Legislature(2011 - 2012)BARNES 124

02/22/2012 03:15 PM House LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 301 SUNSET OF BOATING REGULATION TELECONFERENCED
Moved Out of Committee
*+ HB 252 INCOME TAX EXEMPTION TELECONFERENCED
Moved CSHB 252(L&C) Out of Committee
*+ HB 300 GEOGRAPHIC COLA FOR JUSTICES AND JUDGES TELECONFERENCED
Heard & Held
         HB 300-GEOGRAPHIC COLA FOR JUSTICES AND JUDGES                                                                     
                                                                                                                                
4:20:13 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the final order of  business would be                                                               
HOUSE  BILL NO.  300,  "An Act  relating  to geographic  cost-of-                                                               
living salary adjustments  for justices of the  supreme court and                                                               
judges of the superior and  district courts; and providing for an                                                               
effective date."                                                                                                                
                                                                                                                                
4:20:37 PM                                                                                                                    
                                                                                                                                
DOUG  WOOLIVER,  Deputy Administrative  Director,  Administrative                                                               
Staff,  Office  of  the  Administrative  Director,  Alaska  Court                                                               
System, stated that  this bill was introduced by  the House Rules                                                               
Committee at the request of the  Alaska Supreme Court.  This bill                                                               
would  update  the geographic  pay  differentials  that apply  to                                                               
judges' salaries  to bring  them in line  with the  same formulas                                                               
that  apply  to  other  state   employees.    Under  current  law                                                               
employees  in the  executive  branch and  those  in the  judicial                                                               
branch  who  are not  judges  receive  a geographic  differential                                                               
which  is  applied  to  their  salary based  on  a  formula  that                                                               
calculates  a cost-of-living  in various  communities where  they                                                               
live.   A geographic  differential can vary  from 6.3  percent in                                                               
Sitka  to  36.92 percent  in  Kotzebue,  Barrow,  and Nome.    He                                                               
pointed out two  caps on the geographic  differential that judges                                                               
receive  limits any  increase  to  less than  five  percent of  a                                                               
geographic differential for  a limit on the total of  $7,000 on a                                                               
Superior  Court judge's  salary.   This  does  not offset  actual                                                               
costs  of living  in most  rural  communities.   He compared  the                                                               
$7,000  to   approximately  $30,000  to  $35,000   in  geographic                                                               
differential other state employees  may receive.  The legislature                                                               
has recognized  geographic differential as a  means to compensate                                                               
individuals  living in  rural Alaska  who face  staggering costs.                                                               
He  emphasized  the point  of  a  geographic differential  is  to                                                               
adjust salaries  statewide on an equal  basis.  He referred  to a                                                               
McDowell  study that  showed the  cost of  living was  60 percent                                                               
higher in Kotzebue than in Anchorage.                                                                                           
                                                                                                                                
4:23:07 PM                                                                                                                    
                                                                                                                                
MR.  WOOLIVER  pointed  out  that  judges  in  Anchorage  receive                                                               
substantially more  in salaries than judges  receive in Kotzebue.                                                               
The first geographic differential  bill passed the legislature in                                                               
1966 and  geographic differentials have  existed since then.   He                                                               
characterized this  bill as the  right thing to do  for employees                                                               
and for judges.   Rural judges should be treated  adequately.  He                                                               
illustrated  one problem  in  rural Alaska  has  been to  attract                                                               
sufficient  applicants to  serve, in  particular, in  communities                                                               
such as  Bethel.  Currently,  a Superior Court judge  position is                                                               
vacant.   The  Alaska  Judicial Council  did  not receive  enough                                                               
names the  first time it  solicited applicants so it  is starting                                                               
over  to find  sufficient, qualified  applicants.   However, this                                                               
issue is not  just an issue for  Bethel.  In 2013,  Ben Esch, who                                                               
has served  as Superior  Court judge  in Nome  for 17  years will                                                               
retire.  He  is the longest serving judge in  Nome's history.  In                                                               
2014, Mike Jeffrey will retire.   He has been the longest serving                                                               
Superior Court  judge in  our state's history.   He  stressed the                                                               
importance  of  finding  qualified   committed  applicants.    He                                                               
pointed out numerous  hurdles exist to attract people  to live in                                                               
rural Alaska,  and one barrier has  been a lack of  any realistic                                                               
geographic differential  since rural judges lose  out compared to                                                               
urban  areas.   The  geographic differential  does  not apply  to                                                               
judicial retirement since  a judge's retirement is  based only on                                                               
base salary.  This bill is limited to geographic differential.                                                                  
                                                                                                                                
4:25:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER asked whether it  is problem to recruit or                                                               
retain judges in rural Alaska.                                                                                                  
                                                                                                                                
MR. WOOLIVER  explained that it  hasn't been a problem  to retain                                                               
judges but  it has been  difficult to  attract them.   He further                                                               
explained that  the most recent  vacancy in Bethel,  the Judicial                                                               
Council did  not receive enough  applicants to send two  names of                                                               
qualified  candidates to  the governor.   He  was unsure  if this                                                               
bill  has  had  an  effect  in  attracting  candidates,  but  the                                                               
Judicial  Council  has  received  substantially  more  applicants                                                               
during the second solicitation.                                                                                                 
                                                                                                                                
4:27:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  understood the chronological cap,  but he                                                               
asked for the length of time a  judge must serve to qualify for a                                                               
state retirement.                                                                                                               
                                                                                                                                
MR.  WOOLIVER offered  his belief  that  it takes  five years  to                                                               
obtain  vesting, but  judges are  fully vested  at 15  years, and                                                               
Alaska's Constitution does require retirement at age 70.                                                                        
                                                                                                                                
4:27:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  referred to  the committee  members' bill                                                               
packet  with  the geographic  differential.    He questioned  why                                                               
Anchorage is not listed and asked if it is zero.                                                                                
                                                                                                                                
MR. WOOLIVER answered yes.                                                                                                      
                                                                                                                                
REPRESENTATIVE SADDLER  offered his belief that  Fairbanks is not                                                               
treated  well in  terms of  cost-of-living.   He  inquired as  to                                                               
whether the rates are indexed to the inflation rate.                                                                            
                                                                                                                                
MR.  WOOLIVER  answered no.    He  explained  that the  chart  in                                                               
members'  packets is  somewhat complicated.    The section  shows                                                               
Fairbanks at  15.2 percent, which  is the  non-covered geographic                                                               
differential.    He  offered  that is  the  statutory  rate  that                                                               
applies to  members of the  executive branch who are  not covered                                                               
by collective  bargaining agreements.   That rate  hasn't changed                                                               
in years, he said.  He  pointed out that the three percent amount                                                               
listed two columns  over on the chart represents  the most recent                                                               
union  negotiated contracts  that adopted  per the  2008 McDowell                                                               
study figures.                                                                                                                  
                                                                                                                                
4:29:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLER  inquired as  to how  many judges  would be                                                               
affected by the bill.                                                                                                           
                                                                                                                                
MR.  WOOLIVER  answered that  23  Superior  Court judges  and  11                                                               
District  Court  judges would  be  affected  for  a total  of  34                                                               
positions.                                                                                                                      
                                                                                                                                
CHAIR OLSON anticipated  a potential amendment to  the bill would                                                               
be forthcoming.                                                                                                                 
                                                                                                                                
[HB 300 was held over.]                                                                                                         

Document Name Date/Time Subjects
Feb 22.pdf HL&C 2/22/2012 3:15:00 PM
HL
HB301 ver A.PDF HL&C 2/22/2012 3:15:00 PM
HB 301
HB301 Fiscal Note-DNR-PM-2-17-2012.pdf HL&C 2/22/2012 3:15:00 PM
HB 301
HB301 Sponsor Statement.pdf HL&C 2/22/2012 3:15:00 PM
HB 301
HB301 Supporting Documents-Alaska's Boating Safety Dollars at Work 12-28-11.pdf HL&C 2/22/2012 3:15:00 PM
HB 301
HB301 Supporting Documents-Alaska Boating Safety Program - Funding History.pdf HL&C 2/22/2012 3:15:00 PM
HB 301
HB252 Draft Proposed Amendment ver M.2.pdf HL&C 2/22/2012 3:15:00 PM
HB 252
HB252 Explanation of Draft Proposed Amendment M.2.pdf HL&C 2/22/2012 3:15:00 PM
HB 252
HB252 Sectional Summary (ver A).pdf HL&C 2/22/2012 3:15:00 PM
HB 252
HB252 Sponsor Statement.pdf HL&C 2/22/2012 3:15:00 PM
HB 252
HB252 Supporting Documents-26 USC 1202.pdf HL&C 2/22/2012 3:15:00 PM
HB 252
HB252 Supporting Documents-Email Andrew Mitton 2-17-12.pdf HL&C 2/22/2012 3:15:00 PM
HB 252
HB252 Supporting Documents-Email Brent Fisher 2-17-12.pdf HL&C 2/22/2012 3:15:00 PM
HB 252
HB252 Supporting Documents-Kauffman Foundation Report Jan 2012.pdf HL&C 2/22/2012 3:15:00 PM
HB 252
HB252 Supporting Documents-Letter Alaska Chamber 2-2-12.pdf HL&C 2/22/2012 3:15:00 PM
HB 252
HB252 Supporting Documents-Letter Allan Johnston Support 2-10-12.pdf HL&C 2/22/2012 3:15:00 PM
HB 252
HB252 Supporting Documents-Letter John Wanamaker 2-15-12.pdf HL&C 2/22/2012 3:15:00 PM
HB 252
HB252 Supporting Documents-State Positions-AK Chamber.pdf HL&C 2/22/2012 3:15:00 PM
HB 252
HB252 ver M.PDF HL&C 2/22/2012 3:15:00 PM
HB 252
HB300 Fiscal Note-ACS-APP-2-8-2012.pdf HL&C 2/22/2012 3:15:00 PM
HB 300
HB300 Fiscal Note-ACS-TRC-2-8-2012.pdf HL&C 2/22/2012 3:15:00 PM
HB 300
HB300 Sponsor Statement.pdf HL&C 2/22/2012 3:15:00 PM
HB 300
HB300 Supporting Documents-AS 22.35.010 and AS 39.27.020.pdf HL&C 2/22/2012 3:15:00 PM
HB 300
HB300 ver A.pdf HL&C 2/22/2012 3:15:00 PM
HB 300
HB252 Fiscal Note-DOR-TAX-02-20-12.pdf HL&C 2/22/2012 3:15:00 PM
HB 252
HB300 Supporting Document-AK Court System Review of Geographic Differentials.pdf HL&C 2/22/2012 3:15:00 PM
HB 300