Legislature(1993 - 1994)
01/25/1994 08:00 AM House STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE STATE AFFAIRS STANDING COMMITTEE
January 25, 1994
8:00 a.m.
MEMBERS PRESENT
Representative Al Vezey, Chairman
Representative Pete Kott, Vice Chairman
Representative Bettye Davis
Representative Gary Davis
Representative Jerry Sanders
Representative Harley Olberg
Representative Fran Ulmer
MEMBERS ABSENT
None
COMMITTEE CALENDAR
HB 277: "An Act relating to public employers defending and
indemnifying public employees with respect to
claims arising out of conduct that is within the
scope of employment."
HEARD AND HELD
HJR 22: Proposing amendments to the Constitution of
the State of Alaska relating to membership of
the legislature.
HEARD AND HELD
*HB 345: "An Act relating to the preservation of public
facilities and to appropriations for annual
maintenance and repair, periodic renewal and
replacement, and construction of public
facilities."
HEARD AND HELD OVER
WITNESS REGISTER
REPRESENTATIVE BRIAN PORTER
Alaska State Legislature
State Capitol Building, Room 122
Juneau, AK 99801-1182
Phone: 465-4930
Position Statement: Prime sponsor of SCHB 277
TERRY CRAMER, Legislative Legal Counsel
Division of Legal Services
Legislative Affairs Agency
130 Seward Street, Room 407
Juneau, AK 99801-2105
Phone: 465-2450
Position Statement: Commented on CSHB 277
LARRY LABOLLE
Aide to Representative Richard Foster
Alaska State Legislature
State Capitol Building, Room 420
Juneau, AK 99801-1182
Phone: 465-3789
Position Statement: Commented on HJR 22
REPRESENTATIVE JEANNETTE JAMES
Alaska State Legislature
State Capitol Building, Room 501
Juneau, AK 99801-2105
Phone: 465-3743
Position Statement: Prime sponsor of HB 345
JERRY NEWBERT, Assistant Vice-President
Facilities, University of Alaska
Statewide System Office
910 Yukon Drive
Fairbanks, AK 99775-2388
Position Statement: Testified in support of HB 345
ROD WILSON, Architect
Department of Transportation & Public Facilities
3132 Channel Drive
Juneau AK 99801
Phone: 465-6962
Position Statement: Commented on HB 345
PREVIOUS ACTION
BILL: HB 277
SHORT TITLE: INDEMNIFICATION OF PUBLIC EMPLOYEES
SPONSOR(S): REPRESENTATIVE(S) PORTER
JRN-DATE JRN-PG ACTION
04/07/93 1070 (H) READ THE FIRST TIME/REFERRAL(S)
04/07/93 1070 (H) STATE AFFAIRS, JUDICIARY,
FINANCE
01/18/94 (H) STA AT 08:00 AM CAPITOL 102
01/18/94 (H) MINUTE(STA)
01/25/94 (H) STA AT 08:00 AM CAPITOL 102
BILL: HJR 22
SHORT TITLE: LEGISLATURE OF 25 SENATORS, 50 REPS
SPONSOR(S): REPRESENTATIVE(S) FOSTER, Davidson
JRN-DATE JRN-PG ACTION
02/01/93 197 (H) READ THE FIRST TIME/REFERRAL(S)
02/01/93 197 (H) CRA, STATE AFFAIRS, JUDICIARY,
FINANCE
02/05/93 240 (H) COSPONSOR(S): DAVIDSON
04/13/93 (H) CRA AT 01:30 PM CAPITOL 124
04/13/93 (H) MINUTE(CRA)
04/14/93 1198 (H) CRA RPT 3DP 3NR
04/14/93 1198 (H) DP: WILLIAMS, SANDERS, OLBERG
04/14/93 1198 (H) NR: TOOHEY, WILLIS, BUNDE
04/14/93 1198 (H) NR: TOOHEY, WILLIS, BUNDE
04/14/93 1198 (H) -2 FISCAL NOTES (GOV, LAA)
4/14/93
01/25/94 (H) STA AT 08:00 AM CAPITOL 102
BILL: HB 345
SHORT TITLE: PRESERVATION OF PUBLIC FACILITIES
SPONSOR(S): REPRESENTATIVE(S) JAMES
JRN-DATE JRN-PG ACTION
01/07/94 2018 (H) PREFILE RELEASED
01/10/94 2018 (H) READ THE FIRST TIME/REFERRAL(S)
01/10/94 2018 (H) STATE AFFAIRS, FINANCE
01/25/94 (H) STA AT 08:00 AM CAPITOL 102
ACTION NARRATIVE
TAPE 94-5, SIDE A
Number 001
CHAIRMAN AL VEZEY called the meeting to order at 8:00 a.m.,
Tuesday, January 25, 1994. It was noted that this meeting
would be on teleconference with Anchorage and Fairbanks.
Members present were Representatives Vezey, Kott, Ulmer, B.
Davis, G. Davis, Sanders, and Olberg.
HB 277 - INDEMNIFICATION OF PUBLIC EMPLOYEES
Number 032
REPRESENTATIVE BRIAN PORTER presented CSHB 277. He said the
committee substitute addresses a number of concerns put
forth by the Department of Law. He reiterated comments of
last week regarding SEC. 1A and SEC. B.
REPRESENTATIVE PORTER further explained that an employer is
not required to provide indemnification if that employer
feels that the act was outside the scope of employment or as
a result of gross negligence or an intentional act. If this
is the allegation of the employer and the employer has been
dropped from the suit or never was named in the suit, the
remedy of the employee it to bring suit if he or she feels
that indemnification is still justified under this act. If
the employer is named in the suit and still refuses to
indemnify, there is a provision for a cross claim by the
employee. If the employer takes advantage of the provision
that allows for indemnification to the extent of providing a
defense for the employee, but reserves the right to
indemnify damages until the end of the proceeding, which may
or may not establish that there was outside of the scope of
gross negligence, they may do so. The employees remedy then
is, within one year, to file suit for indemnification under
this act. He went on to say the suggestion by the
department that an employee must notify his or her employer
within ten days can be waived for good cause and cited an
example.
REPRESENTATIVE PORTER continued with an overview of letters
of support, starting with the letter from Kent. E. Swisher
from the Alaska Municipal League. In addition, he noted the
updated memo from the Anchorage Telephone Utility, a letter
of endorsement by Michael Grimes, statewide President of
Alaska Peace Officers Association, and a letter from the
Alaska Association Chiefs of Police.
REPRESENTATIVE PORTER noted the presence of Terry Cramer
from the Division of Legal Services, Legislative Affairs
Agency.
REPRESENTATIVE VEZEY asked Representative Porter if there
were other public entities that have a problem in this area.
REPRESENTATIVE PORTER said he has been aware of individual
employees, who have expressed concern over the years about
being vulnerable. He further noted that municipalities
change policy, potentially every four years.
REPRESENTATIVE VEZEY asked for clarification regarding
punitive damages to the employee.
Number 207
REPRESENTATIVE PORTER said that it is not a requirement
under this legislation, but it also does not preclude it.
He further stated that a labor contract or any other policy
may provide for punitive damages, but it is not mandated by
this bill.
Number 261
REPRESENTATIVE VEZEY referenced the Fairbanks ordinance
outlining indemnification. He noted the importance of local
self-determination, and voiced a concern about usurping
that. He asked if there was a provision to allow a
municipality's ordinance to supercede state law in cases of
indemnification.
Number 317
REPRESENTATIVE PORTER responded by saying that as a sponsor
of the bill, he did not have a problem with language that
would defer to the codification of public employee
indemnification that exceeds what is outlined in HB 277.
REPRESENTATIVE PORTER asked Representative Gary Davis, as a
former municipal official, if he had a problem with HB 277.
REPRESENTATIVE G. DAVIS said he supported the bill.
Number 346
REPRESENTATIVE VEZEY asked Representative Ulmer if she had
anything to share regarding this legislation, as a former
municipal official.
REPRESENTATIVE FRAN ULMER responded by saying she supports
the policy goal of statewide uniformity that the bill puts
forth. She asked for clarification in cases of age, race or
specifically, sexual harassment cases.
Number 361
REPRESENTATIVE PORTER reiterated the provisions in the bill
regarding gross negligence, the options of the employer and
the employee, in a situation where they do not agree on
indemnification.
Number 368
REPRESENTATIVE ULMER asked Terry Cramer if she had any
comments or insights on how the employer would proceed,
internally, whether or not they should provide counsel.
Number 407
TERRY CRAMER, DIVISION OF LEGAL SERVICES, said that it would
be up to the individual public employer to follow whatever
procedures they have established for those kinds of
decisions.
Number 412
REPRESENTATIVE G. DAVIS echoed comments made by Terry
Cramer: the individual employer usually has a sexual
harassment policy in place which outlines procedures to deal
with decisions regarding sexual harassment. He pointed out
that though wording in the bill defining "scope of
employment" and "good faith" can be subject to
interpretation, in sexual harassment cases, there is most
often a separate policy specific to that issue.
Number 432
REPRESENTATIVE PORTER followed up by saying that "scope of
employment" and "good faith" have generally accepted
definitions.
Number 443
REPRESENTATIVE ULMER moved to adopt CSHB 277
Number 450
CHAIRMAN VEZEY called for a roll call vote. CSHB was MOVED
out of committee with a unanimous vote.
HJR 22 - LEGISLATURE OF 25 SENATORS, 50 REPS
Number 472
LARRY LABOLLE, AIDE TO REPRESENTATIVE RICHARD FOSTER, spoke
on HJR 22. He said that the resolution was primarily
introduced to create awareness of the potential for
increasing the size of the legislature to improve
representation. He went on to say that with the current
redistricting, the rural districts have become impossibly
large.
MR. LABOLLE stated that this issue has come up before in the
state of Alaska. There have been, since statehood, two
resolutions to suggest that the size of the legislature
should be increased. He stated, when Representative Foster
was preparing this legislation, it was decided that 60 House
members and 30 Senate members would be appropriate.
He further discussed the problems of Representative Foster's
district. The Yupik contingent feel they are not fairly
represented.
MR. LABOLLE said that Representative Foster did not
necessarily intend for this resolution to make it through
this legislative session, but wanted to create awareness.
He also stated the advantages of passing this bill would be
that it would be less costly to run for office. Presently
the high cost of travel while campaigning precludes many
people from being effective candidates, and as such, there
is a certain contingent of the state that is disenfranchised
from running for the legislature.
MR. LABOLLE said in closing he felt the fiscal notes were
unrealistic. He said that a 25 percent increase in the size
of the legislature should not double the cost of the
legislature. Assuming that there would be a larger pool to
draw from to fill the same committees, it would not
necessarily mean the committee size had to increase. He
further stated that there would be some increase in staff,
but with fewer committee assignments the staff could be
distributed among the legislators.
REPRESENTATIVE PETE KOTT asked if there were any statistics
or numbers that would indicate the largest and smallest
states based on population and the number of legislators in
those states.
Number 536
REPRESENTATIVE VEZEY responded to Representative Kott's
question by pointing out that the information was summarized
in the Blue Book.
Number 540
REPRESENTATIVE HARLEY OLBERG said that population is not as
much a concern as geography.
Number 552
REPRESENTATIVE VEZEY commented on the fiscal note.
Number 557
REPRESENTATIVE ULMER made a motion to pass HJR 22
CHAIRMEN VEZEY called for a roll call vote. Representatives
Vezey, Ulmer, B. Davis, G. Davis, Sanders and Olberg voted
YES. Representative Kott voted NO.
HJR 22 PASSED out of Committee with individual
recommendations.
HB 345 - PRESERVATION OF PUBLIC FACILITIES
Number 584
REPRESENTATIVE JEANNETTE JAMES, prime sponsor of HB 345,
read from the sponsor statement to the committee (attachment
on file). She stated the intent of this bill is to put a
priority on maintenance by putting a line item in the
budget, so that it is identified as the formula that is
required to maintain the buildings in order to protect the
state's capital assets.
Number 637
JERRY NEWBERT, UNIVERSITY ARCHITECT AND ASSISTANT VICE
PRESIDENT FOR FACILITIES in the Statewide System Office of
the University of Alaska, spoke in support of HB 345. He
informed the committee of the maintenance needed at the
University and said that more operating funds were needed.
In addition, he said that the University has a sizable
backlog of deferred maintenance, which is the result of
underfunding the operating budget categories. He said that
projects are often underfunded.
MR. NEWBERT went on to say that the University is not
predicting to fund any new positions as a result of this
bill, because they would be contracting with the public
sector.
Number 689
REPRESENTATIVE VEZEY asked if we a trying to force the
legislature to appropriate money, when in the past there has
been an absence of commitment to fund maintenance of the
physical plant in the state of Alaska.
TAPE 94-5, SIDE B
Number 001
MR. NEWBERT responded to Representative Vezey by saying that
this bill points the emphasis in the right direction. The
correct emphasis should be on maintenance of what we have
and not in the expansion mode. Mr. Newbert introduced
KATHLEEN SHEDLER, director of the University of Alaska
Fairbanks Office of Planning and Project Services. He added
that her department has procurement authority to do the
planning and construction for projects at the UAF.
Number 043
REPRESENTATIVE DAVIS asked for questions from the committee.
Number 049
REPRESENTATIVE BETTYE DAVIS asked if the Department of
Transportation was going to testify.
Number 060
REPRESENTATIVE KOTT referenced page 2, line 16..." the
legislature must appropriate the necessary funds for new
construction or for renovation or remodeling of public
facilities." He said this was vague and asked if this was
referencing the requirements established by Department of
Transportation, based on their visits to these public
facilities on an annual basis.
Number 090
REPRESENTATIVE JAMES responded, the funding would be based
on a formula the department has for maintenance of buildings
based on type, age and cost of the building. The formula
should provide a projection of how much is needed for the
facilities, and it is the intention of this legislation to
fully fund before building new facilities, and that when new
legislation is on the table the same formula should be
applied. She added that it should be understood that
formula monies for the cost of maintaining a new facility
will be coming from the general operating funds in future
years to cover maintenance of that building.
Number 109
REPRESENTATIVE KOTT commented and questioned the sponsor if
this legislation would commit future legislatures to this
formula.
REPRESENTATIVE JAMES responded in the affirmative.
Number 120
REPRESENTATIVE JAMES further pointed out there are other
options if the state needs a capitol building. She went on
to say that if the state does not want to commit to the
funding of the operating and maintenance cost of a facility,
there is always the option of leasing a building.
REPRESENTATIVE VEZEY asked for questions. Being none he
introduced ROD WILSON, ARCHITECT, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES, in the headquarters
office in Juneau.
ROD WILSON discussed the perspectives of the Department of
Transportation. He mentioned attending a committee meeting
of the Alaska State Facility Administrators. He said this
organization of which he is a member, did not know how to
write a budget in order to get the adequate funding for
operating, renewal and replacement. As a result, they
received inadequate funding. He went on to say that the
lack of funding forced them to take funds from the
maintenance end of the budget in order to keep a facility
operational.
MR. WILSON said another problem area was that typically the
money is allocated into department budgets. When this
happens, often the funds are again taken from the
maintenance funds for program operations.
MR. WILSON reiterated the importance of requesting adequate
funding for facilities by incorporating long-term
maintenance costs in the request.
Number 200
MR. WILSON said that the Department of Transportation and
Public Facilities supports HB 345 for the most part. He
suggested the Department of Transportation be given more
authority over the disbursement of funds outlined within HB
345, so that the funds can be redirected more appropriately
toward facility request as opposed to the operational
request. The department further requested the renewal and
replacement funds segment be put into a capital expenditure
as opposed to an operational expenditure, so they have the
ability to carry funds over.
In conclusion, MR. WILSON voiced a concern of the department
regarding the provision in the bill that mandates the
completion of repairs on current facilities before building
any new facilities. He went on to say that the
responsibility and the final decision is at the legislative
level.
Number 270
REPRESENTATIVE VEZEY questioned the productiveness and
substantive ability of HB 345.
Number 286
MR. WILSON said it would be productive from the standpoint
of providing direction as to the intention of how the money
is spent, and providing information to the legislature about
how far the state is falling behind on the deferred
maintenance curve. He pointed out at present, the state is
approximately over three million dollars in arrears in
deferred maintenance.
Number 305
REPRESENTATIVE VEZEY asked if the bill addresses the rural
schools and village safe water projects, many of which have
not been constructed; many of which have and are no longer
functioning.
MR. WILSON said he could not comment on the public schools,
but went on to say the fiscal note and position paper does
not address public schools or those other facilities.
MR. WILSON said the backlog that the department is talking
about is strictly state-owned, state-operated facilities.
Number 320
CHAIRMAN VEZEY stated that the figure in the fiscal note was
only about half or less of total cost.
Number 321
MR. WILSON agreed. He said he did not know what the
Department of Education turned in for a fiscal note.
Number 322
CHAIRMAN VEZEY asked Representative James if there was a
fiscal note from the Department of Education.
Number 323
REPRESENTATIVE JAMES said no. She went on to comment on
designating funds saying that it is the intent of the
formula funding to give the legislature tools to make a
decision and to give the legislature, the people who work
for the state of Alaska, and the general public the
information that is required to fund the maintenance of
capital facilities.
Number 348
REPRESENTATIVE KOTT asked how many public facilities and
buildings are being addressed.
MR. WILSON said there were approximately fifteen hundred to
seventeen hundred.
Number 355
REPRESENTATIVE KOTT asked if he based that on his testimony
from a previous meeting of 1.5 percent?
Number 357
MR. WILSON pointed out the legislature had appropriated some
funds in 1991 for maintenance and operations of facilities.
REPRESENTATIVE JAMES said the problem she saw with the
fiscal note was that in fiscal 1995, there is a sixty one
million dollar request, but also that sixty one million
dollars is going to show up in the budget request, although
it will be a lesser amount because it is not fully funded in
the budget, thereby, double reporting the money. She went
on to say that the provision of a formula funding outlined
in HB 345 would clarify the allocation of funds.
Number 411
REPRESENTATIVE G. DAVIS asked if there was a cost benefit
ratio; leasing over owning.
Number 425
MR. WILSON speculated that it was an equal amount of leased
space to owned space.
DUGAN PETTY from General Services Division, Department of
Administration, agreed with Mr. Wilson's comments.
Number 435
REPRESENTATIVE KOTT referenced page 2 line 21 "... The
department shall from time to time, examine all existing
public buildings...." and asked Mr. Wilson to describe what
"time to time" means.
Number 441
MR. WILSON said the Department of Transportation has very
few facility planners and usually see those buildings
approximately once every ten years. The last comprehensive
update and analysis of public facilities was carried out in
the late 1970's. He went on to say that it was
approximately a five million dollar capital project just to
gather that information. The department has recently gone
out and inventoried about 550 state-owned and leased
facilities with regard to ADA compliance. This particular
task has taken about two years to assemble and probably
three hundred thousand to five hundred thousand dollars of
employee's time and expense into that project.
Number 458
CHAIRMAN VEZEY asked if there were any additional questions
or comments. He asked the committee to review the packet on
the bill and rescheduled HB 345 to be heard in two weeks.
Number 485
CHAIRMAN VEZEY adjourned at 9:18 a.m.
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