Legislature(2017 - 2018)SENATE FINANCE 532

04/26/2018 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 135 SCHOOL CONSTRUCTION GRANT PROGRAM TELECONFERENCED
Heard & Held
+= HB 150 PAY, ALLOWANCES, BENEFITS FOR MILITIA MEM TELECONFERENCED
Heard & Held
+= HB 233 EXTEND EDUCATION TAX CREDITS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 150                                                                                                            
                                                                                                                                
     "An Act  relating to pay, allowances,  and benefits for                                                                    
     members of the organized militia."                                                                                         
                                                                                                                                
9:55:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CHRIS TUCK, SPONSOR, offered a Sponsor                                                                           
Statement:                                                                                                                      
                                                                                                                                
     House Bill  150 is part  of the ongoing efforts  by the                                                                    
     Alaska   State  Legislature   and  the   Department  of                                                                    
     Military and  Veterans' Affairs  to modernize  the 1955                                                                    
     Alaska  Military Code  by  providing statutory  changes                                                                    
     that will better serve our Alaska organized militia.                                                                       
                                                                                                                                
     House Bill 150 would  authorize the same pay, allowance                                                                    
     and  benefits for  the organized  militia whether  they                                                                    
     are called  into state active  duty by the  Governor or                                                                    
     Adjutant  General or  called to  service under  federal                                                                    
     active duty by the President.                                                                                              
                                                                                                                                
     The  current pay  system for  the organized  militia is                                                                    
     based  on  compensation  for  the  specific  duty  when                                                                    
     called  into active  state service.  Under the  federal                                                                    
     active duty,  service members are  paid based  on their                                                                    
     grade  and rank,  not  by the  specific  duty they  are                                                                    
     assigned to.                                                                                                               
                                                                                                                                
     The current  pay system is  not stable or  reliable for                                                                    
     our   organized  militia   and   creates  a   difficult                                                                    
     accounting   system  that   requires   many  hours   to                                                                    
     determine  each  member's  pay.  House  Bill  150  will                                                                    
     create a streamlined approach  to the accounting system                                                                    
     by aligning  the pay, allowances  and benefits  for the                                                                    
     Alaska organized militia whether  if called to state or                                                                    
     federal active duty.                                                                                                       
                                                                                                                                
     Our service  members deserve a reliable  pay structure,                                                                    
     regardless of where they are called to duty.                                                                               
                                                                                                                                
9:57:44 AM                                                                                                                    
                                                                                                                                
KENDRA KLOSTER,  STAFF, REPRESENTATIVE CHRIS  TUCK, reviewed                                                                    
the  sections of  the bill.  She said  that Section  1 would                                                                    
clarify  when  members  of the  organized  militia  were  in                                                                    
active state duty their wages  would mirror the wages of the                                                                    
federal  active  service.  Section  2 would  treat  all  the                                                                    
organized militia  as one entity  for a  compensation system                                                                    
and  would retain  eligibility for  travel allowances  under                                                                    
the state system.  Section 3 was the base  rate for worker's                                                                    
compensation  calculations. Section  4 specified  members of                                                                    
the Alaska  Naval Militia, Air  Guard, and Army  Guard would                                                                    
continue to  accrue benefits, paid into  the Alaska National                                                                    
Guard and  Naval Militia retirement system.  Section 5 would                                                                    
repeal  the  definition of  member  because  the langue  was                                                                    
redundant.                                                                                                                      
                                                                                                                                
9:58:57 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
BRIAN DUFFY,  DIRECTOR, ADMINISTRATIVE  SERVICES, DEPARTMENT                                                                    
OF    MILITARY    AND    VETERANS   AFFAIRS,    JBER    (via                                                                    
teleconference), announced that he  was available to provide                                                                    
additional comments.                                                                                                            
                                                                                                                                
Senator von  Imhof looked at  an example  of a pay  grid for                                                                    
the 2015  Sockeye fire that  was prepared by  the Department                                                                    
of  Military  and  Veterans  Affairs  (copy  on  file).  She                                                                    
wondered whether  the biggest  savings, as  a result  of the                                                                    
legislation,  would be  the  administrative expense  because                                                                    
the  new system  would be  more streamlined.  She understood                                                                    
that the  pay would  vary on  whether the  federal alignment                                                                    
pay was  more or less  than the state hazard  pay, depending                                                                    
on the position.                                                                                                                
                                                                                                                                
Mr. Duffy agreed.                                                                                                               
                                                                                                                                
Co-Chair  MacKinnon asked  whether the  change would  affect                                                                    
state or federal pensions.                                                                                                      
                                                                                                                                
Mr. Duffy answered in the negative.                                                                                             
                                                                                                                                
10:02:05 AM                                                                                                                   
                                                                                                                                
Senator Stevens asked for an  explanation of pay by specific                                                                    
duty; specific duty as compare to rank and grade.                                                                               
                                                                                                                                
Mr.  Duffy  used  the  example  of  an  active  duty  member                                                                    
performing administrative duties in  the morning and manning                                                                    
a traffic  control point  in the evening.  He said  that the                                                                    
variety of duties  that could be performed form  day to day,                                                                    
even hour to hour, had its own  pay scale.  He said that the                                                                    
equation would  include the time,  multiplied by  the amount                                                                    
of pay for  that specific job on that specific  day. The new                                                                    
method  would  pay a  daily  rate,  by  rank, and  based  on                                                                    
current pay scales.                                                                                                             
                                                                                                                                
Senator  Stevens   though  that   the  old   system  sounded                                                                    
difficult.                                                                                                                      
                                                                                                                                
10:03:45 AM                                                                                                                   
                                                                                                                                
BOB DOEHL,  DEPUTY COMMISSIONER, DEPARTMENT OF  MILITARY AND                                                                    
VETERANS  AFFAIRS, JBER  (via teleconference),  testified in                                                                    
support of  the bill.  He offered  several examples  of ways                                                                    
that  the bill  would  benefit the  department and  military                                                                    
personnel.                                                                                                                      
                                                                                                                                
Senator Olson asked what the bill would do for recruitment.                                                                     
                                                                                                                                
Mr.   Doehl   believed   that  the   bill   would   increase                                                                    
recruitment.                                                                                                                    
                                                                                                                                
10:05:44 AM                                                                                                                   
                                                                                                                                
COL.  JOHN  JAMES,  DEPARTMENT   OF  MILITARY  AND  VETERANS                                                                    
AFFAIRS, JBER (via teleconference),  testified in support of                                                                    
the bill. He believed that  the proposal would provide equal                                                                    
pay for equal services.                                                                                                         
                                                                                                                                
10:06:57 AM                                                                                                                   
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
Vice-Chair  Bishop discussed  FN  2 from  the Department  of                                                                    
Military  and  Veterans  Affairs.   The  fiscal  impact  was                                                                    
indeterminate. He read from the analysis:                                                                                       
                                                                                                                                
     The  fiscal  impact  of   this  legislation  cannot  be                                                                    
     accurately  determined   at  this  time.   The  nature,                                                                    
     severity,  and  duration  of any  state  disaster  will                                                                    
     determine the  number of members called  to active duty                                                                    
     and  the  extent  of their  service.  Due  to  multiple                                                                    
     unknown factors,  such as  when disasters  will happen,                                                                    
     the  number  of  militia  members  called  into  active                                                                    
     status, their ranks, and  other factors, the Department                                                                    
     is unable  to calculate the estimated  fiscal impact to                                                                    
     the  state  and   therefore  submits  an  indeterminate                                                                    
     fiscal note.                                                                                                               
                                                                                                                                
     While  the Department  cannot predict  future calls  to                                                                    
     active duty,  it can  look back  to recent  examples to                                                                    
     provide   real-life  perspectives   on  the   potential                                                                    
     financial impact of HB 150 on future events.                                                                               
                                                                                                                                
Co-Chair  MacKinnon  asked for  a  cost  example that  could                                                                    
provide further detail.                                                                                                         
                                                                                                                                
Representative Tuck  referenced the  Sockeye Fire as  a look                                                                    
back that  would be studied to  find ways to save  the state                                                                    
money.                                                                                                                          
                                                                                                                                
10:09:00 AM                                                                                                                   
                                                                                                                                
Senator von  Imhof looked at  the Sockeye Fire  example, and                                                                    
considered the  administrative hours  used to  calculate the                                                                    
payroll at the  time. She wondered about how  the new system                                                                    
would compare.                                                                                                                  
                                                                                                                                
Co-Chair  MacKinnon  thought  knowing  administrative  costs                                                                    
would  be helpful.  She  wanted to  know  state and  federal                                                                    
dollar breakdown of pay.                                                                                                        
                                                                                                                                
Vice-Chair Bishop summarized that  the bill was supported by                                                                    
common sense.  He thought Mr.  Duffy had explained  it well.                                                                    
He thought the bill would create greater efficiency.                                                                            
                                                                                                                                
Senator   Stevens  assumed   that  National   Guard  members                                                                    
deployed to the Middle East were paid on a federal scale.                                                                       
                                                                                                                                
Representative Tuck answered in the affirmative.                                                                                
                                                                                                                                
Senator  Stevens thought  that the  change in  pay could  be                                                                    
confusing to troops.                                                                                                            
                                                                                                                                
Representative Tuck stated that  the bill would simplify the                                                                    
matter.                                                                                                                         
                                                                                                                                
10:12:26 AM                                                                                                                   
                                                                                                                                
Representative  Tuck  thanked  the committee  and  expressed                                                                    
that the  bill was a way  to make things easier  for members                                                                    
of the  National Guard. He  agreed to provide  the committee                                                                    
with a further example of how  the bill would save the state                                                                    
money.                                                                                                                          
                                                                                                                                
HB  150  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair MacKinnon discussed housekeeping.                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB 135 Sectional Analysis.pdf SFIN 4/26/2018 9:00:00 AM
HB 135
HB 135 Sponsor Statement.pdf SFIN 4/26/2018 9:00:00 AM
HB 135
HB 135 - Letters of Support.pdf SFIN 4/26/2018 9:00:00 AM
HB 135
HB 135 Summary of Changes Ver. A to Ver. D.A..pdf SFIN 4/26/2018 9:00:00 AM
HB 135
HB150 Additional Document - 2017 Military Pay Chart 3.15.18.pdf SFIN 4/26/2018 9:00:00 AM
HB 150
HB150 Additional Document-Sockeye Fire Spreadsheet from DMVA 3.15.18.pdf SFIN 4/26/2018 9:00:00 AM
HB 150
HB150 Sponsor Statement 3.15.18.pdf SFIN 4/26/2018 9:00:00 AM
HB 150
HB150 Supporting Document-Letter DMVA 3.15.18.pdf SFIN 4/26/2018 9:00:00 AM
HB 150
HB233 Letters of Support.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB233 DOR Education Tax Credit Report CY2017.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB233 Edu Tax Credit Presentation.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB233 Memo of Changes.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB233 Sponsor Statement 2.28.18.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB233 Sectional Analysis ver U.A.PDF SFIN 4/26/2018 9:00:00 AM
HB 233
HB 135 SCS FIN v. J Summary.pdf SFIN 4/26/2018 9:00:00 AM
HB 135
HB 135 SCS work draft version. J.pdf SFIN 4/26/2018 9:00:00 AM
HB 135
HB 233 SCS FIN v. N Summary.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 SCS FINwork draft version. N.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 Alaska Pacific University Testimony.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 Background Information - Tax Division.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 135 SCS FIN v. J Summary.pdf SFIN 4/26/2018 9:00:00 AM
HB 135
HB 150 Doehl to MacKinnon -- HB 150 -- 04-26-2018.pdf SFIN 4/26/2018 9:00:00 AM
HB 150
HB 135 Sectional Analysis v. J.pdf SFIN 4/26/2018 9:00:00 AM
HB 135
HB 233 Testimony Northrim Bank.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 Testimony Alaska Native Heratige Center.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 2018 04 27 - UA Foundation HB 233 Hearing Follow-Up.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 Public Testimony Batter.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 Public Testimony King.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 Education Tax Credit extension Atkinson.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 Public Testimony Cunningham.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 2018 04 28 UAF CFOS ETC Letter.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 Public Testimony Kroska.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 Public Testimony Seitz.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 Public Testimony Manishin.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 Public Testimony Nielsen.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 Public Testimony Sutton.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 Public Testimony Hallinan.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 Public Testimony Hassell.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 Public Testimony Graham.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 Public Testimony Fish.pdf SFIN 4/26/2018 9:00:00 AM
HB 233
HB 233 Public Testimony Figus.pdf SFIN 4/26/2018 9:00:00 AM
HB 233