Legislature(2009 - 2010)BELTZ 105 (TSBldg)

02/11/2010 09:00 AM Senate STATE AFFAIRS


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09:00:48 AM Start
09:01:49 AM SB244
09:29:18 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 244 GOVERNOR'S DUTY STATION/TRAVEL ALLOWANCES TELECONFERENCED
Moved SB 244 Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
        SB 244-GOVERNOR'S DUTY STATION/TRAVEL ALLOWANCES                                                                    
                                                                                                                              
9:01:49 AM                                                                                                                    
CHAIR MENARD announced SB 244 to be up for consideration.                                                                       
                                                                                                                                
SENATOR STEDMAN,  co-sponsor of SB  244, said SB 244  codifies in                                                               
statute that Juneau is officially  considered the governor's duty                                                               
station.  Currently,   no  provisions  in  statute   require  the                                                               
governor to reside  in the capitol city or  occupy the governor's                                                               
mansion.  SB 244  does not  try to  restrict the  selection of  a                                                               
governor  from Juneau,  nor  does SB  244  change the  governor's                                                               
ability  to maintain  a legal  residence of  his or  her choosing                                                               
elsewhere  in the  state. SB  244 would  subject the  governor to                                                               
state personnel  laws related to  the calculation of  the payment                                                               
of  travel  allowance.  SB  244  will  not  change  the  existing                                                               
policies  of the  current governor  but will  set the  policy for                                                               
future governors  to make Juneau  their duty station.  He pointed                                                               
out that  the current policy  of the current governor  is exactly                                                               
what SB 244 is trying to put in statute.                                                                                        
                                                                                                                                
9:04:18 AM                                                                                                                    
SENATOR MEYER  said SB 244 makes  sense and asked if  it pertains                                                               
to the lieutenant governor.                                                                                                     
                                                                                                                                
SENATOR STEDMAN replied that SB 244 targets the governor.                                                                       
                                                                                                                                
9:05:25 AM                                                                                                                    
CHAIR MENARD opened public testimony.                                                                                           
                                                                                                                                
SENATOR FRENCH asked  if the phrase "duty station"  is defined in                                                               
state law.                                                                                                                      
                                                                                                                                
DARWIN  PETERSON, staff  to Senator  Stedman, replied  that "duty                                                               
station"  is defined  in the  administrative manual  dealing with                                                               
travel. He read the definition:                                                                                                 
                                                                                                                                
     The  duty station  of the  traveler includes  the city,                                                                    
     town or village  within 50 miles of  where the traveler                                                                    
     spends the major portion of  their working time, or the                                                                    
     place  to  which  the  traveler   returns  to  duty  on                                                                    
     completion of  special assignments.  On a case  by case                                                                    
     basis,   commissioners  may   identify   a  radius   or                                                                    
     commuting  area that  is broader  than 50  miles within                                                                    
     which per  diem will not  be allowed for  travel within                                                                    
     one calendar day.                                                                                                          
                                                                                                                                
SENATOR FRENCH asked if the Legislature has a duty station.                                                                     
                                                                                                                                
MR.  PETERSON  replied no  and  said  there  is not  a  statutory                                                               
requirement  that legislators  be in  Juneau during  the session.                                                               
However, he explained  that if there was a call  on the house law                                                               
enforcement would  be sent to  find the legislator and  bring him                                                               
or her in.                                                                                                                      
                                                                                                                                
9:07:27 AM                                                                                                                    
CHAIR  MENARD   asked  if   any  pushback   has  come   from  the                                                               
Administration.                                                                                                                 
                                                                                                                                
MR.  PETERSON replied  no and  that Kevin  Brooks was  present to                                                               
represent the Administration.                                                                                                   
                                                                                                                                
KEVIN BROOKS, Deputy  Commissioner, Department of Administration,                                                               
said he  had not heard any  feedback one way or  another. He said                                                               
he and  Kim Garnero,  Director of Finance  for the  Department of                                                               
Administration,  are the  authors of  the Administration  manual.                                                               
They do  quarterly updates interacting with  other state agencies                                                               
about how the state government is going to operate.                                                                             
                                                                                                                                
SENATOR FRENCH  said the idea  of SB 244  clearly seems to  be to                                                               
prevent the  governor from  collecting per  diem while  away from                                                               
the mansion and living in a  personal home.  He asked if expenses                                                               
would be paid for travel from  where the governor lived and where                                                               
the mansion is located.                                                                                                         
                                                                                                                                
9:09:44 AM                                                                                                                    
MR.  BROOKS responded  that SB  244  reads "the  governor is  not                                                               
entitled to, and  may not claim as a travel  allowance, a lodging                                                               
allowance…"    He  said  the  state  has  never  paid  a  lodging                                                               
allowance and only  would do so upon presentation  of an invoice.                                                               
He explained this is the same  for any state employee who travels                                                               
- upon  return, invoices for  lodging are reimbursed. He  said SB
244 gets at meals and  incidentals and points out the distinction                                                               
between 'per diem' and 'meals  and incidentals.' He said that the                                                               
governors' business travel is reimbursed with state funds.                                                                      
                                                                                                                                
SENATOR FRENCH said  Section 2 (b) (2) of SB  244 gives direction                                                               
to whoever makes out the governor's paycheck.                                                                                   
                                                                                                                                
MR. BROOKS agreed.                                                                                                              
                                                                                                                                
SENATOR FRENCH  asked the difference  between a  travel allowance                                                               
and  a  per diem  allowance  and  when  each  is allowed  or  not                                                               
allowed.                                                                                                                        
                                                                                                                                
MR. BROOKS said the state used to  pay a per diem to cover costs.                                                               
Over  the  last  decade  or  so, the  state  has  gone  toward  a                                                               
"reimbursement of  expenditure' approach to travel.  For example,                                                               
a state  worker is  reimbursed for  a car, a  hotel, air  fare or                                                               
conference  fees. Similar  to the  federal  government and  other                                                               
states, the state of Alaska currently  pays $60 per day for meals                                                               
and incidentals  which is meant  to cover three meals,  tips, dry                                                               
cleaning, etc.   Meals and incidentals are based on  the days the                                                               
state employee  is in travel status  and receipts do not  need to                                                               
be submitted.                                                                                                                   
                                                                                                                                
9:12:58 AM                                                                                                                    
SENATOR FRENCH  said the  statute in  [SB 244]  does not  seem to                                                               
change the Department of Administration's practice.                                                                             
                                                                                                                                
MR. BROOKS said that is correct.                                                                                                
                                                                                                                                
CHAIR MENARD asked when mileage is paid.                                                                                        
                                                                                                                                
MR. BROOKS said  a mileage reimbursement claim  can be submitted.                                                               
He  did not  know the  amount but  said it  is tied  to what  the                                                               
federal government reimburses and is adjusted annually.                                                                         
                                                                                                                                
SENATOR PASKVAN  asked if  a per  diem is paid  if a  governor is                                                               
away from Juneau, as a duty station.                                                                                            
                                                                                                                                
MR.  BROOKS  replied that  $60  per  day  would  be paid  if  the                                                               
governor were away from the residence in Juneau.                                                                                
                                                                                                                                
SENATOR PASKVAN clarified that would  include the governor living                                                               
in his or her personal residence.                                                                                               
                                                                                                                                
MR.  BROOKS  replied that  has  been  the  practice and  was  the                                                               
subject of  some controversy  over the past  couple of  years. He                                                               
explained  that the  concept  behind  that policy  is  that if  a                                                               
person is traveling away from his  or her duty station to another                                                               
place, and  has a residence  available, "you still have  to eat."                                                               
He said  the cupboards  and refrigerator may  not be  stocked. He                                                               
explained that when a person is  in travel status lodging and the                                                               
costs for the day's food are differentiated.                                                                                    
                                                                                                                                
9:15:38 AM                                                                                                                    
CHAIR MENARD asked if Mr. Brooks  understood that SB 244 has been                                                               
brought  forward  to change  the  following  example: a  governor                                                               
lives in  Juneau as a duty  station but lives in  a personal home                                                               
in Anchorage during the interim and  charges per diem back to the                                                               
state.                                                                                                                          
                                                                                                                                
MR. BROOKS said SB 244 does  not change that practice. He said in                                                               
the example  Chair Menard just  described, the state  would still                                                               
pay  $60 per  day  to  someone in  travel  status  away from  the                                                               
governor's mansion in Juneau.                                                                                                   
                                                                                                                                
SENATOR  FRENCH asked  if the  payment  was automatic  or if  the                                                               
governor must submit something for reimbursement.                                                                               
                                                                                                                                
MR. BROOKS  clarified that everything  is subject to a  claim for                                                               
reimbursement by the individual.                                                                                                
                                                                                                                                
SENATOR  FRENCH  said  "there  is   a  little  bit  of  let  your                                                               
conscience  be your  guide."  He  said he  is  not  sure a  state                                                               
employee should be  paid $60 per day  while he or she  is home in                                                               
their own  kitchen cooking dinner.   He said if one  is stationed                                                               
in  Juneau  but  is in  his  home  in  Anchorage  for a  week  on                                                               
business, his salary  should cover normal expenses.  He felt that                                                               
person elected to have two homes.  He suggested this topic may be                                                               
something  to  "kick  around for  a  day  or  two"  to see  if  a                                                               
different approach would be appropriate.                                                                                        
                                                                                                                                
SENATOR MEYER said  he does not disagree with  Senator French but                                                               
pointed out  that if that  state employee was going  to Anchorage                                                               
to do state  business and stayed in a hotel,  the state would pay                                                               
for the hotel.                                                                                                                  
                                                                                                                                
MR. BROOK said the person could stay  at a hotel, paid for by the                                                               
state, plus a meal allowance.  He said this policy recognizes the                                                               
employee might have  some incremental costs and  will receive $60                                                               
a day, but the hotel cost is avoided.                                                                                           
                                                                                                                                
9:18:12 AM                                                                                                                    
SENATOR MEYER  said in some  ways the current practice  saves the                                                               
state  money.  If  that  person  stays in  his  or  her  personal                                                               
residence the cost of the hotel is saved.                                                                                       
                                                                                                                                
MR.  BROOKS agreed  that Senator  Meyer's statement  was accurate                                                               
and was considered when the rule was established.                                                                               
                                                                                                                                
SENATOR PASKVAN said  SB 244 applies to one  executive office and                                                               
felt it  to be understood  that the  governor has a  residence in                                                               
Juneau, provided by the citizens,  and a residence somewhere else                                                               
in the state. He asked why the  governor would stay in a hotel in                                                               
Anchorage, if he  or she is a resident of  Anchorage, just to run                                                               
up the bill.                                                                                                                    
                                                                                                                                
MR. BROOKS said  that is the other side of  the discussion and he                                                               
has not seen anyone trying to run  up the bill. He said the rules                                                               
work well  99.9 percent of  the time.  He said the  Department of                                                               
Administration  administers  travel   regulations  for  15  state                                                               
departments,  including the  governor's  office.  He pointed  out                                                               
that the governor's administrative  staff arranges all travel for                                                               
the governor.  He said the rules  are meant to minimize  cost and                                                               
encourage responsible travel by all state employees.                                                                            
                                                                                                                                
9:21:08 AM                                                                                                                    
SENATOR PASKVAN  said the $60  per day for meals  and incidentals                                                               
is the  issue. He  said the  question is  should the  governor be                                                               
allowed to  charge the  state $60  a day  when sleeping  in their                                                               
personal  home, away  from the  duty station  of the  office they                                                               
volunteered to run for.                                                                                                         
                                                                                                                                
MR. BROOKS said he thought that was an accurate description.                                                                    
                                                                                                                                
SENATOR MEYER said  the governor lives in Juneau  for four years.                                                               
If the  governor flies back  to a  personal residence, he  or she                                                               
might  not have  any  food in  the  house and  will  need to  buy                                                               
groceries  or  go  to  a  restaurant.  He  thought  the  $60  was                                                               
legitimate. He  also thought  the assumption  should not  be made                                                               
that  a governor's  house  would be  available;  for example,  it                                                               
could be rented.                                                                                                                
                                                                                                                                
MR. BROOKS said  a distinction is made between a  person having a                                                               
private  residence and  it  being  available to  him  or her.  He                                                               
pointed  out that  the cost  of  the food  per day  is still  the                                                               
issue.  He said  part  of  living in  the  governor's mansion  in                                                               
Juneau is that food is shopped  for and prepared. None of that is                                                               
provided during travel, so the question is what is fair.                                                                        
                                                                                                                                
9:24:15 AM                                                                                                                    
CHAIR MENARD pointed  out that the governor has an  office in the                                                               
Atwood Building  in Anchorage where,  as the largest city,  a lot                                                               
goes on.   The governor can't  constantly be in Juneau.  She said                                                               
the struggle  is coming  up with a  fair and  reasonable approach                                                               
and deciding if SB 244 is a fair and reasonable bill.                                                                           
                                                                                                                                
SENATOR PASKVAN  asked if  establishing a  duty station  [for the                                                               
governor] is of any benefit to the state.                                                                                       
                                                                                                                                
MR.  BROOKS replied  that  every state  position  has a  Position                                                               
Control  Number  (PCN).  Retirement  and  Benefits  (RNB)  has  a                                                               
process to change a duty station  for a position. SB 244 does not                                                               
conflict with  the system  of every  position having  an assigned                                                               
duty station.                                                                                                                   
                                                                                                                                
CHAIR MENARD  asked if  Mr. Brooks was  saying that  the governor                                                               
does not have a duty station.                                                                                                   
                                                                                                                                
MR. BROOKS  answered that the  governor's duty station is  not as                                                               
"spelled out."                                                                                                                  
                                                                                                                                
SENATOR PASKVAN asked if the governor  is allowed to elect his or                                                               
her duty  station or is  it assigned.  Could a governor  elect to                                                               
live in  Barrow, for instance,  or anywhere in Alaska  other than                                                               
Juneau.                                                                                                                         
                                                                                                                                
MR. BROOKS replied  that the capitol is Juneau  and the residence                                                               
is in  Juneau. He said  nothing is  written that states  that the                                                               
governor's duty station is in Juneau. SB 244 spells that out.                                                                   
                                                                                                                                
SENATOR MEYER  said he  that SB 244  clearly sets  the governor's                                                               
duty  station as  Juneau but  does not  affect anything  else. He                                                               
felt it was good to have that flexibility in place.                                                                             
                                                                                                                                
SENATOR FRENCH said SB 244 goes  to Judiciary next so he can mull                                                               
it over.                                                                                                                        
                                                                                                                                
SENATOR MEYER moved to report SB 244 from committee with                                                                        
individual recommendations and attached fiscal note(s). There                                                                   
being no objection, the motion carried.                                                                                         

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