04/25/2002 08:08 AM House STA

HB 327 - STATE EMPLOYEES CALLED TO MILITARY DUTY                                                                              
                                                                                                                                
CHAIR COGHILL announced that the  next order of business would be                                                               
HOUSE BILL NO.  327, "An Act relating to state  employees who are                                                               
called  to active  duty as  reserve or  auxiliary members  of the                                                               
armed  forces  of  the  United   States;  and  providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
Number 0629                                                                                                                     
                                                                                                                                
DAVE   STEWART,  Personnel   Manager,   Division  of   Personnel,                                                               
Department  of Administration,  came forward  to present  HB 327.                                                               
He explained  that HB 327 contemplates  emergency situations that                                                               
are  not  covered  under  current  law.   The  governor  has  the                                                               
authority to  activate the  Alaska National  Guard or  the Alaska                                                               
Naval Militia  to active  military service.   State  law provides                                                               
for state  employees who  are activated to  receive five  days of                                                               
paid  leave, regardless  of  the  duration of  the  service.   If                                                               
they're activated  under federal  guidelines by the  President of                                                               
the United  States, there is  federal legislation that  lets them                                                               
return to  work, but  doesn't protect  their income  or benefits.                                                               
Based  on  whether  the  activation  is  state  or  federal,  the                                                               
individual  activated  to military  service  may  be covered  for                                                               
health insurance,  but the dependents  might not be  for extended                                                               
periods of activation.                                                                                                          
                                                                                                                                
MR. STEWART explained that this  legislation allows the executive                                                               
to  issue  an administrative  order  declaring  an emergency  and                                                               
defining  the nature  of that  emergency; allows  state employees                                                               
who  are called  to  active  service either  by  the governor  or                                                               
President to have their wages  supplemented to the level of their                                                               
state wage,  if their military wage  is less; allow them  to have                                                               
their health  insurance contributions  continued for  purposes of                                                               
both   their   own  or   dependent   care;   and  under   certain                                                               
circumstances, to have their  retirement contribution made during                                                               
times of active service.                                                                                                        
                                                                                                                                
Number 0847                                                                                                                     
                                                                                                                                
MR. STEWART  noted that the  zero fiscal  note was changed  to an                                                               
indeterminate fiscal note because there  is no way to predict who                                                               
might be activated for the duration  of occupation.  It does show                                                               
an FY  [fiscal year] 02 cost  based on 41 employees  activated on                                                               
September 11 [2001] for $44,000.                                                                                                
                                                                                                                                
MR. STEWART explained  that there are 189 state  employees in the                                                               
air  or  army  national  guard  and the  naval  militia.    Since                                                               
September 11, 41 of the 189  have been called to active duty, and                                                               
only 8  of those 41  would have qualified under  this legislation                                                               
for wage supplementation.  The  average duration of activation is                                                               
three months.                                                                                                                   
                                                                                                                                
REPRESENTATIVE STEVENS  asked if  this includes employees  of the                                                               
University  of Alaska,  and  if  it doesn't,  he  stated that  it                                                               
should.                                                                                                                         
                                                                                                                                
MR.  STEWART pointed  out that  the fiscal  note doesn't  include                                                               
university  employees,  but  the   bill  contemplates  all  state                                                               
employees.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  FATE  said  there  is an  ongoing  debate  as  to                                                               
whether  the employees  of  the University  of  Alaska are  state                                                               
employees, and  that needs  clarification.   He is  bothered that                                                               
the  health  insurance benefit  is  continued  even though  those                                                               
members  that go  into the  armed  forces usually  have the  same                                                               
benefits,  so benefits  are  being  paid for  them  that are  not                                                               
needed.   He  said  he  thinks if  an  individual  goes into  the                                                               
reserve and  is not covered  by benefits, then that  person shall                                                               
continue the coverage  by the state, but if  he/she has coverage,                                                               
the state certainly  doesn't need to provide  that coverage until                                                               
such time as  that person gets out of the  service and returns to                                                               
his/her old job.                                                                                                                
                                                                                                                                
Number 0679                                                                                                                     
                                                                                                                                
MR. STEWART  said the  nature of the  activation is  under either                                                               
presidential  order  or executive  order.    Most employees  were                                                               
activated  for less  than  30 days.   The  people  who have  been                                                               
activated since  September 11  for security  at the  airports are                                                               
running   about  140   days.     Under  federal   guidelines  for                                                               
activation, a state  employee who has health insurance  has to be                                                               
activated for  180 days  or more  for that  individual's military                                                               
health to  cover dependents.   The activated individual  would be                                                               
covered but the dependents wouldn't.                                                                                            
                                                                                                                                
REPRESENTATIVE FATE  said he wasn't  against this but  would like                                                               
more scrutiny on the fiscal impact.                                                                                             
                                                                                                                                
Number 1169                                                                                                                     
                                                                                                                                
CHAIR COGHILL announced that HB 327 would be held over.