Legislature(2001 - 2002)
02/27/2002 01:45 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
February 27, 2002
1:45 P.M.
TAPE HFC 02 - 32, Side A
CALL TO ORDER
Co-Chair Williams called the House Finance Committee meeting
to order at 1:45 P.M.
MEMBERS PRESENT
Representative Bill Williams, Co-Chair
Representative Eldon Mulder, Co-Chair
Representative Con Bunde, Vice-Chair
Representative Eric Croft
Representative John Davies
Representative Richard Foster
Representative John Harris
Representative Bill Hudson
Representative Ken Lancaster
Representative Carl Moses
Representative Jim Whitaker
ALSO PRESENT
Representative Gretchen Guess; Barbara Cotting, Staff,
Representative Jeannette James; Linda Sylvester, Staff,
Representative Pete Kott; Remond Henderson, Director,
Division of Administrative Services, Department of Labor and
Workforce Development; Guy Bell, Director, Division of
Retirement and Benefits, Department of Administration; Chip
Wagoner, Alaska Catholic Conference, Juneau.
PRESENT VIA TELECONFERENCE
Karen Bitzer, Executive Director, STAR, Anchorage.
SUMMARY
HB 20 An Act relating to state aid to municipalities and
certain other recipients, and for the village
public safety officer program; relating to
municipal dividends; relating to the public safety
foundation program; and providing for an effective
date.
HB 20 was SCHEDULED but not HEARD.
HB 56 An Act relating to minimum wages.
CS HB 56 (FIN) was reported out of Committee with
"individual recommendations" and with a zero
fiscal note #1 by Department of Administration and
fiscal note #2 by Department of Health & Social
Services.
HB 254 An Act relating to the teachers' retirement
system, the judicial retirement system, and the
public employees' retirement system and to the tax
qualification under the Internal Revenue Code of
those systems; amending the definition of
'actuarial adjustment' in the teachers' retirement
system and the public employees' retirement
system; repealing certain provisions of the
teachers' retirement system and the public
employees' retirement system; and providing for an
effective date.
CS SS HB 254 (FIN) was reported out of Committee
with a "do pass" recommendation and with a zero
fiscal note #1 by the Department of
Administration.
HB 262 An Act relating to accounting for and
appropriations of receipts from fees collected by
the Department of Labor and Workforce Development
for certain inspections and for certain plumbing
and electrical worker certificates of fitness;
establishing a building safety account; and
providing for an effective date.
HB 262 was reported out of Committee with a "do
pass" recommendation and with a new fiscal note by
the Department of Labor & Workforce Development.
HB 321 An Act relating to the purpose for crime victims'
compensation; prohibiting the payment of
compensation to a person responsible for the
maintenance of the victim if that person knew or
should have known of the crime and did not assist
the victim or report the crime to the police; and
limiting the factors that may be considered in
making a crime victims' compensation award in
cases of sexual assault, sexual abuse of a minor,
or a crime involving domestic violence.
CS SS HB 321 (JUD) was reported out of Committee
with a "do pass" recommendation and with a zero
fiscal note #2 by the Department of Public Safety.
HOUSE BILL NO. 262
An Act relating to accounting for and appropriations of
receipts from fees collected by the Department of Labor
and Workforce Development for certain inspections and
for certain plumbing and electrical worker certificates
of fitness; establishing a building safety account; and
providing for an effective date.
REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT,
spoke to the revised fiscal note for HB 262. He stated that
the new note would make a funding switch between general
fund program receipts and the new building safety account.
The FY03 amount listed is the amount of general fund program
receipts anticipated to be collected from fees.
Representative Whitaker asked if the new fiscal note would
answer concerns previously voiced by the Committee.
Mr. Henderson explained that the last fiscal note had
contained requested positions and that those positions were
now being requested as part of the operating budget.
Vice-Chair Bunde MOVED to report HB 262 out of Committee
with individual recommendations and with the accompanying
new fiscal note. There being NO OBJECTION, it was so
ordered.
HB 262 was reported out of Committee with a "do pass"
recommendation and with a new fiscal note by Department of
Labor & Workforce Development.
HOUSE BILL NO. 254
An Act relating to the teachers' retirement system, the
judicial retirement system, and the public employees'
retirement system and to the tax qualification under
the Internal Revenue Code of those systems; amending
the definition of 'actuarial adjustment' in the
teachers' retirement system and the public employees'
retirement system; repealing certain provisions of the
teachers' retirement system and the public employees'
retirement system; and providing for an effective date.
BARBARA COTTING, STAFF, REPRESENTATIVE JEANNETTE JAMES,
explained that HB 254 is necessary to ensure tax
qualification of the State of Alaska's employee retirement
systems, including the Public Employee's Retirement (PER's)
System, the Teacher's Retirement System (TER's), and the
Judicial Retirement System (JRS). The legislation is
technical in nature, addressing Internal Revenue code
requirements necessary for continued plan qualification.
She continued, enactment of the legislation would benefit
public employees and teachers by allowing them to purchase
service credit in their retirement plans with transfers of
pre-tax savings in certain plans allowed by the Internal
Revenue code or payroll deductions. The provisions in the
legislation allows for purchases under the new federal
pension legislation. Incorporation in Alaska statute is
necessary for Alaska public employees and teachers to take
advantage of.
Vice-Chair Bunde MOVED to ADOPT Amendment #1, #22-
LS0853\F.1, Craver, 2/27/02. [Copy on File]. Vice-Chair
Bunde OBJECTED for the purpose of discussion.
Vice-Chair Bunde understood that the amendment consisted of
technical references.
GUY BELL, DIRECTOR, DIVISION OF RETIREMENT AND BENEFITS,
DEPARTMENT OF ADMINISTRATION, noted that Amendment #1 was
requested by the Division because in the original drafting,
a few sections were missed that needed to be included in
order for it to be in compliance. The amendment makes a
modest adjustment to the title of the bill and makes some
reference changes. Most of the references are associated
with sections in statute that allows for purchase of service
credit by members. He reiterated that in the initial
drafting, some sections had been missed.
The pre-tax option is done with a qualified tax deferred
plan. The Division is adding a provision for special
service agency requirements. He highlighted each change to
the statute in the amendment.
Vice-Chair Bunde asked if anything in the amendment would
have a negative actuarial impact on the retirement system.
Mr. Bell advised that there would be no change in benefits
or actuarial costs either to employees or employer. The
only change would be that the person would be allowed to
purchase service with pre-taxed dollars.
Representative Davies recommended that the drafter address
the issues of renumbering the bill sections.
Representative Hudson voiced his support for the proposed
legislation. He stated that it is necessary and beneficial
to the employees of the State of Alaska.
Representative Foster MOVED to report CS SS HB 254 (FIN) out
of Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS SS HB 254 (FIN) was reported out of Committee with a "do
pass" recommendation and with a fiscal note #1 by the
Department of Administration.
HOUSE BILL NO. 321
An Act relating to the purpose for crime victims'
compensation; prohibiting the payment of compensation
to a person responsible for the maintenance of the
victim if that person knew or should have known of the
crime and did not assist the victim or report the crime
to the police; and limiting the factors that may be
considered in making a crime victims' compensation
award in cases of sexual assault, sexual abuse of a
minor, or a crime involving domestic violence.
REPRESENTATIVE GRETCHEN GUESS stated that when the State
established the Victims' Compensation Board over 20 years
ago, it ensured the victim's role in a crime would be
considered. The unintended consequence of that language was
child abuse and sexual assault victims could be denied
funding if the board found them to have contributed to the
circumstances of the crime. A victim of sexual assault
could be denied because they were drinking the night of
their sexual assault.
Representative Guess continued, implying that a victim of
sexual assault somehow deserved or played a role in being
victimized, is in opposition to what most communities
believe and that a victim of child abuse or sexual assault
has not done anything to bring the crime on him or herself.
Toward fixing the unintended consequence, the language of
the bill accomplishes the following:
· Ensures compensation is not denied based on
consideration of provocation, the use of alcohol
or drugs, or the prior social history of the
victim;
· Retains the current language for compensation
criteria for all other crimes.
Representative Guess commented that the victim's
compensation board is funded 60% by State government and 40%
by federal government. The funds from the State come from
garnishing felon's permanent fund dividend checks. Given
the nature of the funding mechanism, the fiscal note from
the Department of Public Safety is zero.
Vice-Chair Bunde asked if the language had been added to
address an incapacitated state of consciousness.
Representative Guess advised that the board had not yet
decided about using that reasoning.
Representative Whitaker asked if in the past, had the board
considered the condition of the victim when determining
compensation.
Representative Guess advised that there was an honest
disagreement between the community and the board regarding
that question. There were some cases where the community
felt that the board did do that given the confidential
nature of the community process. She acknowledged that she
did not know the specifics.
Representative Lancaster questioned if there was a situation
currently happening.
Representative Guess explained that the Victims'
Compensation Board has admitted that is now common practice.
Representative Davies interjected that some people in the
community do not share that view with the board. The
legislation is an attempt to clarify that this is the
policy.
Representative Hudson thought that the bill could be a
companion piece to another bill that was before the
Committee. He pointed out that HB 321 deals only with the
victim.
Representative Guess agreed.
Representative Whitaker inquired if the board had taken a
position on the legislation.
Representative Guess noted that there had been testimony
before the House Judiciary Committee by a member of the
board in support of the bill. She added that the Victims'
Compensation Board does fall into the preview of the
Department of Public Safety. She noted that the person from
the board was speaking for the Department and the
Administration.
Representative Whitaker requested to hear any.
Representative Guess did not know of an opposing point of
view.
Vice-Chair Bunde asked if there would need to be a criminal
trial in order to qualify for compensation.
Representative Guess replied that there needs to be multiple
criteria including cooperating with police, reporting in a
certain number of days, etc. It would not necessarily have
to be a criminal trial. Consent remains in the bill so that
it can be considered in whether or not someone is a victim
of sexual abuse of a minor.
Vice-Chair Bunde did not want to see assault being excused,
however, he also did not want to take any action that would
reduce one's personal responsibility for their own behavior.
KAREN BITZER, [TESTIFIED VIA TELECONFERNCE], EXECUTIVE
DIRECTOR, STANDING TOGETHER AGAINST RAPE (STAR), ANCHORAGE,
testified in support of the proposed legislation. She noted
that STAR works to improve services for victims and to allow
them to have access to tools for recovery. One of the goals
of victim's compensation is to help make whole the victims
for the loss as a result of the crime.
Ms. Bitzer noted that the bill would put the responsibility
of the crime on the offender. It allows for the victims to
access services and intervention for available funds.
Representative Foster MOVED to report CS SS HB 321 (JUD) out
of Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS SS HB 321 (JUD) was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note #2 by the
Department of Public Safety.
HOUSE BILL NO. 56
An Act relating to minimum wages.
Representative Hudson MOVED work draft #22-LS0342\L, Craver,
2/21/02, as the version before the Committee. There being
NO OBJECTION, it was adopted.
CHIP WAGONER, ALASKA CATHOLIC CONFERENCE, JUNEAU, testified
in support of the minimum wage bill as proposed.
Mr. Wagoner advised that the Alaska Catholic Conference at
its meeting on September 21, 2001, adopted a petition
supporting an increase in Alaska's minimum wage.
The Catholic Church's support for a minimum wage is not new.
The Church advocated for the establishment of a minimum wage
law as early as 1919, nearly two decades prior to its'
passage.
Mr. Wagoner stated that minimum wages are paid for work
done. Work is more than just a job. Work is a way to:
· Participate in God's creation;
· Contribute to the common good;
· Promote human dignity;
· For people to meet their material needs,
commitments and obligations.
The Church's teachings promote the concept of a living wage,
a wage adequate for workers to provide for themselves and
their families in dignity.
Mr. Wagoner pointed out that the minimum wage amount of
$7.15 is not a living wage. If a person worked 40 hours a
week, 52 weeks a year at $7.15, they would earn $14,872
dollars, which is below the poverty threshold for a family
of two. Although, he pointed out that, as an increase in
the minimum wage is not a living wage, it is a step toward
the right direction.
Mr. Wagoner concluded that an incentive in the minimum wage
would disproportionately benefit women, minorities and the
nation's poor.
Representative Davies asked if the committee substitute was
identical to the initiative.
LINDA SYLVESTER, STAFF, REPRESENTATIVE PETE KOTT, replied
that the petition initiative was exactly contained in HB 56
in its current form. It is the intention of the sponsor
that HB 56 is identical to the initiative petition. Once it
is passed, it would be sufficient to void the initiative
petition.
Representative Lancaster asked if that would be an automatic
procedure.
Ms. Sylvester explained that once it is passed, it would go
to the Lt. Governor for review. In conjunction with the
Attorney General, the decision would be made.
Representative Foster MOVED to report CS HB 56 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes.
Vice-Chair Bunde OBJECTED. He stated that he preferred that
the decision go through the public process weighing in on
the initiative process.
A roll call vote was taken on the motion.
IN FAVOR: Foster, Harris, Hudson, Lancaster, Moses,
Whitaker, Williams
OPPOSED: Croft, Davies, Bunde
Co-Chair Mulder was not present for the vote.
The MOTION PASSED (7-3).
CS HB 56 (FIN) was reported out of Committee with
"individual recommendations" and with a zero fiscal note #1
by Department of Administration and fiscal note #2 by
Department of Health & Social Services.
ADJOURNMENT
The meeting was adjourned at 2:23 PM
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