03/12/2013 09:00 AM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB46 | |
| SB48 | |
| SB44 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 46 | TELECONFERENCED | |
| *+ | SB 48 | TELECONFERENCED | |
| += | SB 44 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
March 12, 2013
9:01 a.m.
MEMBERS PRESENT
Senator Fred Dyson, Chair
Senator Cathy Giessel, Vice Chair
Senator John Coghill
Senator Bert Stedman
Senator Bill Wielechowski
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 46
"An Act relating to regulations adopted by the Department of
Administration waiving the commercial motor vehicle driving
skills test for certain drivers with military commercial motor
vehicle experience."
- MOVED HB 46 OUT OF COMMITTEE
SENATE BILL NO. 48
"An Act requiring each municipality with a population that
decreased by more than 25 percent between 2000 and 2010 that
participates in the defined benefit plan of the Public
Employees' Retirement System of Alaska to contribute to the
system an amount calculated by applying a rate of 22 percent of
the total of all base salaries paid by the municipality to
employees of the municipality who are active members of the
system during a payroll period; reducing the rate of interest
payable by a municipality with a population that decreased by
more than 25 percent between 2000 and 2010 that is delinquent in
transmitting employee and employer contributions to the defined
benefit plan of the Public Employees' Retirement System of
Alaska; giving retrospective effect to the substantive
provisions of the Act; and providing for an effective date."
- HEARD AND HELD
SENATE BILL NO. 44
"An Act relating to election practices and procedures; relating
to the election of an advisory school board in a regional
educational attendance area; and providing for an effective
date."
- MOVED CSSB 44(STA) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 46
SHORT TITLE: WAIVE CDL SKILL TEST FOR CERTAIN VETERANS
SPONSOR(s): REPRESENTATIVE(s) SADDLER
01/16/13 (H) PREFILE RELEASED 1/7/13
01/16/13 (H) READ THE FIRST TIME - REFERRALS
01/16/13 (H) STA, TRA
02/12/13 (H) STA AT 8:00 AM CAPITOL 106
02/12/13 (H) Moved Out of Committee
02/12/13 (H) MINUTE(STA)
02/13/13 (H) STA RPT 6DP
02/13/13 (H) DP: HUGHES, ISAACSON, KREISS-TOMKINS,
GATTIS, KELLER, LYNN
02/19/13 (H) TRA AT 1:00 PM BARNES 124
02/19/13 (H) Moved Out of Committee
02/19/13 (H) MINUTE(TRA)
02/20/13 (H) TRA RPT 6DP
02/20/13 (H) DP: LYNN, JOHNSON, KREISS-TOMKINS,
GATTIS, ISAACSON, P.WILSON
03/01/13 (H) TRANSMITTED TO (S)
03/01/13 (H) VERSION: HB 46
03/04/13 (S) READ THE FIRST TIME - REFERRALS
03/04/13 (S) STA, TRA
03/12/13 (S) STA AT 9:00 AM BUTROVICH 205
BILL: SB 48
SHORT TITLE: PERS CONTRIBUTIONS BY MUNICIPALITIES
SPONSOR(s): SENATOR(s) OLSON
02/11/13 (S) READ THE FIRST TIME - REFERRALS
02/11/13 (S) STA, FIN
03/12/13 (S) STA AT 9:00 AM BUTROVICH 205
BILL: SB 44
SHORT TITLE: ELECTION PROCEDURES; REAA ADVISORY BOARDS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/06/13 (S) READ THE FIRST TIME - REFERRALS
02/06/13 (S) STA
02/28/13 (S) STA AT 9:00 AM BUTROVICH 205
02/28/13 (S) Heard & Held
02/28/13 (S) MINUTE(STA)
03/12/13 (S) STA AT 9:00 AM BUTROVICH 205
WITNESS REGISTER
REPRESENTATIVE DAN SADDLER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 46.
AMY ERICKSON, Director
Division of Motor Vehicles
Department of Administration
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to HB 46.
MARC SAN SOUCI, Northwest Regional Liaison
U.S. Department of Defense (DOD)
Tacoma, Washington
POSITION STATEMENT: Testified in support of HB 46.
AVES THOMPSON, Executive Director
Alaska Trucking Association (ATA)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 46.
DAVID SCOTT, staff
Senator Donny Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SB 48 on behalf of the sponsor.
JIM PUCKETT, Director,
Division of Retirement and Benefits
Department of Administration
Juneau, Alaska
POSITION STATEMENT: Answered questions related to SB 48.
GREG MOYER, Interim City Manager
City of Galina
Galena, Alaska
POSITION STATEMENT: Testified in support of SB 48.
CLINT BEAN, Mayor
City of Pelican
Pelican, Alaska
POSITION STATEMENT: Testified in favor of SB 48.
KATHIE WASSERMAN, Executive Director
Alaska Municipal League
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 48.
BROOKS CHANDLER, City Attorney
City of Galena
Galena, Alaska
POSITION STATEMENT: Testified in support of SB 48
PAUL DAUPHINAIS, Executive Director
Alaska Public Offices Commission (APOC)
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to SB 44.
PADDY MCGUIRE, Deputy Director,
Federal Voting Assistance Program
Department of Defense
Washington, D.C.
POSITION STATEMENT: Testified in support of SB 44.
ACTION NARRATIVE
9:01:43 AM
CHAIR FRED DYSON called the Senate State Affairs Standing
Committee meeting to order at 9:01 a.m. Present at the call to
order were Senators Coghill, Giessel, Stedman, Wielechowski, and
Chair Dyson.
HB 46-WAIVE CDL SKILL TEST FOR CERTAIN VETERANS
9:03:16 AM
CHAIR DYSON announced the consideration of HB 46.
REPRESENTATIVE DAN SADDLER, sponsor of HB 46, said the bill is
predicated on the assumption that veterans have honed their
driving skills while in the military and should not have to pass
the state Commercial Motor Vehicle Driving Skills Test (CDL).
The bill would help veterans get jobs and businesses hire
qualified drivers. Many Alaska industries require the (CDL) and
recent federal law allows this test to be bypassed.
He noted the Federal Motor Carrier Safety Administration is
encouraging states to allow such waivers and as of January 9,
2013, 34 states allow the waiver. Ten states are working on
similar legislation, including Alaska, and seven states do not
currently allow the waiver. The bill directs the Department of
Administration to adopt regulations in accordance with federal
law to allow such waivers.
CHAIR DYSON asked about the process of applying for a CDL in
Alaska.
REPRESENTATIVE SADDLER explained that one has to be an Alaska
resident and domiciled here for 30 days, possess a regular
driver's license for a year, and pass knowledge and road tests.
9:06:37 AM
AMY ERICKSON, Director, Division of Motor Vehicles, Department
of Administration, introduced herself and offered to answer
questions related to HB 46.
CHAIR DYSON asked if the department favored the bill.
MS. ERICKSON said yes.
CHAIR DYSON asked how much time a veteran would save by not
having to take the CDL.
MS. ERICKSON replied that the pass/fail test takes about two
hours and scheduling it could take a few weeks. Once an
applicant passes the test, the division would issue the license
immediately.
SENATOR WIELECHOWSKI asked if the bill is necessary or if the
division could adopt regulations without the bill.
MS. ERICKSON said legislation is needed to waive the skills
test.
SENATOR STEDMAN clarified that the written test is still in
order; this legislation waives the driving test and vehicle
inspection portion of the test.
REPRESENTATIVE SADDLER said agreed.
SENATOR STEDMAN noted he has a CDL.
9:09:31 AM
MARC SAN SOUCI, Northwest Regional Liaison, U.S. Department of
Defense (DOD), testified in support of HB 46. He reported that
heavy and tractor trailer driving ranks in the top ten of all
occupational specialties in the military and is the second
highest occupation in the Army, with almost eight percent of
personnel skilled in it, and the second highest in the Marines
with over five percent skilled in it. The Department of Labor
forecasts that the truck driving field will have a faster-than-
average job growth projection between 2010 and 2020.
He emphasized that taxpayers have already paid for military
truck driver training through federal tax dollars to the DOD
budget.
CHAIR DYSON asked how a veteran verifies that he or she has the
military training and experience.
MR. SAN SOUCI explained that the military is working on
documentation to submit to the respective state agency upon
discharge.
REPRESENTATIVE SADDLER offered his understanding that a form is
under development for an officer to fill out to verify the
veteran's experience and training. The military member's service
record would include which schools he or she attended.
9:12:57 AM
SENATOR STEDMAN asked for the difference between military
training and a citizen's training. His impression is that the
military training is more stringent.
REPRESENTATIVE SADDLER said he couldn't give a detailed
differentiation. He deferred the answer to Mr. Thompson.
CHAIR DYSON mentioned double or "train" rigs and asked if there
is comparable military equipment.
MR. SAN SOUCI said he wasn't qualified to answer that question.
9:15:03 AM
AVES THOMPSON, Executive Director, Alaska Trucking Association
(ATA), testified in support of HB 46. He related that ATA is a
statewide organization representing over 200 businesses. He said
it is difficult to find qualified drivers of commercial
vehicles. The industry welcomes returning veterans and the
opportunity to help former military drivers find employment, as
they have good training and extensive experience.
SENATOR GIESSEL asked about comparability of civilian and
military licensing.
MR. THOMPSON said he wasn't altogether familiar with military
training, but did know that they operate large rigs on
substandard roads. In Alaska there are private driving schools
that provide 4-6 weeks of classroom and on-the-road training. He
opined that civilian training was not minimal and was basically
the same as military training.
CHAIR DYSON commented that military drivers do not have to deal
with scale houses and inspections.
REPRESENTATIVE SADDLER added that civilians do not have to deal
with improvised explosion devices.
CHAIR DYSON asked for the will of the committee.
9:18:09 AM
SENATOR GIESSEL moved to report HB 46, version 28-LS0263\A, from
committee with individual recommendations and attached zero
fiscal note.
CHAIR DYSON found no objection and announced that HB 46 moved
from the Senate State Affairs Standing Committee.
9:18:38 AM
At ease
SB 48-PERS CONTRIBUTIONS BY MUNICIPALITIES
9:19:49 AM
CHAIR DYSON announced the consideration of SB 48.
DAVID SCOTT, staff to Senator Donny Olson, sponsor of SB 48,
introduced SB 48 on behalf of the sponsor. He said this
legislation seeks to provide relief to communities hardest hit
by the "2008 salary floor" that was contained in SB 125 during
the 25th Legislature. The mechanics of the bill are that if a
community has lost more that 25 percent of its population
between the two censuses - 2000 and 2010, they can count their
current PERS employees in order to calculate the 22 percent that
they owe to the PERS system. The bill also allows those who lost
over 25 percent to retroactively eliminate delinquency fines and
lower the percentage rate of 12 percent to around 4 percent.
He related that the three communities most affected are Pelican,
Galena, and Atka. He opined that without action taken, the PERS
system will not see the money it is owed from these communities.
Galena, for example, owes more than $400,000 at 12 percent
interest and is unable to pay.
SENATOR WIELECHOWSKI asked how SB 125 worked.
MR. SCOTT explained that there were 160 PERS employers across
the state at the time. Their liabilities were combined and each
was required to pay a 22 percent contribution from their 2008
floor.
9:23:46 AM
SENATOR WIELECHOWSKI asked how the three communities got into
the situation they're in.
MR. SCOTT knew that the Air Force left Galena, a lot of
employees and employers left, and the PERS number went below the
2008 floor.
SENATOR WIELECHOWSKI asked the rationale for the 2008 floor.
MR. SCOTT said the idea was to keep communities from "gaming the
system" and not paying their fair share into the new
consolidated PERS system.
9:25:16 AM
SENATOR DYSON asked for more information about SB 125.
SENATOR STEDMAN recalled testimony regarding the concern that
communities would game the system. A main impetus for pooling
the communities was the accuracy of the payments. Pooling seemed
to be the easiest solution. There was concern that communities
would close the current plan and shift the responsibility to the
state.
He said the bill did have some inadvertent effects, such as
communities that lose population being unable to pay. Other
issues have surfaced over time, such as exposure to the state.
Currently, there is residual discussion about returning to a
defined benefit plan.
CHAIR DYSON asked if the Department of Administration was
represented in the meeting.
9:28:14 AM
JIM PUCKETT, Director, Division of Retirement and Benefits,
Department of Administration, introduced Deputy Director Kathy
Lea.
CHAIR DYSON inquired about the administration's position.
MR. PUCKETT replied that the administration has no position on
the bill.
CHAIR DYSON asked why a community that is struggling financially
shouldn't be able to carry on public services in the most
economical way, such as contracting for services.
MR. PUCKETT opined that they should be able to do so, as long as
they continue to meet their present obligations.
CHAIR DYSON asked if those obligations consist of continuing to
contribute to the PERS fund in order to access retirement
benefits for their employees.
MR. PUCKETT agreed; they voluntarily entered into an agreement
and are obligated to pay the funds necessary to meet the
retirement benefits of their employees.
SENATOR STEDMAN said he wasn't familiar with the communities'
specific situations, but if populations continue to decline he
wondered if the "last man standing" will have to pay the bill.
MR. PUCKETT replied the community has to pay or it will fall on
all other payers in the state.
CHAIR DYSON said he could understand the problem in communities
such as Galena who fall into situations through no fault of
their own. However, he said he disagrees with the way that
Kalskag solved its financial problems. He asked how to justify
the different situations.
MR. PUCKETT said he had no suggestions.
SENATOR STEDMAN pointed out that this is the first time that
policy makers have grappled with this issue. He suggested the
situation could be the same in Fairbanks if the military moves
out.
9:33:07 AM
SENATOR WIELECHOWSKI asked what the administration intends to do
with Galena if this legislation were not to pass.
MR. PUCKETT said the administration didn't have another method
or solution in mind.
SENATOR WIELECHOWSKI asked if the bill is appropriate or if
there was a better way to go.
MR. PUCKETT said the bill is an attempt to open the discussion
in order to address the problem. He noted, at this time, the
administration is taking no stance.
CHAIR DYSON said his understanding is that a community cannot
get away from its contractual responsibilities unless there is a
bankruptcy. He noted that when the responsibilities were
aggregated communities were precluded from going bankrupt
MR. PUCKETT stated that the state has already assumed the lion's
share of the financial responsibility for retirement benefits.
This bill will add yet another financial responsibility to the
state. He reiterated that the administration takes no position
on the bill, but considers it the beginning of the conversation.
9:36:50 AM
SENATOR COGHILL asked if any communities to date in Alaska have
gone bankrupt.
MR. PUCKETT said not to his knowledge.
CHAIR DYSON noted that Elfin Cove has the status of no longer
being a recognized community, which is similar to bankruptcy. He
expressed a desire to know more about the dissolution process.
MR. PUCKETT did not know about the dissolution process.
CHAIR DYSON said the question goes beyond whether a community is
viable or not; it's whether the community has chosen to dissolve
itself or not.
SENATOR COGHILL said dissolving a community is one issue;
putting a legal barrier to debt is another. He explained he was
referring to not being able to service the debt, but wanting to
remain a community, such as the situation Galena is in. He
thought the PERS law did not excuse a community from that debt
and it would shift to other payers.
SENATOR WIELECHOWSKI noted a document from legislative legal
that says that municipal bankruptcies are illegal in Alaska.
MR. PUCKETT said he was unaware of that opinion.
9:39:46 AM
GREG MOYER, Interim City Manager, City of Galina, testified in
support of SB 48. He related that he was hired to restructure
and save the community of Galena, which is reeling from the 2008
closure of the Galina Airbase. He provided background of the
community. He said when the Galina Air Base was realigned in
1994, the population was reduced by 20 percent to 650. With
closure of the Galina Airbase in 2008, the community lost the
military population, a strong economy, and s reliable employment
base. That same year, Galina was required to meet the salary
floor or be penalized 20 percent, plus interest. Galena tried to
pay using the Municipal Bond Bank Authority. The population is
now under 500. He said he has developed an austere FY13 budget,
with total PERS salaries of about $885,000. Unfortunately, that
is about $628,000 less than the state's June 2008 salary floor
of $1.5 million.
He emphasized that the community doesn't want to shirk its
responsibility, but it will never meet the salary floor that was
set in 2008. He said if it was a one-time debt the bond bank
would provide a solution, but this is an annual payment. There
is no escape.
He opined that SB 48 has less to do with the money due and more
with doing the right thing for communities that are required to
meet an unattainable salary floor. He urged the committee to
find a legislative fix for this issue. He emphasized that SB 48
does the right thing for Galena and a few other communities.
9:47:35 AM
CHAIR DYSON said he appreciates the situation and what Galena is
doing to address the problem, such as opening a boarding school.
MR. MOYER stated that the community has a boarding school with
220 kids from across the state.
CHAIR DYSON asked if the community has local taxes.
MR. MOYER said they have a sales tax, but no property tax.
9:49:16 AM
CLINT BEAN, Mayor, City of Pelican, echoed Mr. Moyer's
sentiments. He noted that he has submitted written testimony.
The difference between Pelican and Galena is that Pelican lost
its fish plant and half of its population since the 2008 floor.
He said Pelican has tried to apply solutions to their debt, but
to no avail. He noted that Pelican doesn't want to end up like
Elfin Cove - no longer a viable community - but it is headed
down the same road.
9:51:11 AM
SENATOR STEDMAN asked Mr. Bean to mention Pelican's tax
structure. He noted that there has been work toward getting the
turbine hydro plant back on line, the fuel dock upgraded, and
the fish processing plant improved in order to reverse the
course.
CHAIR DYSON asked how the community taxes itself.
MAYOR BEAN said Pelican has a property tax and a 4 percent sales
tax. The population has dropped from 127 in 2008 to 88
currently.
CHAIR DYSON noted that the committee received Mr. Bean's
testimony.
9:52:46 AM
KATHIE WASSERMAN, Alaska Municipal League, testified in support
of SB 48. She said, while this may not be the perfect solution,
it is a step in the right direction. The bill intends to reverse
the unintended consequences of SB 125, passed in 2008.
She explained what has happened in some smaller communities. All
municipalities continue to willingly pay 22 percent of past and
present PERS service obligations, but this requirement is
proving to be impossible for small communities. She spoke to
Pelican's difficulties. She shared her perspective as a Local
Boundary Commission member regarding the dissolution process
that some communities have gone through.
9:56:00 AM
SENATOR STEDMAN said he wanted to broaden the discussion and get
the population counts for communities in order to get a feel for
how many are close to the 25 percent population drop.
SENATOR GIESSEL directed attention to the information in the
packet that shows the debt that communities have. She noted
Noorvik has a debt of almost $128,000.
CHAIR DYSON requested information on the community dissolution
process.
MS. WASSERMAN said it is similar to the means of incorporation.
A municipality must file a petition, although there is often no
one left in the community that can fill out that petition. In
that case, it appears that the state requires them to hire a
consultant to prepare the petition, which she strongly disagrees
with.
CHAIR DYSON questioned how the state might set up a mechanism to
sort out which community is gaming the system and which is truly
in trouble.
MS. WASSERMAN stated that the government isn't good at looking
at things individually, but it would be fairly easy to determine
whether a community was trying to game the system. She stressed
that the three communities under discussion certainly aren't
trying to game the system.
10:00:30 AM
BROOKS CHANDLER, City Attorney, City of Galena, said the bill
creates an exception to the policy established in 2008. It is
limited through an equation based on loss in population. The
problem is that the system doesn't allow exceptions to the rule.
Galena hasn't tried to game the system. The legislation is a
practical cure to the one-size-fits-all policy. If implemented,
it does not expand beyond these three communities because the
population loss is limited to between 2000 and 2010. He
suggested expanding the reach of the bill to include other
communities should not be considered right now because the three
communities require immediate relief.
10:03:47 AM
CHAIR DYSON said he appreciated Mr. Chandler's efforts.
He asked Mr. Puckett how much of the PERS/TRS unfunded liability
is as a result of bad actuarial advice years back.
MR. PUCKETT said he has heard between $1 billion and $2 billion.
CHAIR DYSON stated he would hold the bill because he had more
questions. One question is to the administration about how long
it will take to get a plan together in order to determine if
passage of the bill will preclude some of the solutions the
administration would like to do. Perhaps passing the bill will
build a fire under the administration to help with some of the
policy decisions. He asked if the administration could give an
opinion by the next hearing in ten days on the best way to move
forward.
MR. PUCKETT said the administration has been working on this
issue, but doesn't have a clear proposal or solution at this
time.
CHAIR DYSON opined that the bill is a well-tailored solution. He
held SB 48 in committee.
SB 44-ELECTION PROCEDURES; REAA ADVISORY BOARDS
10:07:31 AM
CHAIR DYSON announced the consideration of SB 44. [CSSB 44,
version U was before the committee.]
PAUL DAUPHINAIS, Executive Director, Alaska Public Offices
Commission (APOC), said he was available to answer questions.
SENATOR GIESSEL asked how moving the primary election forward
two weeks would affect those who were running for office in a
legislative session which may extend into a special session. She
wondered how deadlines would be affected.
MR. DAUPHINAIS said APOC's perspective is that once a candidate
has filed, reporting requirements would be the same for
incumbents and others running in the primary election. Regarding
newsletters, APOC would look at whether campaigning was going
on. He deferred to legislative ethics to comment further.
SENATOR COGHILL said his concern is that it would be awkward to
comply if the election is moved up by two weeks. However, APOC
says the filing date is the same so the only difference is that
reporting requirements might be compressed a little. Legislators
would be affected by what could go in their newsletters. He said
he didn't hear anything from APOC that was alarming, but wanted
to review the ethics requirements again.
10:12:19 AM
PADDY MCGUIRE, Deputy Director, Federal Voting Assistance
Program, Department of Defense, testified in support of SB 44.
He explained that Section 2 of version U of the bill
enfranchises children of former Alaskans who have never resided
in the U.S. by allowing them to register and vote in Alaska.
Section 10 codifies in state law the 45-day federal requirement
to transmit ballots to military and overseas voters. This, too,
is an important step in enfranchising overseas voters. Section
12 moves the primary two weeks forward, which is important in
getting ballots to persons overseas.
SENATOR COGHILL said the main conversation around Section 2
applies to military families, but other entities would also be
enfranchised.
MR. MCGUIRE agreed.
10:15:53 AM
SENATOR WIELECHOWSKI asked if Native groups or villages have
chimed in on moving the date.
CHAIR DYSON said no and recalled that the Division of Elections
didn't believe it was a problem.
SENATOR GIESSEL commented on her experience in the North Slope
Borough. She said whaling season in that community begins at the
end of August - about the time of the primary election. She
believed that an accelerated primary date would be an advantage
in that area.
CHAIR DYSON asked for the will of the committee.
10:17:20 AM
SENATOR GIESSEL moved to report CS for SB 44, [version 28-
GS1983\U], from committee with individual recommendations and
attached zero fiscal notes.
10:17:34 AM
CHAIR DYSON announced that without objection CSSB 44(STA) moved
from the Senate State Affairs Standing Committee.
10:17:43 AM
There being no further business to come before the committee,
Chair Dyson adjourned the Senate State Affairs Standing
Committee meeting at 10:17 a.m.