Legislature(2021 - 2022)BUTROVICH 205

03/29/2022 03:30 PM Senate STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Governor's DOA Appointee Hearing-Com. Paula Vrana TELECONFERENCED
+ Governor's Personnel Board Appointee Hearing - TELECONFERENCED
Keith Hamilton
*+ SB 195 PAY INCREASES FOR EXEMPT EMPLOYEES TELECONFERENCED
Heard & Held
+= SB 207 ACCESS TO MARIJUANA CONVICTION RECORDS TELECONFERENCED
Moved CSSB 207(STA) Out of Committee
-- Invited & Public Testimony --
+= SJR 20 URGE PASSAGE OF HEARING PROTECTION ACT TELECONFERENCED
Moved SJR 20 Out of Committee
-- Public Testimony --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 66 MEMBERS LEG COUNCIL; LEG BUDGET & AUDIT TELECONFERENCED
Moved CSSB 66 (2d STA) Out of Committee
Uniform Rule 23(a) Waived
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         March 29, 2022                                                                                         
                           3:35 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mike Shower, Chair                                                                                                      
Senator Mia Costello                                                                                                            
Senator Scott Kawasaki                                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Lora Reinbold, Vice Chair                                                                                               
Senator Roger Holland                                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARING(S)                                                                                                         
                                                                                                                                
Commissioner, Department of Administration                                                                                    
Paula Vrana - Anchorage                                                                                                         
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
Personnel Board                                                                                                               
Keith Hamilton, PhD. - Soldotna                                                                                                 
                                                                                                                                
     -CONFIRMATION ADVANCED                                                                                                     
                                                                                                                                
SENATE BILL NO. 66                                                                                                              
"An Act relating to the membership of the legislative council;                                                                  
and relating to the membership of the Legislative Budget and                                                                    
Audit Committee."                                                                                                               
                                                                                                                                
     - MOVED CSSB 66 (2D STA) OUT OF COMMITTEE                                                                                  
                                                                                                                                
SENATE JOINT RESOLUTION NO. 20                                                                                                  
Urging the United States Congress to pass the Hearing Protection                                                                
Act.                                                                                                                            
                                                                                                                                
     - MOVED SJR 20 OUT OF COMMITTEE                                                                                            
                                                                                                                                
SENATE BILL NO. 207                                                                                                             
"An Act restricting the release of certain records of                                                                           
convictions; and providing for an effective date."                                                                              
                                                                                                                                
     - MOVED CSSB 207(STA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 195                                                                                                             
"An Act relating to the compensation of certain public                                                                          
officials, officers, and employees not covered by collective                                                                    
bargaining agreements; and providing for an effective date."                                                                    
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  66                                                                                                                  
SHORT TITLE: MEMBERS LEG COUNCIL; LEG BUDGET & AUDIT                                                                            
SPONSOR(s): SENATOR(s) BEGICH                                                                                                   
                                                                                                                                
02/03/21       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/03/21       (S)       STA                                                                                                    
03/16/21       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
03/16/21       (S)       Heard & Held                                                                                           
03/16/21       (S)       MINUTE(STA)                                                                                            
02/10/22       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
02/10/22       (S)       Scheduled but Not Heard                                                                                
02/17/22       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
02/17/22       (S)       Moved CSSB 66(STA) Out of Committee                                                                    
02/17/22       (S)       MINUTE(STA)                                                                                            
02/22/22       (S)       STA RPT CS  1DP 3NR 1AM SAME TITLE                                                                     
02/22/22       (S)       DP: SHOWER                                                                                             
02/22/22       (S)       NR: COSTELLO, REINBOLD, HOLLAND                                                                        
02/22/22       (S)       AM: KAWASAKI                                                                                           
03/28/22       (S)       RETURNED TO STA COMMITTEE                                                                              
03/28/22       (S)       STA WAIVED PUBLIC HEARING NOTICE,RULE                                                                  
                         23                                                                                                     
03/29/22       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SJR 20                                                                                                                  
SHORT TITLE: URGE PASSAGE OF HEARING PROTECTION ACT                                                                             
SPONSOR(s): SENATOR(s) REVAK                                                                                                    
                                                                                                                                
01/18/22       (S)       READ THE FIRST TIME - REFERRALS                                                                        

01/18/22 (S) STA 02/17/22 (S) STA AT 3:30 PM BUTROVICH 205 02/17/22 (S) Scheduled but Not Heard 03/01/22 (S) STA AT 3:30 PM BUTROVICH 205 03/01/22 (S) -- MEETING CANCELED -- 03/03/22 (S) STA AT 3:30 PM BUTROVICH 205 03/03/22 (S) <Bill Hearing Canceled> 03/08/22 (S) STA AT 3:30 PM BUTROVICH 205 03/08/22 (S) Heard & Held 03/08/22 (S) MINUTE(STA) 03/22/22 (S) STA AT 3:30 PM BUTROVICH 205 03/22/22 (S) Scheduled but Not Heard 03/29/22 (S) STA AT 3:30 PM BUTROVICH 205 BILL: SB 207 SHORT TITLE: ACCESS TO MARIJUANA CONVICTION RECORDS SPONSOR(s): SENATOR(s) SHOWER 02/22/22 (S) READ THE FIRST TIME - REFERRALS 02/22/22 (S) STA, JUD 03/10/22 (S) STA AT 3:30 PM BUTROVICH 205 03/10/22 (S) -- MEETING CANCELED -- 03/17/22 (S) STA AT 3:30 PM BUTROVICH 205 03/17/22 (S) Heard & Held 03/17/22 (S) MINUTE(STA) 03/22/22 (S) STA AT 3:30 PM BUTROVICH 205 03/22/22 (S) Heard & Held 03/22/22 (S) MINUTE(STA) 03/29/22 (S) STA AT 3:30 PM BUTROVICH 205 BILL: SB 195 SHORT TITLE: PAY INCREASES FOR EXEMPT EMPLOYEES SPONSOR(s): SENATOR(s) KIEHL 02/15/22 (S) READ THE FIRST TIME - REFERRALS 02/15/22 (S) STA, FIN 03/29/22 (S) STA AT 3:30 PM BUTROVICH 205 WITNESS REGISTER PAULA VRANA, Commissioner Designee Department of Administration Anchorage, Alaska POSITION STATEMENT: Testified as Commissioner Designee of the Department of Administration. ANDREE MCLEOD Alaska Public Interest Research Group (AKPIRG) Anchorage, Alaska POSITION STATEMENT: On behalf of AKPIRG, expressed concern that the deputy commissioner of the Department of Administration was not following the Alaska Public Records Act. KEITH HAMILTON, PhD. Appointee Personnel Board Department of Commerce, Community and Economic Development Soldotna, Alaska POSITION STATEMENT: Testified as an appointee to the Personnel Board. ANDREE MCLEOD Alaska Public Interest Research Group (AKPIRG) Anchorage, Alaska POSITION STATEMENT: On behalf of AKPIRG, testified in opposition to the reappointment of Keith Hamilton to the Personnel Board. SENATOR TOM BEGICH Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Sponsor of SB 66. EMMA TORKELSON, Staff Senator Josh Revak Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Refreshed the committee's recall of SJR 20. SENATOR JESSE KIEHL Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Sponsor of SB 195. CATHY SCHLINGHEYDE, Staff Senator Jesse Kiehl Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Presented the sectional analysis for SB 195. ACTION NARRATIVE 3:35:55 PM CHAIR MIKE SHOWER called the Senate State Affairs Standing Committee meeting to order at 3:35 p.m. Present at the call to order were Senators Kawasaki, Costello, and Chair Shower. ^CONFIRMATION HEARING(S) CONFIRMATION HEARING(S) Commissioner, Department of Administration Personnel Board 3:36:31 PM CHAIR SHOWER announced the consideration of Governor Appointees to Boards and Commissions. He invited Commissioner Designee Paula Vrana to testify. 3:36:57 PM PAULA VRANA, Commissioner Designee, Department of Administration, Anchorage, Alaska, stated that she has a degree in business administration from Boise State University and a Juris doctorate from the University of Idaho. She related that she has practiced law in Alaska since 1998. For the first 15 years she worked primarily in oil and gas administrative law. Thereafter she transitioned into executive leadership and worked for over three years as the chief executive officer for the Copper River Native Association. An important accomplishment during that time was building a $20 million, full-service health facility in the Glennallen area. After that she took four years to stay home on the farm with her young sons. For a year after that she served as the executive director for Hospice of Anchorage. At the beginning of Governor Dunleavy's administration, she moved into the Department of Administration (DOA) and most of the last three years were spent as deputy commissioner. This has provided an opportunity to learn about all the services DOA provides to the other state departments and Alaskans. She said it's been a learning experience. COMMISSIONER DESIGNEE VRANA shared that she was born and raised in Skagway but has lived in Wasilla for the past 24 years. She recounted her son's progress through school, her passion for the farm, and the activities of her all-Alaskan family. 3:42:27 PM SENATOR COSTELLO extended congratulations on her appointment to arguably the most important department in state government. She asked for her vision for the department and her plan to fill the vacancies, including any challenges she foresees. COMMISSIONER DESIGNEE VRANA replied that her plan for the department for the next year is to complete the consolidation of the Office of Information Technology (OIT), Human Resources (HR), the Office of Procurement and Property Management (OPPM), and Shared Services of Alaska (SSoA). She described the consolidation of HR and SSoA as largely complete and said leadership would focus this year on completing the consolidations for OIT and OPPM. She offered her perspective that DOA employees were looking forward to this. COMMISSIONER DESIGNEE VRANA stated that she was also committed to a culture of providing excellent customer service, starting in her office. With regard to filling the vacancies, she explained that there are now just two deputy commissioners in DOA rather than three, and both those positions have been filled for several weeks. She acknowledged that the vacancies, some of which are due to COVID, have been a challenge. She cited the Division of Motor Vehicles (DMV) as particularly challenged with a vacancy rate of about 20 percent. Most of the positions were entry-level and there was no opportunity for telework. The situation has improved somewhat in recent months. She also noted the challenges to fill attorney positions in the Public Defender Agency and the Office of Public Advocacy. 3:49:00 PM SENATOR COSTELLO noted that entry level DMV employees have a lot of interaction with the public and that those positions pay very little. She asked Commissioner Designee Vrana to talk about some of the innovations, such as telework, that she was spearheading at DOA. COMMMISSIONER DESIGNEE VRANA explained that the department's Office of Information Technology scaled up telework capabilities within a matter of weeks to allow thousands of DOA employees to work from home. DOA continues to use hybrid teleworking as a tool for recruitment and retention. CHAIR SHOWER asked if her style of leadership was such that she would feel comfortable telling the governor or lieutenant governor that the "emperor was wearing no clothes" or if she would shy away from those conversations. COMMMISSIONER DESIGNEE VRANA replied that her approach would be to begin by consulting the DOA leadership team that would be involved in the particular issue. Armed with this information, she would share her honest feedback with the Governor directly or the Governor's office, laying out her team's concerns. CHAIR SHOWER offered his perspective that it is difficult for policymakers to make good decisions when they don't have the raw data. 3:54:18 PM SENATOR KAWASAKI highlighted that three administrations have talked about the fact that entry level DMV employees receive basically the same pay as someone who works at McDonald's. A key difference is that these DMV employees are qualified to work with personal information. He asked if she was looking at ways to improve this situation and whether she might discuss this with the Governor. COMMMISSIONER DESIGNEE VRANA replied the department acknowledges the problem at DMV and has been addressing the situation in several ways including: more flexible work schedules, telework when it is appropriate, initiating a class study to address pay levels, and the Division of Personnel and Labor Relations is drawing on the experience in other states to help develop a long-term strategy for workforce planning. SENATOR KAWASAKI asked for the status of the class study. COMMMISSIONER DESIGNEE VRANA replied it is in the beginning stage of the process. She offered her understanding that it was with the Division of Personnel and Labor Relations and the next step would be to the Office of Management and Budget (OMB). She predicted that the entire process would take longer than six months. 3:58:10 PM CHAIR SHOWER asked if she would support establishing an inspector general type office that would be responsible for "watching the watchers." He argued that top level appointees, such as the attorney general, have a clear conflict of interest when it comes to advising the governor about issues that may be antithetical to his agenda because their appointments are political. He noted that the former commissioner supported the idea of an inspector general office. COMMMISSIONER DESIGNEE VRANA replied she was familiar with the former commissioner's efforts, and she wholeheartedly supports that function going forward, but she wasn't sure where it should reside. 4:00:35 PM CHAIR SHOWER opened public testimony on the appointment of Paula Vrana as Commissioner of the Department of Administration. 4:00:52 PM ANDREE MCLEOD, Alaska Public Interest Research Group (AKPIRG), Anchorage, Alaska, expressed hope that the commissioner would carry through on Deputy Commissioner Donley's duty to follow the Alaska Public Records Act. She explained that AKPIRG had filed a number of public records requests for audio recordings and many of those requests had been disregarded. 4:03:08 PM CHAIR SHOWER closed public testimony and asked Commissioner Designee Vrana if she had any closing comments. COMMMISSIONER DESIGNEE VRANA thanked the committee and requested the member's support. CHAIR SHOWER asked Keith Hamilton to tell the committee about his interest in serving on the Personnel Board. 4:04:22 PM KEITH HAMILTON, PhD. Appointee, Personnel Board, Department of Commerce, Community and Economic Development (DCCED), Soldotna, Alaska, stated that he has served as the president of Alaska Christian College since he moved to Alaska 21 years ago. He described the composition and focus of the college. He has a doctorate in youth and family culture. This will be his third appointment to the Personnel Board, and he serves concurrently on the Board of Education and Early Development and the Alaska Commission on Postsecondary Education. He said he understands Alaskans and their frustration with government. CHAIR SHOWER expressed appreciation for the work he does and then asked his usual question which was whether he had any skeletons in the closet that the committee should know about now that might come up later. DR. HAMILTON replied there was nothing that would contaminate his leadership in this role. 4:07:29 PM SENATOR COSTELLO said she enjoyed serving with him on the Alaska Commission on Postsecondary Education and was impressed with his willingness to serve the public. DR. HAMILTON thanked her for her comments. CHAIR SHOWER thanked him for his volunteerism. 4:08:37 PM CHAIR SHOWER opened public testimony on the appointment of Keith Hamilton to the Personnel Board. 4:09:02 PM ANDREE MCLEOD, Alaska Public Interest Research Group (AKPIRG), Anchorage, Alaska, stated that AKPIRG opposes the reappointment of Keith Hamilton to the Personnel Board because the board is not working in the public's interest to ensure that the Executive Branch Ethics Act is followed. She explained that AKPIRG submitted ethics complaints in May 2020 and March 2021 and is still awaiting any response or communication from the Personnel Board. She said this violates AS 39.52.335 of the Executive Branch Ethics Act that directs a summary of the matter to be submitted to the board and complainant if a complaint is dismissed. MS. MCLEOD highlighted that AKPIRG also has submitted repeated public records requests to the board during meetings and has testified before the board about its failure to respond, but the board continues to be unresponsive to those requests. She asked the committee to ask Dr. Hamilton why he has failed to uphold the duties of the board. 4:11:36 PM CHAIR SHOWER closed public testimony on the appointment of Keith Hamilton to the Personnel Board. SENATOR KAWASAKI asked Dr. Hamilton to comment on Ms. McCloud's allegation about upholding his oath of office and his duty as a member of the Personnel Board. DR. HAMILTON said he became aware of her complaint during the hearing last week in the House. He took the matter to the Department of Administration Division of Personnel and the response then and now was that those concerns are outside the scope of the Personnel Board. He said he did not know how that was communicated to the complainant. He suggested Ms. McLeod identify whether she opposed his candidacy in particular or the Personnel Board in its entirety. 4:13:02 PM SENATOR KAWASAKI asked if the Personnel Board has staff to respond to requests that come in, and whether the board adjudicates those matters. DR. HAMILTON explained that complaints are stamped when they arrive and then are referred to an independent third-party attorney who reviews the complaint and determines whether or not it is a valid ethics complaint under the statute. He offered his understanding that notification is sent immediately once a decision is made, but that is outside the board's purview. CHAIR SHOWER asked if he wanted to highlight the matter further. DR. HAMILTON said his previous response would suffice. CHAIR SHOWER found no further questions and solicited a motion. 4:14:44 PM SENATOR COSTELLO stated that in accordance with AS 39.05.080, the Senate State Affairs Standing Committee reviewed the following and recommends the appointments be forwarded to a joint session for consideration: Commissioner, Department of Administration Paula Vrana - Anchorage Personnel Board Keith Hamilton - Soldotna CHAIR SHOWER reminded members that signing the reports regarding appointments to boards and commissions in no way reflects individual members' approval or disapproval of the appointees; the nominations are merely forwarded to the full legislature for confirmation or rejection. 4:15:19 PM At ease SB 66-MEMBERS LEG COUNCIL; LEG BUDGET & AUDIT 4:16:11 PM CHAIR SHOWER reconvened the meeting and announced the consideration of SENATE BILL NO. 66 "An Act relating to the membership of the legislative council; and relating to the membership of the Legislative Budget and Audit Committee." CHAIR SHOWER explained that the bill was previously heard, conceptually amended, and passed from committee on February 17, 2022. Due to a technical error, Senator Kawasaki's conceptual amendment was not incorporated into a committee substitute before the bill was transmitted to the next committee of referral. The bill was back before the committee to remedy that omission. He asked for a motion to adopt the corrected committee substitute, which accurately reflects the committee's intention. 4:16:40 PM SENATOR COSTELLO moved to adopt CSSB 66(2dSTA), work order 32- LS0410\I, as the working document. 4:16:50 PM CHAIR SHOWER objected to entertain questions or debate. 4:17:01 PM CHAIR SHOWER removed his objection; he found no further objection and version I was adopted as the working document. He asked the sponsor if he had any comments or closing remarks. 4:17:26 PM SENATOR TOM BEGICH, Alaska State Legislature, Juneau, Alaska, sponsor of SB 66, said he had no comments but was hopeful that the bill would move forward. CHAIR SHOWER solicited a motion. 4:17:46 PM SENATOR COSTELLO moved to report CSSB 66, work order 32- LS0410\I, from committee with individual recommendations and attached fiscal note(s). CHAIR SHOWER found no objection and CSSB 66 (2dSTA) was reported from the Senate State Affairs Standing Committee. SENATOR BEGICH thanked the members. 4:18:26 PM At ease SJR 20-URGE PASSAGE OF HEARING PROTECTION ACT 4:19:42 PM CHAIR SHOWER reconvened the meeting and announced the consideration of SENATE JOINT RESOLUTION NO. 20 Urging the United States Congress to pass the Hearing Protection Act. He noted that the bill was heard previously, public testimony was taken, and his intention was to move the bill from committee. He asked Ms. Torkelson if she had closing comments on behalf of the sponsor. 4:20:03 PM EMMA TORKELSON, Staff, Senator Josh Revak, Alaska State Legislature, Juneau, Alaska, summarized that SJR 20 urges Congress to pass the Hearing Protection Act, which would simplify the process to purchase firearm suppressors and protect hearing. CHAIR SHOWER highlighted that suppressors are not silencers, and they are not small in size. 4:20:58 PM SENATOR COSTELLO moved to report SJR 20, work order 32-LS1374\A, from committee with individual recommendations and attached fiscal note(s). CHAIR SHOWER found no objection and SJR 20 was reported from the Senate State Affairs Standing Committee. 4:21:18 PM At ease SB 207-ACCESS TO MARIJUANA CONVICTION RECORDS 4:22:05 PM CHAIR SHOWER reconvened the meeting and announced the consideration of SENATE BILL NO. 207 "An Act restricting the release of certain records of convictions; and providing for an effective date." He solicited a motion to adopt the committee substitute (CS) that incorporates the amendment the committee adopted during the previous hearing. 4:22:22 PM SENATOR COSTELLO moved to adopt the committee substitute (CS) for SB 207, work order 32-LS1601\B, as the working document. CHAIR SHOWER objected for discussion purposes. He explained the amendment streamlined the intent section to read: It is the intent of the legislature to reduce barriers to employment for people who have been convicted of low-level marijuana possession crimes that would be legal on January 1, 2023. 4:23:24 PM CHAIR SHOWER found no questions or comments and removed his objection. Without further objection, version B was adopted as the working document. 4:23:37 PM CHAIR SHOWER opened public testimony on SB 207; finding none, he closed public testimony. CHAIR SHOWER found no further comments or questions and solicited a motion. [Senator Costello made a motion and then corrected it with the motion below.] 4:24:30 PM SENATOR COSTELLO moved to report CSSB 207, work order 32- LS1601\B, from committee with individual recommendations and attached fiscal note(s). CHAIR SHOWER found no objection and CSSB 207(STA) was reported from the Senate State Affairs Standing Committee. 4:24:51 PM At ease SB 195-PAY INCREASES FOR EXEMPT EMPLOYEES 4:26:10 PM CHAIR SHOWER reconvened the meeting and announced the consideration of SENATE BILL NO. 195 "An Act relating to the compensation of certain public officials, officers, and employees not covered by collective bargaining agreements; and providing for an effective date." 4:26:31 PM SENATOR JESSE KIEHL, Alaska State Legislature, Juneau, Alaska, sponsor of SB 195, described the legislation as a pay catchup bill for exempt and partially exempt employees. He explained that this refers to public workers who are not represented by a union. This includes the civil attorneys, prosecutors, administrative clerks, and paralegals at the Department of Law; many of the people who work at public corporations such as the line employees at the Alaska Industrial Development and Export Authority (AICEA) who do the investment analysis; the employees at the Alaska Seafood Marketing Institute (ASMI); political appointees within departments, other than commissioners; legislative staff; all employees at the Alaska Court System, including judges; and the nonpartisan staff at the Legislative Affairs Agency. In total, the bill applies to about 2,400 state workers. Historically, when the General Government Unit, which is represented by the Alaska State Employees Association, negotiates a contract for a pay increase, the legislature has applied those same pay increases to exempt and partially exempt employees. The legislature did not do that when the last GGU pay increase was negotiated so the pay for these employees is a full contract cycle behind. SB 195 makes up that five percent difference in pay over the course of two years. SENATOR KIEHL noted that the Commissioner Designee of the Department of Administration talked about the difficulties with recruitment earlier in this meeting. He said this applies across all departments and in the private sector and it does not make it any easier when comparable jobs have a pay difference of five percent. It will also feed into the retention problem because it doesn't make sense to stay and get paid less. Similarly, it doesn't make sense for the legislature to not catch up the pay for those employees who are not in a union to the pay for those who are represented. SENATOR KIEHL said his staff Cathy Schlingheyde would present the sectional analysis and the director of Personnel and Labor Relations was available to answer more technical questions. 4:30:30 PM SENATOR COSTELLO requested a copy of the salary schedule. SENATOR KIEHL directed attention to Section 1 of the bill that reflects the 2.5 percent increase for the first year. He offered to provide the schedule for the following year that would reflect the second 2.5 percent increase for a total of five percent. 4:31:18 PM SENATOR KAWASAKI asked if he had an analysis of the effect this would have on the retirement system. SENATOR KIEHL replied he did not have a standalone analysis, but it is well within the actuarial assumptions the Alaska Retirement Management (ARM) Board has made for funding the Public Employees Retirement System (PERS) for defined benefits. CHAIR SHOWER requested the sectional analysis and an explanation of the fiscal note. 4:32:07 PM CATHY SCHLINGHEYDE, Staff, Senator Jesse Kiehl, Alaska State Legislature, Juneau, Alaska, presented the sectional analysis for SB 195 that read as follows: Section 1: 2.5% salary increase for classified and partially exempt employees in the executive branch not covered by a collective bargaining unit and for all legislative employees in FY 23. Section 2: An additional 2.5% salary increase for classified and partially exempt employees in the executive branch not covered by a collective bargaining unit and for all legislative employees in FY 24. Section 3: Repeals a defunct section of statute which changed salaries in 2015. Section 4: The salary increases in sections 1 and 2 apply to exempt employees in the executive branch. Section 5: The salary increases in sections 1 and 2 apply to employees in the judicial branch not covered by a collective bargaining unit. Section 6: The salary increases in sections 1 and 2 apply to employees of the University of Alaska not covered by a collective bargaining unit. Section 7: The initial 2.5% increase takes effect for FY 23. 4:33:15 PM CHAIR SHOWER asked which University of Alaska employees would be covered by Section 6. MS. SCHLINGHEYDE replied she would follow up with the information. CHAIR SHOWER said he would appreciate the information. SENATOR KIEHL clarified that this would not apply to the university employees who are represented by the three bargaining units at the university. CHAIR SHOWER asked the sponsor to review the fiscal note. 4:34:16 PM SENATOR KIEHL explained that the fiscal note includes the cost estimates for the affected employees in all three branches of government. The cost in year one will be $8.6 million and an additional $8.8 million the second year. Of that, about $5.8 million is unrestricted general fund (UGF), a little is designated general fund (DGF) and the rest comes from interagency receipts. CHAIR SHOWER asked if cost increases in program receipts were anticipated to make up some of the revenue that will be required. SENATOR KIEHL offered his understanding that the Office of Management and Budget (OMB) included the university in its fiscal note, but he would double check. CHAIR SHOWER said he would like to know whether any of the cost increases for wages would be passed along to the public. He also asked if this would be the only fiscal note. MS. SCHLINGHEYDE replied this is expected to be the final fiscal note. CHAIR SHOWER asked if he expected the director of Personnel and Labor Relations to testify. SENATOR KIEHL replied he did not believe the administration had prepared any testimony. 4:36:50 PM CHAIR SHOWER held SB 195 in committee for future consideration. 4:37:08 PM There being no further business to come before the committee, Chair Shower adjourned the Senate State Affairs Standing Committee meeting at 4:37 p.m.

Document Name Date/Time Subjects
SB 195 Sponsor Statement.pdf SSTA 3/29/2022 3:30:00 PM
SB 195
SB 195 Sectional Analysis.pdf SSTA 3/29/2022 3:30:00 PM
SB 195
Keith Hamilton CV_Redacted.pdf SSTA 3/29/2022 3:30:00 PM
Paula Vrana Resume 2022_Redacted.pdf SSTA 3/29/2022 3:30:00 PM
CS with Amendment.pdf SSTA 3/29/2022 3:30:00 PM
SB 66
CS w amend LEGAL.pdf SSTA 3/29/2022 3:30:00 PM
SB 66
SB195-VAR-EXE-3-29-22.pdf SSTA 3/29/2022 3:30:00 PM
SB 195
32-LS1601B work draft.pdf SSTA 3/29/2022 3:30:00 PM
SB 207
SB195 follow ups to com questions march 30 2022.pdf SSTA 3/29/2022 3:30:00 PM
SB 195
SB 195 Letter of Support.pdf SSTA 3/29/2022 3:30:00 PM
SB 195