HB 81     An Act relating to the longevity bonus program.                    
                                                                               
            HB   81  was   held  in   Committee  for   further                 
            consideration.                                                     
                                                                               
  CONTRACT BETWEEN THE  STATE OF ALASKA  & JAY HOGAN, dba  HBO                 
  GROUP                                                                        
                                                                               
  Co-Chair  Larson provided the  Committee with a  copy of the                 
  Contract between  State of Alaska, House  Finance Committee,                 
  and Jay Hogan, dba HBO Group, Juneau, Alaska, for the amount                 
  of $5,988 dollars.  [Attachment #1].                                         
                                                                               
  Co-Chair MacLean recommended  adding "be" to Page  1, Clause                 
  I, after the word "shall".   She MOVED the technical change.                 
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
  Representative Parnell MOVED  to change language on  Page 2,                 
  Clause  V,  deleting  "shall  become" and  inserting  "are".                 
  There being NO OBJECTION, it was so ordered.                                 
                                                                               
  Co-Chair MacLean  MOVED Committee approval of  the contract.                 
                                                                               
                                1                                              
                                                                               
                                                                               
  There being NO OBJECTION, it was so ordered.                                 
  HOUSE BILL 81                                                                
                                                                               
       "An Act relating to the longevity bonus program."                       
                                                                               
  MARIE  DARLIN,  PRESIDENT, NATIONAL  ASSOCIATION  OF RETIRED                 
  FEDERAL EMPLOYEES,  JUNEAU, ALASKA,  provided the  Committee                 
  with a copy of her testimony.  [Attachment #2].  The handout                 
  stressed  that benefits given to  the seniors of Alaska have                 
  helped to keep them living in  the State.  She remarked that                 
  the cost of living in the State of Alaska is high as are the                 
  costs of  transportation out  of  the State.   The  benefits                 
  currently allocated to the seniors have created a balance so                 
  the seniors have continued to make the choice to live in the                 
  State.                                                                       
                                                                               
  Studies  have  indicated  that  the  State could  loose  $41                 
  million dollars  over a  five year  time period if  retirees                 
  left the State.   The average monthly annuity for  a federal                 
  retiree is $1586/month.                                                      
                                                                               
  Ms. Darlin requested  that if the  program was to be  phased                 
  out, that those  who are currently covered,  continued to be                 
  covered and that  a phase out  period be provided for  those                 
  planning their retirement.                                                   
                                                                               
  NANCY     BEAR-USERA,     COMMISSIONER,     DEPARTMENT    OF                 
  ADMINISTRATION, encouraged the Committee  to take action  on                 
  the legislation.  She stated that the Governor's proposal is                 
  acceptable and should  be adopted by  the Legislature.   She                 
  urged the Committee to  take action so that the  seniors can                 
  accommodate the changes into their lives.                                    
                                                                               
  Representative Martin agreed that the  Committee should take                 
  action.   He  suggested that  an  additional fiscal  note be                 
  prepared to indicate  the amount of money necessary to cover                 
  the program if the legislation is not passed.                                
                                                                               
  HB 81 was HELD in Committee for further consideration.