Legislature(1999 - 2000)
04/19/2000 12:00 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
April 19, 2000
9:53 PM
TAPES
SFC-00 # 100, Side A and Side B
CALL TO ORDER
Co-Chair John Torgerson convened the meeting at
approximately 9:53 PM
PRESENT Co-Chair John Torgerson, Co-Chair Sean Parnell,
Senator Al Adams, Senator Dave Donley, Senator Lyda Green,
Senator Randy Phillips, Senator Gary Wilken
Also Attending: REPRESENTATIVE BILL HUDSON; JOE GELDHOF,
Juneau Attorney; ROBERT REGIUS, Cruise Control; MELINDA
HOFSTAD, staff to Representative Hudson; JOHN BARNETT,
Board of Storage Tank Assistance; JOHNATHON LACK, staff to
Representative Andrew Halcro; JOHN SEER, National Education
Association (NEA)-Alaska;
Attending via Teleconference: From Homer: JOE MCCULLOUGH;
ALAN PARKS, Commercial Fisher; NOELLE MCCULLOUGH; MAKO
HAGGERTY, Chair, Katchemak Bay State Parks Citizen's
Advisory Board; CRAIG FOREST, USCG Auxiliary and lifelong
Alaskan; From Fairbanks: MARIE SCHOLLE, Chair, Governor's
Advisory Council on Safety, Representative, American
Society of Safety Engineers; From Anchorage: MIKE FOLKERT,
Chair, Alaska Boating Safety Advisory Council; CATHY
GILLESPIE, Anchorage School Board; GUY BELL, Director,
Division of Retirement and Benefits, Department of
Administration
SUMMARY INFORMATION
SB 308-MARINE PASSENGER VESSELS
The Committee heard testimony from an attorney contracted
by the legislature to advise on this matter. The Committee
also heard testimony from a non-profit organization. A
committee substitute was adopted, four amendments were
considered and three were adopted. The bill moved from
Committee.
HB 108-USE, REGULATION, AND OPERATION OF BOATS
The Committee heard testimony from the sponsor and members
of the public. An amendment was considered and adopted. The
bill moved from Committee.
HB 432-BOARD OF STORAGE TANK ASSISTANCE
The Committee heard from the Board of Storage Tank
Assistance. The bill was held in Committee.
HB 277-RETIREMENT BENEFITS FOR REHIRED TEACHERS
The Committee heard testimony from the sponsor, the
Division of Retirement and Benefits, representatives from
the teaching profession and the Anchorage School Board. The
bill was held in Committee.
SENATE BILL NO. 308
"An Act relating to certain passenger vessels
operating in the marine waters of the state."
This was the first hearing for this bill in the Senate
Finance Committee.
Co-Chair Parnell moved to adopt CS SB 308, 1-LS1617\D as a
workdraft. There was no objection and the committee
substitute was ADOPTED.
JOE GELDHOF, Juneau Attorney, retained by the legislature
to advise on constitutional issues relating to a tax on the
cruise ship industry, explained the committee substitute.
Mr. Geldhof told the Committee a proposed tax is contained
in Section 1 of the committee substitute. He said this tax
is simple and strait forward on passengers who come to
Alaska in commercial cruise ships.
Mr. Geldhof noted there are some legal concerns, such as an
equal protection issue related to an exemption for vessels
that have less than 50 berths. However, in his opinion,
there is no problem with equal protection. He stated this
is because the legislature has discretion to set certain
standards and that this exemption is well within that
constitutional authority.
Mr. Geldhof explained the liability for payment of this tax
falls on the vessels that are engaged in commercial
activities within Alaskan waters. In that sense, he
surmised this is a self-executing tax the operators collect
on behalf or from the passengers and pay to the Department
of Revenue.
Mr. Geldhof pointed out that this legislation avoids some
of the difficulties under the "nearly archaic and perhaps
almost dead" tonnage clause in the US Constitution, since
the tax is not related to the length or the weight of a
vessel. He explained that under the clause, any revenues
generated under a tonnage tax must be used to fund
services, such as fireboats, that are directly related to
the marine trade.
Mr. Geldhof described how revenues generated by the tax
proposed in this bill would be deposited into the general
fund and would pre-empt municipalities and other local
governments from engaging in other passenger head taxes. In
this sense, he said, the state tax is rationalized because
the industry is not subject to multiple tax schemes at
different rates.
Mr. Geldhof continued that this bill provides that the
Department of Revenue directs a portion of the collected
taxes to the affected communities where the cruise ships
visited.
Co-Chair Torgerson clarified that of the total tax
collected for each passenger, $5 is given to the first five
ports of call.
Mr. Geldhof affirmed and emphasized that this legislation
also places a prohibition on local levies.
Co-Chair Torgerson wanted to know if the municipalities are
also blocked from imposing a wharfing or docking fee.
Mr. Geldhof answered the bill would not restrict municipal
fees for those activities relating to providing a service,
such as delivering water.
Co-Chair Torgerson asked if this legislation would prohibit
a municipality from charging a disembarking tax.
Mr. Geldhof responded that there are a variety of different
ways to describe this type of charge, such as fees, taxes,
embarkation, disembarkation, etc. but that "a tax is a
tax." He stated that this legislation creates the state tax
and prohibits municipalities from imposing a similar charge
although a portion of the revenues would be shared with
those municipalities.
Mr. Geldhof next addressed the definitions prescribed in
the bill. He said the intent is to enact this legislation
directed at the large cruise ships that travel in Alaska.
He noted that the language specifically exempts dayboats
and the small vessels that have 50 berths or less.
Mr. Geldhof shared that an argument could be made that the
vessel size stipulations violate the US Commerce clause,
but countered that no violation is committed so long as
favor is not granted to local commerce. He commented that
legislatures repeatedly get into trouble when they try to
favor local commerce over businesses from other states.
Co-Chair Torgerson said the remainder of the bill,
beginning on page three, addresses environmental concerns
and provide record keeping requirements and emissions.
Mr. Geldhof affirmed but stated that he was not
knowledgeable on this portion of the bill.
Senator Phillips asked how much revenue this tax would
generate.
Mr. Geldhof responded that although a fiscal note had not
yet been prepared, he knew that approximately 600,000
passengers passed through Juneau, which is the largest port
of call in the state.
Senator Phillips asked if $30 million was the approximate
amount that this tax would collect.
Mr. Geldhof replied that amount is a useful approximate
figure.
Co-Chair Torgerson clarified that the legislation imposes a
$50 fee per passenger per voyage. He continued that the
first five ports the vessel visits would receive $5 each
from the $50.
Mr. Geldhof affirmed.
Co-Chair Torgerson asked if some vessels visited less than
five ports would the tax remain $50.
Mr. Geldhof said the tax would be the same amount
regardless of the number of stops a vessel makes. He
explained this bill puts an excise tax on the commodity of
Alaska. He stressed that the cruise ship is responsible to
pay the $50 tax even if the vessel begins its voyage in
Canada, travels directly to Glacier Bay without making any
ports of call. However, he noted that no municipality would
receive a $5 portion of that fee. He explained that the
state is still "selling the water."
Amendment #1: This amendment makes the following changes to
the committee substitute.
Page 1, line 4
Insert new bill sections to read:
Sec. 1. AS 43.20 is amended to read:
Sec. 43.20.021. Internal Revenue Code adopted by
reference. (a) Sections 26 U.S.C. 1 - 1399 and 6001 -
7872 (Internal Revenue Code) as amended, are adopted
by reference as part of this chapter. These portions
of the Internal Revenue Code have full force and
effect under this chapter unless excepted to or
modified by other provisions of this chapter.
(However, nothing in this chapter or in AS 43.19
{multistate tax compact} may be construed as an
exception to or modification of 26 U.S.C. 883.)
Sec. 43.20.074. All business income of a taxpayer
engaged in the cruise ship industry derived from
gambling operations and activities as allowed by
federal law in the State Of Alaska shall be taxed at
the rate of 2% of the gross revenues of the gambling
operations and activities conducted in Alaska.
Renumber following sections accordingly.
Senator Adams moved for adoption.
Co-Chair Torgerson objected.
Senator Adams explained this amendment allows the cruise
ship industry an opportunity to provide an "entertainment
donation" by imposing a tax on the proceeds of gambling
operations conducted on board ships. He spoke to the well-
defined restrictions on gambling in Alaska except for the
unknown amount of gambling done aboard cruise ships
traveling in state waters. He told the Committee how the US
Congress allowed gambling in Alaska waters at the request
of the cruise ship industry. He was concerned about the
federal government's interjection on this matter saying it
raises issues about state sovereignty since congress
authorized an activity that the state does not endorse. He
thought it important that the state extract a small portion
of the wealth generated by gambling within the state's
waters that otherwise goes to foreign-owned corporations.
Senator Adams continued that funds collected could be used
for future cleanup of oil spills or other pollution damage
or perhaps to fund ports and harbor facilities. He reminded
the Committee that this issue was considered in 1998 at
which time it was estimated this tax would generate between
$3 to $8.5 million. However, he pointed out that with the
increase in cruise ship activity the minimum amount
collected would be $8.5 million.
A roll call was taken on the motion.
IN FAVOR: Senator Phillips, Senator Leman, Senator Adams,
OPPOSED: Senator Wilken, Senator P. Kelly, Senator Green,
Co-Chair Parnell and Co-Chair Torgerson
ABSENT: Senator Donley
The motion FAILED (3-5-1)
The amendment FAILED to be adopted.
Amendment #2: This amendment changes the title of the
committee substitute and adds a new bill section as
follows.
Page 1, line 1
Delete:
"An Act relating to certain passenger vessels
operating in the marine waters of the state."
Insert:
"An Act relating to certain vessels operating in the
marine waters of the state."
Page 1, line 4
Insert a new bill section to read:
Section 1. AS 46.03 is amended by adding a new section
to read:
Sec. 46.03.072. Exception for certain United
States Navy vessels from state marine water quality
standards applicable to the discharge of hydrocarbons.
(a) Until September 1, 2010 the state's water quality
standards, adopted as regulations under authority of
AS 46.03.020(10) to effectuate the purposes of this
chapter and under authority of other sections of this
chapter, establishing limits on the total aqueous
hydrocarbons and total aromatic hydrocarbons
permissible in the marine water column that are more
stringent than the requirements of comparable water
quality standards set out in federal law or adopted in
federal regulation do not apply to a vessel of the
United States Navy operating in the marine waters of
the state if the vessel uses a seawater compensation
system.
(b) Notwithstanding the exemption provided by (a)
of this section, a vessel of the United States Navy
operating in the marine waters of the state that uses
a seawater compensation system may not discharge oil
into state waters in violation of 33 U.S.C. 1321 (sec.
311, Federal Water Pollution Control Act, as amended)
and regulations adopted under authority of that
section.
Senator Leman moved for adoption.
Co-Chair Torgerson objected for an explanation.
Senator Leman explained that current Department of
Environmental Conservation regulations require that
discharged sea water used by marine vessels for stability
contain less than 15 parts per billion hydrocarbons. He
stated that this standard is significantly more stringent
than federal law, which dictate that no vessel may leave a
visible sheen. He said that in recent years, the US Navy
has curtailed operations in Alaska because of the strict
regulations. He listed the three classes of Navel vessels
equipped with seawater compensating systems and saying that
this amendment is an opportunity to invite the Navy back to
the state.
In response to the department's concerns with this
amendment, Senator Leman said he found part of the argument
compelling.
Senator Leman moved to amend the amendment to change the
sunset date of the exemption from "2010" to "2005". He said
this would provide ample opportunity to conduct the
necessary scientific studies to determine if a further
extension would be necessary.
Without objection the amendment was AMENDED.
There was no objection and the amended amendment was
ADOPTED.
Amendment #3: This amendment adds a new subsection to the
committee substitute as follows.
Page 2, line 6
Insert:
(a) The proceeds from the tax on travel on
commercial passenger vessels providing overnight
accommodations in the state's marine water shall be
deposited in a special commercial vessel passenger tax
account in the general fund. The legislature may
appropriate money from this account for the purposes
described in (b) of this section and for state-owned
port and harbor facilities.
(b)
Senator Phillips moved for adoption and stated this issue
is commonly called "a white picket fence approach." He
explained it isn't exactly a dedicated fund but does
indicate to future legislatures that the money may be
appropriated for the purposes of state-owned ports and
harbor facilities. He expressed that because the tax is
derived from vessels, it is appropriate to use the funds
for facilities the vessels use.
Co-Chair Parnell asked if this amendment applies only to
the portion of the head tax retained by the state and if it
in any way circumvents the local government's portion.
Senator Phillips surmised that the amendment would not
utilize the local portion of the tax because of the word
"may" in the language.
The amendment was ADOPTED without objection.
Amendment #4: This amendment adds an effective date of July
1, 2000 to the legislation.
Co-Chair Parnell moved for adoption.
Co-Chair Torgerson explained this amendment establishes the
effective date of the bill.
There was no objection and the amendment was ADOPTED.
ROBERT REGIUS, Attorney, spoke in favor of the bill on
behalf of the non-profit organization, Cruise Control. He
told of his 15 years practicing environmental and natural
resources law. He stated that he is pleased with Section 1
and that the state is "stepping up to the plate" to get
fair market value for Alaskans of the "experience of a
lifetime" that is sold to the hundreds of thousands of
visitors.
Mr. Regius next addressed Section 2 of the committee
substitute emphasizing it is intended to ensure that non-
Alaskans take as good of care of the state as local
citizens do. He spoke of the other industries, including
mining, oil development, municipal water supply, etc, that
must provide information about the wastes produced by their
operations. He stressed that this section of the bill does
not impose performance standards.
Co-Chair Parnell offered a motion to report from Committee,
CS SB 308, 1-LS1617\D as amended.
Senator Adams objected. He stated that he did not know the
impact this legislation would have on tourism, and that no
fiscal note was presented to show the revenues the tax
would generate.
A roll call was taken on the motion.
IN FAVOR: Senator Green, Senator Phillips, Senator Leman,
Senator Wilken, Co-Chair Parnell and Co-Chair Torgerson
OPPOSED: Senator Adams, Senator P. Kelly and Senator Donley
The motion PASSED (6-3)
The bill MOVED from Committee.
Senator Phillips asked if a fiscal note would be prepared
for this bill.
Co-Chair Torgerson answered a fiscal note would be
available before the Senate body hears the bill.
AT EASE 10:21 PM / 10:22 PM
SENATE COMMITTEE SUBSTITUTE FOR COMMITTEE SUBSTITUTE
FOR HOUSE BILL NO. 108(RES)
"An Act relating to the use, operation, and regulation
of boats; establishing a uniform state waterway
marking system; and providing for an effective date."
This was the first hearing for this bill in the Senate
Finance Committee.
REPRESENTATIVE BILL HUDSON, sponsor of the bill, testified
that this bill establishes a comprehensive recreational
boating safety program. He stressed that Alaska is the only
state that does not have such a program. He stated the bill
transfers vessel registration from the US Coast Guard
(USCG) to the Division of Motor Vehicles (DMV) and would
allow people to register their boat at any DMV office,
through the Internet, by mail or through the dealer where
they purchase the vessel.
Representative Hudson continued that the regulatory
authority for boat safety equipment required by federal,
and in some cases, state statutes, would be transferred
from the USCG to the State Of Alaska. He said the bill
specifies the required safety equipment for boats by class,
including fire extinguishers for powered boats, ventilation
for those boats with enclosed engines, lights for night
cruising, a sound producing device, and most important,
life preservers for each person aboard. He added that the
bill stipulates that life preservers must be worn by every
child age 13 and under on an open boat.
Representative Hudson stated that this bill combines the
lifesaving forces of the USCG with new life saving forces
of the state. He added that the bill would expand boat
safety education into the schools, on the docks and
continue the work of the Coast Guard auxiliary. He assured
that the work of the USCG would not diminish, but would
allow a safety program to be implemented.
Representative Hudson stressed that no new state funds
would be required for this legislation noting that federal
funds and registration fees collected by the DMV would pay
the program.
Representative Hudson shared that the approximately
$600,000 of federal marine fuel taxes Alaskans pay, leave
the state and goes to other states that already have a
boating safety education program. Under this legislation,
he asserted this money would stay in the state and become
the education fund that would be used to purchase life
jackets and to provide boater safety education.
Representative Hudson reiterated that the emphasis of this
bill is education by Alaskans in area-appropriate manners.
He gave the Kids Don't Float, loaner life jackets program,
as an example of locally conducted programs.
Representative Hudson told the Committee that Alaska
suffers ten times the national average of marine
recreational deaths. In the previous three years, he stated
that 75 adults and children died of these causes. He
attested that most other states that have inducted boater
safety programs have reduced boater fatalities by one-half.
He believed that with a longer coastline, more lakes and
rivers than any other state, Alaskans should want to
prepare its children and citizens with the best knowledge
and equipment to help save their lives.
By working with the USCG, Representative Hudson said
volunteers would conduct courtesy vessel examinations for
new boat owners and also halt reckless operations that pose
a hazard to others.
Representative Hudson addressed the vessel registration
surmising that having a uniform system would aid in search
and rescue operations. He noted that abandoned boats could
be traced back to its owners and subsequent information
could be gathered about the number and abilities of anyone
who had been aboard that vessel.
Representative Hudson shared that he spent many years in
the USCG performing search and rescue operations.
Representative Hudson assured that the intent of the bill
is not to police boating activities but to rather educate
boaters. He stated that 75 percent of the funds returned to
the state from the USCG would be used for education.
JOE MCCULLOUGH testified via teleconference from Homer in
support of the bill saying there was no doubt in his mind
that this bill would save lives and would facilitate a
smarter user group.
ALAN PARKS, Commercial Fisher, testified via teleconference
from Homer about how the education he received from the
Commercial Fishing Safety Act saved his life during a
boating accident.
NOELLE MCCULLOUGH testified via teleconference from Homer
saying that the children of the state would benefit from
the kinds of water safety training this bill would provide.
MAKO HAGGERTY, Chair, Katchemak Bay State Parks Citizen's
Advisory Board, testified via teleconference from Homer
that the board passed a resolution supporting this bill.
CRAIG FOREST, lifelong Alaskan testified via teleconference
from Homer representing the USCG Auxiliary and himself told
about his own and his family's extensive boating
experiences. He said the bill would accomplish two
important things, receiving funding for education programs
and instituting safety equipment and practices into law.
MARIE SCHOLLE, Chair, Governor's Advisory Council on
Safety, Representative, American Society of Safety
Engineers, and 32-year Alaska resident, testified via
teleconference from Fairbanks in support of the bill. She
emphasized that this bill would provide the necessary funds
to provide boater education to rural sites.
MIKE FOLKERT, Chair, Alaska Boating Safety Advisory Council
testified via teleconference from Anchorage in favor of the
bill and about the lives that would be saved by
comprehensive boater safety education.
Co-Chair Torgerson listed others available via
teleconference to answer questions.
Amendment #1: This amendment inserts a new section in the
committee substitute as follows.
Page 7, following line 25
Insert:
Sec. 05.25.052. Uniform state waterway marking
system. The department shall develop and adopt
regulations establishing a uniform state waterway
marking system for the placement of regulatory
markers. The regulations must be compatible with the
system of aids to navigation prescribed by the United
States Coast Guard.
This amendment also makes conforming changes elsewhere in
the committee substitute as appropriate.
Co-Chair Parnell moved for adoption and explained the
Uniform State Waterways Marking System is a system of
marking waterways with navigation aids and includes such
markers as the familiar red and green buoys. He assured
that inclusion of this provision in the bill does not
require Alaska to implement waterway markers, but rather
indicates that if the state deems navigational markers
necessary on a particular waterway, the uniform systems can
be utilized. He noted that the chair of the Senate
Resources Committee is in agreement to this amendment and
that this provision was inadvertently removed from the bill
by the Senate Resources committee substitute.
There was no objection and the amendment was ADOPTED.
Senator Wilken asked how the requirement for children to
wear a personal floatation device (PFD) was established at
age 13.
Representative Hudson replied the age is set in current
state law.
Senator Wilken commented that he thought 13 years is too
old to require PFDs to be worn. He verified that changing
this would not hamper federal funding.
Senator Wilken asked if the bill contains a requirement for
boat owners to carry insurance.
Representative Hudson answered there is no such provision.
Senator Wilken next asked if the Department of Public
Safety is the only agency that is authorized to enforce the
laws proposed in bill.
Tape: SFC - 00 #100, Side B 10:40 PM
Representative Hudson responded that the Department of
Public Safety could grant enforcement authority to park
rangers at the Department of Natural Resources.
Senator Wilken referred to the fiscal note and said he was
surprised that no impact is indicated for the Division of
Fish and Wildlife Protection.
MELINDA HOFSTAD, staff to Representative Hudson replied
that she had talked to a representative of the division to
verify that there would in fact be no increased costs with
this legislation.
Senator Wilken commented that he was raised on a lake
outside Fairbanks and had yet to see a death occurring in
the area. While he thought this bill is necessary for
saltwater areas, but not appropriate for those areas where
boaters can never leave sight of shore. He appreciated and
agreed with the sponsor's intent, but thought it was not in
the best interest of those in the district he represents.
He asserted that the bill is "too much government." He
stated that he would not object to moving the bill from
Committee, but he would vote against its passage from the
Senate.
Representative Hudson advised that one-third of all
drowning deaths in Alaska occur on freshwater.
Senator Leman asked about the safety equipment required for
open vessels, such as skiffs.
Representative Hudson replied that if a boat has a motor, a
fire extinguisher is required. He clarified that the safety
equipment requirements are established and enforced by the
USCG and are in effect whether this bill passes or not. He
added that the USCG and state statute also requires a light
that can be displayed when operating at night.
Senator Leman commented that he requires all passengers in
his boat to actually wear a PFD. He noted the bill requires
an additional PFD that can be thrown and asked for a
definition.
Representative Hudson answered that a PFD device that can
be thrown, either a ring or a floatation cushion is
required in federal law.
Senator Leman shared that the reason he questioned the
requirement is because many smaller vessels have very
limited space to carry items.
Representative Hudson responded that the safety gear could
be accommodated if the boat is loaded correctly. He
attested to the lifesaving benefits of a throwable PFD.
Senator Phillips offered a motion to report from Committee,
SCS CS HB 108 (RES) as amended.
[NOTE: The sound system was inadvertently disconnected and
the remainder of the meeting was not recorded. No action
was taken on the bills heard.]
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 432(FIN)
"An Act extending the termination date of the Board of
Storage Tank Assistance; expanding the authority of
the board to issue recommendations concerning cleanup
decisions; relating to the eligibility of certain
nonprofit entities for financial assistance under the
tank cleanup grant program and the tank upgrading and
closure program; and providing for an effective date."
JOHN BARNETT, Board of Storage Tank Assistance, testified
to the bill.
Co-Chair Torgerson asked if it would take the board four
more years to complete its business.
Mr. Barnett asserted there is always trouble when working
with the Department of Environmental Conservation. He noted
that most cleanups are undertaken in phases, thus extending
the time required for completion.
Senator Leman supported an extension of the cleanup date.
Co-Chair Torgerson ordered the bill HELD in Committee.
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 277(FIN)
"An Act relating to payment of retirement benefits for
certain subsequently reemployed retired members of the
teachers' retirement system; and providing for an
effective date."
JOHNATHON LACK, staff to Representative Andrew Halcro,
presented the bill.
Mr. Lack referred to the sponsor statement, which reads as
follows.
The pool of qualified teachers in Alaska is
shrinking dramatically. The situation is particularly
dire in the area of special education. To address this
shortage I have sponsored HB 277.
This legislation would allow teachers who have
retired to return to teaching in the public schools
without forfeiting their retirement benefits. Retired
teachers would be able to be re-employed by a school
district. They would continue to receive their
retirement benefits, thus reducing the cost to school
districts, but compensating experienced teachers
through a combination of pay and benefits.
Presently, teachers, once retired, may only work
40% of full-time in a school district without forgoing
their benefits. HB 277 would provide school districts
with the opportunity to rehire experienced teachers at
a lower cost to the public.
JOHN SEER, National Education Association (NEA)-Alaska,
testified in support of the bill.
CATHY GILLESPIE, Anchorage School Board, commented on
concerns she had with the bill. She requested a delay in
implementing such a program.
Senator Adams stressed the teacher shortage in rural
Alaska.
GUY BELL, Director, Division of Retirement and Benefits,
Department of Administration testified on the following
points.
ΠSpeaking from the perspective of the Teacher's
Retirement Fund (TRS).
ΠThe division submitted a fiscal note with an
indeterminate fiscal impact, because the cost to the
retirement system will depend on how many retirees
are rehired under the provision of HB 277.
ΠApproximately 1,200 of 9,400 active Alaska teachers
have 20 or more years of TRS service.
ΠIf a significant number of these people retire and
are rehired under the provisions of HB 277, there
will be a material cost to the TRS fund. Cost
increases to the TRS fund result in increased
employer rates.
ΠOn the other hand, if school districts make a
determination of shortage for only a handful of
teacher positions and, therefore, only rehire a few
retirees, the fiscal impact on the TRS will be
immaterial.
Co-Chair Torgerson ordered the bill HELD in Committee.
##
ADJOURNED
Senator Torgerson adjourned the meeting at 10:58 PM.
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