03/11/2008 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HJR25 | |
| SB289 | |
| SB294 | |
| SB297 | |
| SB160 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 294 | TELECONFERENCED | |
| *+ | SB 297 | TELECONFERENCED | |
| += | SB 160 | TELECONFERENCED | |
| += | SB 289 | TELECONFERENCED | |
| += | HJR 25 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 11, 2008
1:33 p.m.
MEMBERS PRESENT
Senator Johnny Ellis, Chair
Senator Gary Stevens, Vice Chair
Senator Bettye Davis
Senator Lyman Hoffman
Senator Con Bunde
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE JOINT RESOLUTION NO. 25
Urging the United States Congress to support the freedom to
choose unions.
MOVED HJR 25 OUT OF COMMITTEE
SENATE BILL NO. 289
"An Act relating to home energy conservation and weatherization
for purposes of certain programs of the Alaska Housing and
Finance Corporation."
MOVED SB 289 OUT OF COMMITTEE
SENATE BILL NO. 294
"An Act relating to the pay and duties of commissioners of the
Regulatory Commission of Alaska, establishing the position of
executive director of the Regulatory Commission of Alaska and
defining the duties and powers of the position, and placing the
executive director and administrative law judges of the
Regulatory Commission of Alaska in the exempt service under the
State Personnel Act."
HEARD AND HELD
SENATE BILL NO. 297
"An Act relating to the compensation for certain public
officials, officers, and employees not covered by collective
bargaining agreements; relating to pay increments for longevity
in state service; and providing for an effective date."
HEARD AND HELD
SENATE BILL NO. 160
"An Act establishing an Alaska health care program to ensure
insurance coverage for essential health services for all
residents of the state; establishing the Alaska Health Care
Board to define essential health care services, to certify
health care plans that provide essential health care services,
and to administer the Alaska health care program and the Alaska
health care fund; establishing the Alaska health care
clearinghouse to administer the Alaska health care program under
the direction of the Alaska Health Care Board; establishing
eligibility standards and premium assistance for persons with
low income; establishing standards for accountable health care
plans; creating the Alaska health care fund; providing for
review of actions and reporting requirements related to the
health care program; and providing for an effective date."
HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: HJR 25
SHORT TITLE: SUPPORTING RIGHT TO FORM LABOR UNIONS
SPONSOR(s): REPRESENTATIVE(s) HARRIS
05/10/07 (H) READ THE FIRST TIME - REFERRALS
05/10/07 (H) STA
05/12/07 (H) STA RPT 3DP 1NR 2AM
05/12/07 (H) DP: GRUENBERG, DOLL, LYNN
05/12/07 (H) NR: JOHANSEN
05/12/07 (H) AM: ROSES, COGHILL
05/12/07 (H) STA AT 9:00 AM CAPITOL 106
05/12/07 (H) Moved Out of Committee
05/12/07 (H) MINUTE(STA)
01/28/08 (H) TRANSMITTED TO (S)
01/28/08 (H) VERSION: HJR 25
01/30/08 (S) READ THE FIRST TIME - REFERRALS
01/30/08 (S) L&C, STA, FIN
02/07/08 (S) L&C AT 1:30 PM BELTZ 211
02/07/08 (S) -- MEETING CANCELED --
02/09/08 (S) L&C AT 1:30 PM BELTZ 211
02/09/08 (S) Heard & Held
02/09/08 (S) MINUTE(L&C)
02/12/08 (S) L&C AT 1:30 PM BELTZ 211
02/12/08 (S) Scheduled But Not Heard
02/16/08 (S) L&C AT 1:30 PM BELTZ 211
02/16/08 (S) -- MEETING CANCELED --
03/11/08 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 289
SHORT TITLE: HOME ENERGY CONSERVATION
SPONSOR(s): SENATOR(s) HOFFMAN
02/19/08 (S) READ THE FIRST TIME - REFERRALS
02/19/08 (S) L&C, FIN
03/04/08 (S) L&C AT 1:30 PM BELTZ 211
03/04/08 (S) Heard & Held
03/04/08 (S) MINUTE(L&C)
03/10/08 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/10/08 (S) <Pending Referral>
03/11/08 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 294
SHORT TITLE: RCA POSITIONS AND SALARIES
SPONSOR(s): LABOR & COMMERCE BY REQUEST
02/25/08 (S) READ THE FIRST TIME - REFERRALS
02/25/08 (S) L&C, JUD, FIN
03/11/08 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 297
SHORT TITLE: NONUNION PUBLIC EMPLOYEE SALARY & BENEFIT
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
03/03/08 (S) READ THE FIRST TIME - REFERRALS
03/03/08 (S) FIN
03/06/08 (S) L&C REFERRAL ADDED BEFORE FIN
03/11/08 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 160
SHORT TITLE: MANDATORY UNIVERSAL HEALTH CARE
SPONSOR(s): SENATOR(s) FRENCH
04/23/07 (S) READ THE FIRST TIME - REFERRALS
04/23/07 (S) HES, L&C, FIN
09/10/07 (S) HES AT 1:30 PM Anch LIO Conf Rm
09/10/07 (S) Heard & Held
09/10/07 (S) MINUTE(HES)
01/30/08 (S) HES AT 1:30 PM BUTROVICH 205
01/30/08 (S) Heard & Held
01/30/08 (S) MINUTE(HES)
02/18/08 (S) HES AT 1:30 PM BUTROVICH 205
02/18/08 (S) Moved CSSB 160(HES) Out of Committee
02/18/08 (S) MINUTE(HES)
02/19/08 (S) HES RPT CS 3DP 1DNP NEW TITLE
02/19/08 (S) DP: DAVIS, THOMAS, ELTON
02/19/08 (S) DNP: DYSON
02/26/08 (S) L&C AT 1:30 PM BELTZ 211
02/26/08 (S) Heard & Held
02/26/08 (S) MINUTE(L&C)
02/28/08 (S) L&C AT 1:30 PM BELTZ 211
02/28/08 (S) Heard & Held
02/28/08 (S) MINUTE(L&C)
03/11/08 (S) L&C AT 1:30 PM BELTZ 211
WITNESS REGISTER
SENATOR HOFFMAN
Alaska State Capitol
Juneau, AK
POSITION STATEMENT: Sponsor of SB 289.
DANA OWEN
Staff to Senator Ellis
Alaska State Capitol
Juneau, AK
POSITION STATEMENT: Commented on SB 294.
TONY PRICE, Chairman
Regulatory Commission of Alaska (RCA)
Anchorage, AK
POSITION STATEMENT: Supported SB 294 with a few changes.
RICH GAZAWAY, Commissioner
Regulatory Commission of Alaska (RCA)
Anchorage, AK
POSITION STATEMENT: Supported SB 294 with a few changes.
SENATOR LISEL MCGUIRE, Chairman
Regulatory Commission of Alaska Task Force
Alaska State Capitol
Juneau, AK
POSITION STATEMENT: Supported SB 294.
ANNETTE KREITZER, Commissioner
Department of Administration (DOA)
Juneau, AK
POSITION STATEMENT: Supported SB 297.
KEVIN BROOKS, Deputy Commissioner
Department of Administration (DOA)
Anchorage, AK
POSITION STATEMENT: Presented SB 297.
CHRIS CHRISTIANSON, Deputy Administrative Director
Alaska Court System
Juneau, AK
POSITION STATEMENT: Didn't agree with magistrate pay and
retroactivity for judges provisions in SB 297.
CHRISTINE SCHLOUSS, Attorney
Anchorage, AK
POSITION STATEMENT: Supported SB 297.
MARGO LACHAPELLE, Employee Representative
Bethel Supervisory Unit (SU)
Bethel, AK
POSITION STATEMENT: Would support SB 297 contingent on making
longevity language consistent with her unit's contract.
SENATOR FRENCH
Alaska State Capitol
Juneau, AK
POSITION STATEMENT: Sponsor of SB 160.
MARY RAYMOND, representing herself
Homer, AK
POSITION STATEMENT: Supported SB 160.
PATRICK DALTON, representing himself
Delta Junction, AK
POSITION STATEMENT: Commented on SB 160.
ACTION NARRATIVE
CHAIR JOHNNY ELLIS called the Senate Labor and Commerce Standing
Committee meeting to order at 1:33:10 PM. Present at the call to
order were Senators Davis, Hoffman and Ellis.
HJR 25-SUPPORTING RIGHT TO FORM LABOR UNIONS
1:34:12 PM
CHAIR ELLIS announced HJR 25 to be up for consideration.
SENATOR DAVIS moved to report HJR 25 from committee with
individual recommendations and zero fiscal note. There were no
objections and it was so ordered.
SB 289-HOME ENERGY CONSERVATION
1:35:22 PM
CHAIR ELLIS announced SB 289 to be up for consideration.
SENATOR HOFFMAN, sponsor of SB 289, said he had had no
additional comments.
SENATOR DAVIS moved to report SB 289 from committee with
individual recommendations and attached fiscal note(s). There
were no objections and it was so ordered.
SB 294-RCA POSITIONS AND SALARIES
1:36:52 PM
CHAIR ELLIS announced SB 294 to be up for consideration.
DANA OWEN, staff to Senator Ellis, explained this measure is the
result of the work of the Regulatory Commission of Alaska (RCA)
Task Force. Two of the recommendations were singled out for this
bill because they had broad support.
1:37:25 PM
SENATOR BUNDE joined the committee.
MR. OWEN explained that Sections 1, 2 and 3 stipulate that a new
executive director will be part of the exempt service and it
moves administrative law judges into the exempt service (from
partially exempt). Section 3 changes the pay levels for
commissioners from a Step C, Range 26, to Step F, Range 30. The
remainder of the bill authorizes the commission to employ an
executive director in an administrative position.
1:40:05 PM
CHAIR ELLIS asked the RCA chair's opinion of this legislation.
TONY PRICE, Chairman, Regulatory Commission of Alaska, supported
SB 294 with a couple of changes. One is that it's not clear who
employs administrative law judges; it could be either the
commission or the executive director. He also proposed adding
language stating "The executive director shall not participate
in the adjudication of any matter to come before the
commission." This would address issues that arose in past
commissions.
His final recommendations were first to AS 42.05.254(a) to
increase the RCA cap from what it is presently at .7 percent to
.9 percent. Some people say they don't want to increase the cap,
but their budget is set; this allows him to collect the revenue
to feed it. He said he didn't think they would be at the cap,
but he didn't know what next year's revenues would be. He also
suggested increasing the RCA cap in AS 42.06.286(a) from .7
percent to .9 percent for the same reason.
1:42:46 PM
SENATOR STEVENS joined the committee.
CHAIR ELLIS asked him to submit those suggestions in writing. He
then asked him to comment on the commission's overall needs,
underfunding and understaffing and why this should be compelling
legislation.
MR. PRICE responded that his presentation to the Task Force was
86 minutes, but he would give them a briefer version. At this
level of staffing they have three engineer positions, but only
one is filled. They need all three. The commission's utility
financial analyst needs to have a very high skills set regarding
accounting and financial review; it has five of those positions
and only two are filled - with staff that have been there for
over five years, and "their docket load is oppressive to say the
least." He explained that they are in the situation where they
have taken staff that were legal office assistants to the
commissioners, redefined their jobs and put them in the ALJ
section to help move orders out; the commissioners now have no
support. However, he said, the commissioners can do their own
filing.
Complicating all this is another change that has dramatically
increased the workload. Besides all the other statutory
deadlines, last year another bill imposed a six-month deadline
on all things that did not otherwise have one. They are
completing dockets virtually days before the statutory deadline
or on the day of. They don't have the revenues or the staff.
Alternatively, they will have to hire consultants from the Lower
48 and pay them at a much higher rate.
CHAIR ELLIS said Mr. Price's concerns are not unique to the RCA
and he was personally convinced they needed to take some action.
He said that most legislators had not heard his comments.
Positions throughout state government are having trouble
recruiting people.
1:50:06 PM
RICH GAZAWAY, RCA commissioner, agreed with Mr. Price's
comments.
CHAIR ELLIS said he would have a committee substitute prepared
with some of his proposed changes.
1:50:51 PM
SENATOR LISEL MCGUIRE, chair of the RCA Task Force, wanted to
add "a little bit of soul" to Mr. Price's comments. She said the
RCA is one of the most important commissions in the state. It
deals with highly technical complex matters that affect
consumers in the state more than any other commission. Yet it
has a great challenge recruiting and retaining staff including
the highly technical positions and the commissioners themselves.
She said RCA commissioners effectively act as a Supreme Court
judge because they preside over for example, the TAPS tariff
case affecting billions of dollars to consumers and producers.
But they are at the lower level salary in looking at the
marketplace.
SENATOR McGUIRE said you want folks with juris doctorate
degrees, CPAs, business backgrounds and experience in the
private sector. These are the kinds of individuals who will come
from the private sector and those make a lot more money.
She said she thought the commission needed an executive director
who would act as a manager. Currently, one of the five
commissioners serves as chair, but he also has the
administrative function of hiring and firing and the rudimentary
business part of the commission.
SENATOR MCGUIRE emphasized that she was very disturbed as a
lawmaker to see the volumes of rate cases with which they are
dealing. One department has only one person who has only two
years on the job in the office.
CHAIR ELLIS said he supports this legislation. He thinks it is
necessary to pay quality wages to the commissioners, but
considers the position on of public service as well. While he
supported the entire package, the staff vacancies and staff pay
were more important to him.
SENATOR MCGUIRE thanked the RCA commissioners who are looking
out for the state's best interests.
SB 297-NONUNION PUBLIC EMPLOYEE SALARY & BENEFIT
1:58:27 PM
CHAIR ELLIS announced SB 297 to be up for consideration.
ANNETTE KREITZER, Commissioner, Department of Administration
(DOA), said the state has the same challenges with recruitment
and retention that other employers have. The governor has tasked
the executive working group created under AO 237 to review the
issue of recruitment and retention. That report is available on
the department's web page. She said the labor negotiations are
one part of addressing recruitment and retention, but those
decisions are made at the bargaining table. The contracts have
been offered to seven unions and she has agreements with four so
far. These contracts are the best in 15 years.
She said that changes in compensation for state employees not
covered by a bargaining agreement must be accomplished through
legislation and that's what SB 297 does. Each union contract is
unique and there are other elements of pay in addition to COLA
or service steps contained in each one; her job is to look at
the final full effect of the monetary components of each and
consider the fiscal impact on the state. She said her proposed
budget will be reduced this year.
COMMISSIONER KREITZER said the criticism that this bill has
service steps not offered to one particular union is
disingenuous in her opinion. Because one of the five offers she
made to that union included service steps in addition to a 40-
hour work week.
She said the changes in the offers she has made will help the
state retain the professional knowledgeable state employees.
Each negotiation is different and one can't simply pick out one
element of an offer that a union refused and say you can't offer
that to anyone else because we turned it down. The estimate of
the cost of the service steps she offered to the SU (which she
brought up today because of a full-page ad in today's Juneau
Empire on this topic.) was $1.9 million for FY09. That is still
a big number and so is the $8.5 billion unfunded liability for
state employee and retiree pensions and health benefits.
COMMISSIONER KREITZER said she wanted to set the stage by saying
they are all dealing with the same issues of trying to build a
bridge to a gas line with production declining at a rate of 6
percent a year. She is trying to hold down spending while trying
to do sustainable contracts.
SENATOR BUNDE said the legislature recently passed a
supplemental bill that included a substantial amount of money
for these negotiations and asked what impact that had on her
negotiations.
MS. KREITZER replied that she had concluded negotiations with
GGU and with the supervisory unit and that is in the
supplemental. The supervisory unit has ballots out now to decide
on whether or not to accept that offer with a closing time of
tomorrow.
2:02:40 PM
KEVIN BROOKS, Deputy Commissioner, Department of Administration
(DOA), walked them through SB 297. He said it restates salary
schedules and identifies a number of positions that are
specifically set in statute. Section 1 raises limited entry
commissioners from Range 26, Step C to Range 27 and no step
reference. Section 2 is conforming language addressing the
Alaska State Defense Force. Section 3 raises the chief
procurement officer from a Range 24 to a Range 27. Section 4
addresses the step limitation for deputy commissioners who are
appointed. Current language says they are appointed at not less
than Step A or more than Step F and new language deletes the
reference to steps because it's limiting when people come to the
state from the private sector or are promoted from other
positions.
2:05:53 PM
MR. BROOKS said Section 5 restates the salary schedule contained
in Title 39 to reflect a 5.5 percent increase. Sections 6 and 7
provide for raising the salary schedule by 3 percent in July 1,
2008 and 3 percent more in July 1, 2009.
Section 8 adds a new subsection that allows for pay increments
every two years beyond Step F; currently an individual would
progress from Steps A through F annually and after that adds
more years between steps according to AS 39.27.022.
He explained in 1972 longevity steps A-F were added to statute
to reward people for longer service, but now that is more of an
obstacle and extra steps are needed to keep employees on longer.
It is tied to an annual "good" review rating.
2:08:43 PM
SENATOR BUNDE asked if people ever receive less than good or
adequate reviews and why are they retained.
MR. BROOKS answered that some individuals receive a low
acceptable or unacceptable rating. There is a process for them
to go through of identifying areas that need improvement and
developing a plan. In some cases they are retained and others
not.
SENATOR BUNDE asked if a majority of reviews are good or better.
MR. BROOKS answered it was safe to say a majority of review are
mid-acceptable or higher.
SENATOR BUNDE asked if the range is unacceptable, acceptable and
good.
MR. BROOKS replied there are five different rankings within
"entirely unacceptable" and "outstanding."
SENATOR BUNDE said the positions in this bill are non-bargaining
unit.
MR. BROOKS replied yes, but many of them would receive an annual
review using a standard form for classified people.
SENATOR BUNDE said he thought merit pay was a good idea, and
that he would like more information on how many are acceptable
and unacceptable.
MR. BROOKS said he could get some data on that; it was important
to tie it to a certain level of performance and one of the items
the task force talked about was bring accountability to the
workforce.
COMMISSIONER KREITZER added that this won't be done all in one
year. The working group report talks about improvements to the
merit system and how it can't work without a co-effort to
prepare proper evaluations. She is trying to figure out how to
make the evaluation process simpler for supervisors so they will
see the value in it and do them.
SENATOR BUNDE said he is trying to avoid a Lake Woebegone
situation where everyone is above average.
MR. BROOKS said Section 8 had a couple of subsections;
subsection (i) ties this to the pay plan that is in Title 39.25.
Subsection (j) allows for the legislature and independent
agencies within the legislative branch to choose to apply these
types of merit increases to their staff or not. Section 9
addresses pay for commissioners within the RCA as mentioned
previously.
2:14:16 PM
Section 10 repeals former AS 39.27.022 that addressed the
longevity steps that are now in section AS 39.27.011. Section 11
covers executive branch salary overrides. He explained that a
number of employees in the executive branch are exempt,
partially exempt and classified, and he identified the exempt
ones on a salary override. In other words they are not being
paid off of the salary schedule; they are being paid some amount
that has been determined by their employer to be appropriate and
adequate. The goal is if someone has already had their pay
adjusted, it won't be adjust again at 5.5 percent. It applies to
commissioners and others who are not part of the salary system.
MR. BROOKS said Section 12 covers judicial employees. It also
mistakenly groups magistrates with judges and he had suggested
language for that. Section 13 addresses the University and
states that they are under the policies that are adopted by the
Board of Regents and not covered by this bill. Section 14
provides prospective application of the steps to not harm
someone in the middle of his salary schedule. Section 15 is more
transition language.
2:17:35 PM
He said the retroactivity addresses the first 5.5 percent
increase going back to July 1, 2007.
MR. BROOKS wrapped up that he has heard the statement "high
level employees" and this bill really covers about 1,500 people
- 14 commissioners, 75 directors, but it includes a lot of rank
and file folks. It's much broader than he has heard
characterized.
SENATOR ELLIS asked why this bill was introduced on March 3.
MR. BROOKS answered that the administration has been working on
this since the fall; they could have offered it earlier and have
been running different scenarios, but they have been in active
negotiations with different unions.
SENATOR ELLIS asked if the specific timing related to any
negotiations with public employees.
MR. BROOKS answered no.
SENATOR BUNDE asked if language on page 4, line 3, applies to
legislative staff.
MR. BROOKS answered it applies to all legislative employees
including the Legislative Affairs Agency (LAA).
2:20:19 PM
CHRIS CHRISTIANSON, Deputy Administrative Director, Alaska Court
System, said all employees in the judicial branch are non-
covered. It is the largest group of non-covered employees
outside of the University and the lowest paid branch of
government; approximately 70 percent of its employees are Range
15 or below. Largely because of this they have a very high
turnover rate which translates into high training costs, a high
ratio of supervisors to clerks and other inefficiencies.
Notwithstanding the pay, he said, many of them are hard working
employees.
He said over the last 15 years state employees have received
COLA adjustments much less than the rate of inflation. In
today's dollars what he pays a Range 10 today is substantially
less than what he paid to a Range 10 twenty years ago.
In addition to the COLA the bill proposes to change the scheme
of longevity pay which addresses a very real problem of
retaining long term employees. He stated that most entry level
employees at the court system are a Range 8 or 10. The highest
ranking person at the court might be a Range 16. So there is not
a lot of upward mobility to get people to stay a long time.
2:22:28 PM
MR. CHRISTIANSON said he didn't agree with two provisions in
this bill: one was magistrate pay. They don't have their
salaries set in statute and are ordinary state employees on a
salary schedule. However, he has received indication that change
would be supported.
The other provision is the retroactivity for judges. The bill
lumps judges together with political appointees in denying them
retroactive pay for the current fiscal year. Judges, unlike most
other state employees, do not get longevity pay. A normal
employee over the course of an 18-year career will have
increases equal to 40 percent of their salary; a judge who has
worked for 18 years gets exactly the same pay as a brand new
judge. They are uniquely dependent on getting cost of living
adjustments from the legislature for their pay raises.
During the 20-year period prior to the 2006 pay raise, inflation
ran about 77 percent and judges got pay raises equal to about 50
percent. They went from the highest paid state court judges in
th
the country down to the 48 ranked in the country. The results
were very negative; they had judicial positions for example in
Bethel that couldn't be filled because qualified people wouldn't
apply. Also, the courts face smaller applicant pools that tend
to be much younger and less qualified that in the past. The
legislature realized there was a problem two years ago. He
remarked between the day the judges got that pay raise and the
end of the current fiscal year the inflation rate is going to be
between 7 and 8 percent; so judges will lose roughly 7 to 8
percent of the amount the legislature thought was a suitable
amount two years ago. He advised to not start down the path they
took 20 years ago when judges' pay was gradually chipped away
because small COLA adjustments were not made on a regular basis
and large adjustments have to be made every few decades after
having lots of problems.
CHAIR ELLIS remarked that he was talking to legislators who are
a Range 10, plus some per diem; so they would try to keep it in
perspective.
2:25:48 PM
CHRISTINE SCHLOUSS, Anchorage Attorney, said she used to be an
assistant public defender and a member of the Teamsters Union.
She is very pro-union, but on this issue she disagreed with
union people who speak out against this bill because a union
contract did not contain the longevity steps. That is what she
wanted to focus her comments on.
MS. SCHLOUSS said she started as a public defender in the 70s
and 80s where salaries were competitive with those in private
practice. That is no longer even remotely the case. What she
sees frequently now because she litigates against the DAs and
public defenders is that the state is losing the brightest and
the best. These folks often come out of law school $150,000 to
$200,000 in debt and they start out by not being able to keep up
with their debt. She knows of an assistant district attorney who
drives a cab at night to make ends meet. The Public Defender
Agency just lost a terrific well qualified attorney who went to
work as a sales representative for an online legal resource
organization because it pays her 2.5 times her salary as a
public defender.
She urged the legislature to recognize that the state needs to
have the kind of lawyers who want to work in public service but
could make 2.5 more in private practice. These longevity steps
don't do enough, but they do something. She urged them to
recognize the worth of rank and file employees who want to stay
working with the state by giving them the opportunity to have at
least small step increases.
2:30:12 PM
MARGO LACHAPELLE, Employee Representative, Bethel Supervisory
Unit (SU), said she is also a supervisor for the Division of
Public Health Nursing, Department of Health and Social Services
(DHSS). She said the SU has been negotiating with the state
since December 06 and the administration refused to include the
longevity steps in their final contract offer. Four days after
her members voted to accept the contract, this bill was
introduced offering a better deal to political appointees. By
doing so, she felt the administration did not value the state
employees with the SUs. In addition to denying the SU members
the longevity steps during negotiations, the administration
waited until after the ballots went out to publish the
Governor's Recruitment and Retention Task Force Report. She
said, "It echoed all the things we've been saying for the last
year at the bargaining table. We can't hire enough qualified
people to staff our positions because the pay is too low...."
She asked that this bill be amended so that the extra longevity
steps for the non-unionized employees of the executive branch
are contingent upon the same steps being applied to the
unionized employees of the executive branch.
CHAIR ELLIS thanked everyone for the comments and held the bill
for further work.
2:33:24 PM at ease 2:33:39 PM
SB 160-MANDATORY UNIVERSAL HEALTH CARE
2:34:14 PM
CHAIR ELLIS announced SB 160 to be up for consideration. The
committee had CSSB 160(L&C), 25-LS0728\T to consider.
SENATOR FRENCH, sponsor of SB 160, said he would comment on CSSB
160(L&C), 25-LS0728\T. He said it makes six changes, some small
and some fairly significant. The first change is on page 3,
lines 15-17, that broadens the view points that are represented
on the Health Care Board. Concerns were heard from insurers that
the definition of entities that would make up the insurance
representatives on the board was too narrow. So now the two
representatives are one large scale wholesaler and small scale
retailer. He explained the retailer is called an "insurance
producer," an industry term that refers to the customer oriented
on-the-ground insurance retailer.
2:36:20 PM
The second change is on page 5, lines 6-8, and clearly gives the
duty to the board of making a plan that can effectively protect
an individual from severe financial hardship in times of medical
need - taking into account a household's income and other
relevant financial criteria. He said, "It will make certain that
insurance is meaningful for each Alaskan since a $10,000
deductible health care plan isn't much use to a household that
earns $15,000 a year."
2:36:50 PM
SENATOR FRENCH said the third change came in response to a
concern of Senator Stevens. It removes a few words from what was
subsection 7 on page 6. It used to say that Indian Health
Service (IHS) benefits had to meet or exceed the benefits for
essential health care services as defined in the legislation.
That has been removed to make it clear that individuals who are
satisfied with the care they receive through IHS facilities
won't be subject to the requirement to have additional coverage
- even if the IHS benefits don't line up exactly with essential
health care services. To a large extent, this alleviates the
fine decisions the board would have to make as to each IHS
recipient and whether the benefits they receive met or exceeded
those adopted by the plan.
He said he worked with tribal representatives, and the important
facts to keep in mind when looking at the interplay between SB
160 and the IHS system are first, that any third party payer
will be first in line if an IHS beneficiary with third-party
insurance walks into a clinic anywhere if they have third party
insurance. The second thing to remember is that the amount of
money dedicated by the federal government to IHS beneficiaries
is fixed every year; it is distributed at the beginning of the
year and that's the end of it. It is not limitless. They have
enough money for day-to-day clinic visits and check ups, but
when it comes to bone marrow transplants or a knee replacement
or heart surgery, they may be "rationed out," because the amount
of money allocated that year has been used up. So in essence SB
160 helps add to the care of any IHS beneficiary in the state.
SENATOR FRENCH said IHS beneficiaries receive on average about
$2,000 per individual spread across the entire population
whereas someone outside the IHS receives about $4,000 to $5,000.
SB 160 allows any IHS beneficiary to join the plan if they
choose or not depending on how satisfied they are with their own
personal situation. Senator French said, "SB 160 will not back
out a single federal dollar that is currently being received in
Alaska for the benefit of IHS beneficiaries." He said this was
the most complex change even though it was just the reduction of
a few words.
The fourth change was on page 6, lines 11-14, that has to do
with concerns on behalf of the Christian Science Religion who
eschew modern medical practices. So SB 160 has allowed an
exemption for those individuals. If they can demonstrate to the
board that their deeply held religious beliefs are contrary to
this program, they don't have to participate. Exemptions will be
rigorously granted.
SENATOR FRENCH said the next change is how "employees" and the
"employer levy" are defined. There was concern that "employee"
was defined too broadly. Imagine a business that employed
nothing but military spouses or spouses of state or federal
employees - all covered by health insurance. There is absolutely
no need to apply an employer levy against that employer, because
not a single one of those individuals needs health insurance. So
an "employee" is defined as someone who is required to
participate in the Alaska Health Care Plan on page 8, lines 11-
20 and that means they don't have coverage anywhere else.
2:42:06 PM
He said the second change is with counting the number of
employees, because you get into problems of defining how many
hours a week that is. So, they went with the payroll number,
which is roughly equal to what one would imagine 10 full-time
employee equivalents is - the $500,000 figure. He explained if
your total payroll of employees that don't have coverage
anywhere else is $500,000 or less, no levy whatsoever. If it's
between $500,000 and $1,000,000 it's 1 percent; if it's over
$1,000,000 it's 2 percent. This is more business friendly and
easier to understand.
Finally, he said language on page 12, line 18, changes the
effective dates to comport with concerns Legislative Legal had
regarding adoption of regulations.
2:43:48 PM
MARY RAYMOND, representing herself from Homer, said after
listening to task forces and various bills to get affordable
insurance for the last 20 years this is very exciting. Her
concern that it was promoted as compulsory had been addressed.
2:45:09 PM
PATRICK DALTON, Delta Junction, representing himself, agreed
with the public oversight provision. He also suggested having
two alternative health professionals on the Health Care Board -
naturopath or herbologist. However, he asserted the legislature
has no constitutional authority to require a citizen to contract
into any health care plan whatsoever.
Second, Mr. Dalton said, an element of hypocrisy exists because
SB 160 requires everyone to have a health care card and then it
turns around and denies coverage to any Alaskan who does not
have one. He said the "preamble" of the bill clearly states that
all Alaskans are eligible for this and he suggested just
expanding health care coverage to any Alaskan who can prove they
are a citizen or a resident. That way compliance doesn't have to
be forced. Furthermore, he asked what criminal penalties there
are for not partaking in the system. Finally, he said if they
have to require health care coverage, even though he doesn't
think they have the right to do that, he suggested having an
opt-out system. He also asked how someone can demonstrate they
have a firmly held religious belief that being a subjective
matter.
CHAIR ELLIS thanked everyone for sharing their thoughts and said
he would hold SB 160 for further work. There being no further
business to come before the committee, he adjourned the meeting
at 2:49:27 PM.
| Document Name | Date/Time | Subjects |
|---|