Legislature(1999 - 2000)
04/20/2000 09:10 AM Senate FIN
| Audio | Topic |
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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 20, 2000
9:10 AM
TAPES
SFC-00 # 101, Side A & B
CALL TO ORDER
Co-Chair John Torgerson convened the meeting at
approximately 9:10 AM
PRESENT Co-Chair John Torgerson, Co-Chair Sean Parnell,
Senator Al Adams, Senator Loren Leman, Senator Randy
Phillips, Senator Gary Wilken, Senator P. Kelly, Senator
Donley, Senator Green.
Also Attending: PETER TORKELSON, Staff to Representative
Dyson; REPRESENTATIVE DYSON; JOHN MANLY, Staff to
Representative Harris; MELINDA HOFSTAD, Staff to
Representative Hudson; GUY BELL, Director, Division of
Retirement & Benefits, Department of Administration; BILL
CHURCH, Retirement Supervisor, Division of Retirement &
Benefits, Department of Administration; CHARLES HOSACK,
Deputy Director, Division of Motor Vehicles, Department of
Administration; JANET SEITZ, Staff to Representative
Rokeberg; PAUL GROSSI, Director, Division of Workers'
Compensation, Department of Labor and Workforce
Development; DARROLL HARGRAVES, Executive Director, Alaska
Council of School Administrators.
Attending via Teleconference: From Matsu: SHEILA DICKMAN,
President, Matsu Classified Employees Association.
SUMMARY INFORMATION
HB 58-OIL & GAS AUDITS
This bill was scheduled but not heard.
HB 325-MEDICAL ASSISTANCE: LIENS & CLAIMS
The amended bill was reported from Committee.
HB 372-CRIMINAL SENTENCING AND RESTITUTION
The sponsor testified. The bill was reported from
Committee.
HB 206-FISH AND GAME LICENSES & TAGS
The sponsor testified. The bill was held.
HB 335-STATE RETIREMENT SYSTEMS AND BENEFITS
The sponsor and the Division of Retirement & Benefits
testified. The amended bill was reported from Committee.
HB 324-PERSONAL INFO IN MOTOR VEH. RECORDS
The Division of Motor Vehicle testified. The bill was
reported from Committee.
HB 419-WORKERS' COMPENSATION
The sponsor and the Division of Workers' Compensation
testified. The bill was held.
HB 432-BOARD OF STORAGE TANK ASSISTANCE
The amended bill was reported from Committee.
HB 277-RETIREMENT BENEFITS FOR REHIRED TEACHERS
The Division of Retirement & Benefits testified. The bill
was held.
CS FOR HOUSE BILL NO. 325(JUD)
"An Act relating to priorities, claims, and liens for
payment for certain medical services provided to
medical assistance recipients; and providing for an
effective date."
Amendment #2: This amendment deletes old and inserts new
language as follows:
Page 2, line 1, following "has priority":
Delete "over"
Insert "immediately after"
The sentence then reads, "A lien perfected by the
Department of Health and Social Services under AS 47.05.075
has priority immediately after a lien perfected by a
hospital, nurse, or physician under AS 34.35.450 -
34.35.480."
Co-Chair Parnell made a motion to adopt Amendment #2. He
explained that this amendment, grants a lien perfected by
the Department of Health and Social Services on recoveries
made by people provided medical assistance under Medicaid.
He continued that this amendment still allows the State of
Alaska to secure a lien, but not in priority to those ones
perfected by a hospital, nurses or physicians.
Co-Chair Torgerson hearing no objection, ADOPTED Amendment
Senator Phillips requested that he refrain from voting due
to a conflict of interest. There was an objection.
Co-Chair Parnell made a motion to move HB 325, version "1-
GH2058\I" from committee with individual recommendations
and a fiscal note in the amount of $52,700.00 from the
Department of Health and Social Services. Hearing no
objection HB 325 was MOVED FROM COMMITTEE.
CS FOR HOUSE BILL NO. 372(JUD)
"An Act relating to criminal sentencing and
restitution."
PETER TORKELSON, Staff to Representative Dyson stated the
goal of this legislation was for crimes involving an
individual against another, bur rather for arson where a
life is possibly threatened, or for property damage. He
added that in these instances the court may permit a victim
and offender to work out a sentence that meets the needs of
the victim and in the courts opinion, serves the interest
of justice. He continued that if for some reason the
defendant did not follow through on the agreed terms, the
standard, criminal penalty could be applied. He noted that
in other states these programs have proven to be very
effective.
Senator Leman asked what the process was for approaching
the community for input into a criminal's sentences, in
other words, who would be participating in this process.
Mr. Torkelson responded that in some cases a crime may not
have one specific victim, for example, a public building is
damaged in downtown Anchorage. He pointed out that the
victim in this case might be the Downtown Merchant's
Association and one of their representatives might suggest
that in lieu of a fine, that the defendant help restore
what damage has been inflicted on this piece of property.
Senator Leman asked that in an instance such as this one,
whether some type of advertisement might be appropriate so
other citizens are aware that this option is available.
Mr. Torkelson responded that as part of its intent, this
legislation allows for announcements about the program. He
remarked that literal advertisements would be up to a
judge's discretion.
REPRESENTATIVE DYSON stated that in essence, all justice
systems throughout history have aimed at the restoration of
the victim to a pre-offense condition. He pointed out that
now, a criminal makes payment to governmental entities
rather than to the victim. He noted that this legislation
would rectify this situation. He added that this
legislation would require an offender to work to repay the
community or the victim for their crime.
Co-Chair Parnell referred to Section 3 of the bill, which
allows for the court's ability to set aside a proposed
amount, unless the defendant at sentencing establishes by
clear and convincing evidence the inability to pay the
amount proposed. He pointed out that presently, a
defendant is required to show by a preponderance of the
evidence his or her inability to pay. He wondered why this
standard with this legislation would be changed from
preponderance, to clear and convincing.
Mr. Torkelson responded that the Department of Law felt as
though the proposed draft language was crafted in a double
negative manner and difficult to apply. He continued that
the language was then crafted to reflect the clear and
convincing standard that now exists.
Co-Chair Parnell made a motion to move HB 372 with
individual recommendations and a Department of Corrections
zero fiscal note from Committee. Hearing no objection, HB
372 was MOVED FROM COMMITTEE.
CS FOR HOUSE BILL NO. 206(RES)
"An Act relating to migratory game bird hunting; to a
nonresident combined sport fishing and hunting
license, to the nonresident military small game and
sport fishing license, to applications for certain
licenses, tags, registrations, and permits issued by
the Department of Fish and Game, and to duplicate
crewmember licenses."
JOHN MANLY, Staff to Representative John Harris stated that
this legislation was presented at the request of the
Department of Fish and Game, consisting of a general
cleanup of existing statutes. He pointed out that in six
sections of the current statute, the word "water fowl" was
changed to "migratory game bird," in order to bring this
designated species (more specifically Snipes and Cranes)
into a federal reporting program. He continued that
Section 3 of the bill allows disabled Veterans and five
dollar license holders to register in the National
Migratory Game Bird harvest program by one of two different
methods. He gave the specifics of these. He noted that
Section 4 of the bill created a new combination of seven-
day nonresident hunting and fishing license, which are
currently is issued separately. He cited that this
legislation sets a fee for special non-resident military
small game licenses. He remarked that a provision was
added allowing residents of the Yukon Territory to obtain a
non-resident sport-fishing license at a resident fee. He
noted that these individuals would be governed under the
non-resident seasons and bag limits. He added that this
would not go into affect until a reciprocal courtesy was
extended. He concluded that in Sections 9 and 10, the
protocol for administering an oath regarding residency
would be replaced by language on the application for
licensure. He outlined a general technical change
regarding the addition of the word "registration." He
summed up that Section 17 authorizes the department to
issue replacement commercial fishing, crew licenses for
five dollars.
Co-Chair Torgerson stated that the bill would be HELD and
brought up at the next scheduled meeting.
CS FOR HOUSE BILL NO. 335(STA)
"An Act relating to information contained in
retirement system records; relating to retirement
boards; relating to procedures and hearings under
state retirement systems; relating to benefits for
reemployed retired members of retirement systems;
relating to eligibility for normal retirement for
members of the teachers' retirement system who have
Alaska BIA credited service; relating to disability
benefits for members of state retirement systems;
relating to deduction of premiums from retirement
benefits; relating to protection of, and assignment
and transfer of, amounts held in retirement systems;
relating to retirement benefits for certain employees
earning high salaries; relating to qualified domestic
relations orders in state retirement systems; relating
to the definition of 'retirement fund' in the
teachers' retirement system; relating to membership of
state employees in the teachers' retirement system;
relating to refund of contributions made to the
judicial retirement system or to the former elected
public officers retirement system and repayment of
refunded contributions in those systems; relating to
self-insurance and excess loss insurance for persons
receiving benefits from a state retirement system;
relating to participation of elected officials in the
public employees' retirement system; relating to the
level income option benefit under the public
employees' retirement system; relating to
participation of employees of political subdivisions
and public organizations in the public employees'
retirement system; relating to crimes for defrauding a
state retirement system; relating to the definition of
'pension fund' in the public employees' retirement
system; relating to calculation of years of service
and of benefits under the public employees' retirement
system for noncertificated employees of certain
educational employers; and relating to individual
accounts maintained for members of the former elected
public officers retirement system."
MELINDA HOFSTAD, Staff to Representative Bill Hudson,
explained that this legislation was a retirement and
benefits cleanup effort and it was introduced at the
request of Division of Retirement and Benefits. She noted
that this legislation would bring the State of Alaska in
compliance with federal laws, court settlements and other
technical issues addressed in updated laws. She added that
efficiency measures requested by the various retirement
boards, was also included. She declared that there was
nothing in this legislation that enhances or diminishes
retirement benefits currently available to any state
employees or retirees.
Senator Phillips asked if the word "interpret" was included
in this legislation, with regard to allowing the
Administration the authority to make arbitrary
interpretations of the statutes.
GUY BELL, Director, Division of Retirement & Benefits,
Department of Administration stated that he did not think
that this word was included anywhere in the bill. He
reiterated that this bill outlined technical clean up to
existing statutes. He noted that this legislation
clarifies the hearing process available to members, which
usually center around disability appeals. He advised that
this legislation addressed confidentiality of member
records and more specifically it makes needed changes to a
law enacted last session, SB 9, based on a settlement with
National Education Association (NEA) Alaska. He specified
that it addresses physician board member appointments and
reporting issues. He continued that this bill separates
the Public Employees Retirement (PERS) Board from the
Personnel Board. He added that currently three of the five
members on the PERS Board serve by virtue of being
appointed to the Personnel Board. He asserted that because
of the volume of work involved for each of these boards, it
was decided that these board appointments should be made
separate. He then outlined general changes to related
board election rules.
Mr. Bell outlined technical issues relating to the ability
to roll member contributions directly into individual
retirement accounts. He noted that this specifically
addressed previous problems regarding the division of these
accounts under qualified domestic relation orders. He
addressed the small, related fiscal note for $29,000, which
allows for a $150 honorarium for members who serve on the
PERS Board.
Senator Phillips referred to Sections 58 and 59. He asked
for an explanation regarding each. He wondered if these
sections were in place before the bill passed out of the
House.
Mr. Bell responded that, yes, they were. He pointed out
that the Elected Public Officers Retirement System (EPORS)
language was added to the Public Employees and Teachers
Retirement Statute for simple and technical clarification
related to payment of indebtedness. He noted that this
language would only affect 62 individuals eligible for
EPORS benefits and of this, quite a number of them are
still living and not receiving retirement benefits.
Senator Phillips pointed out that these individuals
withdrew their money, and they are now given the ability to
opt back into the system. He then referred to lines 21 -
23, on page 29. He read the following language: ".who has
withdrawn the balance of the officer's individual account,
who returns to service as the governor, lieutenant
governor, or as a member of the legislature." He commented
that this was a very exclusive group of people and pointed
out that this measure was repealed by the voters in 1976.
He pointed out that if someone has withdrawn his or her
money, this should be a final decision.
Mr. Bell responded that the idea of this clause supports an
individual who has chosen to withdraw their membership
contribution accounts. He continued that if this same
individual needs to return to work, they must pay this
refund back, the employers contribution has already been
made to the system for this individual. He noted that this
clause would create a consistency situation with all other
state public employees.
Senator Phillips responded that these particular
individuals are elected, this being the main difference,
and he wondered if these individuals were really state
employees.
Mr. Bell countered that from the perspective of the Public
Employees Retirement System, yes.
Senator Phillips stated that he had a problem with this
provision.
SHEILA DICKMAN, President, Matsu Classified Employees
Association testified via teleconference from Matsu. She
explained that she was speaking on the behalf of the Matsu
School District employees. She stated that this
legislation makes many changes to the retirement system,
more specifically Sections 37 through 40. She added that
there are a number of employees in Matsu with work hours
reduced from 12 months to 10 or 11 months beginning in
August of 2000. She noted that these employees have two
options under current law, they can do nothing and receive
a partial year's credit for the rest of their work life or
they can participate in the alternative option under SB 9.
She advised that if they choose the latter, they must pay
for the year 1999-2000 even though they will not receive
any benefit for this school year. She pointed out this was
an oversight, which occurred in SB 9, and HB 335 will fix
this problem. She added that this change would also allow
for members who are paying for this service to revoke their
choice under some very strict guidelines if their job
status changes in the future.
Ms. Dickman read a written statement by an employee named
Gloria Lee as follows: "Public Employee's Retirement system
confirms that if HB 335 does not pass, all current
employees must choose to participate in alternative
retirements or they will not be eligible next year. That
means current twelve-month employees will be required to
pay for the 1999-2000 school year, even though they do not
receive any benefits. PERS states that the division has no
choice due to the way the bill was drafted last year. I
thank Senator Green for her assistance on this bill and I
support to move this bill from the Committee for the
benefit of classified employees."
Amendment #2: This conceptual amendment removes Sections 58
& 59 from page 29, line 14 through page 31, line 21 of HB
335.
Senator Adams objected. He stated that these state
employees should be treated fairly. He continued that
these 62 individuals have completed their public service to
the state.
Senator Phillips countered that this was a special
arrangement passed a previous legislature, which changed
from a two percent to a five percent standing per year up
to 15 years or 75 percent of a person's salary. He added
that after this action was taken, in 1976, voters repealed
this section. He commented that at this same time, if an
employee withdrew their money from EPORS and then wanted to
come back into the system, the employee [indiscernible.]
A roll call was taken on the motion.
IN FAVOR: Senator Leman, Senator Donley, Senator Phillips,
Co-Chair Torgerson.
OPPOSED: Senator Adams, Senator Wilken, Senator P. Kelly.
PASS: Senator Green.
The roll was voided to allow Senator Green to amend her
nonvoting status.
BILL CHURCH, Retirement Supervisor, Division of Retirement
& Benefits, Department of Administration clarified the
issue raised by Senator Phillips regarding repayment of
refunded contributions as noted in Section 58. He detailed
the way in which this legislation presently reads. He
continued that someone who has withdrawn his or her
contribution and returns to work, has the opportunity to
reinstate their credited service and repay the indebtedness
of the reinstatement cost including interest within one
year of the date of re-employment. He continued that this
section treats this group of individuals like any other
under various state retirement systems.
Senator Phillips agreed with this illustration that most
state employees are presently at two percent for the first
ten years, but he pointed out that a special piece of
legislation passed in 1975, set these 62 employees at a
five- percent benefits advantage and to that he objected.
Senator Donley stated that he agreed with Senator Phillips.
He stated that these individuals are receiving an added
benefit that no state employee has gotten since. He noted
that going back retroactively in this instance, would not
be the same thing.
Mr. Bell referred to Section 59, which does not deal with
indebtedness payments, but deals with distribution of
member accounts under qualified domestic relation orders in
the event of divorces. He pointed out that this section
would bring the State of Alaska in compliance with federal
law.
Senator P. Kelly asked if these individuals would
repurchase time under the old system or under the present
two percent system.
Mr. Bell responded that these individuals would repurchase
as EPORS members at five percent.
Senator Leman made a motion to move to divide the question
between Section 58 and Section 59.
Co-Chair Torgerson stated that Amendment #2A would be to
delete Section 58 and Amendment #2B would be to delete
Section 59.
Senator Adams objected for discussion purposes. He asked
how many of the 62 individuals would actually buy back
their service time. He wondered how old these individuals
were as well.
Mr. Church responded that the majority of these individuals
were between 40 to 60 years old. He added that he did not
have the exact numbers of how many of them would
participate, but that it would probably be a minority.
A roll call vote was taken on the motion to adopt Amendment
IN FAVOR: Senator P. Kelly, Senator Green, Senator
Phillips, Senator Donley, Senator Leman, Co-Chair
Torgerson.
OPPOSED: Senator Wilken, Senator Adams.
The MOTION PASSED (6-2)
Senator Phillips made a motion to WITHDRAW Amendment #2B.
Amendment #1: This amendment adds new and deletes old
language as follow:
The governor shall fill a [A] vacancy in an unexpired
elective term [SHALL BE FILLED] by [ELECTION FOR A NEW
SIX-YEAR] appointment for the remainder of the term.
Senator Wilken made a motion to adopt Amendment #1, and
referred to page 15, line 18 and 19, by reading the
following language: "A vacancy and an unexpired elected
term shall be filled by elections for a new year term." He
explained that during the subcommittee budget process, this
exact situation happened and the department was required to
conduct an election, which cost $100,000. He then read the
pertinent language of Amendment #1 as noted above.
Co-Chair Torgerson asked if the terms of office were six
years.
Senator Wilken responded affirmatively and that they were
six-year staggered terms.
Co-Chair Torgerson suggested a conceptual change to fill
the term until the next election.
Senator Leman asked if Senator Wilken had considered
another way to fill these vacancies, such as having the
existing board fill this vacancy rather than the governor.
Senator Wilken explained that the governor appoints three
of these members and that two are elected.
Senator Green suggested the addition of language, "by
appointment until the next regularly scheduled election."
Mr. Bell responded that this would create a situation where
there are no longer any staggered terms. He added that
this was not necessarily a bad thing, but there could
potentially be new people re-instated every six years.
Co-Chair Torgerson disagreed and pointed out that
municipalities do this type of thing all the time. He used
the example of appointing someone to take a position until
the next election, remaining in this capacity for the
remainder of this term.
Co-Chair Torgerson called an at ease at 10:05 AM and
reconvened at 10:08 AM.
Senator Wilken made a conceptual amendment that would
essentially allow the Governor to fill a vacancy in an
unexpired elected term for a new six-year term until the
next regularly scheduled election, while giving the
Department of Legal Services the ability to conform the
language accordingly.
Hearing no objection, the amendment to the amendment was
adopted and Amendment #1 was AMENDED.
Hearing no objection, Amendment #1 as amended, was ADOPTED.
Tape: SFC - 00 #101, Side B, 9:59 AM
Senator Wilken made a motion to move HB 335, version 1-
LS1217\M as amended from committee with individual
recommendations and a $29,200 fiscal note from the
Department of Administration. Hearing no objection HB 335
was MOVED FROM COMMITTEE.
HOUSE BILL NO. 324
"An Act requiring written consent by the person who is
the subject of the information before releasing
personal information contained in motor vehicle
records, to comply with 18 U.S.C. 2721; and providing
for an effective date."
CHARLES HOSACK, Deputy Director, Division of Motor
Vehicles, Department of Administration testified via
teleconference from Anchorage. He stated that this
legislation would bring Alaska into compliance with federal
law regarding release of information. He noted that Alaska
and federal law currently allows the release for 11
permitted uses and added that this bill, including the
federal law change will affect two of these permitted uses.
He added that one of these was for marketing and
solicitation and the other for open release of vehicle
records. He advised that these uses are currently
permitted, unless a person specifically informs the
division not to release this information. He asserted that
the changes to these two uses will not be allowed unless
the person specifically requests that their specific
information be released or that they want to receive
solicitations.
Co-Chair Torgerson asked how the division would notify the
public of these changes in law.
Mr. Hosack responded that this would be accomplished
through public releases and along with registration renewal
notices.
Senator Phillips asked if this legislation would restrict a
person from researching the history of a vehicle.
Mr. Hosack responded affirmatively and added that if an
individual wishes to buy a used vehicle, the division would
not be able to release this vehicle's history of use. He
pointed out that this same provision is already signed into
federal law and will go into effect June 1st.
Senator Phillips asked what someone would do if they
collected antique or classic cars.
Mr. Hosack responded that the division would not be able to
release this information unless the collector obtained a
signed release from the vehicle owner.
Co-Chair Torgerson asked if the state would be out of
compliance by making an exception for historical antique
vehicles and classics.
Mr. Hosack responded that the state would be out of
compliance with federal law. He noted that the state and
the individuals who release this information could be fined
$5000 per day by the U.S. Attorney General's office.
Senator Donley added that his interpretation of this
legislation was that it requires written consent from the
person who is the subject of the requested information and
he wondered why Mr. Hosack specified that permission must
be granted by the vehicle's owner.
Mr. Hosack responded that the owner information would be
information such as name, address and vehicle type related
to this individual.
Senator Donley disagreed and added that this information
could include a lot more, such as prior owners. He noted
that this would solve the present problem with this
legislation, because before an individual buys a classic
car, the present owner could give permission for
researching the vehicle's history. He stated that he
thought this language went to the "subject of the
information." He asked if the federal law specified.
Mr. Hosack responded that the federal law reads exactly as
the proposed language before the Committee, i.e., the
subject of the information.
Senator Leman referred to the definition of "personal
information" in statute. He read the following excerpt:
"Personal information includes name, address, telephone
number and medical or disability information, but does not
include information on vehicular accidents, driving or
equipment related violations, drivers license or
registration status or a zip code." He wondered why zip
code would not be included if someone's address and
telephone is included.
Mr. Hosack responded this was set aside for statistical
purposes in generating reports on where vehicles are
located.
Senator Donley stated this exemption could be a way for
individuals who are interested in buying antique cars to
get some of the pertinent information regarding the history
of the vehicle.
Senator Leman made a motion to move HB 324, version 1-
GH2063.A from Committee with individual recommendations and
a zero fiscal note from the Division of Motor Vehicles.
Hearing no objection the bill was MOVED FROM COMMITTEE.
SENATE CS FOR CS FOR HOUSE BILL NO. 419(JUD)
"An Act relating to the weekly rate of compensation
and minimum and maximum compensation rates for
workers' compensation; specifying components of a
workers' compensation reemployment plan; adjusting
workers' compensation benefits for permanent partial
impairment, for reemployment plans, for rehabilitation
benefits, for widows, widowers, and orphans, and for
funerals; relating to permanent total disability of an
employee receiving rehabilitation benefits; relating
to calculation of gross weekly earnings for workers'
compensation benefits for seasonal and temporary
workers and for workers with overtime or premium pay;
setting time limits for requesting a hearing on claims
for workers' compensation, for selecting a
rehabilitation specialist, and for payment of medical
bills; relating to termination and to waiver of
rehabilitation benefits, obtaining medical releases,
and resolving discovery disputes relating to workers'
compensation; setting an interest rate for late
payments of workers' compensation; providing for
updating the workers' compensation medical fee
schedule; and providing for an effective date."
JANET SEITZ, Staff to Representative Norman Rokeberg,
stated that this legislation was introduced at the request
of the Adhoc Committee on Workers Compensation and the
Department of Labor and Workforce Development. She noted
that this legislation updated the Workers Compensation law,
which was last extensively revised in 1998. She added that
this was a technical bill.
PAUL GROSSI, Director, Division of Workers' Compensation,
Department of Labor and Workforce Development stated that
the department supports this bill. He added that this
legislation provides needed increased benefits for injured
workers and gave examples of how this was effectuated. He
disclosed that these benefits have not been raised for 12
years taking into account inflation. He recited other
specific examples of how this legislation was modified.
Senator Phillips referred to a workers compensation audit
and asked what recommendations generated from it were
included in this legislation.
Mr. Grossi responded that the parties who drafted this
legislation did not have the advantage of this audit's
recommendations. He referred to those same concerns
addressed in the audit and this legislation as follows:
increase in permanent and partial impairment benefit,
increases in retraining, and overtime pay included in the
calculation of compensation rate, etceteras.
Senator Phillips noted that the audit came out in January.
Ms. Seitz stated that the audit came out in March of 2000,
which was after the introduction of this legislation. She
added that this legislation did not bring the department
into compliance with the audit and gave specific examples,
such as employer penalties, or uninsured employees issues.
Senator Wilken asked about problems with controverted
claims and wondered if this legislation addressed this
issue.
Mr. Grossi responded that this area was not addressed in
the bill.
Senator Green voiced her concerns about the strong comments
outlined in the audit regarding the administration of this
program. She gave highlights of the deficiencies given in
the audit. She asked if the "ten-year review" regarding
workers rehab was addressed in this legislation.
Mr. Grossi responded that this review process had not been
addressed in this legislation. He pointed out that in
order to qualify for retrain benefits, an individual must
be able to show that they are unable to return to the type
of work performed at the time of injury to any job held
within the last ten years. He noted that there were
problems inherent in this requirement.
Co-Chair Torgerson stated that the Committee would HOLD
this legislation.
HOUSE BILL NO. 432
"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; and providing for an effective date."
Amendment #1: This amendment reduces the extension date of
four years to two years from June 30, 2003 to June 30,
2001. The amended language on page one, line seven of the
bill would read, "(18) Board of Storage Tank Assistance (AS
46.03.360) -- June 30, 2001.
Senator Leman made a motion to adopt Amendment #1. He
stated that he supports the Board of Storage Tank
Assistance and he had previously recommended a two-year
extension. He then gave an overview of how this
legislation had progressed since the House of
Representatives had heard it.
Senator Green stated that the legislature had basically
gutted this whole bill and noted the amount of time it has
taken for this negotiated time extension. She stated that
she did not understand why, this two year requirement
should be instituted, while at the same time the board
could be negotiating with Department of Environmental
Conservation.
Co-Chair Torgerson responded that there would always be
work for people regarding this issue. He noted that if the
Committee wanted to offset the Department of Environmental
Conservation's power with this, they might as well take out
the termination dates.
Senator Adams objected and noted that it takes four years
to close out underground storage tank projects.
A roll call was taken on the motion.
IN FAVOR: Senator Phillips, Senator Leman, Co-Chair
Torgerson.
OPPOSED: Senator Green, Senator Adams, Senator Wilken,
Senator P. Kelly.
PASS: Senator Donley.
The MOTION FAILED: (3-3)
Co-Chair Torgerson announced an at ease at 10:32 AM and
reconvened the meeting at 10:35 AM.
Senator Leman made a motion to RESCIND the previous action
for failure to adopt Amendment #1. Hearing no objection,
Amendment #1 was once again before the Committee.
Senator Adams again objected to the adoption of this
amendment. A roll call vote was taken on whether to adopt
Amendment #1.
IN FAVOR: Senator Phillips, Senator Donley, Senator Leman,
Senator Wilken, Senator P. Kelly, Co-Chair Parnell, Co-
Chair Torgerson.
OPPOSED: Senator Adams, Senator Green.
The MOTION PASSED: (7 - 2)
Senator Leman made a motion to move HB 432, version 1-
LS1539\G from Committee as amended with individual
recommendations and a $51,400 fiscal note from the
Department of Environmental Conservation. Hearing no
objection HB 432 was MOVED FROM COMMITTEE.
HOUSE BILL NO. 277
"An Act relating to payment of retirement benefits for
subsequently reemployed retired members of the
teachers' retirement system."
DARROLL HARGRAVES, Executive Director, Alaska Council of
School Administrators commended the Committee for
considering the serious teacher shortage developing in
Alaska. He added that field reports indicate that it is
becoming more difficult to find qualified and certifiable
teachers to enter classrooms, as well as Administrator
slots. He commended the Committee on subsection (b) on
page two as well.
Senator P. Kelly stated that Alaska should seriously
consider alternatives to certification in order to fill
these teaching positions.
Co-Chair Torgerson asked for an explanation related to this
legislation's fiscal note, especially the associated
benefits, which might go up an additional ten percent. He
asked what section of the bill this increase referred to.
GUY BELL, Director, Division of Retirement and Benefits,
Department of Administration responded that actuaries had
looked at the state's cost for a person who, after 20 years
retires and then is rehired. He noted that this reference
reflected a ten-percent increase in the net present value
of the expected life line value of this individual's
benefits. He continued that if half the members decided to
participate the cost to the system would be about .75
percent of Teachers' Retirement System (TRS) payroll, which
would be about $3.6 million. He gave an example of a
teacher with 20 years of service at a high salary of
$50,000 per year. He explained that if a teacher was
rehired back into the system, the second retirement would
be calculated on the teacher's higher salary, while not
affecting their original benefits.
BILL CHURCH, Retirement Supervisor, Division of Retirement
& Benefits, Department of Administration added that an
individual who had participated in a Retirement Incentive
Plan (RIP) and who was rehired would lose the incentive
credit given at their original retirement. He continued
with the example of a teacher first hired under the Tier 1
level of benefits, who retires at age 43 after 17 years of
service. He noted that this individual would not be
eligible to commence this first benefit until they reached
age 55 for a normal benefit or age 50 for an early benefit.
He noted that this would be the penalty for returning to
employment, although this does not prevent anyone who has
retired from being eligible for rehire under this scenario.
Co-Chair Parnell referred to the teacher shortage as
previously noted and asked how many new teachers are
presently needed in the state. He wondered what the annual
gross on average was in Alaska and if this was not enough,
he asked what it should be.
Mr. Guy responded that the state must consider how many
teachers are quitting and how many are retiring. He noted
that about 500 teachers retire each year and guessed that
the same amount of teachers leave for various other
reasons. He added that about the same number of teachers
come into the system for any given year. He generally
stated that there are 10,000 teachers in the system
statewide, with roughly a 10 percent annual turnover.
Co-Chair Parnell stated that it seemed the numbers were
staying level, along with a population decrease statewide.
He wondered if there was a need for this legislation with
these types of projections.
Mr. Church responded that districts were reporting
shortages in some disciplines, something that has been on
going for many years.
Co-Chair Parnell declared that he thought this legislation
was a short-term fix and that it does not look towards the
future, as to recruit and keep teachers.
Tape: SFC - 00 #102, Side A, 10:49 AM
Senator Green stated that this shortage of teachers was
cyclical, just the same as overages. She noted that this
was not an unusual phenomenon.
Co-Chair Torgerson inquired about the advantage or
disadvantage of a teacher who works twenty years and
retires, as versus a teacher that stays on for the same
period of time.
Mr. Bell responded that he could not think of any advantage
one way or the other.
Mr. Church added that either way, after twenty years, an
individual would receive the same multiplier, which
increases after twenty years from two percent per year to
two and a half percent per year.
Co-Chair Torgerson stated that HB 277 would be HELD in
Committee.
ADJOURNED
Senator Torgerson recessed the meeting at 10:54 AM to the
call of the chair.
SFC-00 (1) 04/20/00
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