Legislature(2007 - 2008)BELTZ 211

02/21/2008 09:00 AM Senate STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 232 NAT'L GUARD: COMMAND/ACTIVE SERVICE/PAY TELECONFERENCED
Moved SB 232 Out of Committee
+ HB 15 BOARD OF FISHERIES CONFLICTS OF INTEREST TELECONFERENCED
Heard & Held
+ HB 260 STATE OFFICERS COMPENSATION COMMISSION TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
         HB 260-STATE OFFICERS COMPENSATION COMMISSION                                                                      
                                                                                                                                
CHAIR MCGUIRE announced the consideration  of HB 260. [Before the                                                               
committee was CSHB 260(STA).]                                                                                                   
                                                                                                                                
9:54:56 AM                                                                                                                    
REPRESENTATIVE  MIKE DOOGAN,  Alaska State  Legislature, said  HB
260 re-establishes  a compensation  commission for  the principle                                                               
officers of  Alaska. There was a  working compensation commission                                                               
in 1979,  and Senator Elton was  a public member. An  attempt was                                                               
made  to reestablish  a similar  commission in  1986, but  it was                                                               
dependent upon  a constitutional amendment that  never passed. HB
260 has a  repeal of that inactive commission.  The bill provides                                                               
for five members with three  public members, all appointed by the                                                               
governor. No member  will have served in any of  the offices that                                                               
the  commission will  consider for  compensation in  the previous                                                               
four   years.  It   will  be   staffed  by   the  Department   of                                                               
Administration, and  the fiscal  note is  $7,500. It  will report                                                               
every  two years.  Recommendations  by the  commission will  take                                                               
effect unless specifically rejected  by the legislature. It would                                                               
require an  appropriation so the  legislature will get  two looks                                                               
at  "this  provision."  There  are   about  20  such  commissions                                                               
throughout the country.                                                                                                         
                                                                                                                                
9:57:48 AM                                                                                                                    
SENATOR BUNDE asked  if this would be like Congress  where if the                                                               
legislature fails to vote no, the raise is automatic.                                                                           
                                                                                                                                
REPRESENTATIVE DOOGAN said no, because of the appropriation.                                                                    
                                                                                                                                
SENATOR BUNDE  said Congress  automatically gets  a raise  if the                                                               
commission  recommends it  so they  can say,  "the devil  made me                                                               
take this money."                                                                                                               
                                                                                                                                
9:58:46 AM                                                                                                                    
CHAIR MCGUIRE said there is the  overt rejection, but there is an                                                               
appropriation requirement. People wanted  to move the capital and                                                               
because of the  FRANK initiative "and other things,"  it ended up                                                               
being  "the   lack  of  an   appropriation  that  ended   up  not                                                               
solidifying  parts  of  that."  If  the  intent  is  to  have  an                                                               
effective  system   of  compensating   lawmakers  based   on  the                                                               
recommendations  of this  commission,  "I  have wondered  whether                                                               
having the step of appropriating it might be the death of it."                                                                  
                                                                                                                                
REPRESENTATIVE DOOGAN said  it could, but he couldn't  find a way                                                               
to remove the legislative power of appropriation from the bill.                                                                 
                                                                                                                                
CHAIR MCGUIRE said to go upstairs to get some ideas.                                                                            
                                                                                                                                
REPRESENTATIVE  DOOGAN   said  the   legislature  does   have  to                                                               
appropriate the money. He has  tried to remove the legislature as                                                               
much  as possible  because he  believes rational  decision-making                                                               
comes from citizens without anything "on the table."                                                                            
                                                                                                                                
SENATOR BUNDE said to get  citizen participation the money has to                                                               
come out of the earnings reserve of the Permanent Fund.                                                                         
                                                                                                                                
10:00:51 AM                                                                                                                   
SENATOR KIM ELTON, Alaska State  Legislature, said he is not here                                                               
in the capacity of  a senator, but he will speak  to 30 years ago                                                               
when  he served  on  a  salary commission.  The  impetus for  the                                                               
commission was a successful initiative  that repealed an act that                                                               
raised  salaries  for legislators  and  created  a very  generous                                                               
retirement  system.  Commission  members were  appointed  by  the                                                               
governor. He  doesn't remember if  there were  qualifications for                                                               
serving. HB  260 does have one  condition. All of the  members on                                                               
the old commission were from the  private sector and did not hold                                                               
a  state  or  municipal  job.   One  problem  was  its  scope  of                                                               
authority;  it reviewed  the salaries  of  all elected  officials                                                               
from governor, judges, and down  to division directors. It wasn't                                                               
that burdensome on  the commission, but it created  issues in the                                                               
legislative branch  when recommendations  were made.  "There were                                                               
so  many   different  recommendations   …  that  it   created  an                                                               
opportunity  for  so  many legislators  who  disagreed  with  one                                                               
element to be displeased with the recommendation."                                                                              
                                                                                                                                
10:04:55 AM                                                                                                                   
SENATOR ELTON said  the commission was abandoned  and attempts to                                                               
resurrect  one have  not been  successful. He  thinks the  notion                                                               
behind a salary commission makes  sense, and this narrower one is                                                               
better than the previous commission.                                                                                            
                                                                                                                                
10:05:47 AM                                                                                                                   
SENATOR STEVENS asked  if a fair salary would have  had an impact                                                               
on the ethical lapses that have occurred "in this building."                                                                    
                                                                                                                                
SENATOR  ELTON said  yes, but  he  can't quantify  the extent.  A                                                               
greater impact will  be on the demographics of the  body, and not                                                               
on its ethics. Most members are  old white guys who have paid off                                                               
their  homes. It  is difficult  for a  younger person  with house                                                               
payments and  kids at home  to leave their profession  and serve.                                                               
This  is his  personal philosophy.  The salary  of an  ethically-                                                               
challenged person  might not  matter. But  he hopes  that [higher                                                               
salaries] will change the demographics of both bodies.                                                                          
                                                                                                                                
SENATOR FRENCH said  the bill is overdue. HB 260  doesn't say how                                                               
often the commission  will meet. He wants the  commission to look                                                               
at whether the  state really has a citizen's  legislature or not.                                                               
"We want to think  we have that," but he can only  think of a few                                                               
members who are able  to hold on to their jobs. It  is hard to do                                                               
something else while working at  the legislature, and members end                                                               
up becoming a professional legislator over time.                                                                                
                                                                                                                                
10:09:09 AM                                                                                                                   
SENATOR ELTON  said it  is an important  question, and  there are                                                               
entities that could help answer  that. The National Conference on                                                               
State Legislatures  rates Alaska  as trending toward  a full-time                                                               
legislature.  The commission  could get  that information  easily                                                               
without listening to legislators.                                                                                               
                                                                                                                                
SENATOR   BUNDE  asked   if  Representative   Doogan  sees   this                                                               
commission  recommending a  full-time legislature.  The part-time                                                               
one was established by the  constitution. "There seems to be some                                                               
inconsistency between  the fervor  for a  90-day session  and the                                                               
willingness of the public to support a full-time legislature."                                                                  
                                                                                                                                
10:11:42 AM                                                                                                                   
REPRESENTATIVE  DOOGAN said  it is  a difficult  question because                                                               
Alaska has a  citizen legislature but they  are all professionals                                                               
since they get  paid to legislate. The question is  if it is full                                                               
time or part time, which is  quantifiable. The days and hours can                                                               
be measured.  It is his  hope that  the commission would  look at                                                               
the indicators of  what is actually happening versus  a theory of                                                               
what is happening, and make a recommendation based on that.                                                                     
                                                                                                                                
SENATOR BUNDE asked about long-term  per diem for people who live                                                               
in Juneau. If  flies in the face of the  definition. Another term                                                               
may be more appropriate.                                                                                                        
                                                                                                                                
10:13:54 AM                                                                                                                   
REPRESENTATIVE DOOGAN said it is difficult to explain his long-                                                                 
term per diem,  whereby he gets paid when at  home. He recommends                                                               
not  calling it  something that  nobody else  in the  world would                                                               
call it. The IRS won't call it per diem, because it is taxed.                                                                   
                                                                                                                                
SENATOR  BUNDE  said he  suspects  that  long-term per  diem  was                                                               
coined when there was smoke and mirrors. It is indeed a stipend.                                                                
                                                                                                                                
10:15:59 AM                                                                                                                   
SENATOR  GREEN wondered  if it  was coined  for "out-of-towners."                                                               
When  she  heads into  a  town  for  a meeting,  it's  different.                                                               
Senator Stevens flies. Her previous  district could take her from                                                               
Eureka to Talkeetna.  A woman needs to take someone  with her, so                                                               
she has  to buy extra  meals, and that  isn't easy to  claim. "It                                                               
wasn't  designed  for urban  legislators  as  much as  …  out-of-                                                               
towners."                                                                                                                       
                                                                                                                                
CHAIR MCGUIRE said "You face  this dilemma where you actually are                                                               
working and most  people who claim long-term per  diem will spend                                                               
the whole day  working on legislative stuff, and so  if you don't                                                               
take it, then  what do you do?"  If it is taken,  it is difficult                                                               
to  explain.  "We all  know  it's  compensation for  what  you're                                                               
doing,  but  the  name  ends   up  being  odd."  She  wants  this                                                               
discussion to  be used by  the commission. Travel for  people who                                                               
live  outside the  highway system  creates some  disparities. She                                                               
said  the   legislators  with  retirements  think   this  job  is                                                               
something to  do later  in life and  shouldn't be  paid full-time                                                               
salaries. She chairs and vice-chairs  a nationwide group, and she                                                               
does it to put Alaska in  a good light. She brings information to                                                               
Alaska. She  loves her  job, and  she doesn't know  how to  do it                                                               
part  time. Voices  of people  in their  earning years  should be                                                               
heard in this  building. Gender comes into play,  and she thought                                                               
of an option of allowing the choice to be a part-time or full-                                                                  
time lawmaker. Some may want  full-time legislators, and some may                                                               
not. She said to start calling  a spade a spade. "We're not being                                                               
really direct  about the amount  of work that's done,  what we're                                                               
paid for it, and how that ought to work."                                                                                       
                                                                                                                                
10:20:22 AM                                                                                                                   
REPRESENTATIVE  DOOGAN  said  his  age-group (60  years  old)  is                                                               
vastly  overrepresented.   Everyone  was  happily   surprised  at                                                               
Alaska's  participation  in  the [recent  national  presidential]                                                               
caucuses, and that  happened because they felt they  could make a                                                               
difference. He said if more  people could do their public service                                                               
without having to abandon their  private lives, there may be more                                                               
options come election time.                                                                                                     
                                                                                                                                
CHAIR MCGUIRE said  no one believes that being  a lawmaker should                                                               
be lucrative. It  is public service, but should there  be a basic                                                               
salary to pay bills?                                                                                                            
                                                                                                                                
SENATOR STEVENS said he likes  the idea of a citizen legislature,                                                               
but  he works  almost  everyday.  It is  not  full  time, but  it                                                               
certainly isn't part-time work.  The difference between a citizen                                                               
and professional legislature is how much a person gets paid.                                                                    
                                                                                                                                
10:24:21 AM                                                                                                                   
SENATOR BUNDE  said the  public often  sees the  legislature like                                                               
the fire department  that is on call when someone  has a problem.                                                               
That dichotomy will be difficult  to change. Citizens only want a                                                               
full-time legislator when they need  one. It is constitutional to                                                               
be a part-time body. This commission will be educational.                                                                       
                                                                                                                                
REPRESENTATIVE  DOOGAN  said a  person  called  him when  he  was                                                               
running for election  and asked why he wasn't in  his office when                                                               
he  dropped  by. Representative  Doogan  told  him that  his  job                                                               
wasn't full  time. The  man responded:  "I don't  want you  to be                                                               
there full time, just when I come to see you."                                                                                  
                                                                                                                                
CHAIR MCGUIRE held HB 260 in committee.                                                                                         

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