Legislature(1995 - 1996)
1995-05-02 Senate Journal
Full Journal pdf1995-05-02 Senate Journal Page 1403 SENATE JOURNAL ALASKA STATE LEGISLATURE NINETEENTH LEGISLATURE - FIRST SESSION Juneau, Alaska Tuesday May 2, 1995 One Hundred Seventh Day Pursuant to adjournment the Senate was called to order by President Pearce at 11:38 a.m. The roll showed sixteen members present. Senator Hoffman was excused from a call of the Senate. Senators Donley, Ellis, Sharp were absent. The prayer was offered by the Chaplain, Pastor Greg Lindsay of the Northern Light United Church. Senator Torgerson led the Senate in the pledge of allegiance. CERTIFICATION Senator Halford moved and asked unanimous consent that the journal for the one hundred sixth legislative day and Senate Journal Supplement No. 6 be approved as certified by the Secretary. Without objection, it was so ordered. The presence of Senators Donley, Sharp was noted. 1403 1995-05-02 Senate Journal Page 1404 MESSAGES FROM THE HOUSE SB 7 Message of May 1 was read, stating the House passed and returned: SENATE BILL NO. 7 "An Act relating to bail after conviction for various felonies if the defendant has certain previous felony convictions." The bill was referred to the Secretary for enrollment. HB 28 Message of May 1 was read, stating the House concurred in the Senate amendment to CS FOR HOUSE BILL NO. 28(FIN) am, thus passing: SENATE CS FOR CS FOR HOUSE BILL NO. 28(JUD) "An Act relating to the possession of weapons within the buildings of, grounds of, or on the parking lot of preschools, elementary, junior high, and secondary schools or while participating in a school-sponsored event; requiring the expulsion or suspension of students possessing deadly weapons on school grounds; requiring reports to the Department of Education concerning those expulsions or suspensions; and relating to school lockers and other containers provided in a public or private school by the school or the school district." Senator Duncan announced a minority caucus. RECESS Senator Halford moved and asked unanimous consent that the Senate stand in recess for the purpose of a majority caucus. Without objection, the Senate recessed at 11:41 a.m. 1995-05-02 Senate Journal Page 1405 AFTER RECESS The Senate reconvened at 12:52 p.m. The presence of Senator Ellis was noted. STANDING COMMITTEE REPORTS SB 115 The Finance Committee considered SENATE BILL NO. 115 "An Act relating to the establishment, modification, and enforcement of support orders and the determination of parentage in situations involving more than one state; amending Alaska Rule of Administration 9; amending Alaska Rules of Civil Procedure 79 and 82; and providing for an effective date" and recommended it be replaced with CS FOR SENATE BILL NO. 115(FIN), entitled: "An Act repealing the Uniform Reciprocal Enforcement of Support Act; enacting the Uniform Interstate Family Support Act; relating to administrative establishment and disestablishment of paternity and establishing paternity by affidavit; relating to child support enforcement; amending Alaska Rules of Civil Procedure 79, 82, and 90.3(h)(2); and providing for an effective date." and adopted the following Finance Committee Letter of Intent: Letter of Intent for CS for SENATE BILL NO. 115(FIN) It is the intent of the Legislature that the Child Support Enforcement Division organize its personnel in a way which will ensure that the personnel who deal with obligors who are not delinquent or in arrears are not the same personnel who deal with obligors who are delinquent or in arrears. 1995-05-02 Senate Journal Page 1406 SB 115 Signing no recommendation: Senator Halford, Cochair, Senators Rieger, Phillips, Donley, Zharoff. Signing do pass: Senator Sharp. Previous zero fiscal notes. The bill was referred to the Rules Committee. SB 136 The Finance Committee considered SENATE BILL NO. 136 "An Act making appropriations for capital project matching grant funds and to capitalize funds; making, amending, and repealing capital appropriations; and providing for an effective date" and recommended it be replaced with CS FOR SENATE BILL NO. 136(FIN), entitled: "An Act making and amending appropriations; and providing for an effective date." Signing do pass: Senators Frank, Halford, Cochairs. Signing amend: Senator Rieger. Signing no recommendation: Senators Phillips, Donley, Zharoff, Sharp. The bill was referred to the Rules Committee. HB 320 The Finance Committee considered HOUSE BILL NO. 320 "An Act approving the sale of Prudhoe Bay Unit royalty oil by the State of Alaska to Tesoro Alaska Petroleum Company; and providing for an effective date." Signing do pass: Senator Halford, Cochair, Senators Rieger, Phillips, Zharoff. Previous zero fiscal notes. The bill was referred to the Rules Committee. 1995-05-02 Senate Journal Page 1407 SB 148 The Rules Committee considered SENATE BILL NO. 148 "An Act relating to a defined contribution retirement plan for state employees" and recommended it be replaced with CS FOR SENATE BILL NO. 148(RLS), entitled: "An Act relating to contributions and benefits in the teachers' retirement system and in the public employees' retirement system; relating to retirement incentive programs for the public employees' retirement system, the judicial retirement system, and the teachers' retirement system; relating to separation incentives for certain state employees; repealing a provision permitting the National Education Association to participate in the teachers' retirement system; and providing for an effective date." Signing to calendar: Senator Miller, Chair, Senators Pearce, Sharp. Signing do not calendar - do not pass: Senator Duncan. Signing trash this bill instead of employees: Senator Salo. Previous fiscal note. The bill is on today's calendar. HJR 22 The Rules Committee placed CS FOR HOUSE JOINT RESOLUTION NO. 22(STA) Relating to the maritime boundary between Alaska and the former Union of Soviet Socialist Republics, (pages 1252, 1300) on today's calendar. HB 208 The Rules Committee placed CS FOR HOUSE BILL NO. 208(FSH) "An Act relating to seafood processing permits and hazard analysis critical control point plans; relating to seafood processing plans of operation and quality assurance plans; and providing for an effective date" (pages 1270, 1297) on today's calendar. HB 214 The Rules Committee placed HOUSE BILL NO. 214 "An Act relating to the maintenance by health care providers of medical records in an electronic format" (pages 1270, 1297) on today's calendar. 1995-05-02 Senate Journal Page 1408 CONSIDERATION OF THE CALENDAR SECOND READING OF SENATE BILLS SB 148 Senator Halford moved and asked unanimous consent that SENATE BILL NO. 148 "An Act relating to a defined contribution retirement plan for state employees" be placed at the bottom of today's calendar. Senator Duncan objected. Senator Halford rose to a point of order. President Pearce ruled Senator Duncan's debate out of order. The question being: "Shall SENATE BILL NO. 148 be placed at the bottom of today's calendar?" The roll was taken with the following result: SB 148 Hold to bottom of calendar YEAS: 12 NAYS: 7 EXCUSED: 1 ABSENT: 0 Yeas: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Nays: Adams, Donley, Duncan, Ellis, Lincoln, Salo, Zharoff Excused: Hoffman and so, SENATE BILL NO. 148 was placed at the bottom of today's calendar. Senator Pearce called the Senate. The call was satisfied. RECONSIDERATION OF SENATE BILLS SB 121 Senator Duncan requested that the reconsideration on SENATE BILL NO. 121 "An Act making an appropriation for deferred maintenance for the University of Alaska; and providing for an effective date" be taken up. 1995-05-02 Senate Journal Page 1409 SB 121 SENATE BILL NO. 121 was before the Senate on reconsideration. Senator Halford moved and asked unanimous consent that the reconsideration on SENATE BILL NO. 121 be held to the May 3 calendar. Senator Duncan objected. The question being: "Shall the reconsideration on SENATE BILL NO. 121 be held to the May 3 calendar?" The roll was taken with the following result: SB 121 Third Reading - On Reconsideration Hold for May 3 calendar YEAS: 12 NAYS: 7 EXCUSED: 1 ABSENT: 0 Yeas: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Nays: Adams, Donley, Duncan, Ellis, Lincoln, Salo, Zharoff Excused: Hoffman and so, the reconsideration on SENATE BILL NO. 121 will appear on the May 3 calendar. CONSIDERATION OF THE CALENDAR CONTINUED SECOND READING OF HOUSE BILLS HB 208 CS FOR HOUSE BILL NO. 208(FSH) "An Act relating to seafood processing permits and hazard analysis critical control point plans; relating to seafood processing plans of operation and quality assurance plans; and providing for an effective date" was read the second time. Senator Zharoff moved and asked unanimous consent that he be shown as a cross sponsor on the bill. Without objection, it was so ordered. 1995-05-02 Senate Journal Page 1410 HB 208 Senator Halford moved that the bill be advanced to third reading and placed on final passage. Senator Duncan objected. The question being: "Shall the bill be advanced to third reading?" The roll was taken with the following result: CSHB 208(FSH) Advance from Second to Third Reading? YEAS: 12 NAYS: 7 EXCUSED: 1 ABSENT: 0 Yeas: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Nays: Adams, Donley, Duncan, Ellis, Lincoln, Salo, Zharoff Excused: Hoffman and so, the bill failed to advance to third reading. CS FOR HOUSE BILL NO. 208(FSH) will appear on the May 3 calendar. HOUSE BILLS IN SECOND READING HB 214 HOUSE BILL NO. 214 am "An Act relating to the maintenance by health care providers of medical records in an electronic format" was before the Senate in second reading. Senator Halford moved that the bill be advanced to third reading and placed on final passage. Senator Duncan objected. The question being: "Shall the bill be advanced to third reading?" The roll was taken with the following result: 1995-05-02 Senate Journal Page 1411 HB 214 HB 214 am Advance from Second to Third Reading? YEAS: 12 NAYS: 7 EXCUSED: 1 ABSENT: 0 Yeas: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Nays: Adams, Donley, Duncan, Ellis, Lincoln, Salo, Zharoff Excused: Hoffman and so, the bill failed to advance to third reading. HOUSE BILL NO. 214 am will appear on the May 3 calendar. THIRD READING OF SENATE BILLS SB 18 CS FOR SENATE BILL NO. 18(FIN) "An Act relating to an advisory vote during regional educational attendance area school board elections; and providing for an effective date" was read the third time. The question being: "Shall CS FOR SENATE BILL NO. 18(FIN) "An Act relating to an advisory vote during regional educational attendance area school board elections; and providing for an effective date" pass the Senate?" The roll was taken with the following result: CSSB 18(FIN) Third Reading - Final Passage Effective Date YEAS: 19 NAYS: 0 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Frank, Green, Halford, Kelly, Leman, Lincoln, Miller, Pearce, R.Phillips, Rieger, Salo, Sharp, Taylor, Torgerson, Zharoff Excused: Hoffman 1995-05-02 Senate Journal Page 1412 SB 18 and so, CS FOR SENATE BILL NO. 18(FIN) passed the Senate. Senator Halford moved and asked unanimous consent that the vote on the passage of the bill be considered the vote on the effective date clause. Without objection, it was so ordered and the bill was referred to the Secretary for engrossment. SB 130 CS FOR SENATE BILL NO. 130(RLS) "An Act relating to marine pilots and the Board of Marine Pilots; extending the termination date of the Board of Marine Pilots; and providing for an effective date" was read the third time. The question being: "Shall CS FOR SENATE BILL NO. 130(RLS) "An Act relating to marine pilots and the Board of Marine Pilots; extending the termination date of the Board of Marine Pilots; and providing for an effective date" pass the Senate?" The roll was taken with the following result: CSSB 130(RLS) Third Reading - Final Passage Effective Date YEAS: 17 NAYS: 2 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Frank, Green, Kelly, Leman, Lincoln, Miller, Pearce, R.Phillips, Rieger, Salo, Sharp, Taylor, Torgerson, Zharoff Nays: Donley, Halford Excused: Hoffman Salo changed from "Nay" to "Yea". Lincoln changed from "Nay" to "Yea". Zharoff changed from "Nay" to "Yea". Ellis changed from "Nay" to "Yea". Adams changed from "Nay" to "Yea". and so, CS FOR SENATE BILL NO. 130(RLS) passed the Senate. 1995-05-02 Senate Journal Page 1413 SB 130 Senator Halford moved and asked unanimous consent that the vote on the passage of the bill be considered the vote on the effective date clause. Without objection, it was so ordered. Senator Halford gave notice of reconsideration. SB 166 SENATE BILL NO. 166 am "An Act relating to the date by which a borough school board is required to submit a school budget to the borough assembly and the date by which the borough assembly is required to appropriate money from local sources for public schools; and providing for an effective date" was read the third time. The question being: "Shall SENATE BILL NO. 166 am "An Act relating to the date by which a borough school board is required to submit a school budget to the borough assembly and the date by which the borough assembly is required to appropriate money from local sources for public schools; and providing for an effective date" pass the Senate?" The roll was taken with the following result: SB 166 am Third Reading - Final Passage Effective Date YEAS: 19 NAYS: 0 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Frank, Green, Halford, Kelly, Leman, Lincoln, Miller, Pearce, R.Phillips, Rieger, Salo, Sharp, Taylor, Torgerson, Zharoff Excused: Hoffman and so, SENATE BILL NO. 166 am passed the Senate. Senator Halford moved and asked unanimous consent that the vote on the passage of the bill be considered the vote on the effective date clause. Without objection, it was so ordered and the bill was referred to the Secretary for engrossment. 1995-05-02 Senate Journal Page 1414 RECESS Senator Halford moved and asked unanimous consent that the Senate stand in recess to 5:30 p.m. Without objection, the Senate recessed at 1:25 p.m. AFTER RECESS The Senate reconvened at 5:53 p.m. Senator Green called the Senate. The presence of Senator Hoffman was noted. The call was satisfied. The Senate returned to: MESSAGES FROM THE GOVERNOR HB 146 Message of May 2 was read, stating the Governor signed the following bill and transmitted the engrossed and enrolled copies to the Lieutenant Governor's Office for permanent filing: SENATE CS FOR CS FOR HOUSE BILL NO. 146(RLS) "An Act relating to an Iditarod mushing sweepstakes; and providing for an effective date." Chapter 13, SLA 1995 Effective Date: See Chapter SB 62 Message of May 2 was read, stating the Governor signed the following bill and transmitted the engrossed and enrolled copies to the Lieutenant Governor's Office for permanent filing: 1995-05-02 Senate Journal Page 1415 SB 62 SENATE BILL NO. 62 "An Act relating to birth certificates for certain foreign born persons who are adopted." Chapter 14, SLA 1995 Effective Date: 7/31/95 STANDING COMMITTEE REPORTS Report dated May 2 was read stating: In accordance with AS 39.05.080, the Senate Labor and Commerce Committee reviewed the qualifications of the following and recommends the appointments be forwarded to a joint session for consideration: Board of Nursing Bellee L. Cunningham Kathleen R. Kloster Joe Senungetuk There were no stated objections from the committee members to the confirmations of any of these appointments. This does not reflect an intent by any of the members to vote for or against these appointments during any further considerations. Signing the report: Senator Kelly, Chair, Senators Salo, Torgerson, Duncan, Miller. SR 3 The State Affairs Committee considered SENATE RESOLUTION NO. 3 Relating to the conversion of the Naval Air Facility in Adak. Signing do pass: Senator Sharp, Chair, Senators Leman, Phillips. Zero fiscal note published today from Legislative Affairs Agency. The resolution was referred to the Rules Committee. 1995-05-02 Senate Journal Page 1416 SCR 14 The State Affairs Committee considered SENATE CONCURRENT RESOLUTION NO. 14 Endorsing a proposal by which the Alaska Housing Finance Corporation, under provisions of law by which the corporation may exercise its powers to complete moderate income and rental housing, will make interest-subsidized loans for the construction of student housing facilities at certain campuses of the University of Alaska, and relating to an agreement between the parties respecting the initiation of student housing on certain campuses of the University of Alaska. Signing no recommendation: Senator Sharp, Chair, Senators Leman, Phillips. Zero fiscal notes published today from University of Alaska and Department of Revenue. The resolution was referred to the Community and Regional Affairs Committee. SB 160 The Labor and Commerce Committee considered SENATE BILL NO. 160 "An Act excluding certain employment by students from the definition of `employment' in the state employment security laws." Signing do pass: Senator Kelly, Chair, Senators Miller, Torgerson. Signing no recommendation: Senators Duncan, Salo. Zero fiscal note published today from Department of Labor. The bill was referred to the Rules Committee. SB 163 The State Affairs Committee considered SENATE BILL NO. 163 "An Act approving the University of Alaska's plans to enter into long-term obligations to borrow money from the Alaska Housing Finance Corporation for the acquisition of student housing facilities; and providing for an effective date." Signing no recommendation: Senator Sharp, Chair, Senators Leman, Phillips. Fiscal note published today from University of Alaska. Zero fiscal note published today from Department of Revenue. The bill was referred to the Community and Regional Affairs Committee. 1995-05-02 Senate Journal Page 1417 HJR 9 The State Affairs Committee considered CS FOR HOUSE JOINT RESOLUTION NO. 9(JUD) Requesting the governor to file suit in the United States Supreme Court against the United States government alleging violations of the civil rights of Americans listed as prisoners of war or missing in action in Southeast Asia, demanding that documents concerning these individuals be released; and requesting the other states to join in this suit. Signing do pass: Senator Sharp, Chair, Senators Leman, Phillips. Previous House zero fiscal note. The resolution was referred to the Rules Committee. HJR 39 The State Affairs Committee considered HOUSE JOINT RESOLUTION NO. 39 Relating to the Northern Sea Route. Signing do pass: Senator Sharp, Chair, Senators Leman, Phillips. Previous House zero fiscal notes. The resolution was referred to the Rules Committee. HB 10 The State Affairs Committee considered CS FOR HOUSE BILL NO. 10(STA) am "An Act relating to payment for emergency services responding to certain motor vehicle accidents." Signing do pass: Senator Sharp, Chair, Senators Leman, Phillips. Previous House zero fiscal notes. The bill was referred to the Judiciary Committee. HB 48 The Transportation Committee considered CS FOR HOUSE BILL NO. 48(JUD) "An Act relating to motorcycle helmets." Signing no recommendation: Senator Rieger, Chair, Senator Adams. Signing do pass: Senator Green. Previous House zero fiscal notes. The bill was referred to the Judiciary Committee. 1995-05-02 Senate Journal Page 1418 HB 169 The Finance Committee considered CS FOR HOUSE BILL NO. 169(RES) "An Act defining the scope of the responsibility of the Department of Natural Resources for regulating the mineral resources of the state." Signing do pass: Senators Frank, Halford, Cochairs, Senators Rieger, Phillips, Donley, Sharp. Signing no recommendation: Senator Zharoff. Previous House zero fiscal notes. The bill was referred to the Rules Committee. HB 180 The Labor and Commerce Committee considered HOUSE BILL NO. 180 "An Act relating to liquor licenses issued to a hotel, motel, resort, or similar establishment; and providing for an effective date" and recommended the Community and Regional Affairs Senate Committee Substitute offered on page 1025 be adopted. Signing do pass: Senator Kelly, Chair, Senator Torgerson. Signing no recommendation: Senators Miller, Duncan, Salo. Previous House and Senate zero fiscal notes. The bill was referred to the Rules Committee. HB 197 The Finance Committee considered CS FOR HOUSE BILL NO. 197(RES) "An Act providing for exploration incentive credits for activities involving locatable and leasable mineral and coal deposits on certain land in the state; and providing for an effective date" and recommended it be replaced with SENATE CS FOR CS FOR HOUSE BILL NO. 197(FIN) and recommended the adoption of the House Letter of Intent (House Journal, page 843). Signing do pass: Senators Frank, Halford, Cochairs. Signing no recommendation: Senators Rieger, Phillips, Zharoff. 1995-05-02 Senate Journal Page 1419 HB 197 Fiscal note published today from Department of Natural Resources. Zero fiscal note published today from Department of Revenue. The bill was referred to the Rules Committee. HB 237 The Labor and Commerce Committee considered CS FOR HOUSE BILL NO. 237(JUD) am "An Act relating to workers' compensation insurance rate filings; to second independent medical evaluations for workers' compensation claims; to confidentiality of workers' compensation medical and rehabilitation information; to immunity for third-party design professionals from civil actions by recipients of workers' compensation benefits; to workers' compensation death benefits; to computation of workers' compensation benefits; to penalties for fraudulent acts related to workers' compensation; to immunity for employer workplace safety inspections related to workers' compensation insurance; and providing for an effective date" and recommended it be replaced with SENATE CS FOR CS FOR HOUSE BILL NO. 237(L&C) Signing do pass: Senator Kelly, Chair, Senators Miller, Torgerson. Signing no recommendation: Senators Duncan, Salo. Previous House zero fiscal notes. The bill was referred to the Judiciary Committee. HB 297 The Finance Committee considered HOUSE BILL NO. 297 "An Act relating to fees for a commercial fishing vessel license." Signing do pass: Senators Frank, Halford, Cochairs, Senator Rieger. Signing no recommendation: Senators Phillips, Donley, Zharoff. Previous House fiscal note. The bill was referred to the Rules Committee. 1995-05-02 Senate Journal Page 1420 INTRODUCTION AND REFERENCE OF SENATE BILLS SB 173 SENATE BILL NO. 173 BY SENATOR TAYLOR, entitled: "An Act relating to the authority of the Department of Natural Resources to make grants of state land after natural disasters." was read the first time and referred to the State Affairs and Resources Committees. CONSIDERATION OF THE CALENDAR CONTINUED SB 172 SENATE BILL NO. 172 "An Act eliminating `monte carlo' nights as an authorized form of charitable gaming; and providing for an effective date" was read the third time. The question being: "Shall SENATE BILL NO. 172 "An Act eliminating `monte carlo' nights as an authorized form of charitable gaming; and providing for an effective date" pass the Senate?" The roll was taken with the following result: SB 172 Third Reading - Final Passage YEAS: 12 NAYS: 8 EXCUSED: 0 ABSENT: 0 Yeas: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Nays: Adams, Donley, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff and so, SENATE BILL NO. 172 passed the Senate. Senator Halford moved the effective date clause. The question being: "Shall the effective date clause be adopted?" The roll was taken with the following result: 1995-05-02 Senate Journal Page 1421 SB 172 SB 172 Effective Date Vote YEAS: 18 NAYS: 2 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Green, Halford, Hoffman, Kelly, Lincoln, Miller, Pearce, R.Phillips, Rieger, Salo, Sharp, Taylor, Torgerson, Zharoff Nays: Frank, Leman and so, the effective date clause was adopted. Senator Zharoff gave notice of reconsideration. HOUSE RESOLUTIONS IN THIRD READING HJR 22 CS FOR HOUSE JOINT RESOLUTION NO. 22(STA) Relating to the maritime boundary between Alaska and the former Union of Soviet Socialist Republics, was before the Senate in third reading. Senator Adams moved that the resolution be returned to second reading for the purpose of a specific amendment, that being Amendment No. 1. Objections were heard. The question being: "Shall the resolution be returned to second reading for the purpose of a specific amendment?" The roll was taken with the following result: CSHJR 22(STA) Return to Second for Specific Amendment YEAS: 11 NAYS: 9 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Hoffman, Lincoln, Pearce, R.Phillips, Rieger, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Sharp, Taylor, Torgerson 1995-05-02 Senate Journal Page 1422 HJR 22 and so, the resolution was returned to second reading. Senator Adams offered Amendment No. 1 : Page 1, lines 5 - 6: Delete "without the participation or consent of Alaska in the negotiations or terms of the agreement" Senator Adams moved for the adoption of Amendment No. 1. Senator Leman objected. Senator Miller moved and asked unanimous consent that the resolution with amendments pending be returned to the Rules Committee. Without objection, it was so ordered. CS FOR HOUSE JOINT RESOLUTION NO. 22(STA) was returned to the Rules Committee. SECOND READING OF SENATE BILLS SB 148 SENATE BILL NO. 148 "An Act relating to a defined contribution retirement plan for state employees" which had been placed at the bottom of the calendar (page 1408) was read the second time. Fiscal notes published today from Department of Administration (2). Senator Duncan rose to a point of order regarding AS 24.08.036. President Pearce ruled that Senator Duncan's point was not well taken. Senator Duncan appealed the ruling of the Chair. The question being: "Shall the ruling of the Chair be upheld?" The roll was taken with the following result: 1995-05-02 Senate Journal Page 1423 SB 148 SB 148 Uphold ruling of the Chair YEAS: 12 NAYS: 8 EXCUSED: 0 ABSENT: 0 Yeas: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Nays: Adams, Donley, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff and so, the ruling of the chair was upheld. Senator Duncan moved that the bill be returned to the Finance Committee. Objections were heard. Senator Halford rose to a point of order. President Pearce cautioned members to confine debate to the motion. The question being: "Shall the bill be returned to the Finance Committee?" The roll was taken with the following result: SB 148 Return to Senate Finance Committee YEAS: 8 NAYS: 12 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson and so, the bill was not returned to the Finance Committee. Senator Miller moved and asked unanimous consent for the adoption of the Rules Committee Substitute offered on page 1407. Senator Duncan objected. 1995-05-02 Senate Journal Page 1424 SB 148 The question being: "Shall the Rules Committee Substitute be adopted?" The roll was taken with the following result: SB 148 Second Reading Adopt Rules Committee Substitute? YEAS: 12 NAYS: 8 EXCUSED: 0 ABSENT: 0 Yeas: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Nays: Adams, Donley, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff and so, CS FOR SENATE BILL NO. 148(RLS) "An Act relating to contributions and benefits in the teachers' retirement system and in the public employees' retirement system; relating to retirement incentive programs for the public employees' retirement system, the judicial retirement system, and the teachers' retirement system; relating to separation incentives for certain state employees; repealing a provision permitting the National Education Association to participate in the teachers' retirement system; and providing for an effective date" was adopted and read the second time. Senator Duncan offered Amendment No. 1 : Page 1, line 1, through page 27, line 28: Delete all material and insert: ""An Act relating to retirement incentive programs for the public employees' retirement system, the judicial retirement system, and the teachers' retirement system; relating to separation incentives for certain state employees; and providing for an effective date." BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: * Section 1. FINDINGS AND PURPOSE. The State of Alaska and many local governments and school districts are facing the need to restructure their operations and their work forces in order to reduce expenditures and balance budgets. Retirement and separation 1995-05-02 Senate Journal Page 1425 SB 148 incentives are management tools that have been used extensively by the private sector, the federal government, and other state and local governments across the country. The purpose of this Act is to make these management tools temporarily available to the state and to the municipalities and school districts of the state. This Act will enable these entities to be more efficient and cost-effective by eliminating certain nonessential positions, and producing a net reduction in personnel costs. * Sec. 2. RETIREMENT INCENTIVE PROGRAM. (a) An employer may adopt a retirement incentive plan under secs.3 - 6 of this Act, as appropriate, and designate categories of employees eligible to participate in that plan. An employer need not extend the incentive plan to all employees who would otherwise be eligible, but may choose to extend the plan only to employees (1) in specific budget or administrative components of the employer; (2) in specific job classifications; (3) in specific geographic locations; or (4) on the basis of any combination of factors under (1) - (3) of this subsection. (b) An employee is eligible to participate in a retirement incentive plan under this Act only if the (1) employee is a vested member of the public employees' retirement system or the teachers' retirement system; (2) employee will be qualified to retire under AS14.25.110 or AS39.35.370 after receipt of the credit described in (f) of this section; (3) savings to the employer in personal services costs for the employee's position will exceed the costs to the employer for that position within three years after the employee is appointed to retirement. (c) An employer shall file its proposed retirement incentive plan with the commissioner of administration. The commissioner shall approve the plan if the plan meets the requirements of this Act, except that the commissioner may approve a state agency's retirement incentive plan only if the office of management and budget approves the calculation of savings under (b)(3) of this section. A proposed plan filed under this section must (1) identify job classifications of employees, and specific budget or administrative components, eligible to participate in the plan; 1995-05-02 Senate Journal Page 1426 SB 148 (2) include a reimbursement agreement that (A) requires the employer, for each employee who retires under the plan, to reimburse the appropriate retirement system, within three years after the end of the fiscal year in which the employee is appointed to retirement, in an amount equal to (i) the actuarial equivalent of the difference between the benefits the participant receives after the addition of the credit under (f) of this section and the amount the participant would have received without the credit, less the amount the participant has paid on the indebtedness determined under (d) or (e) of this section; and (ii) an appropriate share of the administrative costs of the program; and (B) provides that contributions from the employer under this section take priority over other obligations of the employer to the maximum extent permitted by law. (d) A member of the teachers' retirement system who participates in an approved retirement incentive plan under this Act is indebted to that system for an amount calculated under this subsection. The indebtedness is 25.95 percent of the member's actual compensation for the school year in which the member terminates employment, or the calculated school year compensation for a member who works less than the entire school year. An outstanding indebtedness at the time a member is appointed to retirement under an approved retirement incentive plan requires an actuarial adjustment to the benefits payable to that member. (e) A member of the public employees' retirement system who participates in an approved retirement incentive plan under this Act is indebted to that system for an amount calculated under this subsection. The indebtedness is 22-1/2 percent for a peace officer or fire fighter, and 20-1/4 percent for other members, of the member's actual annual compensation for the year in which the member terminates employment, or the calculated annual compensation for a member who works fewer than 12 months. An outstanding indebtedness at the time a member is appointed to retirement under an approved retirement incentive plan requires an actuarial adjustment to the benefits payable to that member. 1995-05-02 Senate Journal Page 1427 SB 148 (f) An employee who participates in an approved retirement incentive plan under this Act receives a credit of three years. The three years must be applied in the following order until exhausted: (1) to meet the age or service required for eligibility for normal retirement under AS14.25.110 or AS39.35.370, as appropriate; (2) to meet the age required for early retirement under AS14.25.110 or AS39.35.370, as appropriate; (3) to reduce the actuarial adjustment required for early retirement under AS14.25.110 or AS39.35.370, as appropriate; (4) as years of credited service for calculating retirement benefits. (g) In this section, (1) "department" means (A) a principal department of the executive branch of state government; an independent state entity that is attached to a principal department of the executive branch for administrative purposes but that is not a public organization as defined in AS39.35.680 is part of that department for purposes of this paragraph; and (B) the Office of the Governor; (2) "employer" has the meaning given in AS14.25.220 and AS39.35.680 and includes a department. * Sec. 3. AUTHORIZATION FOR STATE EMPLOYEE RETIREMENT INCENTIVE. (a) A state agency may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for its employees. (b) Upon the request of a state agency, the commissioner of administration shall establish one or more periods during which the employees of that state agency who are eligible under sec.2(b) of this Act to participate in a retirement incentive plan may apply to the commissioner of administration to participate in the state agency's approved plan. The periods shall begin no earlier than June 30, 1995, and end no later than June 30, 1998. The periods shall be no less than 30 days and no more than 60 days in duration, and may not begin less than 30 days after their establishment. A state agency is not required to request an application period, and may request more than one application period. 1995-05-02 Senate Journal Page 1428 SB 148 (c) A proposed retirement incentive plan adopted under this section may not permit an employee who is the governor, the lieutenant governor, or a commissioner, deputy commissioner, or assistant commissioner of a principal department of the executive branch to participate in the plan. (d) A proposed retirement incentive plan adopted under this section may permit participation only by an employee who is eligible to participate under sec.2(b) of this Act and who (1) has been continuously employed by the state for at least one year before the employee applies to participate in the state agency's approved plan; (2) is a permanent seasonal employee who has been continuously employed by the state in a permanent seasonal position during all of the time in the one year before the employee's application to participate in which the position normally is filled; (3) has a job sharing agreement with a state agency in which two or more employees share a single position identified by a single position control number and in which the employee who applies to participate in the plan was continuously employed by the agency during the portion of the one year before the employee's application in which the employee normally worked under the job sharing agreement; or (4) meets a combination of the requirements of this subsection. (e) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement not later than the first day of the month that is six months after the last day of the application period established by the commissioner under (b) of this section. A state agency, in a plan adopted under this section, may set an earlier date by which an employee must be appointed to retirement in order to participate in the plan. * Sec. 4. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR EMPLOYEES OF THE UNIVERSITY OF ALASKA. (a) The Board of Regents of the University of Alaska may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for university employees. 1995-05-02 Senate Journal Page 1429 SB 148 (b) Upon the request of the Board of Regents, the commissioner of administration shall establish one or more periods during which the employees of the university who are eligible under sec.2(b) of this Act to participate in a retirement incentive plan may apply to the commissioner of administration to participate in the university's approved plan. The periods shall begin no earlier than June 30, 1995, and end no later than June30, 1998. The periods shall be no less than 30 days and no more than 60 days in duration, and may not begin less than 30 days after their establishment. The Board of Regents is not required to request an application period, and may request more than one application period. (c) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement not later than the first day of the month that is six months after the last day of the application period established by the commissioner under (b) of this section. The Board of Regents, in a plan adopted under this section, may set an earlier date by which an employee of the University of Alaska must be appointed to retirement in order to participate in the plan. (d) A participant in the optional university retirement program under AS14.40.661 - 14.40.799 who is vested in the public employees' retirement system or the teachers' retirement system may participate in a retirement incentive plan for that system if the participant meets the other qualifications of this Act. If a provision of this subsection is inconsistent with another provision of law, the provision of this subsection governs. * Sec. 5. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR OTHER EMPLOYEES IN THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM. (a) The governing body of a political subdivision of the state or public organization that has elected to participate in the public employees' retirement system under AS39.- 35.550 - 39.35.650 may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for its employees. Upon the request of the governing body, the commissioner of administration shall establish one or more periods during which the employees of a political subdivision or public organization who are eligible to participate in a retirement incentive 1995-05-02 Senate Journal Page 1430 SB 148 plan may apply to the commissioner of administration to participate in the approved plan. The periods shall begin no earlier than October 31, 1995, and end no later than October 31, 1998. The periods shall be no less than 30 days and no more than 60 days in duration, and may not begin less than 60 days after their establishment. The governing body is not required to request an application period, and may request more than one application period. (b) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement not later than the first day of the month that is six months after the last day of the application period established by the commissioner under (a) of this section. The governing body of the political subdivision or public organization, in a plan adopted under this section, may set an earlier date by which an employee must be appointed to retirement in order to participate in the plan. * Sec. 6. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR OTHER EMPLOYEES IN THE TEACHERS' RETIREMENT SYSTEM. (a) An employer under the teachers' retirement system who is not otherwise covered by secs.3 or 4 of this Act may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for its employees. A plan adopted under this section must provide that the application period for participation in the retirement incentive plan is June30, 1995, through December31, 1995. (b) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement on or before August1, 1996. The employer, in a plan adopted under this section, may set an earlier date by which an employee must be appointed to retirement in order to participate in the plan. * Sec. 7. POLITICAL SUBDIVISION OR PUBLIC ORGANIZATION EMPLOYMENT. For purposes of determining the years of service requirements for retirement under AS14.25.110 or AS39.35.370, as appropriate, a vested member who is a state employee and who applies to participate in a retirement incentive plan approved under this Act may receive credit for employment with a political subdivision or public organization before the political 1995-05-02 Senate Journal Page 1431 SB 148 subdivision or organization became an employer under the public employees' retirement system. The member may not receive credit for those years under this subsection for purposes of determining benefits. If a provision of this section is inconsistent with any other provision of law, the provision of this section governs. * Sec. 8. RECOVERY OF EMPLOYER DELINQUENCIES. To recover a delinquency owed by an employer other than the state under an agreement entered into under sec. 2(c)(2) of this Act, the Department of Administration may (1) direct that the amount of the delinquency or a lesser amount be withheld from any money payable to the employer by a state department or agency and that the amount withheld be credited to the delinquency; and (2) bring an action against the employer. * Sec. 9. PROVISION AND AUTHORIZATION FOR ADMINISTRATIVE DIRECTOR OF COURT. (a) The chief justice of the state supreme court may adopt a retirement incentive plan for an administrative director of the Alaska Court System who is a member of the judicial retirement system under AS22.25.012 if participation in the plan will result in savings to the court system in personal services costs within three years after the commencement of the plan. The administrative director may participate only if the administrative director is vested in the judicial retirement system and will be qualified to retire under AS22.25.010 after receipt of the retirement incentive. To participate, the administrative director shall apply to the commissioner of administration to participate in the approved court system plan. (b) The court system shall include in the retirement incentive plan a reimbursement agreement that requires the court system, for each administrative director of the Alaska Court System who is retired under the plan, to reimburse the judicial retirement system within three years after the end of the fiscal year in which the administrative director is appointed to retirement in an amount equal to (1) the actuarial equivalent of the difference between the benefits the administrative director receives after the addition of the credit under (e) of this section and the amount the participant would have received without the credit, less the total of the amount the participant has paid on the indebtedness determined under (d) of this section; and 1995-05-02 Senate Journal Page 1432 SB 148 (2) an appropriate share of the administrative costs of the program. (c) A retirement incentive plan adopted under this section must provide that contributions from the court system under (b) of this section take priority over other obligations of the court system to the maximum extent permitted by law. (d) An administrative director of the Alaska Court System who participates in an approved retirement incentive plan is indebted to the system. The amount of indebtedness is equal to 21 percent of the director's actual annual compensation for the year in which the director terminates employment to participate in the program, or the calculated annual compensation for an administrative director who works fewer than 12 months. An outstanding indebtedness at the time the administrative director is appointed to retirement under an approved retirement incentive plan will require an actuarial adjustment to the benefits payable to the director. (e) An administrative director of the Alaska Court System who participates in an approved retirement incentive plan receives a credit of three years that may only be used to meet the age requirements for normal or early retirement under AS22.25.010(d). (f) The chief justice of the Alaska Court System may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for the administrative director of the court system who is a member of the judicial retirement system. Upon the request of the chief justice, the commissioner of administration shall establish a period during which an administrative director eligible to participate in the retirement incentive plan of the court system may apply to the commissioner of administration to participate in the court system's approved plan. The period shall begin no earlier than July1, 1995, and end no later than June30, 1998. The period shall be no less than 30 days and no more than 60 days in duration and may not begin less than 30 days after establishment. The chief justice is not required to request an application period. (g) The commissioner of administration may not accept the application of an administrative director of the court system to participate in an approved retirement incentive plan adopted under this section unless the administrative director will be appointed to retirement not later than the first day of the month that is six months 1995-05-02 Senate Journal Page 1433 SB 148 after the last day of the application period established by the commissioner under (f) of this section. The chief justice, in a plan adopted under this section, may set an earlier date by which an administrative director must be appointed to retirement in order to participate in the plan. * Sec. 10. REEMPLOYMENT INDEBTEDNESS; PROHIBITION ON REEMPLOYMENT. (a) If an individual is reemployed as a member of the public employees' retirement system under AS39.35, the teachers' retirement system under AS14.25, the judicial retirement system under AS22.25, or the optional university retirement program under AS14.40.661- 14.40.799 after appoint- ment to retirement under this Act, that individual forfeits the incentive credit received under sec.2(f) or sec. 9(e) of this Act and is indebted to the system under which the individual took retirement. The indebtedness is 110 percent of the amount the individual received as a result of participation in a retirement incentive plan under this Act and to which the individual would not otherwise have been entitled, including the cost of health insurance. The amount that the individual has paid under sec. 2(d) or (e) or sec. 9(d) of this Act will be applied as a credit toward the reemployment indebtedness. Interest on the reemployment indebtedness accrues from the date of reemployment until the date that the individual either is appointed to retirement and accepts an actuarial adjustment to the individual's future benefits or repays the indebtedness in full. The rate of interest is that established by regulation for the public employees' retirement system by the public employees' retirement board and for the teachers' retirement system by the teachers' retirement board. (b) An individual who was appointed to retirement under this Act may not be employed by, or enter into a contract for personal services with, a state agency or the University of Alaska within the three years after the date of appointment to retirement, except that (1) the University of Alaska may enter into a personal services contract with the individual for teaching or research; and (2) the individual may accept employment with the legislature during a legislative session if the employment is on an hourly basis and does not entitle the individual to receive retirement, health, or leave benefits. 1995-05-02 Senate Journal Page 1434 SB 148 (c) Notwithstanding the prohibition in (b) of this section, a state agency or the University of Alaska may enter into a personal services contract with an individual who was appointed to retirement under this Act if the Board of Regents, for the University of Alaska, or the commissioner of administration, for a state agency, determines that there is a compelling reason to do so because of the individual's specialized or extensive experience that relates to a particular program or project of the state agency or university. However, a state agency may not enter into a contract with an individual under this subsection if the individual was employed by that state agency at the time of the individual's appointment to retirement. * Sec. 11. SEPARATION INCENTIVE PROGRAM. (a) A state agency may, with the approval of the director of the office of management and budget, establish a separation incentive program for its employees. The program may be offered in combination with an approved retirement incentive plan adopted under sec. 3 of this Act, or may be offered separately from such a plan. A state agency need not extend an incentive program under this section to all employees who would otherwise be eligible to participate, but may choose to extend the program only to employees (1) in specific budget or administrative components of the state agency; (2) in specific job classifications; (3) on the basis of any combination of factors under (1) and (2) of this subsection. (b) A separation incentive payment under this section shall be paid in a lump sum after the employee's separation from state service, and shall be equal to the lesser of an amount equaling six months of the employee's base salary, or $25,000. However, a state agency or the office of management and budget may set a lower separation incentive payment in the state agency's separation incentive program. (c) Upon the request of a state agency, the commissioner of administration shall establish one or more periods during which the employees of that state agency may apply to the commissioner of administration to participate in the state agency's approved separation incentive program. The periods shall begin no earlier than July 1, 1995, and end no later than June 30, 1998. The periods 1995-05-02 Senate Journal Page 1435 SB 148 shall be no less than 30 days and no more than 60 days in duration, and may not begin less than 30 days after their establishment. A state agency is not required to request an application period, and may request more than one application period. If the commissioner of administration has established one or more application periods for a state agency under sec.3(b) of this Act, the application period or periods established under this subsection must coincide with the period or periods established under sec.3(b) of this Act. (d) A separation incentive program established under this section must provide that a separation incentive payment to an employee may be made only if (1) the employee is a permanent full-time or permanent full-time seasonal employee with at least five years of service with the state; and (2) the savings to the state agency in personal services costs for the position occupied by that employee would exceed, in the three years after the employee separates, the amount of the separation incentive payment. (e) If an individual who received a separation incentive payment under this section subsequently is reemployed by a state agency or the University of Alaska within the three years after the date that the individual received the separation incentive payment, the individual is liable to the state in an amount equal to 110 percent of the amount of the separation incentive payment, plus interest at the rate prescribed by AS45.45.010, commencing on the date that the individual received the separation incentive payment. (f) If an employee is eligible to participate in an approved retirement incentive plan adopted under sec. 3 of this Act, (1) a separation incentive payment to that employee may not exceed the amount that the state agency would be obligated to pay to the appropriate retirement system, notwithstanding (b) of this section; and (2) the employee may participate in either the separation incentive program under this section or the retirement incentive plan adopted under sec.3 of this Act, but not both. (g) In this section, "base salary" means the monthly salary paid to an employee under the applicable collective bargaining agreement, AS39.27.011, or another applicable pay schedule, and includes geographic differential; if an employee is paid on an hourly 1995-05-02 Senate Journal Page 1436 SB 148 basis, the employee's base salary is the employee's hourly rate, including geographic differential, multiplied by the number of hours in the employee's regular work week, multiplied by 4.35. * Sec. 12. OFFICE OF MANAGEMENT AND BUDGET. (a) When designating an employee category for participation in a retirement incentive plan or a separation incentive program under this Act, the executive head of the relevant state agency shall describe in detail the expected effect of the plan or program on the agency's personal services cost and operation. This financial report must be approved by the director of the office of management and budget before the commissioner of administration may approve the proposed plan or program. The state agency shall report each year to the office of management and budget on the cost of each employee's participation and the effect on the agency's personal services cost and operation. (b) The office of management and budget shall submit to the legislature annual reports on the retirement incentive and separation incentive programs under this Act beginning January15, 1997, and continuing through January15, 1999, and shall submit a final report January15, 2000. Each report must provide the information necessary for the legislature to evaluate the effectiveness of the programs in achieving their objectives. The report must include information on the designated employee categories under the incentive programs, including the cost of each incentive program per participant, the cost to the state, the cost to the employee, the annual budgeted amount, by state agency, for the incentives, the number of positions deleted or left vacant, and the projected or actual net savings over the three-year period. * Sec. 13. PROGRAM CHANGES. (a) An individual employee does not have a vested or contractual right to a benefit under this Act until an agreement is executed with the administrator that specifically authorizes that employee to participate in the retirement incentive program under this Act or until an agreement is executed with the commissioner of administration to participate in the separation incentive program under this Act. The legislature reserves the right to change any aspect of either incentive program as it relates to employees for whom participation agreements have not yet been executed with the administrator or with the commissioner of administration. 1995-05-02 Senate Journal Page 1437 SB 148 (b) In this section, "administrator" means the administrator of the public employees' retirement system for employees who are members of that system, and the administrator of the teachers' retirement system for employees who are members of that system. *Sec. 14. REGULATIONS. The commissioner of the Department of Administration may adopt regulations under AS44.62 (Administrative Procedure Act) to implement and interpret this Act. * Sec. 15. DEFINITIONS. (a) Unless provided otherwise in this Act, the definitions set out in AS14.25.220 apply to provisions in secs. 2- 10 of this Act that relate to the teachers' retirement system and members of the teachers' retirement system. (b) Unless provided otherwise in this Act, the definitions set out in AS39.35.680 apply to provisions in secs. 2- 10 of this Act that relate to the public employees' retirement system and members of the public employees' retirement system. (c) Unless provided otherwise in this Act, the definition set out in AS22.25.900 applies to provisions in sec.9 of this Act that relate to the judicial retirement system and members of the judicial retirement system. (d) In this Act, (1) "judicial retirement system" means the retirement system established for judges and justices in AS22.25; (2) "office of management and budget" means the office of management and budget in the Office of the Governor; (3) "public employees' retirement system" means the Public Employees' Retirement System of Alaska (AS39.35); (4) "state agency" (A) means (i) the legislative branch of state government; (ii) the judicial branch of state government; (iii) a principal department of the executive branch of state government; an independent state entity that is attached to a principal department of the executive branch for administrative purposes but that is not a public organization as defined in AS39.35.680 is part of that department for purposes of this clause; and 1995-05-02 Senate Journal Page 1438 SB 148 (iv) the Office of the Governor; (B) does not include (i) the University of Alaska; (ii) a political subdivision of the state; or (iii) a public organization as defined in AS39.35.680; (5) "teachers' retirement system" means the Teachers' Retirement System of Alaska (AS14.25). * Sec. 16. Sections 2, 3, and 11 of this Act are repealed July1, 1999. * Sec. 17. Sections 4- 7 and 9 of this Act are repealed July1, 1997. * Sec. 18. This Act takes effect immediately under AS01.10.070(c)." Senator Duncan moved for the adoption of Amendment No. 1. Objections were heard. Senator Pearce lifted the call. Senator Donley moved and asked unanimous consent that he be excused from a call of the Senate for the remainder of May 2. Without objection, Senator Donley was excused. Senator Pearce called the Senate. The call was satisfied. The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 1 YEAS: 7 NAYS: 12 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Excused: Donley 1995-05-02 Senate Journal Page 1439 SB 148 and so, Amendment No. 1 failed. Senator Leman offered Amendment No. 2 : Throughout bill: Delete "March 31, 1996" Insert "July 1, 1995" Senator Leman moved for the adoption of Amendment No. 2. Objections were heard. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 2 YEAS: 8 NAYS: 11 EXCUSED: 1 ABSENT: 0 Yeas: Frank, Green, Kelly, Leman, Miller, Sharp, Taylor, Torgerson Nays: Adams, Duncan, Ellis, Halford, Hoffman, Lincoln, Pearce, R.Phillips, Rieger, Salo, Zharoff Excused: Donley and so, Amendment No. 2 failed. Senator Duncan offered Amendment No. 3 : Page 1, line 1, through page 27, line 28: Delete all material and insert: ""An Act relating to retirement incentive programs for the public employees' retirement system, the judicial retirement system, and the teachers' retirement system; relating to separation incentives for certain state employees; and providing for an effective date." 1995-05-02 Senate Journal Page 1440 SB 148 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: * Section 1. FINDINGS AND PURPOSE. The State of Alaska and many local governments are facing the need to restructure their operations and their work forces in order to reduce expenditures and balance budgets. Retirement and separation incentives are management tools that have been used extensively by the private sector, the federal government, and other state and local governments across the country. The purpose of this Act is to make these management tools temporarily available to the state and to the municipalities of the state. This Act will enable these entities to be more efficient and cost-effective by eliminating certain nonessential positions, and producing a net reduction in personnel costs. * Sec. 2. RETIREMENT INCENTIVE PROGRAM. (a) An employer may adopt a retirement incentive plan under secs.3 - 6 of this Act, as appropriate, and designate categories of employees eligible to participate in that plan. An employer need not extend the incentive plan to all employees who would otherwise be eligible, but may choose to extend the plan only to employees (1) in specific budget or administrative components of the employer; (2) in specific job classifications; (3) in specific geographic locations; or (4) on the basis of any combination of factors under (1) - (3) of this subsection. (b) An employee is eligible to participate in a retirement incentive plan under this Act only if the (1) employee is a vested member of the public employees' retirement system or the teachers' retirement system; (2) employee will be qualified to retire under AS14.25.110 or AS39.35.370 after receipt of the credit described in (f) of this section; (3) savings to the employer in personal services costs for the employee's position will exceed the costs to the employer for that position within three years after the employee is appointed to retirement. 1995-05-02 Senate Journal Page 1441 SB 148 (c) An employer shall file its proposed retirement incentive plan with the commissioner of administration. The commissioner shall approve the plan if the plan meets the requirements of this Act, except that the commissioner may approve a state agency's retirement incentive plan only if the office of management and budget approves the calculation of savings under (b)(3) of this section. A proposed plan filed under this section must (1) identify job classifications of employees, and specific budget or administrative components, eligible to participate in the plan; (2) include a reimbursement agreement that (A) requires the employer, for each employee who retires under the plan, to reimburse the appropriate retirement system, within three years after the end of the fiscal year in which the employee is appointed to retirement, in an amount equal to (i) the actuarial equivalent of the difference between the benefits the participant receives after the addition of the credit under (f) of this section and the amount the participant would have received without the credit, less the amount the participant has paid on the indebtedness determined under (d) or (e) of this section; and (ii) an appropriate share of the administrative costs of the program; and (B) provides that contributions from the employer under this section take priority over other obligations of the employer to the maximum extent permitted by law. (d) A member of the teachers' retirement system who participates in an approved retirement incentive plan under this Act is indebted to that system for an amount calculated under this subsection. The indebtedness is 25.95 percent of the member's actual compensation for the school year in which the member terminates employment, or the calculated school year compensation for a member who works less than the entire school year. An outstanding indebtedness at the time a member is appointed to retirement under an approved retirement incentive plan requires an actuarial adjustment to the benefits payable to that member. 1995-05-02 Senate Journal Page 1442 SB 148 (e) A member of the public employees' retirement system who participates in an approved retirement incentive plan under this Act is indebted to that system for an amount calculated under this subsection. The indebtedness is 22-1/2 percent for a peace officer or fire fighter, and 20-1/4 percent for other members, of the member's actual annual compensation for the year in which the member terminates employment, or the calculated annual compensation for a member who works fewer than 12 months. An outstanding indebtedness at the time a member is appointed to retirement under an approved retirement incentive plan requires an actuarial adjustment to the benefits payable to that member. (f) An employee who participates in an approved retirement incentive plan under this Act receives a credit of three years. The three years must be applied in the following order until exhausted: (1) to meet the age or service required for eligibility for normal retirement under AS14.25.110 or AS39.35.370, as appropriate; (2) to meet the age required for early retirement under AS14.25.110 or AS39.35.370, as appropriate; (3) to reduce the actuarial adjustment required for early retirement under AS14.25.110 or AS39.35.370, as appropriate; (4) as years of credited service for calculating retirement benefits. (g) In this section, (1) "department" means (A) a principal department of the executive branch of state government; an independent state entity that is attached to a principal department of the executive branch for administrative purposes but that is not a public organization as defined in AS39.35.680 is part of that department for purposes of this paragraph; and (B) the Office of the Governor; (2) "employer" has the meaning given in AS14.25.220 and AS39.35.680 and includes a department. * Sec. 3. AUTHORIZATION FOR STATE EMPLOYEE RETIREMENT INCENTIVE. (a) A state agency may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for its employees. 1995-05-02 Senate Journal Page 1443 SB 148 (b) Upon the request of a state agency, the commissioner of administration shall establish one or more periods during which the employees of that state agency who are eligible under sec.2(b) of this Act to participate in a retirement incentive plan may apply to the commissioner of administration to participate in the state agency's approved plan. The periods shall begin no earlier than June 30, 1995, and end no later than June 30, 1998. The periods shall be no less than 30 days and no more than 60 days in duration, and may not begin less than 30 days after their establishment. A state agency is not required to request an application period, and may request more than one application period. (c) A proposed retirement incentive plan adopted under this section may not permit an employee who is the governor, the lieutenant governor, or a commissioner, deputy commissioner, or assistant commissioner of a principal department of the executive branch to participate in the plan. (d) A proposed retirement incentive plan adopted under this section may permit participation only by an employee who is eligible to participate under sec.2(b) of this Act and who (1) has been continuously employed by the state for at least one year before the employee applies to participate in the state agency's approved plan; (2) is a permanent seasonal employee who has been continuously employed by the state in a permanent seasonal position during all of the time in the one year before the employee's application to participate in which the position normally is filled; (3) has a job sharing agreement with a state agency in which two or more employees share a single position identified by a single position control number and in which the employee who applies to participate in the plan was continuously employed by the agency during the portion of the one year before the employee's application in which the employee normally worked under the job sharing agreement; or (4) meets a combination of the requirements of this subsection. (e) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement not later than the first day of the month 1995-05-02 Senate Journal Page 1444 SB 148 that is six months after the last day of the application period established by the commissioner under (b) of this section. A state agency, in a plan adopted under this section, may set an earlier date by which an employee must be appointed to retirement in order to participate in the plan. * Sec. 4. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR EMPLOYEES OF THE UNIVERSITY OF ALASKA. (a) The Board of Regents of the University of Alaska may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for university employees. (b) Upon the request of the Board of Regents, the commissioner of administration shall establish one or more periods during which the employees of the university who are eligible under sec.2(b) of this Act to participate in a retirement incentive plan may apply to the commissioner of administration to participate in the university's approved plan. The periods shall begin no earlier than June 30, 1995, and end no later than June30, 1998. The periods shall be no less than 30 days and no more than 60 days in duration, and may not begin less than 30 days after their establishment. The Board of Regents is not required to request an application period, and may request more than one application period. (c) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement not later than the first day of the month that is six months after the last day of the application period established by the commissioner under (b) of this section. The Board of Regents, in a plan adopted under this section, may set an earlier date by which an employee of the University of Alaska must be appointed to retirement in order to participate in the plan. (d) A participant in the optional university retirement program under AS14.40.661 - 14.40.799 who is vested in the public employees' retirement system or the teachers' retirement system may participate in a retirement incentive plan for that system if the participant meets the other qualifications of this Act. If a provision of this subsection is inconsistent with another provision of law, the provision of this subsection governs. * Sec. 5. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR OTHER EMPLOYEES IN THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM. (a) The governing body of a political subdivision of the state or public organization that has elected to 1995-05-02 Senate Journal Page 1445 SB 148 participate in the public employees' retirement system under AS39.- 35.550 - 39.35.650 may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for its employees. Upon the request of the governing body, the commissioner of administration shall establish one or more periods during which the employees of a political subdivision or public organization who are eligible to participate in a retirement incentive plan may apply to the commissioner of administration to participate in the approved plan. The periods shall begin no earlier than October 31, 1995, and end no later than October31, 1998. The periods shall be no less than 30 days and no more than 60 days in duration, and may not begin less than 60 days after their establishment. The governing body is not required to request an application period, and may request more than one application period. (b) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement not later than the first day of the month that is six months after the last day of the application period established by the commissioner under (a) of this section. The governing body of the political subdivision or public organization, in a plan adopted under this section, may set an earlier date by which an employee must be appointed to retirement in order to participate in the plan. * Sec. 6. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR EMPLOYEES OF REGIONAL RESOURCE CENTERS IN THE TEACHERS' RETIREMENT SYSTEM. (a) A regional resource center that has employees who are members of the teachers' retirement system may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for its employees. A plan adopted under this section must provide that the application period for participation in the retirement incentive plan is June30, 1995, through December31, 1995. (b) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement on or before August1, 1996. The regional resource center, in a plan adopted under this section, may set an earlier date by which an employee must be appointed to retirement in order to participate in the plan. 1995-05-02 Senate Journal Page 1446 SB 148 * Sec. 7. POLITICAL SUBDIVISION OR PUBLIC ORGANIZATION EMPLOYMENT. For purposes of determining the years of service requirements for retirement under AS14.25.110 or AS39.35.370, as appropriate, a vested member who is a state employee and who applies to participate in a retirement incentive plan approved under this Act may receive credit for employment with a political subdivision or public organization before the political subdivision or organization became an employer under the public employees' retirement system. The member may not receive credit for those years under this subsection for purposes of determining benefits. If a provision of this section is inconsistent with any other provision of law, the provision of this section governs. * Sec. 8. RECOVERY OF EMPLOYER DELINQUENCIES. To recover a delinquency owed by an employer other than the state under an agreement entered into under sec. 2(c)(2) of this Act, the Department of Administration may (1) direct that the amount of the delinquency or a lesser amount be withheld from any money payable to the employer by a state department or agency and that the amount withheld be credited to the delinquency; and (2) bring an action against the employer. * Sec. 9. PROVISION AND AUTHORIZATION FOR ADMINISTRATIVE DIRECTOR OF COURT. (a) The chief justice of the state supreme court may adopt a retirement incentive plan for an administrative director of the Alaska Court System who is a member of the judicial retirement system under AS22.25.012 if participation in the plan will result in savings to the court system in personal services costs within three years after the commencement of the plan. The administrative director may participate only if the administrative director is vested in the judicial retirement system and will be qualified to retire under AS22.25.010 after receipt of the retirement incentive. To participate, the administrative director shall apply to the commissioner of administration to participate in the approved court system plan. (b) The court system shall include in the retirement incentive plan a reimbursement agreement that requires the court system, for each administrative director of the Alaska Court System who is retired under the plan, to reimburse the judicial retirement system within three years after the end of the fiscal year in which the administrative director is appointed to retirement in an amount equal to 1995-05-02 Senate Journal Page 1447 SB 148 (1) the actuarial equivalent of the difference between the benefits the administrative director receives after the addition of the credit under (e) of this section and the amount the participant would have received without the credit, less the total of the amount the participant has paid on the indebtedness determined under (d) of this section; and (2) an appropriate share of the administrative costs of the program. (c) A retirement incentive plan adopted under this section must provide that contributions from the court system under (b) of this section take priority over other obligations of the court system to the maximum extent permitted by law. (d) An administrative director of the Alaska Court System who participates in an approved retirement incentive plan is indebted to the system. The amount of indebtedness is equal to 21 percent of the director's actual annual compensation for the year in which the director terminates employment to participate in the program, or the calculated annual compensation for an administrative director who works fewer than 12 months. An outstanding indebtedness at the time the administrative director is appointed to retirement under an approved retirement incentive plan will require an actuarial adjustment to the benefits payable to the director. (e) An administrative director of the Alaska Court System who participates in an approved retirement incentive plan receives a credit of three years that may only be used to meet the age requirements for normal or early retirement under AS22.25.010(d). (f) The chief justice of the Alaska Court System may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for the administrative director of the court system who is a member of the judicial retirement system. Upon the request of the chief justice, the commissioner of administration shall establish a period during which an administrative director eligible to participate in the retirement incentive plan of the court system may apply to the commissioner of administration to participate in the court system's approved plan. The period shall begin no earlier than July1, 1995, and end no later than June30, 1998. The period shall be no less than 30 days and no more than 60 days in duration and may not begin less than 30 days after establishment. The chief justice is not required to request an application period. 1995-05-02 Senate Journal Page 1448 SB 148 (g) The commissioner of administration may not accept the application of an administrative director of the court system to participate in an approved retirement incentive plan adopted under this section unless the administrative director will be appointed to retirement not later than the first day of the month that is six months after the last day of the application period established by the commissioner under (f) of this section. The chief justice, in a plan adopted under this section, may set an earlier date by which an administrative director must be appointed to retirement in order to participate in the plan. * Sec. 10. REEMPLOYMENT INDEBTEDNESS; PROHIBITION ON REEMPLOYMENT. (a) If an individual is reemployed as a member of the public employees' retirement system under AS39.35, the teachers' retirement system under AS14.25, the judicial retirement system under AS22.25, or the optional university retirement program under AS14.40.661- 14.40.799 after appoint- ment to retirement under this Act, that individual forfeits the incentive credit received under sec.2(f) or sec. 9(e) of this Act and is indebted to the system under which the individual took retirement. The indebtedness is 110 percent of the amount the individual received as a result of participation in a retirement incentive plan under this Act and to which the individual would not otherwise have been entitled, including the cost of health insurance. The amount that the individual has paid under sec. 2(d) or (e) or sec. 9(d) of this Act will be applied as a credit toward the reemployment indebtedness. Interest on the reemployment indebtedness accrues from the date of reemployment until the date that the individual either is appointed to retirement and accepts an actuarial adjustment to the individual's future benefits or repays the indebtedness in full. The rate of interest is that established by regulation for the public employees' retirement system by the public employees' retirement board and for the teachers' retirement system by the teachers' retirement board. (b) An individual who was appointed to retirement under this Act may not be employed by, or enter into a contract for personal services with, a state agency or the University of Alaska within the three years after the date of appointment to retirement, except that (1) the University of Alaska may enter into a personal services contract with the individual for teaching or research; and 1995-05-02 Senate Journal Page 1449 SB 148 (2) the individual may accept employment with the legislature during a legislative session if the employment is on an hourly basis and does not entitle the individual to receive retirement, health, or leave benefits. (c) Notwithstanding the prohibition in (b) of this section, a state agency or the University of Alaska may enter into a personal services contract with an individual who was appointed to retirement under this Act if the Board of Regents, for the University of Alaska, or the commissioner of administration, for a state agency, determines that there is a compelling reason to do so because of the individual's specialized or extensive experience that relates to a particular program or project of the state agency or university. However, a state agency may not enter into a contract with an individual under this subsection if the individual was employed by that state agency at the time of the individual's appointment to retirement. * Sec. 11. SEPARATION INCENTIVE PROGRAM. (a) A state agency may, with the approval of the director of the office of management and budget, establish a separation incentive program for its employees. The program may be offered in combination with an approved retirement incentive plan adopted under sec. 3 of this Act, or may be offered separately from such a plan. A state agency need not extend an incentive program under this section to all employees who would otherwise be eligible to participate, but may choose to extend the program only to employees (1) in specific budget or administrative components of the state agency; (2) in specific job classifications; (3) on the basis of any combination of factors under (1) and (2) of this subsection. (b) A separation incentive payment under this section shall be paid in a lump sum after the employee's separation from state service, and shall be equal to the lesser of an amount equaling six months of the employee's base salary, or $25,000. However, a state agency or the office of management and budget may set a lower separation incentive payment in the state agency's separation incentive program. 1995-05-02 Senate Journal Page 1450 SB 148 (c) Upon the request of a state agency, the commissioner of administration shall establish one or more periods during which the employees of that state agency may apply to the commissioner of administration to participate in the state agency's approved separation incentive program. The periods shall begin no earlier than July 1, 1995, and end no later than June 30, 1998. The periods shall be no less than 30 days and no more than 60 days in duration, and may not begin less than 30 days after their establishment. A state agency is not required to request an application period, and may request more than one application period. If the commissioner of administration has established one or more application periods for a state agency under sec.3(b) of this Act, the application period or periods established under this subsection must coincide with the period or periods established under sec.3(b) of this Act. (d) A separation incentive program established under this section must provide that a separation incentive payment to an employee may be made only if (1) the employee is a permanent full-time or permanent full-time seasonal employee with at least five years of service with the state; and (2) the savings to the state agency in personal services costs for the position occupied by that employee would exceed, in the three years after the employee separates, the amount of the separation incentive payment. (e) If an individual who received a separation incentive payment under this section subsequently is reemployed by a state agency or the University of Alaska within the three years after the date that the individual received the separation incentive payment, the individual is liable to the state in an amount equal to 110 percent of the amount of the separation incentive payment, plus interest at the rate prescribed by AS45.45.010, commencing on the date that the individual received the separation incentive payment. (f) If an employee is eligible to participate in an approved retirement incentive plan adopted under sec. 3 of this Act, (1) a separation incentive payment to that employee may not exceed the amount that the state agency would be obligated to pay to the appropriate retirement system, notwithstanding (b) of this section; and (2) the employee may participate in either the separation incentive program under this section or the retirement incentive plan adopted under sec.3 of this Act, but not both. 1995-05-02 Senate Journal Page 1451 SB 148 (g) In this section, "base salary" means the monthly salary paid to an employee under the applicable collective bargaining agreement, AS39.27.011, or another applicable pay schedule, and includes geographic differential; if an employee is paid on an hourly basis, the employee's base salary is the employee's hourly rate, including geographic differential, multiplied by the number of hours in the employee's regular work week, multiplied by 4.35. * Sec. 12. OFFICE OF MANAGEMENT AND BUDGET. (a) When designating an employee category for participation in a retirement incentive plan or a separation incentive program under this Act, the executive head of the relevant state agency shall describe in detail the expected effect of the plan or program on the agency's personal services cost and operation. This financial report must be approved by the director of the office of management and budget before the commissioner of administration may approve the proposed plan or program. The state agency shall report each year to the office of management and budget on the cost of each employee's participation and the effect on the agency's personal services cost and operation. (b) The office of management and budget shall submit to the legislature annual reports on the retirement incentive and separation incentive programs under this Act beginning January15, 1997, and continuing through January15, 1999, and shall submit a final report January15, 2000. Each report must provide the information necessary for the legislature to evaluate the effectiveness of the programs in achieving their objectives. The report must include information on the designated employee categories under the incentive programs, including the cost of each incentive program per participant, the cost to the state, the cost to the employee, the annual budgeted amount, by state agency, for the incentives, the number of positions deleted or left vacant, and the projected or actual net savings over the three-year period. * Sec. 13. PROGRAM CHANGES. (a) An individual employee does not have a vested or contractual right to a benefit under this Act until an agreement is executed with the administrator that specifically authorizes that employee to participate in the retirement incentive program under this Act or until an agreement is executed with the commissioner of administration to participate in the separation incentive program under this Act. The legislature reserves 1995-05-02 Senate Journal Page 1452 SB 148 the right to change any aspect of either incentive program as it relates to employees for whom participation agreements have not yet been executed with the administrator or with the commissioner of administration. (b) In this section, "administrator" means the administrator of the public employees' retirement system for employees who are members of that system, and the administrator of the teachers' retirement system for employees who are members of that system. *Sec. 14. REGULATIONS. The commissioner of the Department of Administration may adopt regulations under AS44.62 (Administrative Procedure Act) to implement and interpret this Act. * Sec. 15. DEFINITIONS. (a) Unless provided otherwise in this Act, the definitions set out in AS14.25.220 apply to provisions in secs. 2- 10 of this Act that relate to the teachers' retirement system and members of the teachers' retirement system except that "employer" does not include a school district. (b) Unless provided otherwise in this Act, the definitions set out in AS39.35.680 apply to provisions in secs. 2- 10 of this Act that relate to the public employees' retirement system and members of the public employees' retirement system. (c) Unless provided otherwise in this Act, the definition set out in AS22.25.900 applies to provisions in sec.9 of this Act that relate to the judicial retirement system and members of the judicial retirement system. (d) In this Act, (1) "judicial retirement system" means the retirement system established for judges and justices in AS22.25; (2) "office of management and budget" means the office of management and budget in the Office of the Governor; (3) "public employees' retirement system" means the Public Employees' Retirement System of Alaska (AS39.35); (4) "state agency" (A) means (i) the legislative branch of state government; (ii) the judicial branch of state government; 1995-05-02 Senate Journal Page 1453 SB 148 (iii) a principal department of the executive branch of state government; an independent state entity that is attached to a principal department of the executive branch for administrative purposes but that is not a public organization as defined in AS39.35.680 is part of that department for purposes of this clause; and (iv) the Office of the Governor; (B) does not include (i) the University of Alaska; (ii) a political subdivision of the state; or (iii) a public organization as defined in AS39.35.680; (5) "teachers' retirement system" means the Teachers' Retirement System of Alaska (AS14.25). * Sec. 16. Sections 2, 3, and 11 of this Act are repealed July1, 1999. * Sec. 17. Sections 4- 7 and 9 of this Act are repealed July1, 1997. * Sec. 18. This Act takes effect immediately under AS01.10.070(c)." Senator Duncan moved for the adoption of Amendment No. 3. Objections were heard. The question being: "Shall Amendment No. 3 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 3 YEAS: 7 NAYS: 12 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Excused: Donley 1995-05-02 Senate Journal Page 1454 SB 148 and so, Amendment No. 3 failed. Senator Duncan offered Amendment No. 4 : Page 2, line 12: Delete "5.5" Insert "6.5" Page 3, line 2, through page 4, line 5: Delete all material. Renumber the following bill sections accordingly. Conform internal references to bill sections accordingly. Senator Duncan moved for the adoption of Amendment No. 4. Senator Miller objected. The question being: "Shall Amendment No. 4 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 4 YEAS: 7 NAYS: 12 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Excused: Donley and so, Amendment No. 4 failed. Senator Duncan offered Amendment No. 5 : Page 7, line 31: Delete "six" Insert "seven" 1995-05-02 Senate Journal Page 1455 SB 148 Page 10, lines 2 - 6: Delete "fighter for peace officers or fire fighters first hired before March31, 1996, or hired on or after that date by a nonparticipating employer; [, OR] (3) with at least 25 years of credited service as a peace officer or fire fighter for peace officers and fire fighters first hired on or after March31, 1996, other than employees of nonparticipating employers;" Insert "fighter; [,] or" Page 10, line 7: Delete "(4)" Insert "(3)" Page 10, line 9: Delete "; or" Insert "." Page 10, lines 10 - 11: Delete "(5) with a combination of age and years of credited service equal to or greater than 85." Senator Duncan moved for the adoption of Amendment No. 5. Objections were heard. The question being: "Shall Amendment No. 5 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 5 YEAS: 8 NAYS: 11 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Hoffman, Kelly, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Excused: Donley and so, Amendment No. 5 failed. 1995-05-02 Senate Journal Page 1456 SB 148 Senator Duncan offered Amendment No. 6 : Page 8, line 7: Delete "five and one-half" Insert "six and one-half" Page 10, lines 7 - 11: Delete "(4) with at least 30 years of credited service for all other employees if the employee was first hired before March31, 1996, or if the employee was hired on or after that date by a nonparticipating employer; or (5) with a combination of age and years of credited service equal to or greater than 85." Insert "(4) with at least 30 years of credited service for all other employees." Senator Duncan moved for the adoption of Amendment No. 6. Objections were heard. The question being: "Shall Amendment No. 6 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 6 YEAS: 7 NAYS: 12 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Excused: Donley and so, Amendment No. 6 failed. Senator Duncan offered Amendment No. 7 : 1995-05-02 Senate Journal Page 1457 SB 148 Page 9, after line 27: Insert a new bill section to read: "* Sec. 15. AS39.35.345(d) is repealed and reenacted to read: (d) An employee may choose whether the credited service granted under this section is used to satisfy the credited service requirements for normal retirement or is only used for the calculation of benefits. An election under this subsection is irrevocable and applies to all temporary credited service that the employee has accrued when the employee retires." Renumber the following bill sections accordingly. Conform internal references to bill sections accordingly. Page 27, after line 25: Insert a new bill section to read: "* Sec. 42. A member of the public employees' retirement system who has claimed credited service under AS39.35.345 on or before the effective date of sec.15 of this Act may exercise the election established under AS39.35.345(d), as amended by sec. 15 of this Act, before the member is appointed to retirement." Renumber the following bill sections accordingly. Senator Duncan moved for the adoption of Amendment No. 7. Objections were heard. The question being: "Shall Amendment No. 7 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 7 YEAS: 7 NAYS: 12 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson 1995-05-02 Senate Journal Page 1458 SB 148 Excused: Donley and so, Amendment No. 7 failed. Senator Duncan offered Amendment No. 8 : Page 10, line 24, through page 11, line 12: Delete all material. Renumber the following bill sections accordingly. Conform internal references to bill sections accordingly. Senator Duncan moved for the adoption of Amendment No. 8. Objections were heard. The question being: "Shall Amendment No. 8 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 8 YEAS: 7 NAYS: 12 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Excused: Donley and so, Amendment No. 8 failed. Senator Duncan offered Amendment No. 9 : Page 10, line 27: Delete "one and one-half" Insert "two" Senator Duncan moved for the adoption of Amendment No. 9. Objections were heard. 1995-05-02 Senate Journal Page 1459 SB 148 The question being: "Shall Amendment No. 9 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 9 YEAS: 5 NAYS: 14 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Lincoln, Zharoff Nays: Frank, Green, Halford, Hoffman, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Salo, Sharp, Taylor, Torgerson Excused: Donley Hoffman changed from "Yea" to "Nay". and so, Amendment No. 9 failed. Senator Duncan offered Amendment No. 10 : Page 5, lines 13 - 28: Delete all material. Renumber the following bill sections accordingly. Conform internal references to bill sections accordingly. Page 12, line 28, through page 13, line 12: Delete all material. Renumber the following bill sections accordingly. Conform internal references to bill sections accordingly. Senator Duncan moved for the adoption of Amendment No. 10. Objections were heard. The question being: "Shall Amendment No. 10 be adopted?" The roll was taken with the following result: 1995-05-02 Senate Journal Page 1460 SB 148 CSSB 148(RLS) Second Reading Amendment No. 10 YEAS: 7 NAYS: 12 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Excused: Donley and so, Amendment No. 10 failed. Senator Duncan offered Amendment No. 11 : Page 13, lines 13 - 26: Delete all material. Renumber the following bill sections accordingly. Conform internal references to bill sections accordingly. Senator Duncan moved for the adoption of Amendment No. 11. Objections were heard. The question being: "Shall Amendment No. 11 be adopted?" The roll was taken with the following result: CSSB 148(RLS) Second Reading Amendment No. 11 YEAS: 7 NAYS: 12 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Excused: Donley 1995-05-02 Senate Journal Page 1461 SB 148 and so, Amendment No. 11 failed. Senator Halford moved that the bill be considered engrossed, advanced to third reading and placed on final passage. Senator Duncan objected. Senator Duncan rose to a point of order. President Pearce ruled the point well taken. The question being: "Shall the bill be advanced to third reading?" The roll was taken with the following result: CSSB 148(RLS) Advance from Second to Third Reading? YEAS: 12 NAYS: 7 EXCUSED: 1 ABSENT: 0 Yeas: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Nays: Adams, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Excused: Donley and so, the bill failed to advance to third reading. CS FOR SENATE BILL NO. 148(RLS) will appear on the May 3 calendar. UNFINISHED BUSINESS HB 74 Senator Halford, Chair, moved and asked unanimous consent that the Finance Committee referral be waived on CS FOR HOUSE BILL NO. 74(FIN) "An Act relating to the assault of children by adults." Without objection, CS FOR HOUSE BILL NO. 74(FIN) was referred to the Rules Committee. 1995-05-02 Senate Journal Page 1462 SCR 18 The reconsideration on SENATE CONCURRENT RESOLUTION NO. 18 Honoring the military veterans of World War II and commemorating the 50th anniversary of the end of World War II, was not taken up this legislative day and the resolution was referred to the Secretary for engrossment. SCR 19 The reconsideration on SENATE CONCURRENT RESOLUTION NO. 19 Establishing the Blue Ribbon Commission on Gaming and Gambling and relating to commission recommendations regarding gaming and gambling in the state, was not taken up this legislative day and the resolution was referred to the Secretary for engrossment. SJR 22 The reconsideration on CS FOR SENATE JOINT RESOLUTION NO. 22(RES) Requesting research on fisheries and marine mammals in the Bering Sea, was not taken up this legislative day and the resolution was referred to the Secretary for engrossment. ANNOUNCEMENTS Announcements are at the end of the journal. ENGROSSMENT SCR 18 SENATE CONCURRENT RESOLUTION NO. 18 Honoring the military veterans of World War II and commemorating the 50th anniversary of the end of World War II, was engrossed, signed by the President and Secretary and transmitted to the House for consideration. SCR 19 SENATE CONCURRENT RESOLUTION NO. 19 Establishing the Blue Ribbon Commission on Gaming and Gambling and relating to commission recommendations regarding gaming and gambling in the state, was engrossed, signed by the President and Secretary and transmitted to the House for consideration. 1995-05-02 Senate Journal Page 1463 SJR 22 CS FOR SENATE JOINT RESOLUTION NO. 22(RES) Requesting research on fisheries and marine mammals in the Bering Sea, was engrossed, signed by the President and Secretary and transmitted to the House for consideration. SB 18 CS FOR SENATE BILL NO. 18(FIN) "An Act relating to an advisory vote during regional educational attendance area school board elections; and providing for an effective date" was engrossed, signed by the President and Secretary and transmitted to the House for consideration. SB 166 SENATE BILL NO. 166 am "An Act relating to the date by which a borough school board is required to submit a school budget to the borough assembly and the date by which the borough assembly is required to appropriate money from local sources for public schools; and providing for an effective date" was engrossed, signed by the President and Secretary and transmitted to the House for consideration. ADJOURNMENT Senator Halford moved and asked unanimous consent that the Senate stand in adjournment until 10:00 a.m., May 3, 1995. Without objection, the Senate adjourned at 11:55 p.m. Nancy Quinto Secretary of the Senate May 1995 1995-05-02 Senate Journal Page 1464 ANNOUNCEMENTS NOTICE - AMERICANS WITH DISABILITIES ACT Persons with disabilities who require special accommodation or alternative communication formats to access committee meetings may contact the appropriate committee office or the Legislative Information Office in their community. Reasonable advance notice is needed to accommodate the request. For further information, call the ADA Coordinator at 465-3854 Voice/465-4980 TDD. STANDING COMMITTEES COMMUNITY & REGIONAL AFFAIRS BUTROVICH ROOM 205 MAY 03 WEDNESDAY 1:30 PM BILLS AS ANNOUNCED BY THE CHAIR UNDER UNIFORM RULE 23(D) MAY 05 FRIDAY 1:30 PM BILLS AS ANNOUNCED BY THE CHAIR UNDER UNIFORM RULE 23(D) ---------------------------------------- FINANCE SENATE FINANCE 532 MAY 02 TUESDAY 9:30 AM SB 115 UNIFORM INTERSTATE FAMILY SUPPORT ACT HB 169 DEPT. NAT RES. IS LEAD AGENCY FOR MINING HB 197 MINERAL EXPLORATION INCENTIVE CREDITS HB 320 APPROVE TESORO ROYALTY OIL AGREEMENT HB 297 VESSEL FEES SB 136 APPROP: FY 96 CAPITAL PROJECTS BUDGET HB 17 OFFICERS OF UTILITY COOPERATIVES BILLS PREVIOUSLY HEARD MAY 03 WEDNESDAY 1:00 PM HB 44 GAMING PROCEEDS/DEFINE CHARITABLE ORG'NS ---------------------------------------- HEALTH, EDUCATION & SOCIAL SERVICES BUTROVICH ROOM 205 MAY 04 THURSDAY 9:00 AM HB 182 DELEGATION OF DUTIES TO DENTAL ASSISTANTS ---------------------------------------- 1995-05-02 Senate Journal Page 1465 JUDICIARY BELTZ ROOM 211 MAY 03 WEDNESDAY 9:00 AM HB 237 WORKERS' COMPENSATION AMENDMENTS BILLS PREVIOUSLY HEARD MAY 03 WEDNESDAY 1:30 PM -- RESCHEDULED FROM 05/01/95 -- CONFIRMATION HEARINGS: COMMISSION ON JUDICIAL CONDUCT; PATRICK BROWN, JOANN HOLMES, ARTHUR PETERSON HB 38 SENTENCING;3RD SERIOUS FELONY OFFENDER HB 274 TUBERCULOSIS CONTROL HB 120 INDEMNIFICATION OF PUBLIC EMPLOYEES HB 158 CIVIL LIABILITY BILLS PREVIOUSLY HEARD ---------------------------------------- LABOR & COMMERCE FAHRENKAMP RM 203 MAY 02 TUESDAY 1:30 PM -- TELECONFERENCE -- HB 180 LIQUOR LICENSES FOR RESORT/LODGES SB 158 PHARMACISTS AND PHARMACIES SB 160 EXCLUSIONS FROM UNEMPLOYMENT COVERAGE HB 237 WORKERS' COMPENSATION AMENDMENTS CONFIRMATION HEARING BOARD OF NURSING MAY 04 THURSDAY 1:30 PM OVERVIEW ON BELOW BILL: SB 157 SMALL LOANS & RETAIL INSTALLMENT SALES ---------------------------------------- RESOURCES BUTROVICH ROOM 205 MAY 03 WEDNESDAY 3:30 PM HB 195 REPEAL MILK MARKETING LAWS HJR 44 POSTAGE STAMP HONORING ALASKA SALMON SJR 23 POSTAGE STAMP HONORING ALASKA SALMON HJR 43 FISHING AND SUBSISTENCE IN GLACIER BAY --FOLLOWING BILLS PREVIOUSLY HEARD HB 207 ADJUSTMENTS TO OIL AND GAS ROYALTIES HB 141 TERM OF FISH BOARD MEMBERS MAY 05 FRIDAY 3:30 PM HJR 24 WASTE IN PACIFIC AND BERING SEA FISHERY HJR 38 MAGNUSON FISHERY CONSERVATION & MGMT ACT SJR 28 KENAI PENINSULA SUBSISTENCE PROPOSAL BILLS PREVIOUSLY HEARD ---------------------------------------- 1995-05-02 Senate Journal Page 1466 RULES FAHRENKAMP ROOM 203 MAY 02 TUESDAY 11:55 PM SB 115 UNIFORM INTERSTATE FAMILY SUPPORT ACT HB 169 DEPT. NAT RES. IS LEAD AGENCY FOR MINING HB 197 MINERAL EXPLORATION INCENTIVE CREDITS HB 320 APPROVE TESORO ROYALTY OIL AGREEMENT HB 297 VESSEL FEES HB 17 OFFICERS OF UTILITY COOPERATIVES <PENDING REFERRAL> SB 136 APPROP: FY 96 CAPITAL PROJECTS BUDGET SB 160 EXCLUSIONS FROM UNEMPLOYMENT COVERAGE HJR 9 SUIT RE POWS & MIAS AGAINST U.S. & OTHERS SR 3 CONVERSION OF ADAK NAVAL AIR FACILITY HJR 39 NORTHERN SEA ROUTE DEVELOPMENT HB 180 LIQUOR LICENSES FOR RESORT/LODGES ---------------------------------------- STATE AFFAIRS BELTZ ROOM 211 MAY 02 TUESDAY 3:30 PM HJR 9 SUIT RE POWS & MIAS AGAINST U.S. & OTHERS <TELECONFERENCE ON ABOVE RESOLUTION> HJR 39 NORTHERN SEA ROUTE DEVELOPMENT HB 10 PAYMENT OF COSTS OF DWI ACCIDENTS <TELECONFERENCE ON ABOVE BILL> SB 163 APPROVE U OF A DEBT FOR STUDENT HOUSING SR 3 CONVERSION OF ADAK NAVAL AIR FACILITY SCR 14 UNIVERSITY OF ALASKA STUDENT HOUSING BILLS PREVIOUSLY HEARD MAY 04 THURSDAY 3:30 PM BILLS PREVIOUSLY HEARD ---------------------------------------- TRANSPORTATION BUTROVICH ROOM 205 MAY 02 TUESDAY 1:30 PM HB 48 MOTORCYCLE HELMET STANDARDS JOINT COMMITTEES CONFERENCE COMMITTEE ON HB 100 SENATE FINANCE 532 MAY 03 WEDNESDAY 3:00 PM LAW, COMMERCE & ECONOMIC DEVELOPMENT, AND HEALTH & SOCIAL SERVICES 1995-05-02 Senate Journal Page 1467 OTHER COMMITTEES MAJORITY CAUCUS BUTROVICH ROOM 205 MAY 02 TUESDAY 11:40 AM MAJORITY CAUCUS ---------------------------------------- MINORITY CAUCUS BELTZ ROOM 211 MAY 02 TUESDAY 11:40 AM MINORITY CAUCUS