Legislature(2009 - 2010)HOUSE FINANCE 519
03/31/2009 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB77 | |
| HB184 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 77 | TELECONFERENCED | |
| + | HB 184 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
March 31, 2009
1:39 p.m.
1:39:09 PM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 1:39 p.m.
MEMBERS PRESENT
Representative Mike Hawker, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas Jr., Vice-Chair
Representative Allan Austerman
Representative Harry Crawford
Representative Anna Fairclough
Representative Les Gara
Representative Reggie Joule
Representative Mike Kelly
Representative Woodie Salmon
MEMBERS ABSENT
Representative Richard Foster
ALSO PRESENT
Representative Charisse Millett; Jeff Turner, Staff,
Representative Millet; Mchugh Pierre, Liaison, Department Of
Military And Veterans Affairs; Derek Miller, Staff,
Representative Kelly
PRESENT VIA TELECONFERENCE
Michelle Houlihan, CEO, American Red Cross Of Alaska; Diane
Kiesel, Director, Division Of Personnel, Department Of
Administration; Myron Dosch, Controller, University Of
Alaska
SUMMARY
HB 77 "An Act allowing certain public employees to take
leave without pay to volunteer with the American
Red Cross in a disaster."
CSHB 77 (FIN) was REPORTED out of Committee with a
"no recommendation" and with a previously
published zero fiscal note: FN1 (ADM)
HB 184 "An Act relating to the debt authorization of the
University of Alaska."
HB 184 was REPORTED out of Committee with a "no
recommendation" and with a previously published
zero fiscal note: FN1 (UA)
1:39:14 PM
HOUSE BILL NO. 77
"An Act allowing certain public employees to take leave
without pay to volunteer with the American Red Cross in
a disaster."
1:40:17 PM
REPRESENTATIVE CHARISSE MILLETT presented an overview of HB
77. This bill allows Alaska to join forty seven other states
to permit state employees to take unpaid leave for up to 15
regularly scheduled work days to serve as Red Cross
volunteers in the event of a Level II in-state disaster. If
the Red Cross activates an event, Red Cross trained state
workers would be called upon to take leave to assist. The
Red Cross provides training at no cost to the state or the
employee.
1:42:32 PM
Vice-Chair Thomas questioned what would happen to a state
worker's retirement if the volunteer were severely injured
and not able to return to work. Representative Millet
remarked that the Red Cross provides insurance for the
volunteer while deployed on the disaster duty. The state
retirement question would need further research to
determine. Vice-Chair Thomas asked if the state worker was
not able to return to work, could the worker retire early.
Representative Millet agreed that unique situation requires
further discovery before she can answer. Vice-Chair Thomas
voiced his concern that the state could be liable for the
state worker's disability. Representative Millet clarified
that state workers would not be on the front lines working
in dangerous positions, but assisting to provide shelter,
clothing, food, and other logistical aspects of disaster
relief. Vice-Chair Thomas noted that state workers would
still have to get into vehicles, airplanes and other
potentially dangerous situations.
1:44:48 PM
Representative Gara asked if there were any state agencies
that would not give state workers time off during
emergencies, if requested. Representative Millet noted that
has not been a problem, but this bill clarifies the
situation for the future. The statute notes the training
aspect of volunteering. Representative Gara asked why the
Alaska Railroad Corporation employees were being exempted.
JEFF TURNER, STAFF, REPRESENTATIVE MILLET remarked that the
Alaska Railroad Corporation and the Alaska Housing Finance
Corporation were excused at their request. Representative
Gara asked why they wanted exemption. Mr. Turner replied
that complexities involved in these positions would need to
be dealt with in different legislation. Representative Gara
agreed there might be union employees involved, but remarked
that there were union employees within state employment. He
noted that exempting the Alaska Railroad Corporation and the
Alaska Housing Finance Corporation may show special
privilege.
1:47:05 PM
Mr. Turner expressed that the Alaska Railroad supports the
legislation, but a railroad corporate attorney reviewed
items within the bill that needed to be addressed in
separate legislation. He indicated that the Alaska Railroad
memo would be sent to the committee. Co-Chair Stoltze asked
if there was any analysis from the state legal division. Mr.
Turner replied the only analysis was from the Alaska
Railroad Corporation. Co-Chair Stoltze observed that state
legal advice should have been consulted.
1:47:50 PM
Representative Kelly commented that he would prefer all
railroad employees available for the railroad should a
disaster strike. Co-Chair Stoltze appreciated the
speculation, but the reasons for exemption were still
unknown. Representative Kelly reiterated that a supervisor
makes the call and it can not be unreasonably withheld, but
voiced his opinion that the language be reconsidered so the
supervisor is in total control. Representative Millet
expressed the willingness to entertain any suggestions.
Representative Gara noted that taking out "reasonably
withheld" keeps the law as it is right now. Representative
Kelly agreed that was part of his problem with the bill.
1:50:01 PM
Representative Millet stressed that a Level II disaster must
be declared before anything takes place. Alaskans should be
first responders to an emergency rather than importing help
from outside. This bill would be identify those employees
with trained skills to assist in a disaster. Representative
Kelly agreed but expressed some problems he had with the
bill. He noted that certain employees should stay in place
with their own divisions, but that other responders should
be released for duty should they volunteer.
Mr. Turner indicated that the bill drafters based the bill
on legislation passed a year ago defining the ability for
state employees to take off from work for various compelling
reasons. He declared this bill meets the approval of the
Department of Administration. He added the bill carries a
zero fiscal note. Co-Chair Stoltze questioned why the bill
is specific to just the American Red Cross.
1:52:41 PM
Representative Millet noted that the Red Cross has been
identified as a primary disaster relief agency for many
states. In addition, the Red Cross offers free volunteer
training. Mr. Turner interjected that former Governor Egan,
in 1964, designated the Red Cross as the primary disaster
relief agency in Alaska.
1:54:02 PM
MICHELLE HOULIHAN, CEO, AMERICAN RED CROSS OF ALASKA
testified via teleconference, believed this bill will allow
Alaskans the preparedness to respond to instate emergencies.
The bill allows supervisors the discretion of giving
permission for employees to deploy in disaster relief. She
added that training is free. Representative Gara questioned
if this bill allows state workers to take time off for the
training. Ms. Houlihan responded that training time is not
included, but most training is offered after work hours.
Representative Gara asked if there was anything else that
other states do that is not included in this bill. Ms.
Houlihan responded that the majority of states allow for
leave without pay, however 70 percent of the other 47 states
do allow for deployment outside of their own state.
1:56:58 PM
Co-Chair Stoltze MOVED Amendment #1, 26-LS0250\P.1\Wayne:
Page 2, lines 10 - 12:
Delete all material and insert:
"(d) Notwithstanding (g) of this section, each of
the following is not eligible for leave without pay
under this section:
(1) an employee of the Alaska Housing
Finance Corporation or the Alaska Railroad Corporation;
(2) a civilian or enlisted member of the
organized militia under AS 26.05.010."
Co-Chair Hawker OBJECTED for discussion.
Representative Millet explained that this amendment removes
the National Guard, as they will be responding with other
duties in an emergency.
1:58:54 PM
MCHUGH PIERRE, LIAISON, DEPARTMENT OF MILITARY AND VETERANS
AFFAIRS, supported this bill, but believed that when the
National Guard is on state active duty, they are needed for
the disaster they are responding to and should not be
allowed to take time away from that disaster. Representative
Gara remarked that he was still not clear why the Alaska
Railroad and Alaska Housing Finance Corporation would be
exempt from in the bill. He agreed with the example
presented by Representative Kelly that the law states that a
supervisor should grant this leave unless it is
unreasonable. He agreed it made sense if an employee was
attending to their own division's response to a disaster the
worker should not volunteer to go elsewhere. Representative
Millet responded that the formal request from the two
divisions can be sent to the committee.
2:00:43 PM
Co-Chair Hawker WITHDREW OBJECTION. There being NO
OBJECTION, it was so ordered.
Representative Kelly moved Conceptual Amendment #2:
Page 2, lines 2-3,
Delete after "it;" however, approval may not be
unreasonably withheld.
Co-Chair Stoltze OBJECTED for discussion.
Representative Kelly responded that he would be more
comfortable with the bill if the supervisor was given more
latitude. It should be clear that the supervisor has the
right to agree to or reject the request. Representative
Fairclough requested a definition for "unreasonable."
Representative Gara replied that there are many standards
affecting if something is done reasonably or unreasonably.
The only way it would come into effect is if someone sued,
which was hard to imagine.
Representative Kelly restated his position.
Co-Chair Stoltze WITHDREW his objection.
Representative Gara OBJECTED.
Representative Gara pointed out that if Representative
Kelly's amendment is passed then this law would not do
anything so it would be unnecessary to pass the bill.
Representative Millet remarked she was comfortable with
removing the language addressed by Representative Kelly. She
stressed that the point of the bill is that in the event of
a disaster, state employees can take time off to assist.
Representative Crawford reiterated the strongest part of the
bill is that approval may not be "unreasonably withheld."
The right exists now for anyone to ask their supervisor for
permission to leave to assist in a disaster and the
supervisor can give permission or not. If the wording is
taken out there is nothing to the bill. Co-Chair Stoltze
remarked he was comfortable either way. He did not believe
the conceptual amendment offered by Representative Kelly
damages the bill.
2:06:14 PM
Mr. Turner reiterated that the Department of Administration
was comfortable with this bill. Representative Gara
questioned what the bill would do if the language was taken
out. Representative Millet believed it identified state
employees who had received special training and were ready
to respond in case of a disaster. Representative Gara
stressed he does not want to pass out a bill that does
nothing.
Representative Gara maintained his OBJECTION.
Co-Chair Hawker interjected with a reference to a statute
code that he saw nothing referring to "leave without pay" or
"leave with pay" for the purposes that this bill has been
brought forward. He agreed that Representative Kelly had a
point of wanting to invest a certain amount of control with
the employee's supervisor. The bill would still put into law
a statutory concept that it is an allowable action or
activity. He also agreed with Representative Kelly that the
amendment does accomplish something good without mitigating
the entire purpose behind the bill. Representative Gara
stressed that it important to note that today, without the
bill, any employee can ask their supervisor for time off to
do something and the supervisor can say yes or no. This bill
will just say what is already allowed by law.
A roll call vote was taken on the motion to ADOPT conceptual
Amendment #2:
Representative Foster was absent from the vote.
FAVOR: Joule, Kelly, Thomas, Austerman, Fairclough, Stoltze,
Hawker
OPPOSED: Salmon, Crawford, Gara
The MOTION PASSED (7-3)
Representative Fairclough spoke to some comments concerning
the worthiness of the putting this into statute. The bill
clarifies the workman's compensation position. When
employees ask their supervisor, under a bargaining or non-
bargaining unit, there is ambiguity on who is responsible in
case of an injury. This bill provides the necessary
allocation on who is responsible if an employee is injured
while on leave to assist in an emergency. She noted that
some other states have chosen to provide paid leave. She
encouraged her colleagues to support this bill as a useful
tool to provide the means for employees to volunteer and
become better prepared to respond to emergencies in the
state.
2:13:37 PM
Representative Gara believed that it is clear if an employee
takes "leave without pay" that the employee will not get
state workman's compensation. He stressed this bill does
nothing to promote time off, but more likely deters someone
from taking the time off.
2:14:29 PM
Co-Chair Stoltze commented on the zero fiscal note from the
Department of Administration. Co-Chair Hawker asked if this
bill will require any reprogramming in the state personnel
system to account for leave without pay.
DIANE KIESEL, DIRECTOR, DIVISION OF PERSONNEL, DEPARTMENT OF
ADMINISTRATION testified via teleconference, that there is a
code already built into the system that allows for leave
without pay.
Co-Chair Hawker MOVED to report CSHB 77 (STA) as amended out
of Committee with individual recommendations and the
accompanying zero fiscal.
Co-Chair Stoltze OBJECTED for discussion.
Vice-Chair Thomas did not believe his question had been
answered concerning employees severely injured while
volunteering. He wondered if the employee could not return
to work would that employee still be eligible for state
retirement. Co-Chair Stoltze asked if this bill relates to a
former bill by Representative Meyers providing workman's
compensation. Representative Millet did not believe taking
time off from work for disaster or personnel leave would
change anything under this legislation. Ms. Kiesel responded
that it would depend on the benefit selection made by the
employee. She understood it to be a non-occupation
disability. Co-Chair Hawker referred to Section 1 AS
23.30.244 of the bill adds statute to the recently passed
legislation that reviewed emergency and disaster relief as
far as state employees. As a general rule employees in the
state temporarily engaged as civilian volunteers are brought
under the state workman's compensation, but the language in
Section 1 exempts persons injured in the course of
performing as a Red Cross volunteer while on leave without
pay. Representative Gara asks if that means the state gives
workman's compensation to others who do volunteer work, but
not if volunteering on a disaster with the Red Cross.
Representative Millet remarked that the Red Cross has its
own workman's compensation. Mr. Turner added that the
Department of Administration declared that as long as the
state employee is on payroll, either working on the first
day of the month or takes vacation day on the first day of
the month, they are covered for state health insurance for
that month.
2:21:29 PM
Representative Fairclough expressed another benefit of bill
is that it maintains the employees state of Alaska medical
coverage. Representative Millet clarified that if an
employee was injured while on a Red Cross emergency, that
employee would be covered under the Red Cross disability.
The state insurance would not cover the injury, but the
employee would still have their own health insurance for
other ailments. The bill removed the state from the
responsibility for workman's compensation and also allows
the employee to maintain their state of Alaska health
insurance. Representative Gara stressed the bill does not
change any of that. Representative Millet clarified that she
was referring to the employee who did not check
"occupational disability" as a benefit; the Red Cross would
cover it.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
CSHB 77 (FIN) was REPORTED out of Committee with a "no
recommendation" and with a previously published zero
fiscal note: FN1 (ADM)
2:24:04 PM
HOUSE BILL NO. 184
"An Act relating to the debt authorization of the
University of Alaska."
Representative Mike Kelly, the bill sponsor, proclaimed HB
184 as an administrative bill that his staff member would
explain.
DEREK MILLER, STAFF, REPRESENTATIVE KELLY, announced that
the HB 184 adjusts the current bond debt cap for the
University of Alaska to reflect today's construction prices.
Current Alaska Statute allows the University of Alaska to
borrow money, issue debt, or enter into long-term
obligations for the purchase of facilities, goods or
services without having to provide notice to the legislature
as long as the annual debt service payment doesn't exceed $1
million set in 1990. HB 184 bumps up the threshold to $2.5
million to reflect today's construction prices.
In 1990, $1 million in annual debt service was the cost of
financing a $15 million capital project. Taking into
consideration construction inflation in Alaska, a $15
million capital project build in 1990 would cost about $40
million today. Annual debt service on $40 million is $2.5
million assuming a 4.5% interest rate and a 25-year straight
line amortization. Mr. Miller signified that the University
has had a history of being excellent stewards of debt and
possess a Moody's Investor Service Aa3 rating. This
indicates a safe risk with low risk for failure. The
University's current amount of outstanding debt is less than
half of the board of regency's policy limit. This bill is an
administrative action that eases the burden of compliance
with the statute for smaller bond issues. Mr. Miller noted a
concern on how this would affect the university's ability to
bond a new facility without legislative approval. He
referred to an email that expressed this is not a receipt
authority, but a separate secondary authority as it relates
to bonding of receipt authority that the legislature gives
the university. (Email-Myron J. Dosch, March 23, 2009, copy
on file). Mr. Miller pointed out the zero fiscal note
attached to the bill and the letter of support from the
university.
Co-Chair Hawker clarified that the legislature was
increasing the cap on the annual payment the university may
enter into a debt agreement from $1 million to $2.5 million.
He referred to line 11, that any project that is so debt
financed must have "…been approved by the legislature by
law." This is not a cap where the University can go bond
without coming to the legislature's approval. This simply
gives the university latitude to deal with smaller projects
without having to confirm specific bonding authority with
the legislature.
Representative Kelly replied that was correct. Co-Chair
Hawker gave his complete support and endorsement of this
proposal.
Representative Fairclough interjected that this bill would
allow the university to enter into lease agreements. The
university red book indicated that leasing capacity had
exceeded the dollar amount for several different pieces of
property.
2:29:31 PM
Representative Fairclough noted that the university has
exceeded that leasing capacity in Fairbanks so this would
take it off the radar screen.
MYRON DOSCH, CONTROLLER, UNIVERSITY OF ALASKA testified via
teleconference that he was available for questions.
Vice-Chair Thomas asked if it was true that with added
buildings there would be added overhead and maintenance
costs. Representative Kelly responded that was true. Once
the project is approved, this bill would allow, for smaller
issues, bonding that would take care of it, but it would not
change the permission nor does it change the board of
regents debt cap for the total system. Vice-Chair Thomas
wondered if that would be smaller buildings or maintenance
on buildings or would all the money be spent on one
building. Representative Kelly replied that the original $1
million covered construction which would be $15 million in
todays non-adjusted for inflation dollars.
2:32:03 PM
Vice-Chair Thomas responded that this would add to the
overhead and the university must be cautious. Representative
Fairclough asked Mr. Dosch what buildings are exceeding the
obligation capacity at the university. Mr. Dosch replied
that the two facilities in the university red book are the
UAF Life Sciences Innovation and Learning Facility and the
UAF Energy Technology Building. Each building has receipt
authority that is over $15 million based on how it was
requested. If this was debt financed, this statute would
apply and would require the university to do the specific
things notified in this statute, which is the notice and
specific approval.
Co-Chair Stoltze reported that the zero fiscal note reports
that HB 184 increases the debt authorization level for the
University of Alaska and is not anticipated to have a
measurable fiscal impact on the university.
Representative Hawker MOVED to report HB 184 out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
HB 184 was REPORTED out of committee with a "no
recommendation" and with a previously published fiscal note:
FN1 (UA)
ADJOURNMENT
The meeting was adjourned at 2:34 PM
| Document Name | Date/Time | Subjects |
|---|---|---|
| Alaska Needs a Disaster Leave Bill.doc |
HFIN 3/31/2009 1:30:00 PM |
HB 77 |
| Dan WayneLegal memo.pdf |
HFIN 3/31/2009 1:30:00 PM |
HB 77 |
| HB 77 - Summary of Changes.doc |
HFIN 3/31/2009 1:30:00 PM |
HB 77 |
| HB 77 Sponsor Statement.doc |
HFIN 3/31/2009 1:30:00 PM |
HB 77 |
| OR Disaster Leave Law 7 08.pdf |
HFIN 3/31/2009 1:30:00 PM |
HB 77 |
| PR - Millett Intro's Red Cross Disaster Assistance Bill.doc |
HFIN 3/31/2009 1:30:00 PM |
HB 77 |
| RC letter of support.pdf |
HFIN 3/31/2009 1:30:00 PM |
HB 77 |
| State Disaster Leave Law Chart 2008.doc |
HFIN 3/31/2009 1:30:00 PM |
HB 77 |
| Red Cross bill news release.doc |
HFIN 3/31/2009 1:30:00 PM |
HB 77 |
| UA Bond Debt Cap 1990 Statute.pdf |
HFIN 3/31/2009 1:30:00 PM |
HB 184 |
| HB 184 Sponsor Statement.pdf |
HFIN 3/31/2009 1:30:00 PM |
HB 184 |
| HB 77 Amendment 1 Version P1.pdf |
HFIN 3/31/2009 1:30:00 PM |
HB 77 |
| UA HB 184 Support Letter.pdf |
HFIN 3/31/2009 1:30:00 PM |
HB 184 |
| UA Receipt Authority Email.pdf |
HFIN 3/31/2009 1:30:00 PM |
HB 184 |