Legislature(2007 - 2008)HOUSE FINANCE 519
04/19/2007 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB170 | |
| HB176 | |
| SB123 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 170 | TELECONFERENCED | |
| + | HB 176 | TELECONFERENCED | |
| + | SB 123 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
April 19, 2007
1:40 P.M.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 1:40:46 PM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Harry Crawford
Representative Richard Foster
Representative Mike Hawker
Representative Reggie Joule
Representative Mike Kelly
Representative Mary Nelson
Representative Bill Thomas Jr.
MEMBERS ABSENT
Representative Les Gara
ALSO PRESENT
Representative Peggy Wilson; Representative Andrea Doll;
Eleanor Wolfe, Staff, Representative Kurt Olson; Cliff
Stone, Staff, Representative Peggy Wilson; Annette Kreitzer,
Commissioner, Department of Administration; Kevin Brooks,
Deputy Commissioner, Department of Administration; Melanie
Lesh, Legislative Liaison, Department of Natural Resources;
Linda Hall, Director, Division of Insurance, Department of
Commerce, Community and Economic Development; Michael
Eberhardt, Superintendent, Southeast Division of Parks and
Outdoor Recreation, Department of Natural Resources; Kathy
Lea, Retirement Manager, Division of Retirement and
Benefits, Department of Administration
PRESENT VIA TELECONFERENCE
Deborah Lyons, Executive Director, Sitka Trail Works, Sitka;
Brian Hansen, Sitka Trail Works, Sitka; Marlene Campbell,
Government Relation Director, City and Borough of Sitka;
Harvey Brandt, Retired History Teacher, Sitka; Michael Lamb,
Chief Financial Officer, Fairbanks North Star Borough
SUMMARY
HB 170 An Act relating to annual audit reports by
insurers, to custodians of insurer assets, to
writing workers' compensation insurance by surplus
lines insurers, to reports by surplus lines
insurers, to the definition of 'wet marine and
transportation insurance,' to false or misleading
financial statements concerning insurance audits,
and to the membership of the Alaska Life and
Health Insurance Guaranty Association; and
providing for an effective date.
CS HB 170 (FIN) was reported out of Committee with
a "do pass" recommendation and with zero note #1
by the Department of Community & Economic
Development.
HB 176 An Act creating the Fort Rousseau Causeway State
Historical Park.
CS HB 176 (RES) was reported out of Committee with
a "do pass" recommendation and with fiscal note #1
by the Department of Natural Resources.
CS SB 123(FIN)
An Act relating to the public employees' and
teachers' defined benefit retirement plans;
relating to the public employees' and teachers'
defined contribution retirement plans; relating to
the judicial retirement system; relating to the
health reimbursement arrangement plan for certain
teachers and public employees; relating to the
supplemental employee benefit program; relating to
the public employees' deferred compensation
program; relating to group insurance for public
employees and retirees; making conforming
amendments; and providing for an effective date.
HCS CS SB 123 (FIN) was reported out of Committee
with a "do pass" recommendation and with a new
fiscal note by the Department of Administration
and a zero note #2 by Department of
Administration.
1:41:33 PM
HOUSE BILL NO. 170
An Act relating to annual audit reports by insurers, to
custodians of insurer assets, to writing workers'
compensation insurance by surplus lines insurers, to
reports by surplus lines insurers, to the definition of
'wet marine and transportation insurance,' to false or
misleading financial statements concerning insurance
audits, and to the membership of the Alaska Life and
Health Insurance Guaranty Association; and providing
for an effective date.
Vice Chair Stoltze MOVED to ADOPT work draft #25-LS0609\E,
Bailey, 4/17/07, as the version of the bill before the
Committee. There being NO OBJECTION, it was adopted.
1:42:13 PM
ELEANOR WOLFE, STAFF, REPRESENTATIVE KURT OLSON, stated the
bill had been introduced at the request of the Division of
Insurance, Department of Community & Economic Development.
LINDA HALL, DIRECTOR, DIVISION OF INSURANCE, DEPARTMENT OF
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, stated that HB
170 relates to the accreditation of the Division of
Insurance and includes other minor clarifying changes to the
insurance code. The changes to the work draft address the
oversight of the insurance industry by providing minor
clarifications. She addressed the financial regulations,
providing a base for the solvency oversight. It is the
intent through statutory authority to adopt the balance of
the model regulation. She mentioned the importance of
accreditation, which occurs only once every five years; the
Division hopes to be reaccredited.
1:45:08 PM
The committee substitute reflects changes resulting from
industry discussions during the House Labor and Commerce
hearings.
· Section 1 is the most important part of the bill,
placing required language in statute. AS 21.09.195
- Registration for annual preparer of an insurer's
audit financial report. This section was added
requiring the director to establish a registration
system for certified public accounts, conducting
audits on Alaska insurance companies.
1:46:55 PM
· Section 3 provides the requirements for custodians
of the insurer assets, AS 21.21.410.
1:47:37 PM
There are five other clarifications in the work draft.
· Section 2, AS 21.09.200, the insurer annual audited
financial report. This section clarifies the
retaliatory tax used against other states should
they use Alaska's domestic insurance companies
differently. There are three places in Alaska
Statutes that allow off-sets. She noted Section 2
was duplicative of three other sections. The
Division would like to see that language amended.
· Section 4, AS 21.34.030(a) - Workers compensation
written in the surplus line market, which replaces
"directives" with "order". Order is defined in
statute.
· Section 5, AS 21.34.170, the monthly report of
surplus lines broker, removes the requirement for a
monthly report to be notarized.
· Section 6, AS 21.34.900(9), provides the definition
of wet marine and transportation insurance. It
clarifies that the clauses are necessary for
defining that marine insurance operate separately.
· Section 8, AS 21.79.040, Alaska Life and Health
Insurance Guaranty Association, addresses high
deductible health plans. She noted that employers
have been encouraged to offer deductible health
plans.
· Sections 10 & 11, provide regulations and changes to
the definition of a member as someone authorized to
write a line of business.
· Sections 15-17, identifies language of the effective
dates.
1:52:22 PM
In response to comments made by Committee members, Vice
Chair Stoltze emphasized that insurance concerns affect
everyone and that it is an extremely important aspect for
the State.
1:53:25 PM
Co-Chair Meyer MOVED Conceptual Amendment #1. Vice Chair
Stoltze OBJECTED to hear a description.
Ms. Hall explained that the language in Section 2 was
duplicative of Sections 9, 12 & 13. The intent is to
clarify the calculation of retaliatory fees to negate
premium tax credit. The amendment requests that duplicative
language be deleted. Additionally, Line 14 addresses high
deductible health plans, making them compliant with federal
statutes.
Vice Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, conceptual Amendment #1 was adopted.
Representative Hawker applauded the effort of Ms. Hall
addressing concerns of the accounting industry.
1:55:27 PM
Representative Foster MOVED to REPORT CS HB 170 (FIN) out of
Committee with individual recommendations and with the
accompanying note. There being NO OBJECTION, it was so
ordered.
CS HB 170 (FIN) was reported out of Committee with a "do
pass" recommendation and with zero note #1 by the Department
of Community & Economic Development.
1:56:17 PM
HOUSE BILL NO. 176
An Act creating the Fort Rousseau Causeway State
Historical Park.
CLIFF STONE, STAFF, REPRESENTATIVE PEGGY WILSON, testified
that HB 176 would create the Fort Rousseau Causeway State
Historical Park. He pointed out that the fiscal note is
small in the amount of $16 thousand dollars.
HB 176 establishes the park with the corresponding language
for the management and uses within its boundaries.
· Section 1 - Legislative findings
· Section 2 - Clarifies the purpose & management
responsibilities
Mr. Stone added that the creation of the park is consistent
with the establishment of parks, as it promotes growth and
development and provides opportunities for citizens and
visitors alike.
1:59:01 PM
Vice Chair Stoltze noted that the Legislature has taken a
philosophical position of not adding new parks. He inquired
how long it has been since a State park was created. Mr.
Stone remembered that the Afognak State Park was the last
and established in 1990.
Vice Chair Stoltze worried about adding more State parks,
and hoped to see more single-use lands, opened up for
multiple uses & development. He acknowledged that HB 176
was fairly benign.
REPRESENTATIVE PEGGY WILSON, SPONSOR, noted her appreciation
for scheduling a hearing on the bill.
2:01:38 PM
Co-Chair Meyer shared concerns voiced by Vice Chair Stoltze,
locking up lands, making them unavailable for development &
private ownership. He realized that the land requested has
historical advantage.
Mr. Stone stated that the Army Corp of Engineers, with the
onset of World War II, connected about seven islands,
placing tons of material, making a causeway connecting them.
There are now several concrete buildings with gun
emplacements still standing. The plan is to offer the park
as a destination to tourists. He believed that with
controlled management, it would be more adaptable to tourist
trade.
2:04:50 PM
Representative Wilson spoke about the actual property,
noting that it had been a defense sight for Alaska and Sitka
during that war.
Representative Thomas commented on the inadequate road
maintenance in several of the State parks in his district.
He emphasized for the record that he was "jealous" of
providing funding for a park in Sitka.
2:07:01 PM
DEBORAH LYONS, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, SITKA TRAIL WORKS, SITKA, testified in favor of HB
176, an Act creating the Fort Rousseau Causeway Historical
State Park. Sitka Trail Works has over 300 member-
households and is in a partnership Memorandum of Agreement
with the City and Borough of Sitka.
Ms. Lyons pointed out that Sitka Trail Works is taking the
initiative to find funds to help restore the historic Fort
Rousseau for the public benefit. It is important that the
capital investment being made into historic Fort Rousseau is
protected and conserved through permanent management of the
area, which having a State park status provides.
The idea of the project would be to renovate the 8,000 foot
causeway road as a hiking trail to view the historic World
War II structures. Visitors to the park would learn about
Alaska's role in World War II, while enjoying a spectacular
scenic setting. She summarized the financial plan.
For the record, Ms. Lyons reiterated the goals and
objectives, which are included in the Fort Rousseau
Development plan. The plan lays out the development
objectives and goes on to estimate the approximate revenues
that could be earned from tours on the site. Revenues would
pay for future maintenance and hopefully generate enough
revenue to support other State Parks in the system.
Ms. Lyons outlined the project development goals:
· Restore local recreational opportunities
· Preserve and interpret State and national history
· Provide a quality visitor experience, compatible
with community values
· Honor and accommodate Sitka Tribe of Alaska concerns
Ms. Lyons continued highlighting the objectives:
· Make the area clean, safe and accessible so that it
can be enjoyed in its present state.
· Perform the necessary environmental, cultural and
historic surveys and site mapping to document
current conditions.
· Produce a site plan and an interpretation plan to
guide the capital investment and development of the
area.
· Secure the capital investments needed to install the
dock & interpretative signage, complete historic
building restoration, construct visitor
center/administration building, and repair portions
of the causeway road.
Ms. Lyons noted that Senator Stevens specifically named the
World War II Causeway project as eligible to apply for
federal funding. In 2005, the area was awarded a grant of
$140.7 thousand dollars to begin work renovating the
causeway. She pointed out that $60 thousand dollars of that
grant had been given to the State of Alaska, Department of
Natural Resources and the State Historic Preservation
office, to pay for the necessary site mapping and cultural
resources survey and inventory. Another $14 thousand
dollars was used for Phase I, an environmental assessment to
determine current levels of hazardous materials. The
remainder of the Alaska Trail Initiative grant funds was
used to pay for clean up of the causeway.
Ms. Lyons urged passage of the bill.
Vice Chair Stoltze pointed out that Haines does not receive
cruise ship traffic like Sitka. He proposed that some of
the proceeds from the park help support Fort Seward in
Haines. Ms. Lyons understood that any collected revenues
from the State park, would go into the General Fund, to be
used for all statewide parks. She hoped that the park would
be successful and be able to raise revenue to sustain
itself.
2:14:11 PM
BRIAN HANSEN, (TESTIFIED VIA TELECONFERENCE), BOARD OF
DIRECTORS, SITKA TRAIL WORKS, SITKA, testified in support
for establishing the State park in Sitka. He encouraged
that the area be saved as a historical & cultural park.
2:17:01 PM
MARLENE CAMPBELL, (TESTIFIED VIA TELECONFERENCE), GOVERNMENT
RELATION DIRECTOR, CITY AND BOROUGH OF SITKA, noted the
Advisory Board and the citizens of Sitka have been working
on getting the causeway into some kind of protective status.
To date, it has been passively managed by the Department of
Transportation & Public Facilities and has fallen into
disrepair. Local citizens have attempted to develop it as a
part of the City; however, the only vehicle to protect the
treasure, would be through the State park system. She
emphasized that it is not controversial in Sitka.
Ms. Campbell commented that the park is unique as a historic
site and consists of 58 acres of connected little islands
with trails between the areas. The future of the causeway
will be bright if State Parks does assume it. She urged
passage of the project through the bill.
2:20:02 PM
HARVEY BRANDT, (TESTIFIED VIA TELECONFERENCE), RETIRED
HISTORY TEACHER, SITKA, urged passage of the bill. He
commented that action would acknowledge the importance of
the greatest naval battle in the history of America. He
worried about the deterioration of the facility. He
guaranteed that it would be used only as a park.
PUBLIC TESTIMONY CLOSED
2:22:35 PM
Co-Chair Meyer asked if additional funding would be
required. Mr. Stone explained that funds had been approved
by the U.S. Department of Transportation appropriation for
$200 thousand dollars this fiscal year.
Co-Chair Meyer questioned if there would be capital costs to
the State. Mr. Stone did not know of any capital requests.
Vice Chair Stoltze asked about prohibiting incompatible land
and water uses.
MELANIE LESH, LEGISLATIVE LIAISON, DEPARTMENT OF NATURAL
RESOURCES, explained that the existing uses for the park
would be allowed, as opposed to a public use area, which
offers greater allowances for multiple uses. State parks do
restrict uses.
Vice Chair Stoltze noted that he preferred multi-use
designations for parks; however, thought that the concept
could work well for Sitka since they cannot log or mine in
that area. Mr. Stone provided an example of an incompatible
use, discharging firearms. Vice Chair Stoltze inquired
about access without a permit.
2:27:52 PM
Representative Thomas asked if the park could be created
before the land was transferred from the Department of
Transportation & Public Facilities to the Department of
Natural Resources. Ms. Lesh explained that it could be with
the legal description contained in the proposed legislation.
The bill authorizes the transfer. There are questions
regarding the ownership of the causeway portion of lands.
She pointed out that the Department is in an inner-agency
land transfer arrangement, which can take a long time.
MICHAEL EBERHARDT, SUPERINTENDENT, SOUTHWAST, DIVISION OF
PARKS AND OUTDOOR RECREATION, DEPARTMENT OF NATURAL
RESOURCES, explained that currently, the land is State owned
and is classified. If it were not State land, the action of
the Legislature could automatically revert it to the
Department of Natural Resources. The Department of
Transportation & Public Facilities and the Department of
Natural Resources transfer would be strictly internal.
2:30:55 PM
Representative Kelly asked if there was a list of the
current uses for that land. Mr. Eberhardt explained that
there have been many public meetings in Sitka discussing
public uses; however, there is no list. He hoped to create
a management plan. The Sitka Trail Works has come up with
some non-consumptive uses. Creating a prohibitive use list
is not taken lightly. Issues that could change would be
commercial use. Permitting use for commercial gain would be
administered through the Department.
Representative Kelly asked about less restrictive categories
like recreational use. Mr. Eberhardt did not know.
Representative Kelly worried about the people using the
areas in other ways that could become restricted through
passage of the bill.
2:34:00 PM
Representative Wilson explained that because the area is so
close to the airport, no hunting has ever been allowed.
She did not anticipate a lot happening that previously had
not happened before because of the airport location. To
date, there has been no commercial use. The intent is to
make it a tour spot location. The anticipated income should
be more than the requested funding.
Mr. Stone acknowledged that a State park versus recreational
area was a valid point. Ms. Campbell commented that the
State Park Advisory Board looked at all the options and
determined that a recreational area would not be appropriate
for the historical site. The area contains tremendous
assets and it needs to be maintained. There are many
buildings on the eight islands. She commented on the
deterioration on the structures on the islands. The City
did not pursue the recreational site, as the management
would not enable the City to take care of the historical
structures. She stressed that the area is small and
specialized as a historical site.
2:39:39 PM
Vice Chair Stoltze noted that he did have concerns with the
"restrictive use" of the land but that he would not hold the
bill up. He wanted to know that people understand what they
are getting into with State park management.
Representative Thomas echoed concerns mentioned by Vice
Chair Stoltze. He referenced troubles in his area with
traditional use prohibitions.
Representative Foster noted that he had no State parks in
his area; however, the federal park rangers in his area do
not work well with the locals because they carry weapons.
He asked if a State park ranger always carries a weapon.
Mr. Eberhardt replied that when they are on duty, they do at
all times. They are required to by the State Troopers in
order to assist in law enforcement activities.
Representative Foster worried about guns being carried.
Representative Crawford applauded the intent of the
legislation and the preservation of the historical sight.
Representative Kelly echoed sentiments of Representative
Foster about gun carrying officers.
2:48:22 PM
Representative Foster MOVED to REPORT CS HB 176 (RES) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS HB 176 (RES) was reported out of Committee with a "do
pass" recommendation and with fiscal note #1 by the
Department of Natural Resources.
2:49:40 PM
CS FOR SENATE BILL NO. 123(FIN)
An Act relating to the public employees' and teachers'
defined benefit retirement plans; relating to the
public employees' and teachers' defined contribution
retirement plans; relating to the judicial retirement
system; relating to the health reimbursement
arrangement plan for certain teachers and public
employees; relating to the supplemental employee
benefit program; relating to the public employees'
deferred compensation program; relating to group
insurance for public employees and retirees; making
conforming amendments; and providing for an effective
date.
Representative Hawker MOVED to ADOPT work draft #25-
GS1004\M, Chenoweth, 4/17/07, as the version of the bill
before the Committee. There being NO OBJECTION, it was
adopted.
ANNETTE KREITZER, COMMISSIONER DESIGNEE, DEPARTMENT OF
ADMINISTRATION, introduced the retirement manager, Ms. Lea.
KATHY LEA, RETIREMENT MANAGER, DIVISION OF RETIREMENT AND
BENEFITS, DEPARTMENT OF ADMINISTRATION, distributed a copy
of the presentation, Technical Bill Overview. (Copy on
File), which provides a highlight of the bill; a more in
depth view can be found in the sectional analysis. Many of
the provisions are currently in place. SB 123 carries many
provisions from last session's, HB 475. The bill has been
reviewed by the Department of Law & the Division of
Retirement and Benefits.
The purpose of the bill is to insure that the benefits of
the Contribution Retirement Plan are provided as they were
intended by the Legislature. It updates provisions of the
Defined Benefit Plan (DB) for compliance with the Federal
Pension Protection Act of 1986. The Division will be
submitting an application for requalification of the DB Plan
in 2008.
Ms. Lea pointed out that the bill also amends and/or adds
sections to provide for the appropriate administration of
the plan. The legislation is divided into three areas.
· Changes to the defined contribution retirement plan
· Changes to the defined benefit plan
· Administrative and accounting changes
2:54:11 PM
Ms. Lea explained that the changes to the Defined
Contribution Retirement Plan (DC) are:
· Occupational disability and death benefit
administration and funding
· Employer participation
· Member participation
· Internal Revenue Code (IRC) contribution limits
Ms. Lea noted that funding was inserted for the Teachers
Retirement System (TRS) but not for the Public Employees
Retirement System (PERS). She pointed out the annual
inflation proofing, providing the lesser of 75% disability
or a 50% survivor rate.
Ms. Lea listed characteristics of the occupational death and
disability:
· Periods of disability and survivor benefits
constitute membership service for retirement/medical
eligibility
· Members or survivors are not entitled to individual
accounts until retirement
· Medical cost share at normal retirement, regardless
of age.
2:58:25 PM
Ms. Lea noted that the employer participation provides
participation and termination authority for new PERS
employers; it establishes a time limit on conversion
election period for employees; and assigns employer retiree
health contributions to the Alaska Retiree Health Trust.
The bill addresses member participation, adding the
Governor, Lieutenant Governor & Legislators as members of
the DC plan. It clarifies that DB members, hiring with a
new DC-only employer, participates in the DC plan.
3:01:17 PM
The bill also clarifies that a former DB member who does not
reinstate service before July 1, 2010, will be a DC plan
member if reemployed after that date. It specifies how the
IRC & 415© limit affects payment of the conversion match for
DB to DC transfers.
The IRC compliance allows:
· Disabled members to receive 100% vested in employer
contributions
· Survivor retirement benefit funded from Occupational
D&D fund
· USERRA Compliance
· 415©, contribution limits of the contributions on
behalf of the survivors and voluntary employee
contributions
The Defined Benefit Plan.
The Pension Protection Act updates rollover provisions and
includes a ROTH IRA as of January, 2008; it allows an
alternate payee to rollover contributions and requires a
rollover of pre/post tax contributions to be accounted for
separately by the receiving plan.
Ms. Lea discussed that the employer participation would be a
normal cost and past service rates apply to total payroll
dollars, while establishing a deadline for terminated
employers to pay termination costs. It allows the plan to
intercept other State funds for payments of delinquent
contributions and codifies the use of forfeitures to be
applied to future employer contributions. It repeals the
ability to reinstate service for conditional or public
service benefits as of July 2010. DB members who hire with
a DC only employer, participates in the DC plan and former
DB members who do not reinstate by July 2010, are DC members
upon rehiring.
In regard to new trusts, the Alaska retiree health trusts
are:
· Alaska Retirement Management Board (ARMB) Trustees
· Commissioner of Administration
· Receives ER health contributions
· Pays retiree medical premiums
The administrative language removes National Education
Association (NEA) as an eligible employer and removes Social
Security tax wage base cap from the employee and employer
contribution. It conforms the administrator's duties across
plans.
Ms. Lea noted that in the administrative functions,
authority is returned to the Commissioner of the Department
of Administration to adopt regulations for the Supplemental
Benefits System (SBS), DC & Health Reimbursement Act (HRA)
plans. It provides the Office of Administrative Hearings
(OAH) authority to hear appeals for the SBS, DC and HRA
plans and provides OAH authority to hear PERS/TRS requests
for waivers of adjustment.
Ms. Lea summarized the bill:
· Allows the State to administer benefits intended by
the Legislature
· Provides funding mechanisms for all benefits
· Addresses IRC requirements
· Removes administrative ambiguities
3:15:17 PM
MICHAEL LAMB, (TESTIFIED VIA TELECONFERENCE), CHIEF
FINANCIAL OFFICER, FAIRBANKS NORTH STAR BOROUGH, testified
in opposition to Sections 1 and 24. He maintained that
administrative plans would take time and funding that the
State does not have. He stated that the administrator could
take funds without due process. The language claims that
the administrator can take other government funds without
due process. He maintained that an administrator could
interrupt a government's revenue stream; he asserted that
the bill is too "heavy handed" & would lead to financial
destabilization of local governments.
Mr. Lamb addressed Sections 72-74, dealing with
terminations. He encouraged scrutiny of language calling
for unlimited termination costs extracted from an employer.
He added that deadlines also need scrutiny, to prevent the
abuse without preventing all good and bad changes to the
system. He stated that the bill proposes far reaching
changes & policy determinations. Mr. Lamb cautioned against
pitting boroughs against the cities within its boundary.
3:20:50 PM
Representative Kelly commented on the "intercept". He
questioned what would happen if a single rate was accepted
and someone did not pay in. He wondered about the
difficulty of providing proof. Mr. Lamb noted that there
are two issues, pointing to the termination sections which
apply. If a rate were set at 22%, anything above the normal
cost rate would not be the responsibility of the member
employers. The question is, should the language be applied
to all possibilities. He thought it should not, but
instead, due process. He questioned justification of 22%.
There are few communities that have not paid the rate put
forth by the State. He noted concern that conflict will
happen; the language needs to be more specific.
3:26:15 PM
Commissioner Kreitzer knew that there were provisions in the
legislation that the municipalities would not like such as
the intercept funds. The State already does that, if an
employer does not pay their unemployment insurance. She
observed that the legislation is not intended to be the
State going after someone's mortgage. She offered to have
someone from the Department address due process. When money
is due, there is a long process of letters and communication
before the State takes other recourse. The State can sue
the community, but the legislation does allow a payment
plan.
Vice Chair Stoltze appreciated the constructive "tone"
voiced by the Fairbanks testimony. He commented on the
unhealthy approach taken by the Alaska Municipal League.
AT EASE: 3:28:40 PM
RECONVENED: 3:40:03 PM
PUBLIC TESTIMONY CLOSED
Commissioner Kreitzer addressed the fiscal notes. She
pointed out the new note request (4/13/07), FY08 for $108
thousand dollars, which will cover programming costs. It
would be the same for FY09, split among PERS, TRS & the
Judicial Retirement System (JRS).
Representative Nelson asked if a person was on disability
coverage as a Tier 4 employee, would they be eligible to
receive health insurance. Ms. Lea explained that a DC
employee does not have medical insurance while on
disability.
Representative Foster MOVED to REPORT CS SB 123 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
HCS CS SB 123 (FIN) was reported out of Committee with a "do
pass" recommendation and with a new fiscal note by the
Department of Administration and a zero note #2 by
Department of Administration.
ADJOURNMENT
The meeting was adjourned at 3:44 P.M.
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