIN 4/18/2009 8:30:00 AM
SB 72
SB72Changes.PDF HFIN 4/18/2009 8:30:00 AM
SB 72
SB72Chart.pdf HFIN 4/18/2009 8:30:00 AM
SB 72
SB72OtherStates.pdf HFIN 4/18/2009 8:30:00 AM
SB 72
SB72Sponsor.pdf HFIN 4/18/2009 8:30:00 AM
SB 72
Senate Bill 116 Sponsor Statement.doc HFIN 4/18/2009 8:30:00 AM
SB 116
SSHB 36 Hearing Request Sponsor Statement.pdf HFIN 4/18/2009 8:30:00 AM
HFIN 3/15/2010 1:30:00 PM
HFIN 3/16/2010 9:00:00 AM
HB 36
SSHB 36 Hearing Request Sectional Analysis.pdf HFIN 4/18/2009 8:30:00 AM
HFIN 3/15/2010 1:30:00 PM
HFIN 3/16/2010 9:00:00 AM
HB 36
SSHB 36 Hearing Request Backup.pdf HFIN 4/18/2009 8:30:00 AM
HFIN 3/16/2010 9:00:00 AM
HB 36