Legislature(2001 - 2002)

03/29/2001 03:40 PM Senate STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                     ALASKA STATE LEGISLATURE                                                                                   
                  SENATE STATE AFFAIRS COMMITTEE                                                                              
                          March 29, 2001                                                                                        
                             3:40 p.m.                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                              
Senator Gene Therriault, Chair                                                                                                  
Senator Randy Phillips, Vice Chair                                                                                              
Senator Drue Pearce                                                                                                             
Senator Rick Halford                                                                                                            
Senator Bettye Davis                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                              
All members present                                                                                                             
                                                                                                                              
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 147                                                                                                             
"An Act relating to nongovernmental activities of state                                                                         
departments; and providing for an effective date."                                                                              
     MOVED SB 147 OUT OF COMMITTEE                                                                                              
                                                                                                                                
SENATE BILL NO. 146                                                                                                             
"An Act relating to the primary election; and providing for an                                                                  
effective date."                                                                                                                
     MOVED CSSB 146 (STA) OUT OF COMMITTEE                                                                                      
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
SB 147 - No previous action recorded.                                                                                           
                                                                                                                                
SB 146 - See State Affairs minutes dated 3/22/01.                                                                               
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Annette Deal                                                                                                                    
Staff to Senator Cowdery                                                                                                        
Alaska State Capitol, Room 101                                                                                                  
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT: Introduced SB 147                                                                                         
                                                                                                                                
Brad Pierce                                                                                                                     
Senior Economist                                                                                                                
Department of Administration                                                                                                    
Office of Management and Budget                                                                                                 
PO Box 110200                                                                                                                   
Juneau, AK  99811-0200                                                                                                          
POSITION STATEMENT:  Testified on SB 147                                                                                      
                                                                                                                                
Alison Elgee                                                                                                                    
Deputy Commissioner                                                                                                             
Department of Administration                                                                                                    
PO Box 110200                                                                                                                   
Juneau, AK  99811-0200                                                                                                          
POSITION STATEMENT: Answered questions on SB 147                                                                              
                                                                                                                                
Joe Balash                                                                                                                      
Staff to Senate State Affairs Committee                                                                                         
Alaska State Capitol, Room 121                                                                                                  
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT: Testified on CS for SB 146                                                                                
                                                                                                                                
Gail Fenumiai                                                                                                                   
Election Program Specialist                                                                                                     
Office of the Lieutenant Governor                                                                                               
Division of Elections                                                                                                           
P.O. Box 110017                                                                                                                 
Juneau, AK 99811-0017                                                                                                           
POSITION STATEMENT: Answered questions on SB 146                                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 01-17, SIDE A                                                                                                            
Number 001                                                                                                                      
                                                                                                                                
                                                                                                                                
CHAIRMAN GENE  THERRIAULT called the Senate State  Affairs Committee                                                          
meeting  to order  at  3:40  p.m. Present  were  Senators  Phillips,                                                            
Pearce and Chairman Therriault.                                                                                                 
                                                                                                                                
The first order of business was SB 147.                                                                                         
                                                                                                                                
                SB 147-STATE GOVERNMENT ACTIVITIES                                                                          
                                                                                                                                
ANNETTE DEAL,  staff for Senator Cowdery,  introduced SB  147 as the                                                            
State concept of federal  legislation enacted in 1998. It requires a                                                            
state  agency  to   list  those  agency  activities   that  are  not                                                            
inherently   governmental   on  an  annual   basis.  An   inherently                                                            
governmental function  is defined as "a function that  is so closely                                                            
related to  the public interest  that it  requires performance  by a                                                            
state governmental employee."                                                                                                   
                                                                                                                                
First,  departments  identify  functions  that  are  not  inherently                                                            
governmental.  Once  the  list  is  made, it  is  submitted  to  the                                                            
Department  of  Administration,  Office  of  Management  and  Budget                                                            
(OMB).  They  make  the  list  available   to  the  public  and  the                                                            
legislature. Interested  persons are then able to  challenge what is                                                            
or is not on that list.                                                                                                         
                                                                                                                                
The idea  is to make it  easier for the  public to understand  which                                                            
functions are  essential and which  are not so they are better  able                                                            
to understand what their dollars are paying for.                                                                                
                                                                                                                                
Step two asks  for a realistic and  fair cost to be attached  to the                                                            
performance  of the activities  so a private  individual would  have                                                            
that  information  readily  available  if they  wanted  to  consider                                                            
outsourcing.  In addition,  "it puts  the state  on the right  track                                                            
toward government  activities that  we want and that we are  willing                                                            
to pay for. It  provides the basis for long term consistent  efforts                                                            
towards cost-effective government."                                                                                             
                                                                                                                                
The  bill   has  a  zero   fiscal  note   from  the  Department   of                                                            
Administration.  She said  that the bill  is simply good  management                                                            
practice and good management doesn't have a cost attached.                                                                      
                                                                                                                                
CHAIRMAN  THERRIAULT  asked if  there  are differences  between  the                                                            
legislation this year and that introduced previously.                                                                           
                                                                                                                                
MS. DEAL said that there  were several House State Affairs committee                                                            
substitutes   last  year   that  are   reflected   in  the   current                                                            
legislation. Previous  language referred to unions  and putting work                                                            
out for a public  bid. Also, the university  was included  last year                                                            
and is  not in  the present  bill because  they  are working  toward                                                            
greater efficiency on their own.                                                                                                
                                                                                                                                
Some  departments  have  already adopted  these  measures  in  their                                                            
missions  and  measures  by  identifying  time  allocations   toward                                                            
certain projects or what is essential and what is not.                                                                          
                                                                                                                                
Another  difference  this  year  is  that  inherently  governmental                                                             
activity means one that is required by the state constitution.                                                                  
                                                                                                                                
MR. BRAD PIERCE, a policy  analyst with the Office of Management and                                                            
Budget, testified  that the administration  opposes the legislation                                                             
on the grounds that it  is unnecessary and that the resulting report                                                            
would  provide  little useful  information  to  the public  and  the                                                            
legislature that is not already available.                                                                                      
                                                                                                                                
During the last  three administrations, there has  been an effort to                                                            
reduce the  number of annual reports  that departments are  required                                                            
to produce  in an effort  to increase state  productivity.  In fact,                                                            
OMB has  produced  a report on  reports recommending  those  reports                                                            
that  may  be  eliminated  to  free  employees  to  engage  in  more                                                            
productive  activities.   This  bill  is  headed  in   the  opposite                                                            
direction and  although the fiscal note is zero, there  is a cost in                                                            
terms of productivity  to produce  the report on a yearly  basis. As                                                            
an example,  the executive  travel  report costs  about $15,000  per                                                            
year in employee time to produce.                                                                                               
                                                                                                                                
The administration feels  that the area is already well covered with                                                            
the legislature's Commission  on Privatization's final report in the                                                            
fall of  1999. In the legislative  research  catalog, there  are two                                                            
studies identifying mandated  and discretionary programs, one on the                                                            
difficulty of  defining basic services and a list  of state programs                                                            
added in the  last 20 years and whether  they were constitutionally                                                             
or statutorily mandated.                                                                                                        
                                                                                                                                
Before that,  there was  Governor Hickel's  1992 Organizational  and                                                            
Efficiency Task Force that  made recommendations on privatization of                                                            
services. During  that administration, there was also  a hotline for                                                            
citizens to call  in with suggestions on ways to reduce  the cost of                                                            
government and activities that could be privatized.                                                                             
                                                                                                                                
The  point  is,  the  information  the  bill  is  after  is  already                                                            
available and  the functions of government  do not change  that much                                                            
from year to  year. With this in mind,  the administration  does not                                                            
feel  that  the legislation  is  necessary  but  instead  will be  a                                                            
bureaucratic burden to agencies.                                                                                                
                                                                                                                                
CHAIRMAN THERRIAULT called for questions and other testimony.                                                                   
                                                                                                                                
SENATOR COWDERY commented  that this is not a privatization bill. It                                                            
is designed  to identify  those activities  that are not  inherently                                                            
governmental.  The  previous  testimony   was  focused  to  convince                                                            
members that this is a privatization measure.                                                                                   
                                                                                                                                
CHAIRMAN  THERRIAULT  said  there  was  no  prepared  CS.  He  asked                                                            
committee  members for  amendments.  There were none.  He noted  the                                                            
zero fiscal note.                                                                                                               
                                                                                                                                
SENATOR PHILLIPS asked  Mr. Pierce about the executive travel report                                                            
and whether  the administration opposed  preparation of the  report.                                                            
He believes  it's a  good document  that the public  has a right  to                                                            
see.                                                                                                                            
                                                                                                                                
ALISON   ELGEE,   Deputy   Commissioner   of   the   Department   of                                                            
Administration,  testified that when the legislation  was considered                                                            
for the  compensations and  travel report,  it had a $15,000  fiscal                                                            
note  that was  unopposed  by the  administration.  The legislature                                                             
elected to pass  the legislation without the money  so it placed the                                                            
monetary and labor burden  on the Division of Finance. It is quite a                                                            
lot  of  work  to  coordinate  all  the  records  from  the  various                                                            
departments and get them into a format that can by published.                                                                   
                                                                                                                                
CHAIRMAN  THERRIAULT asked  for other questions  or comments.  There                                                            
were none.                                                                                                                      
                                                                                                                                
He asked for the will of the committee.                                                                                         
                                                                                                                                
SENATOR  PEARCE moved  SB 147 and  zero fiscal  note from  committee                                                            
with individual recommendations. There was no opposition.                                                                       
                                                                                                                                
Number 885                                                                                                                      
                                                                                                                                
             SB 146-MODIFIED BLANKET PRIMARY ELECTION                                                                       
                                                                                                                                
CHAIRMAN THERRIAULT said  that the committee heard lengthy testimony                                                            
on this bill  in a previous hearing.  He asked committee  members to                                                            
look on page  2, lines 5, 6 and 7  of the C version of the  proposed                                                            
committee substitute and  find that language after "AS 15.25.012(b)"                                                            
on line 5 and before "voter" on line 7, had been blacked out.                                                                   
                                                                                                                                
It  was his  preference  to adopt  the modified  language  in the  C                                                            
version for the  working document. The committee substitute  (CS) is                                                            
the result  of  his review  of the  document and  eliminating  extra                                                            
findings  and changing  language  referring  to an  open or  blanket                                                            
ballot  to ballots.  The blacked  out language  referred to  ballots                                                            
with  restricted  access.  In section  3  it  was clarified  that  a                                                            
political  party has a right,  by its bylaws,  to limit individuals                                                             
who have access to their ballot.                                                                                                
                                                                                                                                
It was  his intention to  cull language that  was not necessary  and                                                            
put together a framework  upon which the regulations could be built.                                                            
                                                                                                                                
SENATOR  PEARCE  moved to  adopt CSSB  146  Kurtz \C  version  dated                                                            
3/28/01  with  the deletion  of  the language  on  page  2, lines  5                                                            
through 7. There was no objection.                                                                                              
                                                                                                                                
CHAIRMAN  THERRIAULT  asked  Joe  Balash  to  explain  the  proposed                                                            
amendment.                                                                                                                      
                                                                                                                                
JOE BALASH, staff  to the Senate State Affairs Committee,  testified                                                            
that Chairman  Therriault and the  bill drafter were trying  to make                                                            
sure that the  number of ballots and  which ballots are prepared  is                                                            
clear  in the  statute and  that language  removed  in the  original                                                            
version  did not interfere  with  that objective.  A question  arose                                                            
about what  happens with individuals  that will be on the  ballot by                                                            
virtue  of  a petition.  In  1995,  the legislature  passed  a  bill                                                            
stating that all  petition candidates will be placed  on the primary                                                            
ballot.  Under AS  5.25.02(b),  if a  modified ballot  is  prepared,                                                            
there is the potential  for multiple ballots and Chairman Therriault                                                            
wanted  to make  certain that  those  petition candidates  would  be                                                            
placed on every ballot.                                                                                                         
                                                                                                                                
In addition,  whenever the  legislature adjourns  more than  90 days                                                            
before the  primary election, any  ballot initiatives appear  on the                                                            
primary  ballot as  opposed  to the  general election  ballot.  They                                                            
wanted to assure that all  the questions from the initiative make it                                                            
onto the ballot prepared for the primary.                                                                                       
                                                                                                                                
CHAIRMAN  THERRIAULT asked  whether there  were any questions  about                                                            
amendment C.1 and there were none.                                                                                              
                                                                                                                                
He moved amendment 1 and it was adopted with no objection.                                                                      
                                                                                                                                
Number 1159                                                                                                                     
                                                                                                                                
SENATOR PHILLIPS  said that he wanted  to address a concern  brought                                                            
up in  several constituent  meetings  about the  fact that  election                                                            
workers have  not had a raise  in 20 years.  He asked a Division  of                                                            
Elections' representative to explain the payment schedule.                                                                      
                                                                                                                                
GAIL  FENUMIAI, Election  Program  Specialist  for  the Division  of                                                            
Elections,  said that Senator Phillips  was correct in stating  that                                                            
election workers  have not received  a pay increase since  their pay                                                            
was put  in regulation in  1982. The chairperson  for a precinct  is                                                            
paid $8 per hour  and the election workers are paid  $7.50 per hour.                                                            
There  are  other pay  scales  set  out for  absentee  and  question                                                            
counting board members,  state review board members, absentee voting                                                            
officials  and absentee  voting officials  who work  at an  absentee                                                            
station.                                                                                                                        
                                                                                                                                
The division  has been  discussing  the pay scale  and has  received                                                            
numerous calls  on the issue. They propose to raise  the workers pay                                                            
by $5 an  hour. There would  also be a review  made after  a certain                                                            
number of years and the  pay rate would be reevaluated at that time.                                                            
                                                                                                                                
Election workers  throughout the northwest  region of the  state are                                                            
paid from  $9.50 an hour  to $19.99 an hour.  Election workers  work                                                            
hard for long hours and deserve a raise.                                                                                        
                                                                                                                                
CHAIRMAN  THERRIAULT called  attention  to a note  in the  committee                                                            
packets  dated  3/28/01  at  10:59 and  asked  Senator  Phillips  to                                                            
comment on the projected pay increase.                                                                                          
                                                                                                                                
SENATOR   PHILLIPS   said    he  asked    the   division   to   make                                                            
recommendations.                                                                                                                
                                                                                                                                
MS. FENUMIAI  said that  the division  chose a  $5 increase  for all                                                            
positions.  The draft  fiscal note  is based  on a  $5 increase  and                                                            
reflects  an increase of  $76,600 in even  numbered fiscal  years in                                                            
which  regional  education  attendance area  elections  and  coastal                                                            
resource  service  area elections  are  conducted.  In odd  numbered                                                            
fiscal years,  in which  primary, general,  REAA and CRSA  elections                                                            
are held, the increase pay to workers would equal $464,000.                                                                     
                                                                                                                                
CHAIRMAN THERRIAULT said  that it is his preference to not put a pay                                                            
raise in  the bill.  The finance  committee will  hear the bill  and                                                            
they are  in a position  to evaluate  the affordability  of  the pay                                                            
raise. He suggested  that committee  members convey their  desire to                                                            
see an increase but leave the particulars to that committee.                                                                    
                                                                                                                                
SENATOR PEARCE  asked for a reading  of the last line of  the fiscal                                                            
note.                                                                                                                           
                                                                                                                                
MS. FENUMIAI read  the following: "This fiscal note  also reflects a                                                            
pay increase for  election workers. Election workers  have not had a                                                            
pay increase  since  1982. The increased  costs  in FY02, FY04,  and                                                            
FY06 for election  workers employed for the conduct  of the REAA and                                                            
CRSA elections  is $76.6. The increased cost in FY03,  FY05 and FY07                                                            
for election workers  employed for the conduct of  primary, general,                                                            
REAA and CRSA elections is $464.0."                                                                                             
                                                                                                                                
SENATOR PEARCE asked if those amounts are just the increase.                                                                    
                                                                                                                                
MS. FENUMIAI  said yes, they  are in addition  to what is  currently                                                            
budgeted.                                                                                                                       
                                                                                                                                
SENATOR PEARCE  asked the number of statewide election  workers, the                                                            
number of hours  they generally work  and whether overtime  is paid.                                                            
                                                                                                                                
MS. FENUMIAI  said approximately  2,500 workers  work from 14  to 18                                                            
hours per day  with no overtime because the job is  for just one day                                                            
and is not based on a 40-hour workweek.                                                                                         
                                                                                                                                
SENATOR PHILLIPS asked  whether there is much interest in the raise.                                                            
                                                                                                                                
CHAIRMAN  THERRIAULT said  that most  workers do  so for reasons  of                                                            
civic responsibility  rather than monetary compensation.  He did not                                                            
know whether a $5 per hour  increase would change the motivation for                                                            
those individuals but,  since there has not been a raise in a length                                                            
of time, he would  like the finance committee to consider  whether a                                                            
raise is possible.                                                                                                              
                                                                                                                                
SENATOR  PHILLIPS asked  whether  they would  send a  letter to  the                                                            
finance committee.                                                                                                              
                                                                                                                                
CHAIRMAN  THERRIAULT  said that,  as chairman  of  the Senate  State                                                            
Affairs Committee, he would send a letter.                                                                                      
                                                                                                                                
He asked  whether there were  any other questions  on the CS.  There                                                            
was  some  discussion  of  whether  the  legislature  needed  to  do                                                            
anything on the  issue.  He did receive a memo from  Catherine Kurtz                                                            
saying, "If the  statute is not replaced with something  else, there                                                            
will be no  clear statutory direction  to the Division of  Elections                                                            
as to how the  primary ballot should  be prepared and distributed."                                                             
If no action is taken this  year there is the chance for action next                                                            
year but  the Division of  Elections will  be in turmoil about  what                                                            
they are  expected to do  and the entire issue  will become  a legal                                                            
discussion  between  the political  parties,  the division  and  the                                                            
court's interpretation.  It is for that reason that  he prepared the                                                            
CS.                                                                                                                             
                                                                                                                                
He asked for other  proposed amendments or questions  from committee                                                            
members. There were none.                                                                                                       
                                                                                                                                
He asked for the will of the committee.                                                                                         
                                                                                                                                
SENATOR PEARCE  moved CSSB 146 (STA)  and original fiscal  note from                                                            
committee with individual recommendations.                                                                                      
                                                                                                                                
CHAIRMAN  THERRIAULT said  that before  final action  was taken,  he                                                            
wanted to ask  MS. FENUMIAI about the fiscal impact  to the division                                                            
if there is no legislation passed this year.                                                                                    
                                                                                                                                
MS. FENUMIAI said  if there was no statute in place  for the primary                                                            
election, she  wasn't sure what route the division  would take as to                                                            
what rules to follow for  the primary election. It is her assumption                                                            
that  if  emergency  regulations  were  required  again  they  would                                                            
probably find  themselves in the same  situation as during  the last                                                            
primary: they would have  to ask for a supplemental request to cover                                                            
additional costs.                                                                                                               
                                                                                                                                
CHAIRMAN  THERRIAULT asked  whether  there was  objection to  moving                                                            
CSSB 146 (STA) with fiscal note dated 3/28/01. There was none.                                                                  
                                                                                                                                
The meeting was adjourned at 4:10 p.m.                                                                                          

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