05/12/1998 10:30 AM Senate FIN

MINUTES                                                                        
SENATE FINANCE COMMITTEE                                                       
12 May 1998                                                                    
10:30 a.m.                                                                     
                                                                               
                                                                               
TAPES                                                                          
                                                                               
SFC-98 # 169, Side A                                                           
                                                                               
                                                                               
CALL TO ORDER                                                                  
                                                                               
Senator Drue Pearce, Co-chair, convened the meeting at                         
approximately 10:30 a.m.                                                       
                                                                               
                                                                               
PRESENT                                                                        
                                                                               
In addition to Co-chair Pearce, Senators Phillips, Donley,                     
Parnell and Adams were present when the meeting was                            
convened.  Co-chair Pearce noted Senator Bert Sharp was                        
ill.                                                                           
                                                                               
                                                                               
Also Attending:  Scott Kowasaki, staff to Representative                       
Tom Brice; and aides to committee members and other members                    
of the legislature.                                                            
                                                                               
                                                                               
SUMMARY INFORMATION                                                            
                                                                               
                                                                               
 HOUSE BILL NO. 323                                                            
                                                                               
"An Act relating to the calculation of credited                                
service in the public employees' retirement system for                         
noncertificated employees of school districts,                                 
regional educational attendance areas, and state                               
boarding schools; and providing for an effective                               
date."                                                                         
                                                                               
                                                                               
 CS FOR HOUSE BILL NO. 323(L&C)                                                
                                                                               
"An Act relating to the calculation of employee                                
contributions and credited service in the public                               
employees' retirement system for noncertificated                               
employees of school districts, regional educational                            
attendance areas, and state boarding schools; and                              
providing for an effective date."                                              
                                                                               
 CS FOR HOUSE BILL NO. 323(HES)                                                
                                                                               
"An Act relating to the calculation of employee                                
contributions and credited service in the public                               
employees' retirement system for noncertificated                               
employees of school districts, regional educational                            
attendance areas, and state boarding schools; and                              
providing for an effective date."                                              
                                                                               
                                                                               
Co-chair Pearce called HB 323, the PERS Credit For                             
Noncertificated Employees.  She noted the prime sponsor was                    
Representative Tom Brice, but said neither he nor his staff                    
were present.  She recognized Guy Bell and Bill Church from                    
the Department of Administration, Retirement and Benefits                      
and asked if any members had any questions.  She also noted                    
the presence of representatives of the NEAA and the                            
Laborers' if there were any questions.                                         
                                                                               
Senator Parnell indicated that he would like a short                           
summary of the bill before the committee.                                      
                                                                               
Scott Kowasaki, staff to Representative Tom Brice, read a                      
brief sponsor statement into the record.  He noted Alaska                      
had many noncertificated employees in the school who worked                    
nine, ten or eleven months out of the year along with their                    
certificated counterparts.  The bill would allow                               
noncertificated school employees who work comparable amount                    
of days in the same category as certificated employees to                      
receive the same amount of credit towards retirement.  The                     
changes in the PERS system under the bill would be                             
supported by the employees rather than increasing the                          
burden to the school districts.  Employees currently active                    
in the system will have one hundred days to opt into the                       
program and new employees will have the option to                              
participate within ninety days of employment.                                  
                                                                               
Co-chair Pearce thanked Mr. Kowasaki and asked if there                        
were any questions from the committee.  Senator Parnell                        
asked how many noncertificated employees were involved                         
statewide?  Mr. Kowasaki said he believed there were                           
approximately sixty-six hundred as indicated on the fiscal                     
note.                                                                          
                                                                               
Co-chair Pearce advised that there was no way now to get to                    
the fiscal note and therefore if the bill passed it would                      
have to be without dollars following it for this fiscal                        
year.  With the operating budget being closed out now there                    
was no way to include any fiscal notes.                                        
                                                                               
Senator Donley MOVED CSHB 323(FIN) with individual                             
recommendations and accompanying fiscal note.  Co-chair                        
Pearce cautioned the committee in moving the bill with the                     
fiscal note because they could no longer get to it.                            
Senator Donley amended his motion to moving CSHB 323(FIN)                      
without accompanying fiscal note.  Without objection CSHB
(FIN) was REPORTED OUT with individual recommendations.                     
                                                                               
                                                                               
ADJOURNMENT                                                                    
                                                                               
There being nothing else to come before the committee Co-                      
chair Pearce recessed to call of the chair at approximately                    
10:40 a.m.                                                                     
                                                                               
                                                                               
SFC-98 -3- 05/12/98