Legislature(1993 - 1994)

01/28/1993 08:00 AM STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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             HOUSE STATE AFFAIRS STANDING COMMITTEE                            
                        January 28, 1993                                       
                            8:00 a.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Al Vezey, Chair                                               
  Representative Pete Kott, Vice Chair                                         
  Representative Harley Olberg                                                 
  Representative Jerry Sanders                                                 
  Representative Gary Davis                                                    
  Representative Fran Ulmer                                                    
  Representative Bettye Davis                                                  
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  None                                                                         
                                                                               
  OTHER HOUSE MEMBERS PRESENT                                                  
                                                                               
  Representative Terry Martin                                                  
                                                                               
  SENATE MEMBERS PRESENT                                                       
                                                                               
  Senator Jim Duncan                                                           
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  *HB 44:   "An Act making a special appropriation to the                      
            principal of the permanent fund; and providing for                 
            an effective date."                                                
                                                                               
            HELD IN COMMITTEE FOR FURTHER CONSIDERATION                        
                                                                               
                                                                               
  *HB 36:   "An Act relating to retirement incentive programs                  
            for the public employees' retirement system, the                   
            teachers' retirement system, and certain persons                   
            under the judicial retirement system; and                          
            providing for an effective date."                                  
                                                                               
            HELD IN COMMITTEE FOR FURTHER CONSIDERATION                        
                                                                               
                                                                               
  *HB 42:   "An Act relating to retirement incentive programs                  
            for the public employees' retirement system, the                   
            teachers' retirement system, and certain persons                   
            under the judicial retirement system; and                          
            providing for an effective date."                                  
                                                                               
            HELD IN COMMITTEE FOR FURTHER CONSIDERATION                        
                                                                               
                                                                               
  *HB 49:   "An Act relating to facsimile absentee ballot                      
            application and facsimile absentee voting."                        
                                                                               
            PLACED IN SUBCOMMITTEE OF ONE:  REPRESENTATIVE                     
            PETE KOTT                                                          
                                                                               
                                                                               
  *HB 47:   "An Act relating to the delivery of the primary                    
            ballots to persons making application for them                     
            when, by operation of political party rule, two or                 
            more primary ballots must be provided to the                       
            public."                                                           
                                                                               
            NOT HEARD                                                          
                                                                               
  (* first public hearing)                                                     
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Representative Terry Martin                                                  
  State Capitol, Room 411                                                      
  Juneau, AK  99811-1182                                                       
  465-3783                                                                     
  Position Statement: Prime Sponsor of HB 44 and HB 49                         
                                                                               
  Jim Kelly, Research and Liaison Officer                                      
  Permanent Fund Corporation                                                   
  Enserch Building                                                             
  550 West Seventh Street                                                      
  Anchorage, AK  99501-3510                                                    
  277-1496                                                                     
  Position Statement: Explained how the permanent fund related                 
                      to legislation for reserves                              
                                                                               
  Representative Jerry Mackie                                                  
  State Capitol                                                                
  Court Building, Room 602                                                     
  Juneau, AK  99811-1182                                                       
  465-4925                                                                     
  Position Statement: Prime Sponsor of HB 36; Supported HB 42                  
                                                                               
  Barry Haight                                                                 
  Public Safety Employees                                                      
  991 Vail View Drive                                                          
  Fairbanks, AK  99712                                                         
  457-2545                                                                     
  Position Statement: Supported HB 36 and HB 42                                
                                                                               
  Robert Stalnaker, Director                                                   
  Division of Retirement and Benefits                                          
  Department of Administration                                                 
  P.O. Box 110203                                                              
  Juneau, AK  99811-0203                                                       
  465-4470                                                                     
  Position Statement: Discussed program administration                         
                                                                               
  Phyllis Taylor, Director                                                     
  Federal Voting Assistance Program                                            
  Office of the Secretary of Defense                                           
  Room 1B, 457 Pentagon                                                        
  Washington, D.C. 20301-1155                                                  
  (800) 438-8683                                                               
  Position Statement: Supported HB 49                                          
                                                                               
  Joe Kerwin, Chief of Elections                                               
  Office of the Secretary of State                                             
  State Capitol                                                                
  Helena, Montana 59620                                                        
  (406) 444-4732                                                               
  Position Statement: Supported HB 49                                          
                                                                               
  Charlot Thickstun, Director                                                  
  Division of Elections                                                        
  P.O. Box 110017                                                              
  Juneau, AK  99811-0017                                                       
  465-4611                                                                     
  Position Statement: Inquired about absentee ballots and the                  
                      availability of federal monies                           
                                                                               
  Willie Anderson, Lobbyist                                                    
  National Education Association                                               
  114 Second Street                                                            
  Juneau, AK  99801                                                            
  586-3090                                                                     
  Position Statement: Supported HB 42 and HB 36                                
                                                                               
  Representative Bill Hudson                                                   
  State Capitol, Room 108                                                      
  Juneau, AK  99811-1182                                                       
  465-3744                                                                     
  Position Statement: Prime Sponsor of HB 42; Supported HB 36                  
                                                                               
  Senator Jim Duncan                                                           
  State Capitol, Room 119                                                      
  Juneau, AK  99811-1182                                                       
  465-4766                                                                     
  Position Statement: Supported HB 42 and HB 36                                
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  HB 44                                                                 
  SHORT TITLE: APPROP: TO PERMANENT FUND PRINCIPAL                             
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) MARTIN,Olberg                                  
  TITLE: "An Act making a special appropriation to the                         
  principal of the permanent fund; and providing for an                        
  effective date."                                                             
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/11/93        35    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        35    (H)   STATE AFFAIRS, FINANCE                           
  01/18/93       102    (H)   COSPONSOR(S):  OLBERG                            
  01/26/93              (H)   STA AT 08:00 AM CAPITOL 102                      
  01/28/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
                                                                               
  BILL:  HB 36                                                                 
  SHORT TITLE: RETIREMENT INCENTIVE PROGRAM                                    
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) MACKIE                                         
  TITLE: "An Act relating to retirement incentive programs for                 
  the public employees' retirement system, the teachers'                       
  retirement system, and certain persons under the judicial                    
  retirement system; and providing for an effective date."                     
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/08/93        33    (H)   PREFILE RELEASED                                 
  01/11/93        33    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        33    (H)   STATE AFFAIRS, LABOR & COMMERCE,                 
                              FINANCE                                          
  01/28/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
                                                                               
  BILL:  HB 42                                                                 
  SHORT TITLE: RETIREMENT INCENTIVE PROGRAM                                    
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) HUDSON,Ulmer                                   
  TITLE: "An Act relating to retirement incentive programs for                 
  the public employees' retirement system, the teachers'                       
  retirement system, and certain persons under the judicial                    
  retirement system; and providing for an effective date."                     
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/11/93        35    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        35    (H)   STATE AFFAIRS, LABOR & COMMERCE,                 
                              FINANCE                                          
  01/28/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
                                                                               
  BILL:  HB 49                                                                 
  SHORT TITLE: ABSENTEE BALLOTING BY FAX                                       
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) MARTIN,Brice                                   
  TITLE: "An Act relating to facsimile absentee ballot                         
  application and facsimile absentee voting."                                  
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/13/93        52    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/13/93        53    (H)   STATE AFFAIRS, JUDICIARY,                        
                              FINANCE                                          
  01/20/93       117    (H)   COSPONSOR(S): BRICE                              
  01/28/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-7, SIDE A                                                            
  Number 000                                                                   
                                                                               
  CHAIRMAN AL VEZEY called the meeting to order at 8:03 a.m.,                  
  and noted a quorum was present.                                              
  HB 44: APPROP:  TO PERMANENT FUND PRINCIPAL                                  
                                                                               
  CHAIRMAN VEZEY read the title of HB 44 and invited                           
  Representative Martin, the bill's sponsor, to testify before                 
  the committee.                                                               
                                                                               
  Number 024                                                                   
                                                                               
  REPRESENTATIVE TERRY MARTIN, PRIME SPONSOR of HB 44                          
  discussed his handouts regarding funds within the permanent                  
  fund.  He stated future generations would pay the price in                   
  large taxes if we did not put funds away in reserves.                        
                                                                               
  Number 145                                                                   
                                                                               
  CHAIRMAN VEZEY discussed the handouts and monies within the                  
  fund.                                                                        
                                                                               
  Number 160                                                                   
                                                                               
  REPRESENTATIVE MARTIN discussed the table in the handouts.                   
                                                                               
  CHAIRMAN VEZEY discussed the table in the handouts.                          
                                                                               
  Number 206                                                                   
                                                                               
  JIM KELLY, RESEARCH AND LIAISON OFFICER, PERMANENT FUND                      
  CORPORATION (PFC), explained how the permanent fund related                  
  to legislation for reserves.  He stated it was the                           
  responsibility of the PFC to manage money and maximize                       
  income and the legislature's responsibility to designate                     
  where the income was used.  He explained a chart in the                      
  committee member's packets.                                                  
                                                                               
  Number 260                                                                   
                                                                               
  CHAIRMAN VEZEY discussed the projection made in December for                 
  the end of the year.                                                         
                                                                               
  Number 267                                                                   
                                                                               
  REPRESENTATIVE HARLEY OLBERG asked for clarification of                      
  funds in the account to date.                                                
                                                                               
  Number 268                                                                   
                                                                               
  MR. KELLY explained the funds within the account.                            
                                                                               
  Number 287                                                                   
                                                                               
  CHAIRMAN VEZEY discussed the reinvestment funds were put                     
  into the permanent fund which came from investments out of                   
  Alaska.                                                                      
                                                                               
  Number 306                                                                   
                                                                               
  MR. KELLY discussed investments in Alaska such as the Alaska                 
  Housing Finance Corporation, the Alaska Industrial                           
  Development Association, and Alaskan companies.  He stated                   
  the investments would stay in Alaska when the returns were                   
  comparable and the risk not greater than investments out of                  
  state or the country.                                                        
                                                                               
  Number 326                                                                   
                                                                               
  CHAIRMAN VEZEY discussed investments in Alaska.                              
                                                                               
  Number 330                                                                   
                                                                               
  MR. KELLY discussed investment requirements.                                 
                                                                               
  Number 340                                                                   
                                                                               
  REPRESENTATIVE HARLEY OLBERG stated he had experience in                     
  banking and had never seen anyone go broke from investing.                   
                                                                               
  Number 345                                                                   
                                                                               
  MR. KELLY discussed market assumptions.                                      
  HB 36: RETIREMENT INCENTIVE PROGRAM                                          
                                                                               
  Number 361                                                                   
                                                                               
  CHAIRMAN VEZEY held HB 44 in committee for further                           
  consideration and read the title of HB 36.  He invited                       
  Representative Jerry Mackie, the sponsor of HB 36 to testify                 
  before the committee.                                                        
                                                                               
  Number 379                                                                   
                                                                               
  REPRESENTATIVE JERRY MACKIE, PRIME SPONSOR of HB 36, stated                  
  the bill was patterned after SB 337 from 1992.  He read his                  
  sponsor summary and discussed other pieces of information                    
  within the packet.                                                           
                                                                               
  Number 437                                                                   
                                                                               
  CHAIRMAN VEZEY discussed the fiscal note.                                    
                                                                               
  Number 445                                                                   
                                                                               
  REPRESENTATIVE MACKIE discussed information within the                       
  handouts he gave to the committee.                                           
                                                                               
  Number 487                                                                   
                                                                               
  CHAIRMAN VEZEY asked questions regarding the cost savings of                 
  the program over a three year period.                                        
                                                                               
  REPRESENTATIVE MACKIE discussed the savings by the Hoonah                    
  School District as a sample of money that can be saved with                  
  early retirement.                                                            
  HB 42: RETIREMENT INCENTIVE PROGRAM                                          
                                                                               
  Number 515                                                                   
                                                                               
  CHAIRMAN VEZEY discussed the evaluation.  He then opened                     
  discussion on HB 42 which also related to retirement                         
  incentive programs.                                                          
                                                                               
  BARRY HAIGHT testified on behalf of Public Safety employees                  
  in support of HB 42.                                                         
                                                                               
  Number 565                                                                   
                                                                               
  REPRESENTATIVE JERRY SANDERS discussed the penalty for those                 
  who retire and then return to work.                                          
                                                                               
  Number 581                                                                   
                                                                               
  BOB STALNAKER, DIRECTOR, DIVISION OF RETIREMENT AND                          
  BENEFITS, DEPARTMENT OF ADMINISTRATION, discussed questions                  
  regarding how the program was administered.                                  
                                                                               
  Number 590                                                                   
                                                                               
  REPRESENTATIVE VEZEY asked questions regarding the costs of                  
  administering the program.                                                   
                                                                               
  Number 593                                                                   
                                                                               
  MR. STALNAKER described the administration costs to the                      
  retiring person.                                                             
                                                                               
  Number 602                                                                   
                                                                               
  CHAIRMAN VEZEY discussed the liabilities of the pension fund                 
  being paid out of the general fund.                                          
                                                                               
  Number 619                                                                   
                                                                               
  MR. STALNAKER discussed how the system received monies from                  
  the participating employee.                                                  
                                                                               
  Number 628                                                                   
                                                                               
  CHAIRMAN VEZEY stated the fiscal note did not address the                    
  obligation to the pension fund.                                              
                                                                               
  Number 640                                                                   
                                                                               
  REPRESENTATIVE SANDERS discussed exceptions to legislative                   
  and university employees.                                                    
                                                                               
  Number 642                                                                   
                                                                               
  MR. STALNAKER explained that the difficulty in getting                       
  certain employees in certain positions could be the reason                   
  for the exemption.                                                           
                                                                               
  Number 664                                                                   
                                                                               
  REPRESENTATIVE SANDERS asked if there were certain people we                 
  did not want to attract back.                                                
                                                                               
  Number 668                                                                   
                                                                               
  MR. STALNAKER stated he could not answer Representative                      
  Sanders' query because he was not the author of HB 42.                       
                                                                               
  Number 677                                                                   
                                                                               
  REPRESENTATIVE FRAN ULMER discussed the Budget and Audit                     
  savings statement in the committee packet.                                   
                                                                               
  Number 685                                                                   
                                                                               
  MR. STALNAKER stated employers were allowed to make a                        
  determination on participation.  They reported the                           
  anticipated savings before they decided to participate, he                   
  said.                                                                        
                                                                               
  Number 698                                                                   
                                                                               
  CHAIRMAN VEZEY clarified it was not the responsibility of                    
  the department to review the report.  "You just trust if                     
  they say they will save money that it is enough to                           
  participate in the retirement program," he said.                             
                                                                               
  TAPE 93-7, SIDE B                                                            
  Number 000                                                                   
                                                                               
  MR. STALNAKER stated the calculations done by employers were                 
  not audited.                                                                 
                                                                               
  HB 49: ABSENTEE BALLOTING BY FAX                                             
                                                                               
  Number 048                                                                   
                                                                               
  CHAIRMAN VEZEY, after a short recess, read the title of HB
  49.  He tabled HB 36 and 42 until later so testimony could                   
  be heard on HB 49.                                                           
                                                                               
  Number 047                                                                   
                                                                               
  REPRESENTATIVE MARTIN, PRIME SPONSOR of HB 49, stated Ms.                    
  Phyllis Taylor in Washington D. C. was on the line to                        
  testify in support of HB 49.                                                 
                                                                               
  Number 128                                                                   
                                                                               
  PHYLLIS TAYLOR, DIRECTOR, FEDERAL VOTING ASSISTANCE PROGRAM,                 
  OFFICE OF THE SECRETARY OF DEFENSE, spoke in support of HB
  49 and discussed electronic application for absentee voting.                 
  She referenced her written testimony within the committee                    
  packet.  She also referenced the "Uniformed and Overseas                     
  Citizens Absentee Voting Act" 99-40 HR 4393.                                 
                                                                               
  Number 289                                                                   
                                                                               
  JOE KERWIN, CHIEF OF ELECTIONS, OFFICE OF THE SECRETARY OF                   
  STATE in Montana spoke in support of HB 49.  He discussed                    
  the absentee ballot process.                                                 
                                                                               
  Number 306                                                                   
                                                                               
  REPRESENTATIVE ULMER stated concerns of voter fraud.                         
                                                                               
  MS. TAYLOR explained there was one central system to prevent                 
  fraud.  She discussed provisions of checks and balances just                 
  the same as receiving it through the mail.                                   
                                                                               
  Number 335                                                                   
                                                                               
  CHAIRMAN VEZEY discussed actions to prevent fraud.                           
                                                                               
  Number 344                                                                   
                                                                               
  MS. TAYLOR explained controls were in place which Alaska                     
  would utilize.                                                               
                                                                               
  Number 365                                                                   
                                                                               
  CHAIRMAN VEZEY asked if the results were satisfactory.                       
                                                                               
  MR. KERWIN explained the rules that were in place.  It was                   
  not a secret ballot, signatures were compared to confirm the                 
  voter was the voter registered, he added.                                    
                                                                               
  Number 379                                                                   
                                                                               
  CHAIRMAN VEZEY requested a copy of the regulations.                          
                                                                               
  Number 386                                                                   
                                                                               
  CHARLOT THICKSTUN, DIRECTOR, DIVISION OF ELECTIONS, asked                    
  what the voter turn out was for absentee ballots.                            
                                                                               
  MR. KERWIN stated eight people in Montana voted by fax.                      
                                                                               
  Number 440                                                                   
                                                                               
  MS. TAYLOR said there was a total of 4,000 application                       
  forms, 1,000 absentee, 600 other documents, and 140 voted                    
  fax ballots nationally.                                                      
                                                                               
  Number 484                                                                   
                                                                               
  REPRESENTATIVE MARTIN reminded the committee everyone had                    
  the right to vote.  Even those on submarines!                                
                                                                               
  Number 521                                                                   
                                                                               
  CHAIRMAN VEZEY made reference to military persons who spend                  
  six months underwater.                                                       
                                                                               
  MS. TAYLOR stated the service was free.                                      
                                                                               
  MS. THICKSTUN asked if there were federal monies available.                  
                                                                               
  Number 564                                                                   
                                                                               
  CHAIRMAN VEZEY clarified the only cost to the state would be                 
  in equipment, not service.                                                   
                                                                               
  Number 580                                                                   
                                                                               
  REPRESENTATIVE PETE KOTT agreed to be a subcommittee of one,                 
  by request of the Chair, and stated he would report back to                  
  the committee.                                                               
  HB 42 and HB 36: RETIREMENT INCENTIVE PROGRAM                                
                                                                               
  Number 596                                                                   
                                                                               
  WILLIE ANDERSON, a lobbyist for the National Education                       
  Association, spoke in support of HB 36 and HB 42.                            
                                                                               
  Number 626                                                                   
                                                                               
  CHAIRMAN VEZEY invited Representative Bill Hudson to speak                   
  on behalf of HB 42.                                                          
                                                                               
  Number 630                                                                   
                                                                               
  REPRESENTATIVE BILL HUDSON, PRIME SPONSOR of HB 42, stated                   
  the purpose of HB 42 was to save public dollars.  The                        
  retirement incentive program was a tool to save the state                    
  money, he added.                                                             
                                                                               
  TAPE 93-8, SIDE A                                                            
  Number 000                                                                   
                                                                               
  CHAIRMAN VEZEY invited Senator Jim Duncan to speak on behalf                 
  of the retirement incentive program.                                         
                                                                               
  Number 110                                                                   
                                                                               
  SENATOR JIM DUNCAN related the history of the retirement                     
  program.  He explained the cost savings to the state.                        
                                                                               
  ANNOUNCEMENTS                                                                
                                                                               
  Number 296                                                                   
                                                                               
  CHAIRMAN VEZEY announced HB 36 and HB 42 would be held in                    
  committee for further consideration.                                         
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  CHAIRMAN VEZEY then adjourned the meeting at 10:03 a.m.                      

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