Legislature(1995 - 1996)
03/17/1995 03:15 PM House L&C
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE LABOR & COMMERCE STANDING COMMITTEE
March 17, 1995
3:15 p.m.
MEMBERS PRESENT
Representative Pete Kott, Chairman
Representative Norman Rokeberg, Vice Chairman
Representative Jerry Sanders
Representative Gene Kubina
MEMBERS ABSENT
Representative Beverly Masek
Representative Kim Elton
Representative Brian Porter
OTHER HOUSE MEMBERS PRESENT
Representative Gail Phillips
COMMITTEE CALENDAR
Confirmation Hearing: Paige Hodson to the Board of Certified Real
Estate Appraisers
SB 78 am: "An Act related to the authority of certain beverage
dispensary licensees to stock alcoholic beverages in
guest rooms and prohibiting certain room rentals for the
purpose of providing alcoholic beverages to a person
under 21 years of age."
PASSED OUT OF COMMITTEE
* HB 233: "An Act extending until 1999 the termination date of the
Board of Clinical Social Work Examiners, Board of
Marital and Family Therapy, State Medical Board, Board
of Nursing, Board of Nursing Home Administrators, Board
of Psychologist and Psychological Associate Examiners,
Real Estate Commission, and Hazardous Substance Spill
Technology Review Council; extending until 1996 the
termination date of the Board of Marine Pilots and the
Correctional Industries Commission; and providing for an
effective date."
PASSED OUT OF COMMITTEE
* HB 236: "An Act relating to reductions in compensation for state
officers and employees; and providing for an effective
date."
HEARD AND HELD
(* First Public Hearing)
WITNESS REGISTER
PAIGE HODSON
821 "N" Street, Suite 105
Anchorage, AK 99501
Telephone: (907) 274-8258
POSITION STATEMENT: Answered questions regarding her confirmation
to the Board of Certified Real Estate
Appraisers
SENATOR BERT SHARP
Alaska State Legislature
State Capitol, Room 514
Juneau, AK 99801-1182
Telephone: (907) 465-3004
POSITION STATEMENT: Prime sponsor of SB 78
CATHERINE REARDON, Director
Division of Occupational Licensing
Department of Commerce & Economic Development
P.O. Box 110806
Juneau, AK 99811-0806
Telephone: (907) 465-2538
POSITION STATEMENT: Testified on HB 233
WALLY ROMER, Manager
Alaska Correctional Industries
Department of Corrections
P.O. Box 112000
Juneau, AK 99811-2000
Telephone: (907) 465-3309
POSITION STATEMENT: Testified on HB 233
JERRY SHRINER, Special Assistant
to the Commissioner
Department of Corrections
240 Main Street, Suite 700
Juneau, AK 99801
Telephone (907) 465-4640
POSITION STATEMENT: Testified on HB 233
RACHAEL YATES
Alaska Association of Marriage
and Family Therapists
200 West 34th, Number 508
Anchorage, AK 99503
Telephone: (907) 562-3081
POSITION STATEMENT: Answered questions on HB 233
REPRESENTATIVE MARK HANLEY
Alaska State Legislature
State Capitol, Room 507
Juneau, AK 99801-1182
Telephone: (907) 465-4939
POSITION STATEMENT: Prime sponsor of HB 236
ALISON ELGEE, Deputy Commissioner
Department of Administration
P.O. Box 110200
Juneau, AK 99811-0200
Telephone: (907) 465-5668
POSITION STATEMENT: Answered questions on HB 236
ART SNOWDEN, Administrative Director
Alaska Court System
303 K Street
Anchorage, AK 99501
Telephone: (907) 463-4770
POSITION STATEMENT: Testified against HB 236
ALLEN ODELL
P.O. Box 160
Copper Center, AK 99573
Telephone: (907) 892-3341
POSITION STATEMENT: Testified against HB 236
RICHARD SEWARD
Alaska State Employees Association (ASEA)
American Federation of State County and
Municipal Employees (AFSCME) Local 52
315 Barnette, Suite 104
Fairbanks, AK 99701
Telephone: (907) 452-2300
POSITION STATEMENT: Testified against HB 236
DEBRA CHRISTIANSEN
751 Old Richardson Highway, 300
Fairbanks, AK 99701
Telephone: (907) 451-2650
POSITION STATEMENT: Testified against HB 236
BRUCE LUDWIG, Business Manager
Alaska Public Employees Association
Alaska Federation of Teachers
211 4th Street Suite 306
Juneau, AK 99801
Telephone: (907) 586-2334
POSITION STATEMENT: Testified against HB 236
DON ETHERIDGE, Business Representative
Local 71
710 West 9th Street
Juneau, AK 99801
Telephone: (907) 586-6993
POSITION STATEMENT: Testified against HB 236
GINA SAMUELS
P.O. Box 3367
Kenai, AK 99611
Telephone: (907) 283-6174
POSITION STATEMENT: Testified against HB 236
ELAINA SPRAKER
P.O. Box 2534
Soldotna, Ak 99669
Telephone: (907) 262-9592
POSITION STATEMENT: Testified against HB 236
PAT MOSS
P.O. Box 61155
Fairbanks, AK 99706
Telephone: (907) 479-3249
POSITION STATEMENT: Testified against HB 236
FATE PUTNAM, Lobbyist
Alaska State Employees Association
AFL-CIO
American Federation of State County and
Municipal Employees (AFSCME) Local 52
Legislative Lobbyist
641 Willoughby, Suite 100
Juneau, AK 99801
Telephone: (907) 586-5657
POSITION STATEMENT: Testified against HB 236
PREVIOUS ACTION
BILL: SB 78
SHORT TITLE: ALCOHOL SALES IN HOTEL ROOMS
SPONSOR(S): SENATOR(S) SHARP, Ellis, Zharoff, Taylor, Pearce;
REPRESENTATIVE(S) Ogan
JRN-DATE JRN-PG ACTION
02/08/95 207 (S) READ THE FIRST TIME - REFERRAL(S)
02/08/95 207 (S) L&C, FIN
02/14/95 (S) L&C AT 01:30 PM FAHRENKAMP RM 203
02/14/95 (S) MINUTE(L&C)
02/15/95 287 (S) L&C RPT 1DP 3NR
02/15/95 287 (S) ZERO FISCAL NOTE (REV #1)
02/28/95 425 (S) FIN REFERRAL WAIVED
03/02/95 (S) RLS AT 11:25 AM FAHRENKAMP ROOM 203
03/02/95 (S) MINUTE(RLS)
03/03/95 470 (S) RULES TO CALENDAR 3/6/95
03/06/95 501 (S) READ THE SECOND TIME
03/06/95 501 (S) ADVANCE TO 3RD READING MOTION WITHDRAWN
03/06/95 501 (S) THIRD READING 3/7 CALENDAR
03/07/95 522 (S) RETURN TO SECOND FOR AM 1 UNAN CONSENT
03/07/95 523 (S) AM NO 1 ADOPTED UNAN CONSENT
03/07/95 523 (S) AUTOMATICALLY IN THIRD READING
03/07/95 523 (S) PASSED Y13 N5 E2 SB 78 AM
03/07/95 523 (S) ADAMS NOTICE OF RECONSIDERATION
03/08/95 542 (S) RECONSIDERATION NOT TAKEN UP
03/08/95 544 (S) TRANSMITTED TO (H)
03/09/95 671 (H) READ THE FIRST TIME - REFERRAL(S)
03/09/95 671 (H) LABOR & COMMERCE
03/17/95 (H) L&C AT 03:00 PM CAPITOL 17
BILL: HB 233
SHORT TITLE: EXTENSION OF MISC BOARDS & COMMISSIONS
SPONSOR(S): LABOR & COMMERCE
JRN-DATE JRN-PG ACTION
03/06/95 590 (H) READ THE FIRST TIME - REFERRAL(S)
03/06/95 590 (H) LABOR & COMMERCE, FINANCE
03/17/95 (H) L&C AT 03:00 PM CAPITOL 17
BILL: HB 236
SHORT TITLE: REDUCTION IN STATE EMPLOYEE COMPENSATION
SPONSOR(S): FINANCE
JRN-DATE JRN-PG ACTION
03/06/95 597 (H) READ THE FIRST TIME - REFERRAL(S)
03/06/95 597 (H) LABOR & COMMERCE, FINANCE
03/17/95 (H) L&C AT 03:00 PM CAPITOL 17
ACTION NARRATIVE
TAPE 95-19, SIDE A
Number 000
The House Labor & Commerce Standing Committee meeting was called to
order by Chairman Pete Kott at 3:15 p.m. Members present at the
call to order were Representatives Kott, Sanders and Kubina.
Members absent were Representatives Rokeberg, Elton, Masek and
Porter. Representative Rokeberg arrived at 3:20 p.m.
CHAIRMAN PETE KOTT stated the committee wouldn't have a quorum
until the next member arrived. He said that the first order of
business would be the confirmation hearing for Paige Hodson.
Number 031
PAIGE HODSON, testified via teleconference, regarding her
confirmation. She informed the committee she was a lifelong
resident of Alaska. She had been a residential real estate
appraiser since 1982. She said she holds the senior residential
appraiser (SRA) designation with the Appraisal Institute and serves
on various boards and commissions. Ms. Hodson explained she has a
degree in Business Administration with an emphasis on real estate.
Her goals are to maintain the highest level of quality of work; to
keep active in the community as it relates to real estate
appraisal; and to maintain a high level of education during that
process.
Number 057
CHAIRMAN KOTT referred to her resume' and asked what was meant when
she listed "qualified as an expert witness in appraising in various
levels of the State of Alaska Court System".
MS. HODSON responded that the major call was to give testimony in
dealing with divorces.
CHAIRMAN KOTT asked if she had done any appraisals on the new court
building.
MS. HODSON stated that she was strictly a residential appraiser.
CHAIRMAN KOTT thanked Ms. Hodson for her testimony on behalf of the
committee. For the record, he stated that Representative Rokeberg
had joined the meeting at 3:20 and that they now had a quorum.
SB 78 AM - ALCOHOL SALES IN HOTEL ROOMS
The next order of business was SB 78 am.
SENATOR BERT SHARP, ALASKA STATE LEGISLATURE, PRIME SPONSOR, stated
that tourists, especially European and Japanese travelers, feel
that this is an amenity that they want in hotel rooms. This bill
seeks to authorize the Alaska Beverage Control (ABC) Board to allow
beverage dispensary license holders the right to allow self serve
liquor sales in hotel and motel rooms. He said that the current
plan is to allow alcoholic beverages to be stocked in lockable
refrigerators placed in the rooms. Once the hotel or motel staff
has determined the registered guest to be at least 21 years of age,
a key to the locked unit can be obtained along with the room key.
He stated that the bill has been introduced at the urging of many
hotel and motel operators, as well as the Alaska Hotel and Motel
Association, the Alaska Cabaret Hotel Restaurant and Retailers
Association, and others. He pointed out that the Seventeenth
Alaska Legislature had passed SB 183, which was an identical bill,
but that Governor Hickel had vetoed it. He stated there is a zero
fiscal note and that the director of the ABC Board, Pat Sharrock,
had furnished a letter stating, "because the bill retains the
provision that the board must authorize stocking of alcohol
beverages in hotel rooms and the board may provide for permit for
stocking by regulation, the board does not object to the proposed
amendment to the current statutes which this bill encompasses." He
read a portion of a letter from Frank Rose of North American Asset
Management which stated, "I believe that it's important legislation
for the hospitality business. It allows a service to be provided
that many facilities outside Alaska provide to vacation and
business travelers. In fact, it has become an expected amenity.
The new mini bar systems have a number of features that allow for
control, such as the time of use, automatic inventory, special key
systems, et cetera. Additionally, statistics show that the primary
use of the mini bar is for dispensing snacks and non-alcoholic
beverages, but the alcoholic beverage sales are important because
they make the system profitable."
Number 175
CHAIRMAN KOTT pointed out the differences between SB 78 and HB 162.
He said that SB 78 contains the requirement that the person
stocking the alcoholic beverages be at least 21 years of age and
can only take place during certain hours. He stated that it also
contains provision that the key cannot be removable from the unit's
lock unless the unit is in fact locked. SB 78 further makes the
provision for the ABC Board to issue permits for the dispensary
service, and by regulation, set the fee for the administrative
cost. He stated that it deletes the provisions of minimum rooms.
CHAIRMAN KOTT asked if the refrigerated unit, using a key or
combination lock system within the guest room, is included in those
systems that are electronically controlled by the front desk.
SENATOR SHARP responded that was correct.
REPRESENTATIVE NORMAN ROKEBERG made a motion to move SB 78 am, out
of the House Labor and Commerce Committee, with individual
recommendations and accompanying fiscal notes.
CHAIRMAN KOTT asked if there were any objections. Hearing none,
the motion passed.
HB 233 - EXTENSION OF MISC BOARDS & COMMISSIONS
CHAIRMAN KOTT stated that the next bill before them is HB 233,
sponsored by the House Labor and Commerce Committee. He continued
the bill extends a number of boards and commissions which are
either sunsetting or in their wind down year. The affected boards
and commissions perform regulatory and licensure services. He
stated they are all essential, necessary and in the best interest
of the state. He referred to the proposed committee substitute
(CS), Lauterbach, Version M, dated 3-16-95, and said sections
eight, nine and ten have been added. Those are the Real Estate
Commission, the Special Education Service Agency, and the Board of
Storage Tank Assistance. He said these were overlooked. He
indicated they did have a report by the Legislative Budget and
Audit Committee that recommends their extensions.
Number 262
REPRESENTATIVE GENE KUBINA stated that he was interested in Section
12, and asked if this was the correctional industries sunset date.
CHAIRMAN KOTT asked if he was referring to the original bill or the
proposed CS.
REPRESENTATIVE KUBINA responded he was referring to Section 12 of
the proposed CS. He explained he had been asked by live stock
producers in his district if that date could be extended until
1999.
CHAIRMAN KOTT stated that they first would need to adopt the
proposed CS.
REPRESENTATIVE KUBINA made a motion to adopt the CS.
CHAIRMAN KOTT asked if there were any objections. Hearing none,
the CS for HB 233 was adopted. In response to Representative
Kubina's question, Chairman Kott stated that they had extended the
Correctional Industries Commission for an additional year based
upon comments made by the commissioner regarding the supplemental
budget. He said there was some discussion that the whole program
is in jeopardy and may just be deleted. He said that rather than
extending the date four years, and then finding out that they don't
have a program, they opted to go with one year. Chairman Kott said
that if something happens between now and the time this bill passes
the Senate, it can be amended.
REPRESENTATIVE KUBINA commented that he wouldn't offer an amendment
at this time but would like to work with the Chairman. In case
things change, they could amend the bill on the floor.
CHAIRMAN KOTT stated there is a meeting scheduled with the
correctional industry in hopes that they can resolve some of the
financial problems.
REPRESENTATIVE ROKEBERG agreed with Representative Kubina in
wanting to work something out before the bill got to the floor.
CHAIRMAN KOTT offered two conceptual amendments. The first, was on
page 2, line 1 of the CS, dealing with Board of Marine Pilots, to
conform with the transportation bill that extends them until 1999.
The amendment would extend the Board of Marine Pilots until 1999.
REPRESENTATIVE KUBINA made a motion to delete line 1.
CHAIRMAN KOTT stated that it would be line 1, change "1996" to
"1999". The change would reflect the same bill that is being
sponsored by Representative Gary Davis. The second change would
delete line 9 and 10 on page 2, that deals with Section 6. He
stated that this particular area would now be within the Department
of Administration.
REPRESENTATIVE KUBINA asked if they were addressing the amendments
separately or as one.
CHAIRMAN KOTT preferred that they address them separately.
He stated that amendment one had already been adopted, that being
the change of 1996 to 1999. He stated this amendment would be
conceptual amendment two, deleting section six.
REPRESENTATIVE ROKEBERG made a motion to adopt Amendment 2.
CHAIRMAN KOTT added that along with the two amendments, the title
would have to be amended and requested that a comma be placed after
"Real Estate Commission."
Number 370
REPRESENTATIVE KUBINA asked why some boards are extended to the
year 2004, and some are to 1999.
Number 372
CHAIRMAN KOTT responded that in the Legislative budget and audit
reports, most of these boards have gone to a ten year provision.
REPRESENTATIVE ROKEBERG asked if the section numbers needed to be
conformed.
CHAIRMAN KOTT responded that they would change the section numbers
accordingly. He explained the three changes as adding three areas:
deleting the Board of Nursing Home Administrators, making a
grammatical change, and extending Marine Pilots to 1999. He
continued Amendment 2 had been adopted and that they still had
Amendment 3.
REPRESENTATIVE ROKEBERG made a motion to adopt Amendment 3.
Number 400
CHAIRMAN KOTT asked if there were any objections. Hearing none,
the motion passed. He stated that they now had the CSHB 233(L&C)
with accompanying fiscal notes before the committee. He asked if
there was anyone wishing to testify.
CATHERINE REARDON, DIRECTOR, DIVISION OF OCCUPATIONAL LICENSING,
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, explained that
eight of these entities were within the Division of Occupational
Licensing. She commented that the Department of Commerce, Division
of Occupational Licensing, would be administering the program of
Nursing Home Administrators. She mentioned that the Big Game
Commercial Services Board was also in it's wind down year and is
not mentioned in this bill. It is included in HB 102, which does
extend that board. She said that there is a positive fiscal note;
however, it does not indicate any increase over the current
operating budget. She explained with sunset legislation, they are
required to reflect the entire cost of administering these boards,
rather than reflecting that it is a zero fiscal note. She also
stated that the Division of Legislative Audit has recommended
continuing all of these boards for either eight or ten years,
rather that the four year period. They see this as being more
efficient.
Number 436
REPRESENTATIVE ROKEBERG asked why it would cost $260,000 for
personnel services for the State Medical Board.
MS. REARDON stated that they have an executive secretary in
statute, which is more or less an Executive Director along with two
other staffers assigned to them. She stated that her division
operates off of a self sufficiency mandate, which means that the
fees charged to licensees must cover 100 percent of the cost of
licensing and disciplining that particular profession. In order to
do this, each employee writes down how much time they spend on a
particular profession for every two week pay period, and accounts
for all phone calls, which must be attributed to one profession or
another.
Number 453
CHAIRMAN KOTT stated that they tried to come up with a composite
list which covered all boards and commissions that needed to be
covered.
WALLY ROMAN, MANAGER, ALASKA CORRECTIONAL INDUSTRIES, DEPARTMENT OF
CORRECTIONS, stated that he was there to answer any questions.
Number 470
CHAIRMAN KOTT commented he had seen information which suggested
that they may be at a point where they have to discontinue the
Correctional Industries Program. He asked Mr. Roman if he had any
information.
MR. ROMAN stated that he had no information.
JERRY SHRINER, SPECIAL ASSISTANT TO THE COMMISSIONER, DEPARTMENT OF
CORRECTIONS, stated that the budget issues are for the supplemental
budget, not FY 96. The department is comfortable that they have
sufficient money in the supplemental budget, and they will be able
to continue to operate correctional industries, statewide, as long
as they receive the funding as it now stands.
Number 490
REPRESENTATIVE KUBINA asked if it was the department's desire to
leave the date at 1996, or raise it to 1999.
Number 500
MR. SHRINER responded that the department considers correctional
industries an integral part of the efforts of reformation and
population management. From the Corrections stand point, it is
first a program of rehabilitation and vocational training. In the
effort to do that, they interject themselves into the private
community. He said they work with Mt. McKinley Meats, they provide
a vital service to various farmers from Delta to the Mat-Su Valley.
He stated they have public/private efforts with a casket company
out of Spring Creek, and also with a laundry service here in
Juneau. He stated private businessmen need to be able to plan
longer than June 30, of one year to June 30, of another. He said
they would like to not have the sunset date at all, or have it
considerably longer than the one year, not only for planning
internally, but also because its difficult dealing with the private
sector when they aren't sure that the correctional industries can
follow through from one year to the next.
Number 523
CHAIRMAN KOTT noted that Mt. McKinley Meats slaughters, cuts and
packages. He said that the slaughtering is not competing with the
private sector. However, the cutting and packaging processes are
by one third or one half.
Number 532
MR. ROMAN stated in FY92 and FY93 when there was concern among the
red meat industry that Mt. McKinley Meats might go out of business.
They have held several public hearings and, from the testimony, the
ranchers in the valley clearly stated that Mt. McKinley Meats
should continue its operations. The commission at the time
appointed a private sector committee to look into the problem.
That committee recommended that the correctional industries enter
into the custom cut and wrap operation. The commission voted to
enter into this. He said their pricing is on the low end of the
scale. On March 31, they will be meeting with the Correctional
Industries Commission and the private sector to determine what
process they should establish. He explained the correctional
industries is caught in the middle. One side of the private sector
wishes them to lower their prices because they provide a service to
the public, and the other side of the private sector is in that
business and they don't want them to fall below the market price.
He stated that they need to clarify how they arrive at these prices
and it should be reviewed regularly by the commission. This will
all be discussed at the March 31st, meeting along with a survey by
the Division of Agriculture and Correctional Industries of how
their prices fall in with the rest of the state.
Number 562
CHAIRMAN KOTT made the observation that people will always want to
pay a lower price for services but that this isn't always feasible.
Number 575
REPRESENTATIVE KUBINA said he was under the impression, after
attending an agricultural symposium, that they had in fact raised
their prices, and are now five percent above the average.
MR. ROMAN responded that this was one of the strategies that they
had put forth. They should be five percent above the private
sector, giving the private sector the edge. It was then determined
that perhaps this would be too high. He said several scenarios
will be brought forth on March 31, and that the prices should be
higher than what they are now.
REPRESENTATIVE KUBINA concurred they shouldn't be undercutting
private businesses.
Number 601
CHAIRMAN KOTT added if similar prices were charged, there is still
an advantage of taking your products to Mt. McKinley Meats, because
they are the only ones who do the slaughtering.
MR. ROMAN stated there is some benefit at having everything done at
Mt. McKinley. What they have offered to do is truck to private
sector companies, providing them the option of having it done at
Mt. McKinley Meats or another private sector processor.
Number 601
CHAIRMAN KOTT asked what they pay the inmates.
MR. ROMAN answered that $1.25 per hour is the top wage.
CHAIRMAN KOTT added a butcher in Anchorage receives approximately
$15 per hour.
MR. ROMAN pointed out most of the people that come through Mt.
McKinley Meats are learning the profession. Unfortunately, you get
what you pay for.
Number 610
REPRESENTATIVE KUBINA stated that AS 33.32 will be repealed July
1st, and they are changing 1995, to 1996. He said it's not just
the commission they are talking about, and that the Chairman may be
right on the point of deleting the repeal dates. He stated if you
don't fund them, they are not going to happen anyway. He would
like to see this extended, but if there is controversy, they should
get more backup material. He said it might be better to repeal the
whole repealer.
CHAIRMAN KOTT asked if that meant to not have a sunset date at all.
He supposed that you could make that an argument for all the boards
and commissions, that if you don't fund them, they're not going to
be there.
REPRESENTATIVE KUBINA interjected only this particular repealing
date is in the section several times. They could leave it this way
for the commission itself, but for the law as having correctional
industries in that section, they are repealing it more than once.
It's not just the commission this is effecting. He asked if they
should change the date to 1999.
CHAIRMAN KOTT stated that he would have no problem with that.
REPRESENTATIVE KUBINA moved to amend Section 7, AS 33.32 to July,
1999, rather than 1996.
Number 640
CHAIRMAN KOTT stated that there was a motion to change Section 7,
line 28, from "1996" to "1999". This would be conceptual amendment
4.
TAPE 95-19, SIDE B
Number 000
CHAIRMAN KOTT asked if there was an objection to Amendment 4.
Hearing none, it was so ordered.
RACHAEL YATES, ALASKA ASSOCIATION OF MARRIAGE AND FAMILY
THERAPISTS, stated that she was here to answer any questions.
CHAIRMAN KOTT asked what the board does and how often they meet.
MS. YATES responded that the board licenses and looks over the
licensure regulations for marriage and family therapists in the
state. They meet every quarter.
Number 041
CHAIRMAN KOTT stated that the CSHB 233(L&C) as amended was before
the committee.
Number 052
REPRESENTATIVE ROKEBERG made a motion to move the CSHB 233(L&C), as
amended, with individual recommendations and accompanying fiscal
notes.
Number 060
CHAIRMAN KOTT asked if there was an objection. Hearing none, the
motion passed.
HB 236 - REDUCTION IN STATE EMPLOYEE COMPENSATION
Number 078
CHAIRMAN KOTT asked Representative Hanley, prime sponsor of HB 236,
to come forward.
Number 078
MARK HANLEY, PRIME SPONSOR of HB 236, commented that there had been
a press conference three weeks ago on an overall five year
financial plan. They had discussed that there were three areas of
government that made up 75 percent of the spending. Those include
education, health and social services, employee salaries and
benefits. He stated that overall employee salaries run about $700
million in general funds. All three areas are growing at about
four percent per year. The overall goal is to reduce spending $70
million below last year's budget. He said without making
reductions in those three areas, it would require incredible cuts
in the other 25 percent of the budget. He stated it was not their
intent to balance the budget on the backs of state employees.
There are major reductions in programs that will be affected
throughout the budget, with people all over the state being
affected. There is the potential for graduated reduction in the
lower range salaries instead of the five percent across the board
reduction. He said they are willing to look at areas that will not
utilize these particular tools, but the overall goal is to start
closing the gap on state spending.
REPRESENTATIVE HANLEY pointed out that the specifics of the
existing bill is intended to be a five percent reduction for all
state employees including the Governor and Lieutenant Governor, who
were inadvertently left out. He stated in the backup section of
the bill packets, there is information from the Department of
Administration that gives statistics of relative levels of state
salaries compared to the private sector. The average change in
salaries in 1980 to 1991, in the private sector, in comparison to
the inflation rate has lost 25 percent, whereas the state wages
have lost two percent. He said that non-covered employees are paid
based on a salary schedule in statute, this bill makes a five
percent reduction in those particular salaries. For employees
covered under collective bargaining agreements, as their contracts
come up, this bill would require the Governor to negotiate a five
percent reduction in the value of those salaries and benefits. The
reductions are required for all parties and are to exist for three
years. Those who take the five percent reduction through the
statutory chart change, at a particular date or those that have
their negotiations come up sooner, may take their reductions
sooner, but they will last for three years. The intent is that
everyone would take a five percent flat line and it would last for
three years, even though they're not implemented at the same time.
Whatever inequities exist, would exist throughout the process.
This does not attempt to equalize all of the contracts.
Number 211
CHAIRMAN KOTT asked if theoretically, you could have members within
the unions not taking any pay cuts. For instance if the union had
just ratified a contract for three years, and a group of
individuals within that group retired in two and a half years,
would they not take the cuts.
REPRESENTATIVE HANLEY replied that would be correct, there would be
no penalty for those individuals.
Number 220
REPRESENTATIVE KUBINA asked why they were singling out this bill
before the special session in October.
REPRESENTATIVE HANLEY asked if he was speaking of the Long Range
Planning Commission.
REPRESENTATIVE KUBINA responded yes.
REPRESENTATIVE HANLEY stated the point could be made that why
should any reductions be made now, and the same point could be made
of why should we allow any increases. He said their intent was to
put together a five year plan to try to make progress to that. He
said if the commission comes back with some recommendations, they
will incorporate them into their plan.
Number 247
REPRESENTATIVE ROKEBERG asked how they could implement the sliding
scale provisions.
REPRESENTATIVE HANLEY commented that people were interested in
achieving the same net result but of having less of a reduction on
the lower end of the scale. He said the concept was reasonable but
would take some time to work through it.
Number 280
ALISON ELGEE, DEPUTY COMMISSIONER, DEPARTMENT OF ADMINISTRATION,
stated that non-covered employees for the state have not had any
kind of increase since 1991. At the present time they are 3.6
percent below most of the bargaining unit salaries. Under the
terms of several recently negotiated contracts with the
legislature, another 2.5 percent would be added to that. The
compounded effect of this will be a 6.2 percent difference between
non-covered employees and those protected by collective bargaining.
She said the State Personnel Board recommended consideration of an
adjustment of this schedule to 6.2 percent looking not only at
equity with private sector employers, but also internal equity
among state employees. She continued there are several contracts
currently under negotiation. Section 10 takes much of the
bargaining aspect out of collective bargaining. Once parties reach
impasse, the unilateral implementation of changes to compensation
of members could not be done as this legislation envisions. She
explained there are three classes of employees in the State. Class
one employees are not permitted to strike, they include police and
fire employees, general prison and correctional employees, and
hospital employees. State statute provides that those employees,
should they reach impasse, would go to mediation. If that was not
successful, they would go to arbitration. Class two employees
include public utilities, snow removal, and sanitation employees.
If they were to reach impasse, they go to mediation. If mediation
is unsuccessful, they are able to strike. Class three employees
are able to strike if impasse is reached. Her concern in this
section is that there is no anticipation of strike resolution. If
they are bound by an inability to negotiate compensation under any
conditions then the five percent reduction and the employees go to
strike.
Number 331
REPRESENTATIVE ROKEBERG asked Ms. Elgee to explain how she came up
with the 6.2 percent.
MS. ELGEE stated that the last pay adjustment for non-covered
employees was passed by the 1991 legislature. Since that time,
employees covered by collective bargaining have received additional
increases. The non-covered employees are 3.6 percent, below the
Alaska Public Employees Association (APEA) employees. She said
many of the other smaller units that currently have contracts under
consideration by the legislature would include an additional 2.5
percent in conjunction with a 40 hour work week. The compounding
effect of these two actions will make the non-covered employees, as
of July 1, 6.2 percent below the majority of union members.
REPRESENTATIVE ROKEBERG asked if the first integer was 3.6 percent
and if it had a compounding affect over the life of the average
contract.
MS. ELGEE replied that it was 3.6 percent with 2.5 percent on top
of the already adjusted base. The accumulated effect being 6.2
percent.
CHAIRMAN KOTT pointed out that there were bills in both the House
and Senate that would close that gap.
Number 364
REPRESENTATIVE KUBINA asked if the Administration supports this
bill.
MS. ELGEE responded that they had not taken a position on the bill
yet.
number 368
CHAIRMAN KOTT asked her to comment on Section 10, as to whether or
not she could suggest any compromise language that could resolve
the no strike provision of the bill.
MS. ELGEE stated that she would talk to the labor relations analyst
to see if they have suggestions that might work.
CHAIRMAN KOTT announced that the Speaker of the House, Gail
Phillips, had joined the meeting.
Number 379
ART SNOWDEN, ADMINISTRATIVE DIRECTOR, ALASKA COURT SYSTEM, stated
that he had major problems with the substantive contents of this
legislation. He pointed out the non-covered, including judicial
employees, have not had a raise in a much longer period than their
union counterparts. He also stated that the 3.6 percent that the
Executive Branch talks about should be compounded back to when this
raise was given to the unions. The non-unions have lost the use of
that money. The State Personnel Board, has suggested the
following: While it appears that state employees are generally
adequately compensated, in most job classes the non-represented
employees have not received reasonable cost of living increases,
received by and offered to represented employees. The State
Personnel Act requires that the statutory pay plan reflect the
principal of like pay, for like work, (AS 39.25.150 2B). He
continued that the law further requires that the annual pay
schedule be developed, taking into account the statistics and
reasonable internal pay relationships.(AS 39.27.035). This report
suggests that there is a 6.2 percent pay gap. He stated that we
are violating statute right now, and he believes that they are
balancing the budget on the backs of the employees, mainly because
of the sponsor's statement that the unions would only take a
reduction for the term of their contract. He stated that when you
change the statute, it could be forever. It doesn't say for three
years and then it sunsets. He pointed out that 70 percent of the
court system employees are a range 15 or under. These people are
on the edge of having to receive assistance. He said that 200 of
his employees have already organized, and if this legislation
passes, they'll be hanging out a sign that says "Union Shop." He
said if they want fairness, take the union cuts first once they've
achieved those, then they can cut the general pay schedule. He
said that they would then be even and they wouldn't have to cut the
general pay as much because unions are already in front of the
non-covered in regard to salaries.
MR. SNOWDEN passed out a document that would take the committee
through the judicial side of his testimony. He disagreed with
Representative Hanley's remarks that the state employees had not
taken a big hit on the Consumer Price Index (CPI). He illustrated
that when you adjust for cost of living that, for example, a
Supreme Court Judge in Atlanta, makes `X' amount and the CPI in
Atlanta is `X', a judge in Anchorage makes `Y' and the CPI in
Anchorage is 'Y', based on this report, Alaska's Supreme Court
ranks 35th in the nation in pay. On page 2, it shows the
Intermediate Court of Appeals ranks thirty-third in the nation.
The general trial court is thirty-fourth. He said that since 1975,
the Supreme Court judges have lost approximately $17,000 in
purchasing power. In 1989, the legislature had to provide the
judges approximately an $18,000 pay raise because the only
applicants they were getting were out of the public sector;
private sector attorneys wouldn't even apply. He stated they need
to provide a range that attracts some of the most skilled attorneys
in the state to the bench. With this reduction, our courts would
drop to forty-fifth in the nation, in salary. He added judicial
employees work two and a half hours more, per week, than the
Executive Branch; they don't receive overtime until after 40
hours. They process over 140,000 cases, per year, and they didn't
receive the last pay raise. He asked that the committee change
their priorities and demand that the unions negotiate these cuts
and, at that point in time, bring the non-covered employees into
parody with the unions.
CHAIRMAN KOTT asked where the document came from.
Number 468
MR. SNOWDEN stated that they took from the National Center of State
Courts, their report on salaries of judges in all states, and the
report from census bureau on the CPI. He said that they matched
these across the country and made the reductions accordingly.
Number 470
REPRESENTATIVE ROKEBERG made the comment that it would be
interesting to see these same graphs, along with the price of oil,
adjusted for inflation. He said this might help everyone put
things in prospective.
MR. SNOWDEN stated that since 1975, a range 24 wage has increased
by 165 percent, a range ten has increased by 177 percent, a
superior court judge by 99 percent. These are well behind the
other state employees. In reference to Representative Hanley's
recommendation that they start at two percent for lower ranges,
graduated for the middle range, and more for the upper ranges, the
personnel studies show that the highest paid executives in the
state are well under paid. The Commissioner of Health and Social
Services, running a $300 million organization, makes $78,000, he
said if there is a negative adjustment for the private sector, it's
in the middle. Therefore, adjusting the salaries as suggested by
Representative Hanley, would further exacerbate this problem at the
top. He understands the problems of the state. However, if they
want to cut everybody, don't take the uncovered first this time.
Number 496
ALLEN ODELL, testifying via teleconference, said he is an operator
for the Department of Transportation and Public Facilities
(DOT/PF). He said that he is opposed to HB 236. His major concern
was with them bypassing collective bargaining. He asked if
troopers and teachers would be included in the pay cuts.
CHAIRMAN KOTT responded that yes, there is that provision.
Number 509
RICHARD SEWARD, ALASKA STATE EMPLOYEES ASSOCIATION (ASEA) LOCAL 52,
AMERICAN FEDERATION OF STATE COUNTY AND MUNICIPAL EMPLOYEES
(AFSCME), said he is the chief spokes person for the General
Government Unit (GGU) at the collective bargaining, currently
taking place, testified via teleconference. He agreed with the
Administration's concerns about the effect of HB 236 on collective
bargaining. He feels that it takes the bargaining out of
collective bargaining and is a detriment to the whole process. He
said he is concerned about the numbers that have been thrown about.
The last collective bargaining agreement was January 1990, since
that time the CPI has increased by 19 percent. Their wages have
increased by eight percent. He said that this may be more than the
unchartered employees, but he encourages all uncovered employees to
"organize, organize, organize."
MR. SEWARD said that through various negotiations, proposals and
research he has done a great deal of comparisons with the private
sector. He said that the numbers he uses are generated by the
Department of Labor. He found that the average hourly wage,
monthly wage and work week for members of the GGU remain in the
middle of the private sector. In the mining and construction
industries, we do much worse. In the retail trades, we make a
better average wage. He stated that in going from work site to
work site, as a business agent for the unions, he has come to
believe the workers in the field are running a fat free operation.
He said that Alaska needs to decide what services are no longer
needed and, in that way, shrink the size of government.
Number 540
DEBRA CHRISTIANSEN, testifying via teleconference, said she has
been employed with the state since 1986. She said she is a Native
Alaskan, single mother of three and is currently a range 10
grossing $526 per week. She explained that six months ago her
children's father filed for a garnishment of her wages. The state
finance office notified the courts that she did not make enough
money for a garnishment. She said that if the legislature
decreases her wages five percent over the next three years, her day
care and housing costs would still remain the same. At that time,
it would behoove her to quit her job, obtain food stamps and any
other assistance that is out there. She closed by stating that
"our elected officials profess to believe in the sanctity of the
Alaskan family. But Alaskans are seeing with HB 236, is to the
contrary".
CHAIRMAN KOTT thanked Ms. Christianson for her testimony and
commented that the bill sponsor had made comments on the
possibility of graduating the percentages. He stated that if this
bill did come to fruition, she would be affected very minimally.
MS. CHRISTIANSEN stated that any decrease in her salary would
affect her children and she could not afford it, period. The
people that she works with can't afford it. She said if you
decrease her salary by even one percent, she wouldn't be able to
meet her living costs.
Number 565
BRUCE LUDWIG, BUSINESS MANAGER, ALASKA PUBLIC EMPLOYEES
ASSOCIATION, ALASKA FEDERATION OF TEACHERS (AFT), testified against
HB 236. He said it is inconstant with both the collective
bargaining and merit system. Bargaining units are established on
the basis of a community of interest. He said that each group is
unique, or it wouldn't be its own bargaining unit. He said that we
all have different demands, and working conditions. They deal with
these issues through the bargaining process. To establish an
across the board cut ignores this process. He said that the state
has the responsibility to establish wages. Many people think that
the unions go in and negotiate the wages, however, the Supreme
Court took this away from them several years ago. He said the only
thing they negotiate is the salary schedule. The state has the
right to put classes at different levels. Depending on the
statute, they may put a clerk typist at a range 6, 8, or 10. He
said that he represents the supervisory unit employees (middle
management). In the last ten years, they have received four
increases. In 1985, they received a 3.5 percent; in 1990, it was
3.3 percent; 1991 was 5 percent; and in 1992, they received a 3.6
percent increase. He said that they had a 3.8 percent scheduled
for 1996, but voluntarily gave that up when the price of oil
dropped. He said hundreds of their members volunteered to a
reduced work week and to leave without pay. The raises that they
have received are 27.8 percent behind the Anchorage CPI since 1993,
taking into account the 6.6 percent increase that is before the
legislature at this time, negotiated during the Hickel
Administration. He said they have substantially cut their health
plan, holidays, travel and premium pays.
TAPE 95-20 SIDE A,
Number 000
MR. LUDWIG pointed out that everyone knows that the oil money is
tapering off and they aren't going to have the money they used to.
He suggests that the state figure out which programs they don't
want to operate, or let the employees within the Administration try
to mitigate and keep as many programs from going with a certain
amount of money to accomplish that. He closed by saying taking
five percent from everyone is not a good idea. They should bury
the bill, and "let it rest in peace."
Number 015
CHAIRMAN KOTT asked Mr. Ludwig to summarize the second
recommendation.
Number 020
MR. LUDWIG stated that they are currently working with the
Administration to create a labor management program with the
different state unions. Their goal is to identify ways of cutting
costs by giving workers a target figure. For example, "Joe" is two
years away from retirement. If we can find a way to have him
retire early, that would save `X' amount of dollars. "Mary" wants
to be a programmer. If we can get her training, that would leave
her position vacant. He said maybe there is no alternative but to
layoff. However, the employees are the ones that do the work and
have the best ideas on how best to do it.
Number 144
DON ETHERIDGE, PUBLIC EMPLOYEES LOCAL 71, testified that Local 71
just finished negotiations with the Administration. Both sides
feel the negotiations were fair, both sides had concessions in that
contract. He said that it wouldn't be fair for this contract to
now be thrown out after spending so much time and effort on the
negotiations. They are opposed to a five percent cut in any form.
He said in the contract, they voluntarily went to a 40 hour work
week with no wage increase. They did this because they were tired
of public ridicule for not putting in a 40 hour work week. He said
that the only thing they wanted with this was their hourly wage.
They were offered an increase, at the table, and declined. He
stated that Local 71 has probably been the hardest hit in any of
the state bargaining units since the 1986 cuts. The Buildings
Division in Juneau had 33 employees in the 1970s to take care of
all buildings in the Juneau area. Today there are seven caring for
those same buildings. He said that there was more maintenance
staff taking care of the Capitol Building, than there are taking
care of the rest of the state buildings in the area. He said that
Local 71 has had no step increases, except for longevity, which is
three percent after seven years, another three percent after your
ninth year.
REPRESENTATIVE KUBINA asked if the maintenance people in the
Capitol building were all working for the legislature.
MR. ETHERIDGE responded "yes," they work for Legislative Affairs.
However, when the Capitol Building was taken from the Division of
Buildings, they also took two employees and then gave the Division
of Buildings back maintenance of the third floor.
REPRESENTATIVE KOTT referred to the 40 hour work week, and asked if
they were compensated for the extra two and a half hours, and
didn't take a wage increase beyond that.
MR. ETHERIDGE said that they will be paid the base rate for the
extra hours
Number 144
GINA SAMUELS testified via teleconference that she is a 25 year
resident, and a 10 year state employee for the Department of
Corrections at the Wildwood Pretrial Facility in Kenai. She
disagrees with the five percent pay cut. She said that 75 percent
of the state employees are under a range 15. She herself is a
range 10 and can't afford a pay cut. She said that there are other
ways money can be cut from the budget. She said she cannot
understand how the legislature can even consider cutting state
employees wages when the Eighteenth Legislative Council voted to
increase their per diem rate. She asked how can it be fair to
raise per diem rates and then turn around and cut employees wages.
She noted that the sponsor of HB 236, along with Chairman Kott and
Speaker Phillips, were the people that voted for this increase.
She asked that they consider that the bulk of state workers do not
make big bucks. The loss of this money is also a loss to the
communities and local economies.
Number 192
ELAINA SPRAKER testified via teleconference against HB 236. She
said that she is married to area biologist, Ted Spraker, who works
for the Department of Fish and Game. She said it is obvious that
supporters of this bill are balancing the state budget on the backs
of the state employees. She indicated she speaks on behalf of the
many of the Department of Fish and Game employees, in using her
husband and family as an example. Her husband averages 60 hours
per week. She said last week, three of the days he worked were 18
to 20 hours, per day, with no overtime pay. Any compensation he
receives in his pay, which is called "hazardous pay," is a whopping
$2.11 per hour. She enlightened the committee as to what hazardous
pay has included: One plane crash, one helicopter crash, he fell
off the side of a mountain while taking goats, has been bitten by
wolves, kicked by moose and crawled into many bear dens, but the
most dangerous hazard that he endures is when people don't realize
the dedication that he has to his job. She said that his
colleagues with the same number of years in the department have
also endured these hazards as well and she has rarely heard them
complain. Most the employees in the Soldotna Fish and Game Office
have not had a pay raise in ten years. She stated that this gives
her heartburn. With her husbands busy schedule, he is very hard to
reach. Many people call their house figuring that since she lives
with him that she too works for the state. She said that she has
personally donated hours and hours of public service to the
department, and is glad to do it because she supports her husband,
the Department of Fish and Game and the state of Alaska. If she is
willing to do this, the legislature should be willing to do so
also. HB 236 is taking direct aim at destroying one of the highest
standards of resource management in the United States by cutting
wages and budgets from skilled and dedicated people. The wildlife
scientist will soon become underpaid historians. She pointed out
that most of the funding from the Department of Fish and Game comes
from permits and licensees. The five percent cut would be very
unfair.
Number 236
PAT MOSS, testified via teleconference that she had been employed
with the state since 1989. She is a 21 year Alaska resident. She
said when she went to work for the state, she took a 50 percent pay
cut from her private sector job. That job, due to automation, was
done away with. She reiterated that low range employees would be
very much affected by this. There hasn't been any cost of living
decrease. She observed that in talking with many of her
co-workers, they were willing to accept a wage freeze, but they are
not willing to take a reduction. What concerns them is the
continued addition of legislative mandates for more work, longer
hours with no additional pay and now this five percent decrease in
salary. She said the Department of Labor, Unemployment and Job
Placement Division, has experienced a 33 percent staffing
attrition. Another office within the Department of Labor, has lost
more than 50 percent in the past two years, yet are asked to do the
same job. She pointed out that the legislature had said they
intended to reduce all government spending, yet the teachers just
negotiated a contract. The way education handles decreases in
money is that they don't decrease salaries of teachers or
administrators, they decrease programs. She commented that the
University of Alaska, Fairbanks campus, is a mess. The buildings
are dilapidated with paint peeling, water dripping and yet, they
build a huge new home for the chancellor.
Number 280
CHAIRMAN KOTT appreciated that state employees are doing more with
less.
Number 295
FATE PUTNAM, LOBBYIST, ALASKA STATE EMPLOYEES ASSOCIATION,
AFL-CIO, AMERICAN FEDERATION OF STATE AND COUNTY AND MUNICIPAL
EMPLOYEES LOCAL 52, reemphasized the previous testimony of members
of his union. He stated that they are a 8,600 member bargaining
unit currently in the middle of bargaining contracts. The
Administration is doing a very good job negotiating that contract
to be in the best interest of the state of Alaska. The offers put
across the table are evidence that the legislature is getting a
good bargaining position from the state. He said that they haven't
had a pay raise since 1992, the cost of living has gone up, their
pay has stayed level. The purchasing power of the dollar has been
reduced. He said that they are not opposed to a pay freeze, but
most of these people are range 10 and below. They qualify for
public assistance. There are state employees that are on public
assistance. If you ask them to take an additional five percent
cut, the number of people opting for welfare assistance will
increase. He stated that this isn't something they want to see
happen, and they go on record as opposed to a pay reduction. He
said that it should be left to collective bargaining to allow them
to negotiate a reasonable salary for all state employees.
Number 319
REPRESENTATIVE JERRY SANDERS asked if the $526.50 received by the
lady who testified previously, if this was gross or net.
MR. PUTNAM thought this would be her gross salary. He said that
people on public assistance would have to make over $11 an hour to
make it reasonable to come off public assistance. He said that
there are state employees making less than that.
CHAIRMAN KOTT asked if there was anyone else wishing to testify on
HB 236. Hearing none he stated that they would hold HB 236 over
until the next committee meeting.
There being no further business to come before the House Labor and
Commerce Committee, Chairman Kott adjourned the meeting at 5:15
p.m.
| Document Name | Date/Time | Subjects |
|---|