02/25/2014 09:00 AM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB106 | |
| SB133 | |
| SB182 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 106 | TELECONFERENCED | |
| *+ | SB 133 | TELECONFERENCED | |
| *+ | SB 182 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
February 25, 2014
9:02 a.m.
MEMBERS PRESENT
Senator Fred Dyson, Chair
Senator Cathy Giessel, Vice Chair
Senator John Coghill
Senator Bill Wielechowski
MEMBERS ABSENT
Senator Bert Stedman
COMMITTEE CALENDAR
SENATE BILL NO. 106
"An Act providing for certain individuals who have erected a
building on land leased from the state to receive a preference
right to purchase certain state land without competitive bid."
- MOVED CSSB 106(STA) OUT OF COMMITTEE
SENATE BILL NO. 133
"An Act establishing May 31 of each year as Katie John Day."
- MOVED SB 133 OUT OF COMMITTEE
SENATE BILL NO. 182
"An Act relating to salary differences in collective bargaining
agreements subject to the Public Employment Relations Act that
are based on a difference in the cost of living outside the
state and the cost of living in the state; and providing for an
effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 106
SHORT TITLE: STATE LAND DISP./LEASEHOLDER PREFERENCE
SPONSOR(s): SENATOR(s) MEYER
01/22/14 (S) PREFILE RELEASED 1/10/14
01/22/14 (S) READ THE FIRST TIME - REFERRALS
01/22/14 (S) STA
02/25/14 (S) STA AT 9:00 AM BUTROVICH 205
BILL: SB 133
SHORT TITLE: KATIE JOHN DAY
SPONSOR(s): SENATOR(s) OLSON
01/22/14 (S) READ THE FIRST TIME - REFERRALS
01/22/14 (S) STA
02/25/14 (S) STA AT 9:00 AM BUTROVICH 205
BILL: SB 182
SHORT TITLE: PUBLIC EMPLOYEE SALARY DIFFERENTIALS
SPONSOR(s): SENATOR(s) DYSON
02/19/14 (S) READ THE FIRST TIME - REFERRALS
02/19/14 (S) STA
02/25/14 (S) STA AT 9:00 AM BUTROVICH 205
WITNESS REGISTER
SENATOR KEVIN MEYER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 106.
EDRA MORLEDGE, Staff
Senator Meyer
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided a committee substitute (CS)
overview for SB 106.
WYN MENEFEE, Deputy Director
Division of Mining
Alaska Department of Natural Resources
Anchorage, Alaska,
POSITION STATEMENT: Explained the municipality land acquisition
process and its impact on private leases with the state.
ROGER BURGGRAF, representing himself
Fairbanks, Alaska
POSITION STATEMENT: Supports SB 106.
MEL GILLIS, representing himself
Fairbanks, Alaska
POSITION STATEMENT: Supports SB 106.
JOY DEMMERT, Staff
Senator Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided an overview of SB 133.
DAVID SCOTT, Staff
Senator Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided an overview for SB 133.
MAUDE BLAIR, Vice President
Alaska Federation of Natives
Anchorage, Alaska
POSITION STATEMENT: Supports SB 133.
SUSETTNA KING, Advocate
Alaska Native Sisterhood-Camp 70
Juneau, Alaska
POSITION STATEMENT: Supports SB 133.
KATHRYN MARTIN, Vice President
Ahtna, Inc.
Glennallen, Alaska
POSITION STATEMENT: Supports SB 133.
FRED JOHN, representing himself
Delta Junction, Alaska
POSITION STATEMENT: Supports SB 133.
HAVEN HARRIS, representing herself
Anchorage, Alaska
POSITION STATEMENT: Supports SB 133.
JULIE ROBERTS-HYSLOP, Vice President
Tanana Chiefs Conference
Tanana, Alaska
POSITION STATEMENT: Supports SB 133.
JOSHUA BANKS, Staff
Senator Dyson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided an overview of SB 182.
NICKI NEAL, Director
Division of Personnel and Labor Relations
Alaska Department of Administration
Juneau, Alaska
POSITION STATEMENT: Provided departmental information on SB 182.
KATE SHEEHAN, Deputy Director
Labor Relations
Division of Personnel Labor Relations
Department of Administration
Juneau, Alaska
POSITION STATEMENT: Introduced herself for departmental
questions.
REUBEN YOST, Deputy Commissioner
Alaska Department of Transportation and Public Facilities
Juneau, Alaska
POSITION STATEMENT: Addressed administration questions for the
Alaska Marine Highway System.
ACTION NARRATIVE
9:02:30 AM
CHAIR FRED DYSON called the Senate State Affairs Standing
Committee meeting to order at 9:02 a.m. Present at the call to
order were Senators Giessel, Wielechowski, and Chair Dyson.
CHAIR DYSON reviewed the committee's calendar. He said three
bills will be heard in the committee meeting and announced his
intention, pending the approval of the committee, to move SB 106
and SB 133 from committee.
SB 106-STATE LAND DISP./LEASEHOLDER PREFERENCE
CHAIR DYSON announced the consideration of SB 106.
9:04:02 AM
SENATOR KEVIN MEYER, Alaska State Legislature, Juneau, Alaska,
said SB 106 provides for certain individuals to receive a
preference right to purchase certain state land without a
competitive bid.
9:04:33 AM
SENATOR GIESSEL moved that the committee adopt the CS for SB
106, labeled 28-LS0864\N.
CHAIR DYSON said seeing no objection, version N is the working
document.
SENATOR MEYER explained that the purpose of SB 106 is to allow
state land leaseholders the first opportunity and first right of
refusal on land that they have made investments on and depend on
for their livelihood. He noted that SB 106 was initiated by a
constituent who has invested a substantial amount of his
retirement funds in a hunting lodge on some land he had leased
from the state for a long period of time. He explained that his
constituent requested to be given first opportunity to purchase
his leased land before the property was sold or traded to a
municipality. He explained that current state statutes allow for
an individual to purchase up to five acres of land under certain
conditions as follows:
· Must have erected a building on the land,
· The land must have been used for more than five years for
bona fide business purpose,
· Must be under a federal permit or without the need for a
permit,
· For state selection, must be under a state permit or lease,
· The business the land is used for must have produced at
least 25 percent of an individual's total income for the
five years preceding the application.
He said SB 106 would extend the first right of refusal to
individuals who have state issued leases. He noted that the
right of first refusal currently applies only to federal lands.
He specified that the municipal entitlement selection also means
"borough." He said SB 106 allows for a preference to purchase up
to five acres of land without a competitive bid under the
following conditions:
· Individual must have erected a building,
· Individual must have used the building for a bona fide
purpose for ten years or more,
· Individual has received at least 25 percent of their income
for the last ten years preceding the application.
He explained that the program's specifics are in the case of an
admissible state land entitlement of the state land where an
individual meets the conditions previously outlined and applies
for preference right within 120 days of notice of a municipal
entitlement selection. He specified that an individual will be
granted a preference right to purchase land and added that the
land will be sold at a fair market value. He noted that SB 106
also provides a mechanism for which a municipality may be
compensated for the entitlement land if a leaseholder chooses to
purchase the land. He said there is no cost associated with SB
106 and the Department of Natural Resources (DNR) has submitted
a zero fiscal note.
9:07:43 AM
SENATOR GIESSEL addressed a memorandum attached to the bill from
Don Bullock [Legislative Counsel]. She said Mr. Bullock asked
questions that pertained to whether the acreage will be credited
against a municipal entitlement and where the money ultimately
goes. She asked Senator Meyer to address Mr. Bullock's
questions.
SENATOR MEYER replied that he will have Ms. Morledge answer
Senator Giessel's inquiry.
9:08:21 AM
EDRA MORLEDGE, Staff, Senator Meyer, Alaska State Legislature,
Juneau, Alaska, explained that a committee substitute (CS) was
brought forward in response to Mr. Bullock's scrutiny. She said
the bill's previous version did not have a mechanism by which
the municipalities could be compensated for land that they may
have wanted to choose, but the first right of preference goes to
the leaseholder. She explained in the CS, lines 26-30, as
follows:
The amount of land, within an overall municipal
entitlement, shall be reduced by the amount of land
covered under this section, up to the five acres that
an individual can exercise their noncompetitive bid
rights; however, subject to appropriation, the revenue
from the purchase of the parcel will be given to the
municipality if the municipal entitlement land
selection is approved. We felt this CS addressed the
concerns that the drafter had with the original
version.
CHAIR DYSON asked to clarify in the previous statement, "Shall
be reduced by the amount of land covered under this section."
MS. MORLEDGE answered that the land of a leaseholder that
exercises their first right of refusal will reduce the land
entitled to the municipality.
CHAIR DYSON asked to clarify that a municipality is going to
have a state owned land as an inholding within a municipality.
MS. MORLEDGE responded that theoretically, Chair Dyson's
assertion could be correct. She deferred to the DNR on how some
of the specifics would work.
SENATOR WIELECHOWSKI asked for an explanation on the statement
located on page 2, line 9, and "Where there is a valid municipal
entitlement selection on state land."
9:11:53 AM
WYN MENEFEE, Deputy Director, Division of Mining, Alaska
Department of Natural Resources, Anchorage, Alaska, answered
that when a municipality has an entitlement they first select
their desired acquisition lands and the DNR proceeds with a
consideration process. He noted that municipalities inevitably
over-select for their entitlement due to a certain percentage
being denied. He explained that municipality selections are
constrained by legal land classifications.
SENATOR WIELECHOWSKI asked for an explanation under what
circumstances a municipality would have a right to an
entitlement selection on state land.
MR. MENEFEE replied that a municipal entitlement occurs when a
borough or municipality is formed. He explained that a law
dictates that entitlement is calculated on a percentage basis.
9:14:12 AM
SENATOR WIELECHOWSKI asked if Anchorage, Fairbanks, or Juneau
still have opportunities for state land entitlement.
MR. MENEFEE answered that most of the main municipalities have
already received their entitlement. He said newly formed
boroughs have room for additional state land entitlement.
SENATOR WIELECHOWSKI asked to clarify that state land
entitlement applies to newer forming municipalities.
MR. MENEFEE replied correct. He noted that some entitlement
lands have not been fulfilled in Petersburg, Lake and Peninsula,
and Northwest Arctic boroughs. He said the DNR is wrapping up
land entitlement in the Denali Borough.
CHAIR DYSON asked to verify that the term "municipality"
includes cities and boroughs.
MR. MENEFEE answered correct.
CHAIR DYSON asked if a qualified citizen would get title to the
land or just the improvements.
9:16:48 AM
MR. MENEFEE answered that a qualified individual may purchase
the land with improvements. He noted that the land acquisition
would not apply to subsurface. He added that land sold to an
individual will be decremented from the municipality's
entitlement. He specified that an individual's land is taxable,
but lease revenue will not exist due to the land purchase. He
said the municipality would receive the money from the
individual's land purchase.
9:19:48 AM
SENATOR WIELECHOWSKI asked how many properties would be affected
by SB 106.
MR. MENEFEE replied that currently there are 8 to 12.
SENATOR WIELECHOWSKI asked what specifically occurs when a
municipality selects land that has a citizen with a business.
MR. MENEFEE answered that the existing lease is transferred to a
municipality and the lease's terms are honored. He specified
that lease renewal is strictly up to a municipality.
9:22:54 AM
CHAIR DYSON asked what happens to private leaseholders on
federal land when a transfer occurs to either a municipality or
native corporation.
MR. MENEFEE answered that he is not sure. He assumed that the
federal transaction is similar in nature where valid lease terms
are honored.
9:24:31 AM
SENATOR WIELECHOWSKI noted his intent to address unintended
consequences of the bill. He asked if there is any likelihood
for people to start leasing state land for future noncompetitive
bid possibilities when new municipalities may be formed or
expanded.
MR. MENEFEE noted that the qualifications stipulated in SB 106
makes Senator Wielechowski's scenario inconceivable.
CHAIR DYSON welcomed the testimony from two citizens.
9:26:52 AM
ROGER BURGGRAF, representing self, Fairbanks, Alaska, stated
that he supports SB 106 as a means of protecting many
individuals and businesses from losing developed property. He
said in many cases an individual's primary livelihood and assets
have been tied up into leased state properties that were thought
to be secure.
9:32:58 AM
MEL GILLIS, representing himself, Fairbanks, Alaska, said he is
one of the eight or ten that Mr. Menefee noted. He explained
that he has a lodge on land that was given to the Lake and
Peninsula Borough. He revealed that he has invested over $1
million into his leased land. He asserted that boroughs are
specifically selecting the best properties. He said he has been
guiding in Alaska for 43 years and is just about out of business
because of his leased land situation. He declared that SB 106 is
a good first step.
CHAIR DYSON recalled that he had spoken to Mr. Gillis regarding
his lease situation.
MR. GILLIS answered correct.
CHAIR DYSON assumed that an attempt was made to see if there was
any way to help out people like Mr. Gillis and concluded that
there was not.
SENATOR MEYER replied that SB 106 does not help Mr. Gillis with
his current situation. He set forth that SB 106 will help
individuals in the future.
9:36:24 AM
SENATOR WIELECHOWSKI asked if more than five acres is involved.
MR. MENEFEE replied that SB 106 only allows for up to five
acres. He added that an applicant can further negotiate with a
municipality for additional land.
SENATOR WIELECHOWSKI asked what would stop the DNR from selling
the land right now as opposed to leasing.
MR. MENEFEE explained that statutes dictate that only settlement
land may be sold.
CHAIR DYSON asked if DNR in favor of SB 106.
MR. MENEFEE replied that the Administration is in favor of SB
106 in the revised version as it stands.
CHAIR DYSON commented that he appreciates what seems to be fair
consideration the state is doing in protecting Alaskans and
landholders.
9:40:44 AM
SENATOR GIESSEL moved CS for SB 106, labeled 28-LS0864\N from
committee with zero fiscal note and individual recommendations.
9:41:00 AM
CHAIR DYSON announced that without objection, [CSSB 106(STA)]
moved out of the Senate State Affairs Standing Committee.
9:41:03 AM
CHAIR DYSON announced that the committee will stand at ease.
SB 133-KATIE JOHN DAY
9:41:47 AM
CHAIR DYSON announced that the committee will take up SB 133.
9:42:00 AM
JOY DEMMERT, Staff, Senator Olson, Alaska State Legislature,
Juneau, Alaska, read a statement as follows:
Katie John is an Athabascan icon to Alaska, she is
best known for her determination and success in
fighting for subsistence rights. Katie John is also
known for traditional teachings and way of life, she
lived to be 97 years old. Katie John was passionate
about preserving the Athabascan culture and language
and she also helped to create the alphabet for the
Ahtna dialect. In 2011, Katie John received the
honorary doctor of laws degree from the University of
Alaska Fairbanks. Katie John and her husband raised 14
of their own children and 6 foster children, she left
behind more than 250 descendants. When considering
this bill, one might ask is it necessary to pass a
bill for Katie John's legacy, my answer would be "yes"
because by supporting this piece of legislation we are
sending a message to Alaska and to the entire world
that we love and support our Alaska native cultures
and the people. Each year on May 31 all Alaskans can
reflect on the cultures and values of Alaska and
peoples' connection with the land, be it native and
nonnative.
MS. DEMMERT thanked the committee for hearing SB 133, a bill
that honors the Athabascan icon of Alaska.
SENATOR WIELECHOWSKI asked about the significance of May 31 for
Katie John Day.
9:44:15 AM
DAVID SCOTT, Staff, Senator Olson, Alaska State Legislature,
Juneau, Alaska, explained that May 31 is the date that Katie
John passed away. He noted that there was no record of Katie
John's actual birthday.
9:44:44 AM
CHAIR DYSON announced that the committee will take a brief at
ease.
9:44:49 AM
CHAIR DYSON stated that he is confident SB 133 is going to pass
out of committee and go directly to the Senate Floor through the
Rules Committee. He said the committee is very respectful of the
testifiers who want to praise Katie John and her impact on
Alaska.
9:46:32 AM
MAUDE BLAIR, Vice President, Alaska Federation of Natives,
Anchorage, Alaska, read a statement in support of SB 133 as
follows:
There are about 120,000 Alaska native people in the
state and the vast majority of them still participate
in hunting, fishing, and gathering food during the
year. Subsistence is a way of life for us and has been
the basis of our cultures for thousands of years. As
the state's population has grown, we have had to
balance the interests of the different user groups
with the need to sustain the resources for future
generations. Katie John grew up living a traditional
lifestyle at Batzulnetas, a traditional Ahtna village
where her family had a fish camp. The state of Alaska
closed the subsistence fishery there shortly after
statehood. In 1980, Congress passed the Alaska
National Interest Lands Conservation Act (ANILCA)
which provides for a subsistence priority for hunting
and fishing on federal public lands in Alaska by rule
of residence; it allows state management on federal
lands if the state enacts a law that extends the rural
priority for subsistence uses to nonfederal lands. The
state did enact a rural preference on nonfederal lands
following the passage of ANILCA; however the State
Board of Fisheries denied a request by Katie John and
Doris Charles to reopen the fishery at Batzulnetas. In
1985, Katie John and Doris Charles sued the state of
Alaska for not providing a subsistence priority
required under ANILCA. What we call the "Katie John
Cases" was actually a series of different lawsuits
that involved several plaintiffs that had wound
through the state and federal court systems. Katie
John was the lead plaintiff and very much a leader in
the push to preserve the subsistence rights that we
native people have enjoyed for thousands of years. The
Alaska Supreme Court ruled in 1989 in another case
that the rural residency preference the state had
adopted to comply with ANILCA and manage federal lands
had violated the state's constitution, so the federal
government took over management of the federal
priority on federal lands, but refused to extend the
authority over any fisheries. Katie John and Doris
Charles then sued the United States in federal court
to protect their fishing rights under ANILCA. The
Ninth Circuit Court of Appeals held in 1995 and again
in 2001, that the federal priority for rural users
applied to Batzulnetas and all other areas where the
United States holds reserved water rights; this is
good news because it meant that Katie John and other
rural residents have a priority for subsistence
fishing on federal lands, which make up about 60
percent of the state. As was mentioned already, Katie
John didn't get to hear the most recent part of the
case, it's still going on and it has been going on for
29 years; she passed away on May 31. May 31 is also
significant because it is the day the state of Alaska
allowed native people to put their fish-wheels in the
water. Each year at our Alaska Federation of Natives
(AFN) conventions, we pass resolutions of importance
to us and the very first one we passed last October
was asking the state of Alaska to name May 31 "Katie
John Day."
9:50:16 AM
SUSETTNA KING, representative, Alaska Native Sisterhood-Camp 70,
Juneau, Alaska, read a statement in support of SB 133 as
follows:
I am representing the Alaska Native Sisterhood Camp
70. Our mission is to better the lives of native
people and their families, to fight for civil rights
and the rights of all Alaska native people, to share
the cultural knowledge, wisdom, and artistic beauty of
native tribal society, and to strive for the spirit of
brotherhood and sisterhood among all people. Our
ancestors fought for the betterment of Alaska natives,
just as our Athabascan sister, Katie John. Katie John
belonged to the Athabascan nation, she was important
and the key of subsistence fight, and for like many in
her time it was a fight for our way of life. Katie
John worked for Alaska native because it was right
thing to do. Written records shown, 2001, her fight
took her to the Ninth Circuit Court of Appeals ruling
stating that subsistence fishery protection provided
under Title 8 of Alaska National Interest Lands
Conservation Act (ANILCA) did in fact to all navigable
waters in which the federal government own reserved
water rights, effectively allowing subsistence fishing
to continue unrestricted in those areas. The Alaska
Native Sisterhood-Camp 70 stands with our brothers and
sisters from the northern part of the state of Alaska
in honoring Katie John, the subsistence fight she
fought not only benefited the northern, but us in the
Southeast Panhandle. We support SB 133 to establish
Katie John's Day each year on May 31. Katie John was
an Alaska native woman we all strive to live like.
Katie John was celebrated and honored in the Alaska
Federation of Natives (AFN) in 2003; we celebrate her
by gathering of many. The Alaska Native Sisterhood-
Camp 70 encourages enacting SB 133 and honoring Dr.
Katie John.
CHAIR DYSON remarked that SB 133 will pass out of committee
today. He stated that testimony is not needed to get SB 133 out
of committee. He encouraged testifiers, if possible, not to
repeat what was said by previous individuals.
9:53:17 AM
KATHRYN MARTIN, Senior Vice President, Ahtna, Inc., Glennallen,
Alaska, thanked Senator Olson and Senator Ellis for introducing
SB 133 for consideration. She noted that she is the
granddaughter of Katie John. [She provided testimony that
concurred with previous witnesses in support of SB 133.] She
summarized that naming May 31 as Katie John Day would be an
incredible honor and a show of respect for a woman who lived her
whole life taking care of others.
9:56:09 AM
FRED JOHN, representing himself, Delta Junction, Alaska, said he
is the son of Katie John. [He provided testimony that concurred
with previous witnesses in support of SB 133.] He set forth that
Katie John taught her children to profess that native Alaskans'
ways are not a threat to the state of Alaska.
CHAIR DYSON stated that the committee is honored to move SB 133
forward.
9:58:15 AM
HAVEN HARRIS, representing himself, Anchorage, Alaska, said he
supports SB 133. He asserted that Katie John's contribution to
all of Alaska is something that should be shared in our history
books. He said it would be a tremendous honor for Katie John to
be recognized every year on the day of her passing.
9:58:55 AM
JULIE ROBERTS-HYSLOP, Vice President, Tanana Chiefs Conference,
Tanana, Alaska, said she supports the passing of SB 133 [and
provided testimony that concurred with previous witnesses.] She
summarized that the state of Alaska has an opportunity to honor
and acknowledge a woman of strength and courage, a woman that
fought hard for a way of life that cannot be forgotten.
10:00:35 AM
CHAIR DYSON asked if there is anyone in the committee room that
wants to testify on SB 133. He announced seeing none, public
testimony is closed.
10:00:51 AM
SENATOR GIESSEL moved SB 133, labeled 28-LS1288\A from committee
with zero fiscal note and attached individual recommendations.
10:01:06 AM
CHAIR DYSON announced that without objection, SB 133 moved out
of the Senate State Affairs Standing Committee.
10:01:10 AM
CHAIR DYSON announced that the committee will stand at ease.
SB 182-PUBLIC EMPLOYEE SALARY DIFFERENTIALS
10:02:08 AM
CHAIR DYSON, bill sponsor, introduced SB 182, version N. He
noted that his office was asked to consider the bill from the
Administration. He explained that a law from 1977 established a
protocol for Cost of Living Adjustments (COLA) or Cost of Living
Differentials (COLD) for employees of the Alaska Marine Highway
System (AMHS) vessels that compared the cost of living in
Seattle, Washington. He pointed out that all of the other state
employee groups have a COLA based upon Anchorage. He said data
shows that the cost of living for Anchorage and Seattle are
virtually equal. He said SB 182, if it passes, will put AMHS
employees on the same COLD system as all the rest of the state
employees. He explained that current bargaining agreements will
not be changed and SB 182 will only be enforced for the
agreements that come in the [future]. He remarked that there
could be a significant savings to the state, especially during
tight budget times.
10:04:25 AM
JOSHUA BANKS, Staff, Senator Dyson, Alaska State Legislature,
Juneau, Alaska, announced that he will provide a brief sectional
for SB 182.
MR. BANKS addressed Section 1 as follows:
Adds a subsection in AS 23.40.075, this is the section
for items that are not subject to bargaining between
the state and public unions for collective bargaining
agreements. This section will prohibit parties from
adjusting the salary of instate employees based on the
difference of the cost of living in Alaska and outside
of Alaska. The purpose of this section is to ensure
the legislative intent of taking out the cost of
living differential and it will not eliminate other
options that the state has and the public unions have
to promote living in the state of Alaska. We are most
certainly in favor of providing incentives for state
employees to live inside the state.
MR. BANKS addressed Section 2 as follows:
Section 2 will repeal AS 23.40.210 and reenacts it
without the statutory requirement to provide the cost
of living differential for employees living outside of
state based on the cost of living differential between
Alaska and Seattle. The cost of living differential is
not necessarily a problematic portion of this statute,
it is the fact that we have to go back to cost of
living differential from 1977 that we felt we ought to
change the statute. We want to ensure that the
benefits for public employees reflect current cost of
living and this statute as it stands limits the
ability to do so. This section also deletes language
used to determine how an employee will be eligible for
the cost of living differential and the language that
is reenacted is currently in the law, so we are not
adding anything to this section.
10:06:59 AM
He addressed Section 3 as follows:
Section 3 ensures that SB 182 will only affect
bargaining agreements settled on or after the
effective date. Agreements passed before the effective
date will still include the cost of living
differential for state employees.
He addressed Section 4 as follows:
Section 4 establishes an immediate effective date.
SENATOR WIELECHOWSKI asked what bargaining units SB 182 will
apply to.
MR. BANKS replied that primarily the three maritime unions noted
in the packets presented to the committee that shows the
percentage of the unions that live outside of the state.
SENATOR WIELECHOWSKI asked if SB 182 will apply to those
bargaining units within the state that have geo-differential
adjustments like Public Safety employees.
MR. BANKS answered that the bill will not affect employees that
currently receive COLD. He said an example is State Troopers
receiving pay adjustments that compensate for living in Bethel
or Nome.
10:08:23 AM
SENATOR WIELECHOWSKI addressed the fiscal note and set forth
that the collective bargaining agreement is odd. He asked to
verify that the collective bargaining agreement with the
International Organization of Masters, Mates & Pilots (MM&P)
sets a base salary rate with an added cost of living adjustment
for employees that live in Alaska.
MR. BANKS answered yes. He explained that the adjustment is
either paid hourly or a lump sum on top of the monthly salary.
SENATOR WIELECHOWSKI asked to clarify that the fiscal note is
$7.6 million. He surmised that SB 182 would keep the rates for
those that live outside the same and drag down the Alaskan
salaries.
CHAIR DYSON asked for the Administration to answer Senator
Wielechowski's question.
10:10:11 AM
NICKI NEAL, Director, Division of Personnel and Labor Relations,
Alaska Department of Administration, Juneau, Alaska.
10:10:17 AM
KATE SHEEHAN, Deputy Director, Labor Relations, Division of
Personnel Labor Relations, Department of Administration, Juneau,
Alaska.
MS. NEAL stated that she would provide background on the cost of
living differential as follows:
AS 23.40.210 requires that collective bargaining
agreements include a pay plan that is designed to
provide a Cost of Living Differential (COLD) between
employees residing in the state and employees outside
of the state. In 1977, that statutory authority was
amended and the amendments were targeted at the marine
units. Essentially, the salaries paid to employees
residing outside of the state were to remain unchanged
until the difference between those salaries and the
salaries paid to employees residing in the state
reflects a difference between the cost of living in
Alaska and Seattle. Essentially, in 1977 the cost of
living in Alaska was much higher than Seattle.
Subsequently, COLD was negotiated into collective
bargaining agreements; it provides a differential to
those living in Alaska. Currently the COLD for the
Masters, Mates & Pilots (MM&P) and for the Marine
Engineers' Beneficial Association (MEBA), ranged
between $453.80 to $664.40 per pay period; they have
26 pay periods period in a year, those rates last
changed in 2007. The Inlandboatmen's Union, it is
actually added to their hourly rate; they currently
receive approximately $4.06 to $5.05 per hour for
COLD.
10:12:19 AM
CHAIR DYSON asked if the Inlandboatmen's Union members work
something 2,000 hours a year.
MS. NEAL answered yes. She explained that the Inlandboatmen's
Union members work approximately 2,184 hours per year.
She continued to explain COLD as follows:
In 2008, with funding approved by the Legislature, the
Division of Personnel conducted a geographic
differential study and that was done by the McDowell
Group; that study indicates that the cost of living in
Seattle and Anchorage are about equal.
CHAIR DYSON recalled that all of the state's regional
compensation tied to the cost of living is based on Anchorage as
zero and any other sites are plus or minus.
MS. NEAL answered correct. She explained that Anchorage is
considered as the "base."
CHAIR DYSON remarked that those are pretty significant numbers.
He asked if the MM&P members also work 2,184 hours per year.
MS. NEAL answered correct.
CHAIR DYSON mentioned speaking to various union members that
noted that part of the attractiveness of working for AMHS was
due to salary and benefits. AMHS' compensation plan attracts and
keeps qualified people. With the competition for licensed
mariners around North America, recruiting and retention will be
an issue. He asked for someone to address his query and the
Administration's response.
10:15:04 AM
REUBEN YOST, Deputy Commissioner, Alaska Department of
Transportation and Public Facilities (DOT&PF), Juneau, Alaska,
noted that he oversees AMHS. He addressed the situation of
recruitment and retention if SB 182 were to go into effect under
its current version. He said DOT&PF would negotiate base-pays,
taking into account what the drop in pay was for Alaskans. He
noted that DOT&PF does a lot of recruiting for all three
maritime unions, particularly MM&F and MEBA from outside the
state. He pointed out that AMHS has very good people who choose
to work from Seattle or points even further south based on their
salary. He addressed geographic differentials and noted that
except for the crews the three day-boats as follows: MV
Fairweather, MV Chenega, and the MV Lituya; AMHS employees are
not required to live in a particular community. He said AMHS
employees are currently paid COLD regardless of whether they
live near a change-port. He noted that DOT&PF believes it is
appropriate to look at COLA for day-boat crew members due to the
need to live in particular communities because the vessels have
no accommodations.
10:16:10 AM
SENATOR COGHILL joined the committee meeting.
SENATOR WIELECHOWSKI asked if it is fair to say that if SB 182
passes, compensation for people who live in Seattle or in the
Lower 48 will remain the same and residents of Alaska who work
for the AMHA will receive a pay cut.
MR. YOST answered correct. He specified that the assumption is
nothing changes during negotiations. He noted that DOT&PF is
already considering during negotiations to apply the COLD money
that might go away to the base rate of pay.
10:18:08 AM
SENATOR WIELECHOWSKI reiterated that the language in the
collective bargaining agreement is odd and decades old. He
asserted that negotiations without a COLD provision will end up
raising the rates of people in the Lower 48 and keeping
Alaskan's rates flat or low.
MR. YOST replied that Senator Wielechowski's assertion is a
possibility. He noted that right now a person can live wherever
they choose to live. He added that people have a choice to live
in an area with a lower cost of living. He pointed out that AMHS
employees are receiving COLD that was originally put into place
because there was a significantly higher cost of living in
Alaska.
CHAIR DYSON asked to clarify that the compensation for people
that live in Seattle will stay the same.
MR. YOST answered yes, based on SB 182. He specified that his
point in negotiations is that there will be an effort to raise
the base salary for everyone.
CHAIR DYSON said his understanding is if SB 182 passes and COLD
goes away, COLA would be applied as done with other state
employees.
MR. YOST replied that AMHS only has three boats where people
have to live in a given community.
10:20:16 AM
CHAIR DYSON asked to clarify that an employee that lives in
Alaska would get COLD like every other state employee.
MR. YOST answered that he does not believe Chair Dyson's
assumption is correct and deferred to the Department of
Administration.
MS. NEAL specified that the option for the geographic
differential application as it applies to the three marine units
would need to be negotiated through collective bargaining. She
agreed that COLD for the three day-boats would be relatively
easy, but applying COLD would be more difficult for the rest of
the employees. She said negotiating for a COLD is certainly an
option.
CHAIR DYSON asked if all of the other state bargaining units
have the same COLA in their agreements.
MS. NEAL replied yes. She noted that a new rate agreement with
the Labor, Trades and Crafts Unit has yet been obtained, but
others do include it.
SENATOR WIELECHOWSKI reiterated that SB 182's impact will
increase the wages of Seattle workers and decrease the wages of
Alaska workers.
MR. YOST answered correct. He said the standpoint from DOT&PF
and the Administration is to either keep a COLD inequity in
place forever or do something to address it. He noted the issue
with applying geographical differential for crew members who do
not work on day-boats where individuals are compensated for
choosing to live in the most expensive parts of the state.
10:23:38 AM
SENATOR WIELECHOWSKI asked if the Parnell Administration
supports SB 182.
MR. YOST answered yes. He remarked that the current COLD gives
vessel employees tremendous incentive to live in the state and
for nonresident employees collect COLD as well. He said removing
COLD and coming up with some other form of compensation would
free DOT&PF from being involved in residency investigations. He
noted that DOT&PF has quite a few residency cases that typically
go to arbitration and usually DOT&PF prevails. He said DOT&PF
would like to not be in the position of having to investigate
where people have their primary residence.
CHAIR DYSON said he suspected that there will be quite a bit of
public testimony and lots of questions from the committee.
10:25:24 AM
CHAIR DYSON announced that the committee will stand at ease.
10:25:34 AM
CHAIR DYSON announced that public testimony will be taken at the
next committee meeting. He asked that testimony not be repeated.
[SB 182 is held in committee.]
10:26:01 AM
There being no further business to come before the committee,
Chair Dyson adjourned the Senate State Affairs Standing
Committee at 10:26 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 106 A.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 106 |
| SB 106 Sponsor Statement.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 106 |
| SB106-DNR-MLW-2-22-14.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 106 |
| SB 106 Work Draft Version N (2).pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 106 |
| SB 133 Bill.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 133 |
| SB 133 Sponsor Statement.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 133 |
| SB 133 Supporting Document.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 133 |
| SB133-DOA-FAC-02-21-14.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 133 |
| SB 133 ADN.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 133 |
| SB 133 AFN Letter to Governor.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 133 |
| SB 133 AFN Resolution.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 133 |
| SB 106 - Summary of Changes to Version N.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 106 |
| SB 182 - Legislation.pdf |
SSTA 2/25/2014 9:00:00 AM SSTA 2/27/2014 9:00:00 AM SSTA 3/4/2014 9:00:00 AM |
SB 182 |
| SB 182 - Sponsor Statement.pdf |
SSTA 2/25/2014 9:00:00 AM SSTA 2/27/2014 9:00:00 AM SSTA 3/4/2014 9:00:00 AM |
SB 182 |
| SB 182 - Section Analysis.pdf |
SSTA 2/25/2014 9:00:00 AM SSTA 2/27/2014 9:00:00 AM SSTA 3/4/2014 9:00:00 AM |
SB 182 |
| SB182-DOT-AMHS-MVO-2-25-14.pdf |
SSTA 2/25/2014 9:00:00 AM SSTA 2/27/2014 9:00:00 AM SSTA 3/4/2014 9:00:00 AM |
SB 182 |
| SB 182 - Support Documents - Talking Points.pdf |
SSTA 2/25/2014 9:00:00 AM SSTA 2/27/2014 9:00:00 AM SSTA 3/4/2014 9:00:00 AM |
SB 182 |
| SB 182 - Support Document - 2011 CBA.pdf |
SSTA 2/25/2014 9:00:00 AM SSTA 2/27/2014 9:00:00 AM SSTA 3/4/2014 9:00:00 AM |
SB 182 |