SENATE STATE AFFAIRS COMMITTEE April 3, 1997 3:35 p.m. MEMBERS PRESENT Senator Lyda Green, Chairman Senator Jerry Ward, Vice-Chairman Senator Mike Miller Senator Jim Duncan MEMBERS ABSENT Senator Jerry Mackie COMMITTEE CALENDAR SENATE BILL NO. 150 "An Act relating to moving expenses of state employees, to compensatory time for state employees, and to calculation of compensation for the public employees' retirement system." SENATE BILL NO. 151 "An Act relating to public employment labor relations; relating to the protection of the rights of public employees under the Public Employment Relations Act; establishing ethical standards for union representatives of public employees; and establishing disclosure requirements for public employee labor organizations." SENATE BILL NO. 9 "An Act relating to municipal capital project matching grants for a municipality organized under federal law as an Indian reserve; and providing for an effective date." SENATE BILL NO. 143 "An Act relating to education benefits for members of the Alaska National Guard, Alaska Naval Militia, or Alaska Territorial Guard." SENATE BILL NO. 124 "An Act relating to salmon classics and race classics." SENATE BILL NO. 129 "An Act relating to the employer's required savings under the retirement incentive plan; and providing for an effective date." SENATE BILL NO. 21 "An Act relating to ferries and ferry terminals, establishing the Alaska Marine Highway Authority, and relating to maintenance of state marine vessels; and providing for an effective date." SENATE BILL NO. 81 "An Act relating to immunization records for children under the age of seven." - BILL POSTPONED SENATE BILL NO. 147 "An Act relating to a retirement benefit for the surviving widow or widower or surviving divorced spouse of a governor or lieutenant governor of the state; and providing for an effective date." - BILL POSTPONED PREVIOUS SENATE COMMITTEE ACTION SB 150 - See Senate State Affairs minutes dated 4/1/97. SB 151 - See Senate State Affairs minutes dated 4/1/97. SB 9 - See Community & Regional Affairs minutes dated 3/7/97. SB 143 - No previous action to record. SB 124 - No previous action to record. SB 129 - See Senate State Affairs meeting dated 3/27/97. SB 21 - See Senate Transportation Committee minutes dated 2/18/97 and 3/6/97 and Senate State Affairs minutes dated 3/18/97, 3/25/97, 3/27/97. WITNESS REGISTER Tim Benintendi, Staff to Senator Tim Kelly State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Offered information on SB 143 Ms. Carol Carroll, Director Administrative Services Division Department of Military & Veterans Affairs P.O. Box 110900 Juneau, AK 99811-0900 POSITION STATEMENT: Testified in support of SB 143 Don Mercer Alaska National Guard Juneau, AK POSITION STATEMENT: Testified in support of SB 143 Senator John Torgerson State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Prime Sponsor of SB 124 Jeannie Smith, Staff to Senator Jerry Mackie State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Offered information on SB 9 Joe Ambrose, Staff to Senator Robin Taylor State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Presented amendment to CSSB 21(TRA) ACTION NARRATIVE TAPE 97-18, SIDE A Number 001 SB 150 PUB. EMPLOYEES: MOVING, COMP TIME & PERS CHAIRMAN GREEN called the Senate State Affairs Committee to order at 3:35 p.m. and brought up SB 150 as the first order of business before the committee. She noted the bill was passed out of committee at its previous hearing, however, new zero fiscal notes were received by the committee after that action was taken. She then requested a motion to move the additional fiscal notes out of committee to accompany the legislation. SENATOR WARD moved the adoption of the new fiscal notes to SB 150. SENATOR MILLER amended the motion that a committee fiscal note also be included. Hearing no objection, CHAIRMAN GREEN stated the motion carried. CHAIRMAN GREEN clarified for the record that there was some question at the committee's last meeting on the timeliness of the request for fiscal notes, and she wanted to assure the committee that the request was sent in a timely manner. She said that with SB 150 there was an added burden on the part of the departments and agencies who are required under statute to get the fiscal notes back to the committee within five days. Number 055 SB 151 PUBLIC EMPLOYMENT LABOR RELATIONS CHAIRMAN GREEN brought SB 151 before the committee as the next order of business. She stated CSSB 151(STA) was adopted at the previous hearing on the legislation. SENATOR DUNCAN moved Amendment No. 1 to CSSB 151(STA), which, he said, removes the sections in the committee substitute and the original bill that would require increasing the number of bargaining units in the state. Increasing the number of bargaining units will increase the cost to the state and causes other types of problems. Amendment No. 1 Page 3, line 16: Delete "new subsections" and insert "a new subsection" Page 3, line 24, through page 4, line 25: Delete all material SENATOR WARD objected to the adoption of Amendment No. 1. The roll wa taken with the following result: Senator Duncan voted "Yea" and Senators Miller, Ward and Green voted "Nay." The Chairman stated the motion failed on a 1-3 vote. Number 144 SENATOR DUNCAN moved Amendment No. 2 to CSSB 151(STA), which, he said, would remove the findings sections in the legislation. These findings sections are taken from federal law and there is not evidence of the types of abuses and problems that the findings declare are there. Amendment No. 2 Page 1, line 6, through page 2, line 19: Delete all material. Page 2, line 20: Delete "Sec. 2" and insert "Section 1" Renumber the following bill sections accordingly. Page 50, line 10: Delete "sec. 37" and insert "sec. 36" Page 50 line 22: Delete "sec. 37" and insert "sec. 36" SENATOR WARD objected to the adoption of Amendment No. 2. The roll was taken with the following result: Senator Duncan voted "Yea" and Senators Miller, Ward and Green voted "Nay." The Chairman stated the motion failed. Number 155 SENATOR DUNCAN moved Amendment No. 3 to CSSB 151(STA),which, he said, would delete Section 37. However, after brief discussion it was concluded that the amendment was improperly drafted, and Senator Duncan then withdrew Amendment No. 3. SENATOR DUNCAN moved a conceptual Amendment No. 3 to CSSB 151(STA) to delete Section 37 and any references to Section 37 throughout the committee substitute. He said Section 37 basically incorporates the federal language and places a significant additional administrative burden within the Department of Labor to duplicate a federal bureaucracy which collects reports and audits union activities in the private sector. SENATOR WARD objected to the adoption of a conceptual Amendment No. 3. The roll was taken with the following result: Senator Duncan voted "Yea" and Senators Ward, Miller and Green voted "Nay." The Chairman stated the motion failed. Number 225 SENATOR DUNCAN moved Amendment No. 4 to CSSB 151(STA). He said this is the area where the president of the AFL-CIO testified that they would have to bring out the handcuffs because he would not make copies of his membership list and make it public. Amendment No. 4 Page 35, line 16: Delete "and copy" SENATOR GREEN objected to the adoption of Amendment No. 4. The roll was taken with the following result: Senator Duncan voted "Yea" and Senators Miller, Ward and Green voted "Nay." The Chairman stated the motion failed. Number 260 SENATOR DUNCAN moved the adoption of Amendment No. 5 to CSSB 151(STA) which he said eliminates the requirement that the Legislature give approval of arbitration awards and any extensions or modifications of an agreement. Amendment No. 5 Page 14, lines 21 - 24: Delete "and the extension or modification of an agreement, including an award by an arbitrator acting under AS 23.40.200, if the extension or modification affects in any way the monetary terms of an agreement." Page 14, line 29, through page 15, line 26: Delete all material. Renumber the following bill sections accordingly. Page 50, line 8: Delete "23.40.215(c)," Page 50, line 10: Delete "sec. 37" and insert "sec. 35" Page 50, line 22: Delete "sec. 37" and inert "sec. 35" SENATOR MILLER objected to the adoption of Amendment No. 5. The roll was taken with the following result: Senator Duncan voted "Yea" and Senators Green, Miller and Ward voted "Nay." The Chairman stated the motion failed. Number 267 CHAIRMAN GREEN related that new fiscal notes for CSSB 151(STA) had been provided by the Department of Law and the Department of Labor, and there being no further amendments or testimony, she requested a motion on CSSB 151(STA). SENATOR WARD moved CSSB 151(STA) and the accompanying fiscal notes be passed out of committee with individual recommendations. SENATOR DUNCAN objected. The roll was taken with the following result: Senators Miller, Ward and Green voted "Yea" and Senator Duncan voted "Nay." The Chairman stated the motion to move CSSB 151(STA) out of committee carried. Number 325 SB 143 EDUCATION BENEFITS FOR MILITARY PERSONNEL CHAIRMAN GREEN brought SB 143 before the committee as the next ordered of business. TIM BENINTENDI, staff to Chairman Kelly of the Senate Rules Committee who sponsored the legislation, explained SB 143 would simply make some refinements in the Alaska National Guard tuition assistance program. This program is modestly funded, but it is a tool that the Adjutant General can use for improving skill levels among personnel, in response to the emerging needs of the National Guard. SB 143 will strengthen the Guard's recruitment and retention goals, and give more discretion to the Adjutant General for applying educational benefits to the organization's most pressing needs. It will also afford enlisted personnel college and other schooling opportunities necessary for entry in the officer corps should enlisted Guard members pursue that career path. Mr. Benintendi provided the following sectional analysis on SB 143: - In Section 1, active enlisted personnel are targeted as the group made eligible for educational assistance in Alaska educational facilities. Retirees and former members of the Alaska Territorial Guard are excluded from eligibility in order to emphasize the DMVA recruitment and retention objectives. Funds are simply not available for a broader range program. - Section 2 provides that recipients of educational benefits be students in good standing in the program or class undertaken. - Section 3 gives the Adjutant General the latitude to authorize payment levels up to 100 percent for tuition and required fees at institutions in Alaska. It also allows the AG to prioritize categories of educational benefits to support vital recruitment and retention objectives. - Section 4 defines a student in good standing for purposes of the program. - Section 5 repeals the noted statute references as unnecessary. The first removes the provision for calculating retirees' eligibility, the second removes the ineligibility for benefits under more than one program, and the third removes the ineligibility if the members is qualified for federal benefits. Number 355 CAROL CARROLL, Director, Administrative Services Division, Department of Military & Veterans Affairs, said the department believes the legislation will allow the Adjutant General to use an existing program to better advantage. She noted there are approximately 400 Guard members that are lost to attrition every year and they have to fill those spaces. Ms. Carroll said there is more of an emphasis now by both the Army and the National Guard on education, and there is difficulty in retaining Native officers. The department believes they can use this program to fashion an educational program for Native officers so that they can retain them in the Guard. Ms. Carroll related that currently there is only $28,500 in the tuition assistance program, however, last year they didn't use $6,800 of it, and by being able to target this in a more effective way they will be able to use it as the Adjutant General would like. Number 380 DON MERCER, representing the Alaska National Guard testified in support of SB 143. He clarified that to be promoted to the rank of major, it requires a BA, but in order to go to OCS and become a commissioned officer, it does not require a degree at that time. He said the legislation will allow the Guard to recruit new members and these new recruits will be able to enhance their careers by being offered the educational opportunities. Number 400 There being no further testimony on SB 143, CHAIRMAN GREEN asked for the will of the committee. SENATOR WARD moved SB 143 and the accompanying zero fiscal note be passed out of committee with individual recommendations. Hearing no objection, it was so ordered. SB 124 CHARITABLE GAMING SALMON AND RACE CLASSIC CHAIRMAN GREEN brought SB 124 before the committee as the next order of business. SENATOR JOHN TORGERSON, prime sponsor of SB 124, read the following sponsor statement into the record: "This legislation amends AS 05.15.100(A) by including race classics as one of the games of skill and chance which municipalities or qualified organizations are allowed to conduct. The purpose of this amendment is to authorize a classic for the Seward Mt. Marathon Race, to be operated by the Seward Chamber of Commerce Convention & Visitors' Bureau. It also amends AS 05.15.690(40) by extending the definition of a salmon classic to include the Seward Silver Salmon Derby Classic and the Sterling Area Senior Citizen's, Inc. Sockeye Salmon Crossing Classic. Both the Seward Chamber of Commerce Convention & Visitors' Bureau and the Sterling Area Senior Citizen's Inc., are non-profit corporations. Both entities provide a valuable community service and, like many local service organizations, they are searching for ways to supplement their revenues. Providing these potential revenue vehicles will assist these service organizations in the continuation of the services they provide for their respective communities." Senator Torgerson pointed out the Legislature has authorized similar classics, and he said this is just a request to add a couple of more to the list. Number 428 SENATOR DUNCAN noted there are a number of other salmon derbies held throughout the state, and he questioned if consideration was given to opening it up so that they all qualify under this legislation. SENATOR TORGERSON responded that it was originally approached in that manner and his office worked with the Division of Gaming on the concept. However, communications broke down, and he needed to get approval for these two classics this year so it was limited to them. He added there is concern among the non- profit organizations that if an administration decided down the road that they didn't want to continue with an existing derby, it could just administratively wipe it out. There being no further questions or testimony on SB 124, CHAIRMAN GREEN requested a motion on the legislation. SENATOR WARD moved SB 124 be passed out of committee with individual recommendations. Hearing no objection, it was so ordered. SB 129 PERS REQUIRED SAVINGS UNDER RIP CHAIRMAN GREEN brought SB 129 back before the committee. Hearing no further testimony on the legislation, she asked for the will of the committee. SENATOR WARD moved SB 129 and the accompanying fiscal notes be passed out of committee with individual recommendations. Hearing no objection, it was so ordered. Number 483 SB 9 CAP PROJ MATCHING GRANT FOR INDIAN RESERV CHAIRMAN GREEN brought SB 9 before the committee as the next order of business. JEANNIE SMITH, staff to Senator Jerry Mackie, read the following sponsor statement into the record: "Senator Mackie introduced this legislation at the request of the Metlakatla Indian Community when their Municipal Assistance Matching Grant Program appropriation was eliminated from the FY 96 budget. Metlakatla qualified for this program under the Department of Administration regulations definition for "municipality". However, legal analysis found that the statute definition was not written specific enough to include the Metlakatla Indian Community in this program. Since the statute definition supersedes the regulatory definition the appropriation was eliminated. SB 9 amends AS 37.06 by adding a new section that includes a municipality organized under federal law as an Indian reserve. This bill has been drafted to specifically include the Metlakatla Indian community within the Municipal Assistance Matching Grant Program. Metlakatla is the only entity in the state that now, or in the future, could qualify under the language included in SB 9, page 1, lines 6 - 8. The community of Metlakatla is definitely more reflective of a municipal government and fits more appropriately into the Municipal Capital Matching Grant Program. The community has a mayor, city council, school board, constitution, law and order codes, police department, court system, etc.. SB 9 specifically removes Metlakatla from the Unincorporated Capital Matching Grant Program and specifically includes Metlakatla in the statute provisions for the Municipal Capital Matching Grant Program." Ms. Smith stated she would respond to questions from the committee. Number 515 SENATOR DUNCAN asked if the Department of Community & Regional Affairs supports the legislation, and MS. SMITH acknowledged that it does. There being no further questions on SB 9, CHAIRMAN GREEN asked the pleasure of the committee. SENATOR MILLER moved SB 9 and the accompanying fiscal notes be passed out of committee with individual recommendations. Hearing no objection, it was so ordered. Number 525 SB 21 ALASKA MARINE HIGHWAY AUTHORITY CHAIRMAN GREEN brought CSSB 21(TRA) before the committee as the final order of business. JOE AMBROSE, staff to Senator Robin Taylor, directed attention to a proposed Amendment No. 3 to CSSB 21(TRA). At the first hearing on the legislation, two amendments were adopted. Mr. Ambrose explained the first part of the amendment makes the chief executive officer of the Marine Highway Authority the equivalent to commissioner for the purposes of computing the interport differential. That same provision already applies in law when it relates to the president of the University of Alaska for any vessels they might have. Mr. Ambrose said the main portion of the amendment relates to the computation of the interport differential and designates that the ports that are designated as home ports in the state of Alaska for Alaska Marine Highway vessels become the delivery and redelivery ports for purposes of calculating the interport differential. SENATOR WARD moved the adoption of the following amendment to CSSB 31(TRA) Amendment No. 3 Page 16, lines 12 - 16: Delete "In this subsection, "commissioner of the department that operates the marine vessel" includes the president of the University of Alaska with regard to a vessel operated by the university and the chief executive officer of the Alaska Marine Highway Authority with regard to a vessel operated by the Alaska Marine Highway Authority." Insert "A detailed list of the costs and factors considered in calculating the interport differential must be provided to each person who expresses an interest in submitting a bid to perform maintenance or repair work on a marine vessel owned by the state. [IN THIS SUBSECTION, "COMMISSIONER OF THE DEPARTMENT THAT OPERATES THE MARINE VESSEL: INCLUDES THE PRESIDENT OF THE PRESIDENT OF THE UNIVERSITY OF ALASKA WITH REGARD TO A VESSEL OPERATED BY THE UNIVERSITY.]" Page 16, line 18, through page 17, line 1: Delete all material and insert: "(c) The commissioner of a department that operates a marine vessel shall adopt regulations establishing the criteria that the department shall use to determine whether the cost of maintenance or repair work at a shipyard facility located in the state is reasonable under (a) of this section. The commissioner shall designate by regulation the designated base port for each vessel operated by the department. A vessel's designated base port is the vessel's delivery and redelivery port. The Alaska Marine Highway Authority shall adopt regulations establishing the criteria that the authority shall use in calculating the interport differential under this section. The criteria for calculating the interport differential must include costs incurred from the time that the vessel leaves the vessel's designated base port to enter the shipyard facility until the time that the vessel returns to the designated base port from the shipyard facility. (d) In this section, (1) "commissioner of the department that operates the marine vessel" includes the president of the University of Alaska with regard to a vessel operated by the university and the chief executive officer of the Alaska Marine Highway authority with regard to a vessel operated by the Alaska Marine Highway Authority; (2) "interport differential" includes all costs related to the performance of the maintenance or repair work of a marine vessel at a shipyard located outside of the state, including travel costs incurred moving the vessel from its designated base port to the shipyard outside of the state; additional fuel consumption; cost of consumables including lubricants and other engine and deck stores; maintenance costs incurred during running time; cost of crew transfers including airfare between Alaska and the shipyard; wages in travel status; crew room and board; and other interport costs identified by the Alaska Marine Highway Authority." Hearing no objection to the adoption of Amendment No. 3, CHAIRMAN GREEN stated the amendment was adopted. Number 575 There being no further amendments or testimony on CSSB 21(TRA), CHAIRMAN GREEN asked for the will of the committee. SENATOR WARD moved CSSB 21(TRA), as amended, and the accompanying fiscal notes be passed out of committee with individual recommendations. SENATOR DUNCAN objected. The roll was taken with the following result: Senators Miller, Ward, and Green voted "Yea" and Senator Duncan voted "Nay." The Chairman stated the motion carried. There being no further business to come before the committee, the meeting adjourned at 4:22 p.m.