Legislature(2003 - 2004)

04/29/2003 08:04 AM House BUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
        JOINT COMMITTEE ON LEGISLATIVE BUDGET AND AUDIT                                                                       
                         April 29, 2003                                                                                         
                           8:05 a.m.                                                                                            
                                                                                                                              
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Ralph Samuels, Chair                                                                                             
Representative Beth Kerttula                                                                                                    
                                                                                                                                
Senator Gene Therriault, Vice Chair                                                                                             
Senator Ben Stevens                                                                                                             
Senator Lyman Hoffman                                                                                                           
Senator Lyda Green, alternate                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mike Hawker                                                                                                      
Representative Vic Kohring                                                                                                      
Representative Jim Whitaker                                                                                                     
Representative Reggie Joule, alternate                                                                                          
Representative Bill Williams, alternate                                                                                         
                                                                                                                                
Senator Con Bunde                                                                                                               
Senator Gary Wilken                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
APPROVAL OF MINUTES                                                                                                             
EXECUTIVE SESSION                                                                                                               
AUDIT REPORTS                                                                                                                   
OTHER COMMITTEE BUSINESS                                                                                                        
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                              
MR. TED POPELY, Majority Counsel                                                                                                
Majority Legal Office                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Spoke on amending the contract with                                                                        
Keesal, Young & Logan in the matter of Grimm v. State, Case No.                                                               
3AN-02-12950.                                                                                                                   
                                                                                                                                
PAMELA A. VARNI, Executive Director                                                                                             
Legislative Affairs Agency (LAA)                                                                                                
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Presented  information  pertaining to  the                                                               
staff longevity plan.                                                                                                           
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 03-4, SIDE A                                                                                                             
Number 0001                                                                                                                     
                                                                                                                                
CHAIR  RALPH SAMUELS  called the  Joint Committee  on Legislative                                                             
Budget and Audit  meeting to order at 8:05 a.m.   Members present                                                               
at the call  to order were Representatives  Samuels and Kerttula,                                                               
and Senators Therriault, Ben Stevens, Hoffman, and Green.                                                                       
                                                                                                                                
APPROVAL OF MINUTES                                                                                                           
                                                                                                                              
Number 0048                                                                                                                     
                                                                                                                                
SENATOR THERRIAULT made a motion  to approve the minutes of April                                                               
9, 2003.                                                                                                                        
                                                                                                                                
CHAIR SAMUELS  asked whether  there were  any objections.   There                                                               
being none, the  minutes from the meeting of April  9, 2003, were                                                               
approved as read.                                                                                                               
                                                                                                                                
EXECUTIVE SESSION                                                                                                             
                                                                                                                              
Number 0060                                                                                                                     
                                                                                                                                
SENATOR THERRIAULT  made a  motion to  move to  executive session                                                               
for the  purpose of discussing  confidential audit  reports under                                                               
AS 24.20.301.  There being  no objection, the committee went into                                                               
executive session at 8:07 a.m.                                                                                                  
                                                                                                                                
CHAIR  SAMUELS  brought  the  committee  back  to  regular,  open                                                               
session at 8:25 a.m.                                                                                                            
                                                                                                                                
AUDIT REPORTS                                                                                                                 
                                                                                                                              
Number 0110                                                                                                                     
                                                                                                                                
SENATOR  THERRIAULT made  a motion  for the  final audit  for the                                                               
following  to be  released to  the public  for response:  1) DCED                                                               
[Department  of  Community  &  Economic  Development]  Commercial                                                               
Fisheries Revolving Loan Fund, and  2) DHSS [Department of Health                                                               
& Social  Services] DFYS  [Division of  Family &  Youth Services]                                                               
Selected Travel Issues.                                                                                                         
                                                                                                                                
CHAIR SAMUELS  asked whether  there were  any objections.   There                                                               
being none, the audits were released to the public for response.                                                                
                                                                                                                                
OTHER COMMITTEE BUSINESS                                                                                                      
                                                                                                                              
Number 0133                                                                                                                     
                                                                                                                                
TED POPELY,  Majority Counsel,  Majority Legal  Office, testified                                                               
that  the Joint  Committee on  Legislative Budget  and Audit  had                                                               
approved [a  legal contract  with] the law  firm Keesal,  Young &                                                               
Logan  [December, 2002]  in response  to  litigation relating  to                                                               
Senator Thomas  Wagoner's election results.   Grimm v.  State was                                                             
filed, challenging  Senator Wagoner's  election success,  and the                                                               
Joint Committee on Legislative Budget  and Audit voted to file an                                                               
amicus brief in support of  Senator Wagoner's attorney's position                                                               
regarding   the   interpretation   of  the   election   statutes.                                                               
Ultimately,  Mr.  Wagoner  prevailed  in litigation  and  is  now                                                               
seated in the Alaska state Senate.                                                                                              
                                                                                                                                
Number 0302                                                                                                                     
                                                                                                                                
MR.  POPELY  continued that  the  contract  amendment relates  to                                                               
payment on  a contract [with Keesal,  Young & Logan] that,  for a                                                               
variety  of  administrative  reasons, was  originally  capped  at                                                               
$20,000.    Amending  the  contract  would  include  payment  for                                                               
additional  expenses   pertaining  to  items  such   as  copying,                                                               
postage, mailing,  overnight delivery,  and services  provided by                                                               
Westlaw.                                                                                                                        
                                                                                                                                
Number 0401                                                                                                                     
                                                                                                                                
SENATOR  HOFFMAN  asked  if the  contract  was  specifically  for                                                               
$20,000 and if the law firm had been fully aware of that amount.                                                                
                                                                                                                                
MR. POPELY responded  that the contract was for  $20,000 and that                                                               
the firm  performed $34,000 worth  of billable work, but  was not                                                               
authorized to charge for the  additional $14,000.  Other expenses                                                               
incurred  by  the  firm  resulted  in  the  final  bill  totaling                                                               
[$26,266.58].                                                                                                                   
                                                                                                                                
Number 0438                                                                                                                     
                                                                                                                                
SENATOR THERRIAULT told the committee  that he didn't recall what                                                               
the  total  billable amount  was,  but  commented that  the  work                                                               
product  had  been very  thorough,  and  that  he had  been  kept                                                               
informed of how  things were progressing.  He  said basically the                                                               
Joint  Committee on  Legislative  Budget and  Audit was  involved                                                               
because of  a "separation of  powers issue," and  the legislature                                                               
was "looking  out for  its own" and  addressing the  challenge of                                                               
how the winner of an election  was being perceived.  He said that                                                               
he was willing to cover the [$6,266.58] additional costs.                                                                       
                                                                                                                                
Number 0556                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KERTTULA  asked  if   there  were  attorney  fees                                                               
against the other party.                                                                                                        
                                                                                                                                
MR.  POPELY replied  that  there  were no  fees  for the  amicus,                                                               
saying that the state was strictly an amicus curiae.                                                                            
                                                                                                                                
SENATOR  THERRIAULT  commented  on  the issue  of  separation  of                                                               
powers, pointing  out that the  administration looks out  for its                                                               
powers  and the  legislature  needs to  aggressively protect  its                                                               
[powers].                                                                                                                       
                                                                                                                                
REPRESENTATIVE KERTTULA  inquired whether the amicus  could apply                                                               
for attorney's fees if its position prevailed.                                                                                  
                                                                                                                                
MR. POPELY  answered that  generally this was  not allowed.   She                                                               
then asked, "Does the rule actually bar it?"                                                                                    
                                                                                                                                
MR. POPELY responded  that this was left out in  the rule, saying                                                               
that he  didn't know of  any instance in  which it had  even been                                                               
applied for.                                                                                                                    
                                                                                                                                
Number 0703                                                                                                                     
                                                                                                                                
SENATOR  THERRIAULT   moved  that   the  committee   approve  the                                                               
expenditure of the additional $6,266.58 to cover the costs.                                                                     
                                                                                                                                
CHAIR SAMUELS  asked whether  there were  any objections.   There                                                               
being none, it was so ordered.                                                                                                  
                                                                                                                                
CHAIR SAMUELS announced that the  next order of business would be                                                               
the staff longevity plan.                                                                                                       
                                                                                                                                
Number 0725                                                                                                                     
                                                                                                                                
PAMELA A.  VARNI, Executive Director, Legislative  Affairs Agency                                                               
(LAA), testified that  in 1988, the House and  the Senate adopted                                                               
an  employment policy  for legislative  staff,  which has  worked                                                               
well with  the exception of the  longevity steps of J  through M.                                                               
She explained that the reason  this hasn't worked well is because                                                               
of  the  word  "continuous", which  penalizes  legislative  staff                                                               
because of  their switching of  ranges due to  budget constraints                                                               
or because of  the legislator for whom they work  not having that                                                               
range available.   An example would  be if a staff  member worked                                                               
in the capacity  of a range 19J  and then switched to  a range 17                                                               
during the interim; it wouldn't  be possible to place that person                                                               
at step J - he/she would need to be placed at a range 17F.                                                                      
                                                                                                                                
Number 0843                                                                                                                     
                                                                                                                                
MS. VARNI told the committee that  there is a lot of switching of                                                               
ranges and  that during February  and March [2003],  at different                                                               
committee meetings, a new longevity  policy that removes the word                                                               
"continuous"   was  approved   by  the   Senate  Rules   Standing                                                               
Committee,  the  House   Rules  Standing  Committee,  Legislative                                                               
Council,  Joint Committee  on  Administrative Regulation  Review,                                                               
Senate  Finance   Standing  Committee,  and  the   House  Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
Number 0916                                                                                                                     
                                                                                                                                
MS. VARNI referred to Chair  Samuels' memo [dated April 28, 2003,                                                               
to members  of the  committee] and said  she wanted  to emphasize                                                               
that  in  giving  this  ability  [to  implement  policy]  to  the                                                               
legislative auditor  and to the director  of legislative finance,                                                               
she hoped  there would be  consistency with [LAA  policy], noting                                                               
that  in  the  past  there  has been  a  generous  "comp  policy"                                                               
amounting to  approximately double the amount  that LAA employees                                                               
receive.    She  said  that  the  LAA  is  very  consistent  with                                                               
personnel policies, and referred  the committee to two resources,                                                               
the  "State of  Alaska Legislative  Staff Employee  Handbook" and                                                               
the  "State of  Alaska  Legislative Affairs  Agency Handbook  for                                                               
Legislative  Employees"  if  there   was  interest  in  obtaining                                                               
additional information.                                                                                                         
                                                                                                                                
CHAIR SAMUELS  indicated that for  [staff hired] directly  by the                                                               
Joint  Committee on  Legislative Budget  and Audit,  the proposed                                                               
longevity  policy  would be  provided  and  that by  statute  [AS                                                               
24.20.221  and AS  24.20.261] the  employees  of the  Legislative                                                               
Fiscal Analyst  and the Legislative Auditor  have the flexibility                                                               
to  come  up  with  their   own  [employee  compensation  policy,                                                               
including  longevity,  based  on  the  principles  of  merit  and                                                               
longevity].  In  response to a query from  Senator Therriault, he                                                               
confirmed that  extensions could be  made to the policy  that was                                                               
before the committee.                                                                                                           
                                                                                                                                
SENATOR  HOFFMAN asked  how this  pertained to  legislative staff                                                               
[in general].                                                                                                                   
                                                                                                                                
SENATOR  THERRIAULT referred  to  Ms.  Varni's comment  regarding                                                               
various  committees' adoption  of  the policy  and  asked if  the                                                               
Joint  Committee on  Legislative Budget  and Audit  was the  last                                                               
legislative entity to come into compliance.                                                                                     
                                                                                                                                
MS. VARNI confirmed that this was the case.                                                                                     
                                                                                                                                
CHAIR  SAMUELS pointed  out  that legislative  staff  do not  get                                                               
hired  for  another legislative  session  if  they don't  perform                                                               
well, suggesting this to be the ultimate test of merit.                                                                         
                                                                                                                                
Number 1229                                                                                                                     
                                                                                                                                
SENATOR THERRIAULT moved that the  Joint Committee on Legislative                                                               
Budget and  Audit not  adopt AS 39.27.022  to pay  increments for                                                               
longevity for  state services,  but instead  adopt its  own plan,                                                               
which  better  applies to  services  provided  to the  committee.                                                               
This  new policy  is before  the members  and would  be effective                                                               
[retroactively] January 16, 2003.   The new plan reads as follows                                                               
[original punctuation provided, with some formatting changes]:                                                                  
                                                                                                                                
     1.   For  staff  hired directly  by  the Committee  the                                                                    
          proposed longevity policy would provide                                                                               
                                                                                                                                
          Step J - Fourteen legislative sessions of at                                                                          
          least 100 days each, or two full years with the                                                                       
          legislature at a comparable or higher level.                                                                          
                                                                                                                                
          Step K - Eighteen legislative sessions of at                                                                          
          least 100 days each, or two full years with the                                                                       
          legislature at a comparable or higher level.                                                                          
                                                                                                                                
          Step L - Twenty eight legislative sessions of at                                                                      
          least 100 days each or five full years with the                                                                       
          legislature at a comparable or higher level.                                                                          
                                                                                                                                
          Step M - Thiry six legislative sessions of at                                                                         
          least 100 days each, or four full years with the                                                                      
          legislature at a comparable or higher level.                                                                          
                                                                                                                                
     2.   Consistent  with  AS   24.20.221  the  Legislative                                                                    
          Fiscal Analyst will implement an employee                                                                             
          compensation policy (including longevity), based                                                                      
          on the principles of merit and longevity.                                                                             
                                                                                                                                
     3.   Consistent  with  As   24.20.261  the  Legislative                                                                    
          Auditor will implement an employee compensation                                                                       
          policy (including longevity), based on the                                                                            
          principles of merit and longevity.                                                                                    
                                                                                                                                
CHAIR SAMUELS asked whether there were any objections.  There                                                                   
being none, it was so ordered.                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the                                                                       
Committee on Legislative Budget and Audit was adjourned at 8:45                                                                 
a.m.                                                                                                                            
                                                                                                                                
                                                                                                                                

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