Legislature(2019 - 2020)BUTROVICH 205
04/25/2019 03:30 PM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| HB48 | |
| SB75 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 73 | TELECONFERENCED | |
| += | SB 75 | TELECONFERENCED | |
| += | HB 48 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
April 25, 2019
3:37 p.m.
MEMBERS PRESENT
Senator John Coghill, Vice Chair
Senator Lora Reinbold
Senator Peter Micciche
MEMBERS ABSENT
Senator Mike Shower, Chair
Senator Scott Kawasaki
COMMITTEE CALENDAR
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 48(FIN) AM
"An Act removing from the exempt service of the state persons
who are employed in a professional capacity to make a temporary
or special inquiry, study, or examination as authorized by the
governor and including those persons in the partially exempt
service of the state; repealing the authority of the governor or
a designee of the governor to authorize higher pay than is
otherwise allowable for certain partially exempt employees in
the executive branch; requiring the commissioner of
administration to submit a report to the legislature; and
providing for an effective date."
- MOVED CSHB 48(FIN) AM OUT OF COMMITTEE
SENATE BILL NO. 75
"An Act relating to a license to drive a commercial motor
vehicle."
- MOVED SB 75 OUT OF COMMITTEE
SENATE BILL 73
"An Act relating to succession to the offices of governor and
lieutenant governor in case of vacancy; and providing for an
effective date."
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: HB 48
SHORT TITLE: TEMP STATE EMPLOYEES IN PART EXEMPT SVCE
SPONSOR(s): REPRESENTATIVE(s) WILSON
02/20/19 (H) READ THE FIRST TIME - REFERRALS
02/20/19 (H) L&C, FIN
03/18/19 (H) L&C AT 3:15 PM BARNES 124
03/18/19 (H) Heard & Held
03/18/19 (H) MINUTE(L&C)
03/20/19 (H) L&C AT 3:15 PM BARNES 124
03/20/19 (H) Moved HB 48 Out of Committee
03/20/19 (H) MINUTE(L&C)
03/22/19 (H) L&C AT 3:15 PM BARNES 124
03/22/19 (H) Moved HB 48 Out of Committee
03/22/19 (H) MINUTE(L&C)
03/25/19 (H) L&C RPT 3DP 1NR
03/25/19 (H) DP: HANNAN, TALERICO, LEDOUX
03/25/19 (H) NR: WOOL
03/26/19 (H) FIN AT 9:00 AM ADAMS ROOM 519
03/26/19 (H) Heard & Held
03/26/19 (H) MINUTE(FIN)
03/28/19 (H) FIN AT 9:00 AM ADAMS ROOM 519
03/28/19 (H) Moved CSHB 48(FIN) Out of Committee
03/28/19 (H) MINUTE(FIN)
03/29/19 (H) FIN RPT CS(FIN) NT 7DP 4NR
03/29/19 (H) DP: JOHNSTON, LEBON, KNOPP, JOSEPHSON,
ORTIZ, WILSON, FOSTER
03/29/19 (H) NR: CARPENTER, TILTON, MERRICK,
SULLIVAN-LEONARD
04/08/19 (H) BEFORE HOUSE IN SECOND READING
04/09/19 (H) NOT TAKEN UP 4/9 - ON 4/10 CALENDAR
04/10/19 (H) NOT TAKEN UP 4/10 - ON 4/11 CALENDAR
04/12/19 (H) TRANSMITTED TO (S)
04/12/19 (H) VERSION: CSHB 48(FIN) AM
04/15/19 (S) READ THE FIRST TIME - REFERRALS
04/15/19 (S) STA
04/23/19 (S) STA AT 3:30 PM BUTROVICH 205
04/23/19 (S) Heard & Held
04/23/19 (S) MINUTE(STA)
04/25/19 (S) STA AT 3:30 PM BUTROVICH 205
BILL: SB 75
SHORT TITLE: COMMERCIAL VEHICLE LICENSING REQ'S
SPONSOR(s): SENATOR(s) COSTELLO
03/06/19 (S) READ THE FIRST TIME - REFERRALS
03/06/19 (S) TRA, STA
03/19/19 (S) TRA AT 1:30 PM BUTROVICH 205
03/19/19 (S) Heard & Held
03/19/19 (S) MINUTE(TRA)
03/28/19 (S) TRA AT 1:30 PM BUTROVICH 205
03/28/19 (S) Moved SB 75 Out of Committee
03/28/19 (S) MINUTE(TRA)
03/29/19 (S) TRA RPT 3DP 1NR
03/29/19 (S) DP: HUGHES, SHOWER, KIEHL
03/29/19 (S) NR: WILSON
04/18/19 (S) STA AT 1:30 PM BUTROVICH 205
04/18/19 (S) Scheduled but Not Heard
04/25/19 (S) STA AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
REPRESENTATIVE TAMMIE WILSON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 48.
REMOND HENDERSON, Staff
Senator Tammie Wilson
Alaska State Legislature
Juneau
POSITION STATEMENT: Answered questions and provided information
related to HB 48.
KATE SHEEHAN, Director
Division of Personnel and Labor Relations
Department of Administration
Juneau, Alaska
POSITION STATEMENT: Answered questions and provided information
related to HB 48.
CHARLES MCKEE, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified during the hearing on HB 48.
JOE PLESHA, Staff
Senator Mia Costello
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SB 75 on behalf of the sponsor.
AVES THOMPSON, Executive Director
Alaska Trucking Association
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 75.
DON ETHERIDGE, Lobbyist
AFL-CIO
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 75.
ACTION NARRATIVE
3:37:19 PM
VICE CHAIR JOHN COGHILL called the Senate State Affairs Standing
Committee meeting to order at 3:37 p.m. Present at the call to
order were Senators Reinbold, Micciche, and Vice Chair Coghill.
HB 48- TEMP STATE EMPLOYEES IN PART EXEMPT SVCE
3:38:18 PM
VICE CHAIR COGHILL announced the consideration of CS FOR HOUSE
BILL NO. 48(FIN) am, "An Act removing from the exempt service of
the state persons who are employed in a professional capacity to
make a temporary or special inquiry, study, or examination as
authorized by the governor and including those persons in the
partially exempt service of the state; repealing the authority
of the governor or a designee of the governor to authorize
higher pay than is otherwise allowable for certain partially
exempt employees in the executive branch; requiring the
commissioner of administration to submit a report to the
legislature; and providing for an effective date."
He asked the sponsor to respond to the questions that were
raised during the previous hearing.
3:39:19 PM
REPRESENTATIVE TAMMIE WILSON, Alaska State Legislature, Juneau,
sponsor of HB 48, said she'd like Mr. Henderson to respond to
Senator Micciche's question about whether the bill would affect
the governor's ability to hire somebody who commands a higher
salary to work on a specialized project.
3:39:43 PM
REMOND HENDERSON, Staff, Senator Tammie Wilson, Alaska State
Legislature, Juneau, explained that the governor would still
have the authority to hire somebody under AS 39.25.110, which
exempts the Office of the Governor from the Personnel Act.
VICE CHAIR COGHILL offered his understanding that this would be
under the governor's broad authority to hire and the position
may or may not be temporary.
MR. HENDERSON said that's correct.
REPRESENTATIVE T. WILSON referenced the list of exempt service
PCNs the Department of Administration provided and explained
that it focuses on when these supposedly temporary positions
were established. The earliest is 1989 and several others were
established in 2003 and 2010, none of which are temporary. She
also pointed out that some of these positions have been filled
more than once, which doesn't seem very temporary. If the
position isn't temporary it should be classified differently,
she said. She described the bill as being about transparency and
ensuring that fulltime employees are treated equitably.
3:42:03 PM
SENATOR MICCICHE commented that the list the department provided
does not include those highly specialized and highly compensated
positions he talked about during the last hearing. He said the
people on this list probably should not have been hired as
exempts so there is abuse of the system, but the salaries aren't
out of line. He assured the public that if they were out of
line, the committee would jump on that immediately. He agreed
with the sponsor that this brings the issue out into the open
and lets this and future administrations know the expectation is
that hiring will be done correctly, employees will all be
treated fairly, and the process will be transparent.
3:44:11 PM
REPRESENTATIVE T. WILSON remarked that this is just one of the
issues that needs to be addressed. She's identified others that
she'll also look into.
VICE CHAIR COGHILL commented on the lengthy list of exempt
positions in the statute.
SENATOR REINBOLD asked if the department's list reflects
bimonthly pay.
MR. HENDERSON answered yes; the compensation that's listed is
paid twice a month. He also clarified that salaries for some of
the positions on the list are up to $120,000 per year and that
some exempt positions that clearly are temporary and not highly
compensated, such as elections workers, are not on the list.
SENATOR MICCICHE asked if all the larger numbers on the list
reflect the bimonthly base rate.
REPRESENTATIVE WILSON deferred the question to Ms. Sheehan.
3:46:29 PM
KATE SHEEHAN, Director, Division of Personnel and Labor
Relations, Department of Administration, Juneau, confirmed that
most of the numbers are semimonthly base rates and some are
hourly rates.
VICE CHAIR COGHILL asked if this exemption provides a special
and helpful tool.
MS. SHEEHAN replied it depends on the position. She noted that
when the statute was changed in 1982 to "temporary or special
inquiry" instead of "and," it started being used for more
permanent projects like the gas pipeline. Other options are
available such that an exempt agency or the governor's office
could employ an exempt employee. She said it would be limiting
in the partially exempt services where there are classified
nonpermanent employees. She said she doesn't know why things are
set up a certain way but she is aware that it has helped DOA set
up new divisions fairly quickly.
VICE CHAIR COGHILL offered his understanding that those people
could be hired fairly quickly under the governor's authority.
MS. SHEEHAN confirmed that a position for a high-level project
that is set up by the governor's office would be exempt right
away.
VICE CHAIR COGHILL asked what caused hiring under this section
of the statute to be less transparent.
MS. SHEEHAN said she didn't know.
SENATOR REINBOLD asked what the Position Time Class "ltexe"
refers to.
MS. SHEEHAN replied that is long term exempt.
SENATOR MICCICHE asked if some of the people on the list are
employed under AS 39.25.110(9) and AS 39.27.011(k), which
Section 2 repeals. He also recalled that petroleum employees
generally work under a different statute.
MS. SHEEHAN replied the list has only the temporary exempt
positions under paragraph (9). It does not capture every state
employee who is paid at a higher rate under the subsection (k)
exception. She noted that some of the petroleum positions that
are listed as temporary exempt are actually exempt under statute
but they were never updated in the system. She reiterated that
the list
SENATOR MICCICHE asked why the list includes some petroleum
professionals, the highest of which is paid $168,000, when AS
39.25.110(14) provides the following specific exemption:
(14) petroleum engineers and petroleum geologists employed
in a professional capacity by the Department of Natural
Resources and by the Alaska Oil and Gas Conservation
Commission;
3:52:53 PM
MS. SHEEHAN explained that the positions were established years
ago and subsequent legislation placed them in exempt service.
For some reason they were never updated in the system so they
come up as temporary exempt when a report is run. She said her
office did send the report to all agency HR managers asking what
the duties are for these positions and hopefully that will help
get the positions appropriately categorized as exempt if they
are exempt under current statute.
SENATOR MICCICHE asked if the professionals in those necessary,
high-cost positions could be hired under AS 39.25.110(14).
MS. SHEEHAN said yes.
VICE CHAIR COGHILL asked if repealing AS 39.27.011(k) will
result in those positions being hired under AS 29.25.110.
MS. SHEEHAN explained that the subsection (k) exception was put
in statute in 2013 and it applies to partially exempt employees.
The testimony at the time was that it would be a tool to hire
partially exempt people at a pay increment that is higher than
the highest merit step F. Those positions are separate from the
truly exempt positions that are not confined by the state pay
plan in the Personnel Act.
VICE CHAIR COGHILL offered his understanding that repealing
subsection (k) narrows the ability to pay beyond a certain step.
MS. SHEEHAN said yes, step F would be the highest without
setting up an exempt position.
SENATOR MICCICHE said he believes that a number of the positions
that will disappear are needed. He asked if it would be possible
to fill those needed positions with highly skilled people that
come at a certain cost.
MS. SHEEHAN said it would depend on the position.
3:57:51 PM
SENATOR REINBOLD said she likes the bill and is ready to vote.
VICE CHAIR COGHILL observed that the administration will still
be able to hire the talent it needs, although repealing
subsection (k) may change how a director is hired.
SENATOR MICCICHE asked if step F is bimonthly.
MS. SHEEHAN answered yes; partially exempt employees and most
exempt employees are paid semimonthly.
SENATOR MICCICHE asked if the monthly salary for step F is
double what's shown on the list.
MS. SHEEHAN answered yes.
VICE CHAIR COGHILL offered his understanding that the difference
between the exemption under AS 39.27.011(k) and the exemption
under AS 39.25.110(9) is that one requires justification and the
other does not.
MS. SHEEHAN confirmed that there must be written justification
by the governor or their designee under the subsection (k)
exception.
SENATOR MICCICHE responded, "Mr. Chairman, right where you are
right there. If that's the case that completely eliminates my
concern on the bill."
3:59:36 PM
VICE CHAIR COGHILL opened public testimony on HB 48.
4:00:23 PM
CHARLES MCKEE, representing self, Anchorage, testified that his
account was subjugated and the state corporation defrauded him
in 1983 because the Anchorage Times lied about him. He's never
recovered.
VICE CHAIR COGHILL advised that testimony must be germane to HB
48.
MR. MCKEE said he sent information to his representative's staff
member.
VICE CHAIR COGHILL asked if he had testimony on HB 48.
MR. MCKEE said his testimony does pertain to HB 48 because he
sent the information to a temporary employee.
VICE CHAIR COGHILL suggested he submit written testimony to
senate.state.affairs@akleg.gov
4:03:31 PM
VICE CHAIR COGHILL found no further testifiers and closed public
testimony on HB 48.
SENATOR REINBOLD stated particular support for Section 5.
SENATOR MICCICHE recapped that this bill takes care of a problem
but allows the same businesses to continue in a different way
and with more transparency.
4:04:49 PM
SENATOR MICCICHE moved to report HB 48, work order 31-
LS0346\U.A, from committee [with individual recommendations] and
attached fiscal note(s).
4:05:25 PM
VICE CHAIR COGHILL found no objection and CSHB 48(FIN)am was
reported from the Senate State Affairs Standing Committee.
4:05:32 PM
At ease
SB 75-COMMERCIAL VEHICLE LICENSING REQ'S
4:07:06 PM
VICE CHAIR COGHILL reconvened the meeting and announced the
consideration of SENATE BILL NO. 75, "An Act relating to a
license to drive a commercial motor vehicle."
4:07:45 PM
JOE PLESHA, Staff, Senator Mia Costello, Juneau, stated that the
sponsor has identified two problems the trucking industry faces.
One is that the demand for drivers in Alaska exceeds the
available workforce. The second problem relates to the federal
statute on interstate freight that requires drivers to be 21 or
older to carry any freight that originated outside the state. SB
75 addresses these issues. First, it changes the minimum age to
obtain a commercial driver's license (CDL) from 19 years of age
to 18 years of age, which will increase the pool of available
drivers. This change will make it possible to recruit young
people as they graduate high school.
SB 75 also authorizes a person who is at least 18 years of age
but under 21 years of age to operate a commercial vehicle in
interstate commerce. This new subsection anticipates a change in
federal law that prohibits drivers under 21 years of age from
carrying interstate freight. This is particularly cumbersome in
Alaska. The hope is that the federal law will change if enough
states pass legislation similar to SB 75. Alaska will be ready
when that happens.
MR. PLESHA described SB 75 as a proactive potential jobs bill.
4:11:02 PM
AVES THOMPSON, Executive Director, Alaska Trucking Association
(ATA), Anchorage, reported that ATA is a statewide organization
representing nearly 200 member companies. He described freight
moving as an essential element of the economy that impacts
people every day. He said that ATA believes that lowering the
eligibility age for an intrastate CDL will provide a path for
young people to start a truck-driving career. He said that both
intrastate and interstate drivers are subject to the same
qualifications and rules and Alaska adopts the federal rules by
reference in AAC 17.25.210. He pointed out that an 18 year old
can qualify for a commercial pilot's license. Lowering the
intrastate license requirement to age 18 allows young men and
women who have graduated high school to immediately begin a
career as a truck driver. This is a good opportunity for young
people and it will build a larger driver pool to help satisfy
the demand for commercial vehicle drivers. He warned that the
current driver shortage will only get worse if a major project
starts. SB 75 will help solve this problem in Alaska and when
Congress changes the law to lower the interstate driving age,
Alaska will be ready.
VICE CHAIR COGHILL asked if he anticipates insurance costs will
go up if the age to receive a CDL goes down.
MS. THOMPSON said ATA does not believe that insurance rates will
spike, but there may be some increase. The market will determine
whether companies can afford to pay for those drivers.
VICE CHAIR COGHILL asked how long it takes to go through the CDL
training.
MR. THOMPSON explained that there is a 5-6 week training course
for novice drivers. The new driver then has to find a carrier
that will hire them and go through that training program.
"Clearly a prudent motor carrier is not going to turn over a $.5
million rig to someone they don't have confidence in their
ability to drive," he said.
4:16:38 PM
SENATOR MICCICHE said he heard the bill in another committee and
he supports it as a win-win for young people in the state. Those
training programs are strict so it's not as though unqualified
18 year olds will be driving, he said.
MR. Thompson reiterated that an 18 year old can qualify for a
commercial pilot's license.
4:17:59 PM
DON ETHERIDGE, Lobbyist, AFL-CIO, Juneau, stated that the union
supports SB 75. He said that when young people enter their
apprenticeship programs, they are required to have a CDL within
the first 2,000 hours to advance to the next step. If the young
person is just out of high school and 18, they have to wait
until they turn 19. The union sees this bill as helpful for
apprenticeship programs to get these young people trained and
working. He listed the union jobs that require a CDL and noted
that some years ago he chaired a board that helped at-risk youth
stay out of trouble and find work. He said some went into
apprenticeship programs and he believes this bill would help
that program as well. He described the CDL test as rigorous
saying that it takes study and effort to pass. He also
highlighted that someone who has a CDL is subject to random drug
testing.
4:20:39 PM
SENATOR REINBOLD said she supports random drug testing which is
one reason she supports the bill. She asked if he could take a
position on random drug testing for the employees of all three
branches of government.
MR. ETHRIDGE responded that he is subject to drug testing and he
doesn't have a problem with it, but as a lobbyist for the AFL-
CIO he can't take a position because they haven't discussed it.
However, the union does take drug testing seriously.
SENATOR REINBOLD asked what the consequence is for a positive
drug test for someone who holds a CDL.
MR. ETHRIDGE replied they lose their license for a period of
time and it could be a firing offense.
SENATOR REINBOLD asked what the blood alcohol content (BAC)
limit is for alcohol.
MR. ETHRIDGE said alcohol is .04 and the drug prohibitions
follow federal law so marijuana is prohibited.
SENATOR REINBOLD said, "Excellent."
4:24:30 PM
At ease
4:25:06 PM
VICE CHAIR COGHILL reconvened the meeting.
4:25:21 PM
SENATOR MICCICHE moved to report SB 75, work order 31-LS0610\A,
from committee with individual recommendations and attached
fiscal note(s).
VICE CHAIR COGHILL found no objection and SB 75 moved from the
Senate State Affairs Standing Committee.
4:26:12 PM
There being no further business to come before the committee,
Vice Chair Coghill adjourned the Senate State Affairs Standing
Committee meeting at 4:26 pm.