Legislature(1997 - 1998)
04/09/1997 08:06 AM House CRA
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE COMMUNITY AND REGIONAL AFFAIRS
STANDING COMMITTEE
April 9, 1997
8:06 a.m.
MEMBERS PRESENT
Representative Ivan Ivan, Chairman
Representative Fred Dyson
Representative Joe Ryan
Representative Jerry Sanders
Representative Al Kookesh
Representative Reggie Joule
MEMBERS ABSENT
Representative Scott Ogan
COMMITTEE CALENDAR
*HOUSE BILL NO. 224
"An Act relating to the employment of prisoners."
- HEARD AND HELD
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 164
"An Act providing that employment as a legislator or with the
National Education Association is not credited service under the
teachers' retirement system; prohibiting membership in the
teachers' retirement system for holders of limited certificates;
removing teachers holding limited certificates to teach Alaska
Native language or culture from membership in the teachers'
retirement system; and repealing a provision permitting members of
the teachers' retirement system to count unused sick leave credit
as credited service."
- HEARD AND HELD
(* First public hearing)
PREVIOUS ACTION
BILL: HB 224
SHORT TITLE: EMPLOYMENT OF PRISONERS
SPONSOR(S): REPRESENTATIVE(S) OGAN BY REQUEST
JRN-DATE JRN-PG ACTION
04/01/97 900 (H) READ THE FIRST TIME - REFERRAL(S)
04/01/97 900 (H) CRA, STATE AFFAIRS
04/09/97 (H) CRA AT 8:00 AM CAPITOL 124
BILL: HB 164
SHORT TITLE: TEACHERS RETIREMENT: ELIGIB. & SICK LEAVE
BILL VERSION: SSHB 164
SPONSOR(S): REPRESENTATIVE(S) VEZEY
JRN-DATE JRN-PG ACTION
02/27/97 510 (H) READ THE FIRST TIME - REFERRAL(S)
02/27/97 510 (H) CRA, HES, STATE AFFAIRS
03/10/97 607 (H) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
03/10/97 607 (H) CRA, HES, STATE AFFAIRS
03/12/97 (H) CRA AT 8:00 AM CAPITOL 124
03/12/97 (H) MINUTE(CRA)
03/19/97 (H) CRA AT 8:00 AM CAPITOL 124
03/19/97 (H) MINUTE(CRA)
04/02/97 (H) CRA AT 8:00 AM CAPITOL 124
04/02/97 (H) MINUTE(CRA)
04/07/97 (H) CRA AT 8:00 AM CAPITOL 124
04/07/97 (H) MINUTE(CRA)
04/09/97 (H) CRA AT 8:00 AM CAPITOL 124
WITNESS REGISTER
DAVID STANCLIFF, Legislative Administrative Assistant
to Representative Scott Ogan
Alaska State Legislature
State Capitol, Room 128
Juneau, Alaska 99801
Telephone: (907) 465- 2338
POSITION STATEMENT: Testified on HB 224
MARGOT KNUTH, Assistant Attorney General
Central Office, Criminal Division
Department of Law
Representing the Department of Corrections
P.O. Box 110300
Juneau, Alaska 99801
Telephone: (907) 465-4338
POSITION STATEMENT: Testified on HB 224
LEO LAND
Box 1229
Haines, Alaska 99827
Telephone: (907) 766-2466
POSITION STATEMENT: Testified on HB 224
GREG PEASE, Executive Director
Gastineau Human Services
5597 Aisek Street
Juneau, Alaska 99801
Telephone: (907) 780-4338
POSITION STATEMENT: Testified on HB 224
REPRESENTATIVE AL VEZEY
Alaska State Legislature
State Capitol, Room 13
Juneau, Alaska 99801
Telephone: (907) 465-3719
POSITION STATEMENT: Testified as sponsor of
HB 224
ACTION NARRATIVE
TAPE 97-16, SIDE A
Number 000
CHAIRMAN IVAN IVAN called the House Community and Regional Affairs
Standing Committee meeting to order at 8:06 a.m. Members present
at the call to order were Representatives Dyson, Sanders, Ryan and
Joule. Representative Kookesh arrived at 8:07 a.m. Representative
Ogan was absent.
Number 016
HB 224 - EMPLOYMENT OF PRISONERS
CHAIRMAN IVAN indicated that the committee would consider HB 224,
"An Act relating to the employment of prisoners."
Number 090
DAVID STANCLIFF, Legislative Administrative Assistant to,
Representative Ogan, came forward to testify on HB 224. He stated
that this legislation was borne out of Representative Ogan's
constituent concern that the state of Alaska was not providing
enough meaningful activity for their prisoners in the correction
system. The language of this legislation in its present form was
provided by the Commissioner of Corrections. This codifies in law
the authority that the Commissioner already has to make prisoners
available to communities for work service projects. Contained
therein are minimum criteria the Commissioner felt was necessary to
assure public safety.
MR. STANCLIFF added that Representative Ogan, by using this vehicle
as a starting point, wanted to make clear that the legislature
supports work programs and the philosophy that when someone commits
a crime, repayment to society is a good principal for both the
prisoner and communities. Half-way houses who now supervise many
of the current work programs met with Representative Ogan's staff
and the Corrections Commissioner. These half-way house providers
are in the process of making alterations to the present language
which Representative Ogan is not opposed to.
Number 308
REPRESENTATIVE FRED DYSON asked what community custody meant.
MR. STANCLIFF responded that it was his understanding this term
meant while the prisoner is engaged in a work program the community
of which they are assigned has custody of him/her. They are still
under the authority of the Department, but the community
establishes a set of custody rules for this prisoner.
Number 389
REPRESENTATIVE DYSON asked if all incarcerated prisoners were under
community custody.
MR. STANCLIFF responded that all incarcerated prisoners who work in
a program such as through a half-way house are part of community
custody. Some of the interested parties want to change this term
which has not been used in recent years. If individuals are in a
work detail program, they are under community custody.
Number 435
REPRESENTATIVE DYSON asked if this legislation only applied to
prisoners in half-way houses.
MR. STANCLIFF responded that at this point the answer is yes. This
does not change the current program in effect. This legislation is
to increase what's happening presently. The Commissioner suggested
this language to set out as a minimum standard what the public
should expect in terms of minimum, medium custody prisoners and how
they would be treated if they were working within the community
work program.
Number 492
REPRESENTATIVE DYSON referred to line 14, page 1, of HB 224 and
noted that the term "correctional facility" connotated prison to
him but asked if this term included half-way houses.
MR. STANCLIFF responded that prisoners who are released to a half-
way house from a correctional facility and then put on a work
detail is typically how the system works.
Number 529
REPRESENTATIVE DYSON clarified that this legislation did not affect
main stream prisoners but those individuals in half-way houses.
CHAIRMAN IVAN commented that in his own community of Akiak they
sometimes receive the court ordered community service prisoners who
are released to the community and they are required to report
periodically to the court system. He thought this program ran
parallel to what's proposed in this legislation.
MR. STANCLIFF noted that this legislation would give the
Commissioner the authority and the flexibility to exercise either
option, the option which Representative Ivan detailed, and it does
not tie the Commissioner into working with just half-way house
individuals.
Number 669
REPRESENTATIVE DYSON stated that if indeed the criteria is followed
here to provide an armed guard for every five medium or close
custody prisoners it seemed to him that this would take additional
personnel with a cost incurred. He didn't understand the zero
fiscal note. He wondered who would bear the cost of this and
whether the organization who gets the labor done for them is going
to be required to pay these extra costs.
MR. STANCLIFF noted that this was a good point. Presently there
are discussions between the department and the half-way house
providers where this system is already established. They're
concerned that this would establish a criteria that may incur
additional costs. Depending on the outcome of these discussions,
if there are additional costs, these will be reflected in a future
fiscal note. This is another reason why there is continued
discussion regarding this legislation.
Number 772
REPRESENTATIVE REGGIE JOULE asked what the difference between
community custody and furlough was.
MARGO KNUTH, Department of Law, Criminal Division, came forward to
testify on HB 224. Community custody is when someone has been
released to a half-way house and unsupervised employment or
community work service is contemplated in (e)(1). The Department
of Corrections worked with the sponsor to help craft this
legislation. This bill represents their current policies and
procedures. Part (2) of this legislation applies to people who are
in prisons and jails. All prisoners are suppose to be productive
at least 40 hours a week. When this productivity is outside of the
institution, they already use one staff member to supervise minimum
custody details and noted that there was one armed officer for
every five medium custody prisoners. This is why there is a zero
fiscal note from the Department of Corrections.
MS. KNUTH continued that this legislation codifies the Department
of Corrections' current practices. There is no new fiscal impact
for the department. The half-way houses think that it might cost
some money to find jobs and make sure that the people in their
custody are either assigned to work detail or community work for 35
hours a week. There are discussions now about whether this
represents a change for them or not. "We had thought that that's
what the policy was and that's what they're doing already. So,
we're just getting some information that maybe that's not so."
Number 958
REPRESENTATIVE JOULE asked if this community custody made the
assumption that these individuals engaged in this community work
are currently unemployed and if they are employed will they do
community work in addition to paid work.
MS. KNUTH responded that they must do one or the other and be
productive at least 35 hours a week. If they're employed, this
counts. If they're not employed and they can't find a paying job,
this legislation gives the individual the option of conducting
community work service as a supplement to any paid employment to
work a total of 35 hours or work community service instead if they
can't find a job.
Number 1016
REPRESENTATIVE JOULE asked if this would apply to those individuals
who are not in state correctional institutions, i.e. community
prison facilities.
MS. KNUTH responded that this legislation applies to those who are
serving a term of imprisonment which could be in a half-way house,
a community correctional center, as opposed to someone who is on
parole, probation or furlough. "If you're not getting credit for
time served, so to speak, this bill would not apply to you." It's
only for those individuals who get credit for time served be it
through a half-way house or any of their other institutions.
Number 1080
REPRESENTATIVE RYAN noted that it was his understanding that the
people in the medium security prisons or half-way houses are
individuals encouraged to continue present employment, to find
something on their own and or/do community service.
MS. KNUTH responded that this was correct.
Number 1105
REPRESENTATIVE RYAN continued that it seemed the half-way houses
"are looking as though there's a cost implied." It appeared to him
that they are looking for another source of funding. If this is
something that's already being done there's no reasonable
assumption...we're not asking them to run an employment agency, are
we?
MS. KNUTH noted that they were not.
Number 1124
REPRESENTATIVE RYAN added that his questions were about the medium
and the close supervision people. He said he would like to see
this legislation enacted. He wasn't sure if they wanted a "chain-
gang" in Alaska, but at the same time he asked what kind of
employment they envisioned for these individuals.
MS. KNUTH responded that they have them working on trail
maintenance and there are places where they need fire breaks, so
basically it's labor like this where it's easier to supervise the
workers, usually in an outdoor environment.
Number 1174
REPRESENTATIVE RYAN asked if these individuals were normally
confined in a penal institution doing nothing?
MS. KNUTH stated that the only time they have individuals sitting
around not doing anything is if they are in a particularly
segregated lock down situation for some problem, basically in the
hold. Otherwise, all prisoners in the custody of the state is
doing something productive, 40 hours a week. This assumes there is
enough funding for supervision. She also noted that this applied
to both male and female prisoners.
Number 1273
REPRESENTATIVE DYSON stated that he was skeptical that prisoners
are productive 40 hours a week, but he didn't understand the zero
fiscal note for prisoners working outside of the correctional
facilities for medium and close custody folks.
MS. KNUTH responded that the fiscal note would reflect what
increase and cost this bill creates. The bill doesn't create an
increase in costs because they're performing these tasks already.
She encouraged any member of the legislature to come to their
institutions to see what these prisoners are doing and assured the
committee that prisoners were kept productive.
Number 1344
REPRESENTATIVE DYSON stated that he inquired of the Department of
Transportation (DOT) if it was practical to use prisoners for
clearing right-of-ways. There is almost none of this going on
because of budget constraints and noted problems with overgrown
brush on highways. The DOT has been trying to work with
corrections to do these types of projects and ran into very
practical problems. The net result was that it wasn't worth their
trouble. He asked for suggestions to address these problems.
MS. KNUTH responded that these problems did exist but they needed
to do the work to make it work. In regards to many of these work
service situations it would be easier of the departments to do
these types of things themselves than to get these individuals to
do it but the benefits in the long run are worth it. The problem
will probably always exist of not knowing who is going to be
available for this work. She thought that government to government
coordination is necessary and something that can be achieved. The
Department of Corrections works successfully with Natural Resources
with their trail blazing program and the fire break projects.
Number 1524
REPRESENTATIVE DYSON applauded these efforts, but his sense is from
overcrowding a classification system of prisoners has been lost
which is something that makes this project difficult to accomplish.
He suggested that the Department of Corrections is in a better
position to make the logistics work such as providing
transportation and making the prisoners lunches.
MS. KNUTH stated that the mixed population issue brought up was
particularly accurate and insightful for many of the facilities
acting partially or almost exclusively as a jail. These types of
programs might work better with facilities that have a more
homogenous population by classification. She used Ketchikan as an
example where they have 65 prisoners that span from maximum custody
pretrial to a three day DWI individual. This could be a problem.
Number 1654
REPRESENTATIVE DYSON asked if she meant to infer that they cannot
require prisoners to do this type of work.
MS. KNUTH responded, "not at all."
Number 1712
REPRESENTATIVE DYSON asked why they can't know how many people
would be available to work on any given day?
MS. KNUTH responded because of the turnover of the population. She
stated that they cycle 40,000 prisoners a year but on any given day
they only have 4,000 in custody. She outlined the intricate
procedure of moving someone through the system. Out of the 4,000,
she noted that the longer term pool of individuals are those that
they should use for these projects.
Number 1720
REPRESENTATIVE JOULE asked if the 4,000 individuals noted were from
just half-way houses.
MS. KNUTH responded, "both." The bill actually goes to both.
Number 1740
REPRESENTATIVE JOULE asked for clarification about the department
"doing" this already and wondered if they do so under regulation.
MS. KNUTH responded that this was in policies and procedures. This
legislation now before the committee would become a codification
that would keep these standards in place regardless of
administration change overs.
Number 1776
REPRESENTATIVE JOULE asked about groups that are supervised away
from a facility. He wondered if they would need an extra staff
person. He asked if they had enough staff to do this in light of
the budget cuts.
MS. KNUTH noted that this was a good question. She said she didn't
know the answer to it because the Corrections budget this year is
extremely large. It's going to impact the ability to have programs
with the amount of supervision necessary.
Number 1840
REPRESENTATIVE JOULE referred to the fiscal note and stated that
while they already do this in policy, in fact, this will probably
cost the department money.
MS. KNUTH stated that this program cost money and it's money that's
currently spent this way. If this money is taken away from them
this is what makes it difficult but it still isn't a new expense.
It's just a new debt.
Number 1865
REPRESENTATIVE RYAN stated, "I'm getting to feel like I'm in one of
those medieval discussions about how many angels can dance on the
head of a pin." He said he didn't understand what the confusion
was about. He said they have administrative practice, the people
to set up an administrative program which is what the department
does, they transport prisoners, they feed them, etc. The
department has guards for the prisoners and if a certain portion of
the population is gone the people who normally guard them can go
along too without an undue hardship.
MS. KNUTH stated that this was where the difference came in. It
takes more guarding to leave the institution with these prisoners
than to keep them in the institutions. An individual is needed to
drive and someone from the department could give numbers on what
the staff/prisoner ratio is within the institution and what it is
outside. Right now they do not have two guards for every five
prisoners for those in closed custody but one guard for every five.
"If you're going to take them out, you're actually doubling the
amount of personnel involved there."
Number 1945
REPRESENTATIVE RYAN stated, "it would seem to me that if we were
going to do some work that might be done normally by a department
that they have a portion in their budget to pay for that work to be
done, however they do it previously and if we were to use prison
labor that charges could be made for that labor." This would help
compensate and off-set the cost of using this labor. Just because
someone is incarcerated doesn't mean that the fruits of their labor
is not worth compensation. He noted a letter to Representative
Dyson from Commissioner Perkins outlining the logistics of using
prison labor for the department's projects and compared this
situation to swatting a mosquito, like something annoying that
needs to be taken care of. It's a good idea but nobody wants to
take the upper hand to make it work. He thought it was a good bill
and on it's face had value.
CHAIRMAN IVAN commended this legislation and noted that there were
five levels of custody which must be considered in light of this
proposal. He added that levels of custody are determined through
classification hearings and scoring to decide the amount of
supervision which is needed for these folks. He also noted that
there was a lot of work to be done by all the departments involved,
along with fiscal note considerations.
Number 2108
LEO LAND came forward to testify on HB 224. He stated that he has
been a prisoner and a guard. He noted that they didn't need two or
three guards for five prisoners. During his time of incarceration,
for an army infraction, he was guarded by someone with a bayonet
who followed him around. He added that he had no intention of
trying to escape and didn't think that most prisoners wanted to do
so either. As to the fiscal note, he thought that the work done on
roads, for the Forest Service, etc., done by contractors would be
more expensive than paying someone to guard these individuals in a
work program.
Number 2222
GREG PEASE, Executive Director, Gastineau Human Services (GHS),
came forward to testify on HB 224. He stated that this
organization runs the Community Residential Center (CRC) for the
Department of Corrections. He also noted that he was the Regional
Vice-President of the International Community Corrections
Association representing half-way house operations (private, for
profit, and non-profit) in Washington, Oregon, Idaho, Montana and
Alaska.
MR. PEASE applauded the efforts and the intent of this legislation
to take advantage of prison labor in the form of community work
service to benefit projects that might go undone in the community
settings. Most of the questions deal with the higher security
levels needed. GHS already does what's in this legislation with
over 40,000 hours of community work service around the Juneau area
with prisoners in community custody. He noted how prisoners pick
up recycled paper in the capitol almost every day. He said this
was just one of the minor projects they were engaged in.
MR. PEASE stated that they were trying to craft language in this
present legislation which would benefit organizations such as GHS.
For furloughs right now, prisoners are required to conduct a
minimum of five days of community work service and they have a
maximum of 30 days before they have to find gainful employment.
This legislation is in addition to this already existing situation,
as well as substance abuse treatment, mental health treatment,
anger management, vocational rehabilitation, etc.
Number 2330
REPRESENTATIVE RYAN asked if his organization dealt with close
supervision or medium custody individuals?
MR. PEASE responded that their organization dealt with community
custody level individuals. Lemon Creek individuals will come to
their facilities once they've been reclassified to community
custody level.
Number 2349
REPRESENTATIVE RYAN asked if Mr. Pease thought that extra officers
would be needed to deal with medium to close custody individuals.
MR. PEASE responded that this was a risk level. If prisoners are
taken out of the institutions and out in the community with higher
risk levels on their classifications then this is a decision that
will need to be made. The reason why there is a standard set for
so many guards to so many prisoners is for public safety since
these different classifications need to be considered.
Number 2382
REPRESENTATIVE RYAN asked if prisoners were not classified
according to the sentence they receive. He asked if there wasn't
a criteria used to identify these individuals.
MR. PEASE responded that the classification in addition to the
offense was based on how the prisoner has acted inside the
institution and accordingly their risk level may be changed. He
didn't think there was an inherent problem to this classification
system and how it's conducted.
Number 2437
CHAIRMAN IVAN stated that he would hold bill House Bill 224 over in
committee since there was coordination work to be done by all the
parties involved.
HB 164 - TEACHERS RETIREMENT: ELIGIB. & SICK LEAVE
Number 2445
CHAIRMAN IVAN indicated that the committee would hear HB 164, "An
Act providing that employment as a legislator or with the National
Education Association is not credited service under the teachers'
retirement system; prohibiting membership in the teachers'
retirement system for holders of limited certificates; removing
teachers holding limited certificates to teach Alaska Native
language or culture from membership in the teachers' retirement
system; and repealing a provision permitting members of the
teachers' retirement system to count unused sick leave credit as
credited service."
CHAIRMAN IVAN noted that the committee still needed to adopt the
committee substitute before them labeled 0-LS0636\L and the
committee would also consider the "amendment to address the, as the
original bill was replacing the sick leave credit with this
committee substitute, I believe before you." This allows the
school districts to determine how sick leave is to be used as a
bargaining point for the school districts.
TAPE 97-16, SIDE B
Number 000
REPRESENTATIVE KOOKESH made a motion to move the CS before the
committee as previously outlined. Hearing no objection it was so
ordered.
Number 021
REPRESENTATIVE AL VEZEY came forward to respond to changes made to
HB 164. He stated that he didn't endorse this new version of the
legislation. He also stated that he didn't endorse the amendment
although he didn't think it was a bad policy at all. He thought
that the amendment exchanged one type of state mandate for another
and the purpose of the legislation is to revert the policy of
benefits that public employees receive; in this case, teachers to
a local school district decision making process. This amendment
simply changes the nature of this state mandate without referring
it to the local school districts to be negotiated.
CHAIRMAN IVAN noted that it has always been his policy to give as
much flexibility to the school districts to determine policy and in
this case this would be the sick leave situation. He thought this
new CS would facilitate such a concept.
Number 083
REPRESENTATIVE RYAN stated, "in the CS a, the school district or
the university or whom ever, after the effective date of this act,
is, people can use the sick leave on a day to day basis and so
forth, but a teacher contribution may not be required for credited
unused sick leave." He noted that this places an unnecessary
financial burden upon the local school district since time
accumulated for retirement involves a fixed benefit. There's a
fixed contribution from the employee and the variable is the
employer. If the employee doesn't contribute then the employer has
to bear both sides, both percentages, employee and employer. To
allow sick leave as credit for retirement, he had no problem with,
but they shouldn't add the extra burden and extra cost on to the
employer. The employee should make the contribution whatever the
percentage is normally for retirement.
Number 121
REPRESENTATIVE RYAN continued that an individual makes an employee
contribution, along with an employer contribution, and a benefit is
set up, something he intended to address in this amendment. In
part one of the CS this issue is not addressed, in fact, the
employee's contribution is prohibited and he quoted, "Teacher
contributions may not be required for credited, unused sick leave."
On the proposed amendment he has offered an option. The employee
can use the sick leave which by statute is a benefit. Once a
benefit has been determined it cannot be taken away unless through
a negotiating process.
Number 208
CHAIRMAN IVAN called an at ease at 8:58 a.m. The committee hearing
came back on record at 9:00 a.m.
Number 244
REPRESENTATIVE RYAN reiterated what he attempted to do with this
amendment as drafted. This amendment was labeled "L" version,
dated April 7, 1997. On page 1, line 3, following the word
"credit" insert "or compensation." A new Section 1 was added on
page 1, line 5, which says "Compensation for unused sick leave" and
he paraphrased, except for a teacher who receives credited service
for accrued sick leave, a school district shall compensate a
teacher who first began employment as a teacher with the district
on or after the effective date of this Act. He explained that it's
not retroactive. They can't go back and "mess" with anybody who
has already earned something. He paraphrased again, ... who
terminates employment with the school district, either by
retirement or otherwise, for accrued sick leave for which the
teacher does not elect to receive credited service, which means
they don't want to use this for retirement. "The amount of
compensation shall be figured using the teacher's average base
salary at the time the teacher ended employment." This is
basically a cash out which is not offered right now.
REPRESENTATIVE RYAN continued to explain the second half of the
amendment. A person who has joined a school district after an
effective date, they may apply unused sick leave credit by
computing the total number of years of credited service. They can
keep this policy going except for sick leave earned while
participating in an optional university retirement program. This
is a different program under a different statute. Again, he
paraphrased, a teacher must apply to the administrator no later
than one year after appointment to retirement ... shall be credited
on a day-for-day basis in accordance with the table for service.
A person who elects to receive credited service is indebted to the
system. This establishes that there must be a contribution the
same as it would be if someone wanted to buy into military time,
etc. "The amount of the indebtedness is equal to 8.65 percent of
the teacher's base salary at the time the teacher retired
multiplied by the credited service the teacher will receive for
unused sick leave." He stated that this was a fixed rate
contribution that employees make for retirement. This says that a
teacher can "keep this up" and they can use it, but they're going
to have to make their contribution just like everyone else does.
REPRESENTATIVE RYAN summarized that this amendment gave individuals
two options. To maintain using sick leave as credited service for
purposes of retirement, while making a contribution or, if someone
decides to relocate and quit their job, they can cash out their
sick leave. Representative Ryan's amendment in it's entirety is as
follows:
Page 1, line 3, following "credit":
Insert "or compensation"
Page 1, following line 5:
Insert a new bill section to read:
"*Section 1. AS 14.20 is amended by adding a new section to read:
Sec. 14.20.225. Compensation for unused sick leave. Except for a
teacher who receives credited service for accrued sick leave under
AS 14.25.115, a school district shall compensate a teacher who
first began employment as a teacher with the district on or after
the effective date of this Act and who terminates employment with
the school district, either by retirement or otherwise, for accrued
sick leave for which the teacher does not elect to receive credited
service under AS 14.25.115. The amount of the compensation shall
be figured using the teacher's average base salary at the time the
teacher ended employment with the district."
Page 1, line 6:
Delete "Section 1"
Insert "Sec. 2"
Renumber the following bill sections accordingly.
Page 2, lines 4 - 12:
Delete all material and insert:
"(d) A teacher who first joins the system on or after the effective
date of this Act may elect to apply unused sick leave credit in
computing the total number of years of credited service under AS
14.25.110(d) except for sick leave earned while participating in
the optional university retirement program under AS 14.40.661 -
14.40.799. To obtain service credit for unused sick leave, a
teacher must apply to the administrator no later than one year
after appointment to retirement. Unused sick leave shall be
credited on a day-for-day basis in accordance with the table for
service on or after July 1, 1969, contained in AS 14.25.220(43).
A teacher who elects to receive credited service under this
subsection is indebted to the system. The amount of the
indebtedness is equal to 8.65 percent of the teacher's base salary
at the time the teacher retired multiplied by the credited service
the teacher will receive for unused sick leave."
Page 2, line 21:
Delete "2 - 4"
Insert "1 and 3 - 5"
CHAIRMAN IVAN asked if there were any objections to the amendment.
Number 418
REPRESENTATIVE DYSON objected for discussion purposes. He stated
that he was having a hard time understanding this amendment. He
asked if this amendment requires the individual teacher to make a
choice and then a contribution to his/her sick leave if he/she are
going to cash it out or use it as credit toward retirement.
REPRESENTATIVE RYAN responded that if they were going to cash it
out there was no contribution. If they planned to use the sick
leave as credited services for purposes of retirement they would
make a contribution of 8.65 percent of their base salary,
multiplied by the credited service. He noted that this was in
conformity with all the other retirement plans that the state of
Alaska offers.
Number 563
REPRESENTATIVE DYSON asked if the result of this program is that
they would get credit for another four months toward a higher
level. He also asked what public policy would incline them to
treat sick leave any more than providing for people to take time
off when they're sick without loosing money. Why should this have
a cash value to accentuate the retirement.
REPRESENTATIVE RYAN responded that by statute this is a benefit.
A benefit cannot be taken away from someone who's earned this
without compensating them for it.
Number 603
REPRESENTATIVE DYSON asked if there was anything prohibiting them
from having sick leave just be sick leave for all new employees
after an effective date.
REPRESENTATIVE RYAN stated that he didn't know and thought this was
a question for someone involved in labor relations.
Number 627
CHAIRMAN IVAN noted that this was a substantial amendment and he
wished to hear from Retirement and Benefits. He stated that he
would hold the bill to afford this opportunity.
REPRESENTATIVE KOOKESH agreed with this suggestion. He understood
the intent of this legislation, but he was concerned that if
someone earned sick leave, then it disappears somehow, then they
make a contribution payment, it sounds like an individual gets hit
twice. He wished to read this amendment further to understand it
better.
Number 672
ADJOURNMENT
CHAIRMAN IVAN adjourned the meeting at 9:10 a.m.
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