Legislature(2019 - 2020)BUTROVICH 205
04/25/2019 03:30 PM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| HB48 | |
| SB75 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 73 | TELECONFERENCED | |
| += | SB 75 | TELECONFERENCED | |
| += | HB 48 | TELECONFERENCED | |
HB 48- TEMP STATE EMPLOYEES IN PART EXEMPT SVCE
3:38:18 PM
VICE CHAIR COGHILL announced the consideration of CS FOR HOUSE
BILL NO. 48(FIN) am, "An Act removing from the exempt service of
the state persons who are employed in a professional capacity to
make a temporary or special inquiry, study, or examination as
authorized by the governor and including those persons in the
partially exempt service of the state; repealing the authority
of the governor or a designee of the governor to authorize
higher pay than is otherwise allowable for certain partially
exempt employees in the executive branch; requiring the
commissioner of administration to submit a report to the
legislature; and providing for an effective date."
He asked the sponsor to respond to the questions that were
raised during the previous hearing.
3:39:19 PM
REPRESENTATIVE TAMMIE WILSON, Alaska State Legislature, Juneau,
sponsor of HB 48, said she'd like Mr. Henderson to respond to
Senator Micciche's question about whether the bill would affect
the governor's ability to hire somebody who commands a higher
salary to work on a specialized project.
3:39:43 PM
REMOND HENDERSON, Staff, Senator Tammie Wilson, Alaska State
Legislature, Juneau, explained that the governor would still
have the authority to hire somebody under AS 39.25.110, which
exempts the Office of the Governor from the Personnel Act.
VICE CHAIR COGHILL offered his understanding that this would be
under the governor's broad authority to hire and the position
may or may not be temporary.
MR. HENDERSON said that's correct.
REPRESENTATIVE T. WILSON referenced the list of exempt service
PCNs the Department of Administration provided and explained
that it focuses on when these supposedly temporary positions
were established. The earliest is 1989 and several others were
established in 2003 and 2010, none of which are temporary. She
also pointed out that some of these positions have been filled
more than once, which doesn't seem very temporary. If the
position isn't temporary it should be classified differently,
she said. She described the bill as being about transparency and
ensuring that fulltime employees are treated equitably.
3:42:03 PM
SENATOR MICCICHE commented that the list the department provided
does not include those highly specialized and highly compensated
positions he talked about during the last hearing. He said the
people on this list probably should not have been hired as
exempts so there is abuse of the system, but the salaries aren't
out of line. He assured the public that if they were out of
line, the committee would jump on that immediately. He agreed
with the sponsor that this brings the issue out into the open
and lets this and future administrations know the expectation is
that hiring will be done correctly, employees will all be
treated fairly, and the process will be transparent.
3:44:11 PM
REPRESENTATIVE T. WILSON remarked that this is just one of the
issues that needs to be addressed. She's identified others that
she'll also look into.
VICE CHAIR COGHILL commented on the lengthy list of exempt
positions in the statute.
SENATOR REINBOLD asked if the department's list reflects
bimonthly pay.
MR. HENDERSON answered yes; the compensation that's listed is
paid twice a month. He also clarified that salaries for some of
the positions on the list are up to $120,000 per year and that
some exempt positions that clearly are temporary and not highly
compensated, such as elections workers, are not on the list.
SENATOR MICCICHE asked if all the larger numbers on the list
reflect the bimonthly base rate.
REPRESENTATIVE WILSON deferred the question to Ms. Sheehan.
3:46:29 PM
KATE SHEEHAN, Director, Division of Personnel and Labor
Relations, Department of Administration, Juneau, confirmed that
most of the numbers are semimonthly base rates and some are
hourly rates.
VICE CHAIR COGHILL asked if this exemption provides a special
and helpful tool.
MS. SHEEHAN replied it depends on the position. She noted that
when the statute was changed in 1982 to "temporary or special
inquiry" instead of "and," it started being used for more
permanent projects like the gas pipeline. Other options are
available such that an exempt agency or the governor's office
could employ an exempt employee. She said it would be limiting
in the partially exempt services where there are classified
nonpermanent employees. She said she doesn't know why things are
set up a certain way but she is aware that it has helped DOA set
up new divisions fairly quickly.
VICE CHAIR COGHILL offered his understanding that those people
could be hired fairly quickly under the governor's authority.
MS. SHEEHAN confirmed that a position for a high-level project
that is set up by the governor's office would be exempt right
away.
VICE CHAIR COGHILL asked what caused hiring under this section
of the statute to be less transparent.
MS. SHEEHAN said she didn't know.
SENATOR REINBOLD asked what the Position Time Class "ltexe"
refers to.
MS. SHEEHAN replied that is long term exempt.
SENATOR MICCICHE asked if some of the people on the list are
employed under AS 39.25.110(9) and AS 39.27.011(k), which
Section 2 repeals. He also recalled that petroleum employees
generally work under a different statute.
MS. SHEEHAN replied the list has only the temporary exempt
positions under paragraph (9). It does not capture every state
employee who is paid at a higher rate under the subsection (k)
exception. She noted that some of the petroleum positions that
are listed as temporary exempt are actually exempt under statute
but they were never updated in the system. She reiterated that
the list
SENATOR MICCICHE asked why the list includes some petroleum
professionals, the highest of which is paid $168,000, when AS
39.25.110(14) provides the following specific exemption:
(14) petroleum engineers and petroleum geologists employed
in a professional capacity by the Department of Natural
Resources and by the Alaska Oil and Gas Conservation
Commission;
3:52:53 PM
MS. SHEEHAN explained that the positions were established years
ago and subsequent legislation placed them in exempt service.
For some reason they were never updated in the system so they
come up as temporary exempt when a report is run. She said her
office did send the report to all agency HR managers asking what
the duties are for these positions and hopefully that will help
get the positions appropriately categorized as exempt if they
are exempt under current statute.
SENATOR MICCICHE asked if the professionals in those necessary,
high-cost positions could be hired under AS 39.25.110(14).
MS. SHEEHAN said yes.
VICE CHAIR COGHILL asked if repealing AS 39.27.011(k) will
result in those positions being hired under AS 29.25.110.
MS. SHEEHAN explained that the subsection (k) exception was put
in statute in 2013 and it applies to partially exempt employees.
The testimony at the time was that it would be a tool to hire
partially exempt people at a pay increment that is higher than
the highest merit step F. Those positions are separate from the
truly exempt positions that are not confined by the state pay
plan in the Personnel Act.
VICE CHAIR COGHILL offered his understanding that repealing
subsection (k) narrows the ability to pay beyond a certain step.
MS. SHEEHAN said yes, step F would be the highest without
setting up an exempt position.
SENATOR MICCICHE said he believes that a number of the positions
that will disappear are needed. He asked if it would be possible
to fill those needed positions with highly skilled people that
come at a certain cost.
MS. SHEEHAN said it would depend on the position.
3:57:51 PM
SENATOR REINBOLD said she likes the bill and is ready to vote.
VICE CHAIR COGHILL observed that the administration will still
be able to hire the talent it needs, although repealing
subsection (k) may change how a director is hired.
SENATOR MICCICHE asked if step F is bimonthly.
MS. SHEEHAN answered yes; partially exempt employees and most
exempt employees are paid semimonthly.
SENATOR MICCICHE asked if the monthly salary for step F is
double what's shown on the list.
MS. SHEEHAN answered yes.
VICE CHAIR COGHILL offered his understanding that the difference
between the exemption under AS 39.27.011(k) and the exemption
under AS 39.25.110(9) is that one requires justification and the
other does not.
MS. SHEEHAN confirmed that there must be written justification
by the governor or their designee under the subsection (k)
exception.
SENATOR MICCICHE responded, "Mr. Chairman, right where you are
right there. If that's the case that completely eliminates my
concern on the bill."
3:59:36 PM
VICE CHAIR COGHILL opened public testimony on HB 48.
4:00:23 PM
CHARLES MCKEE, representing self, Anchorage, testified that his
account was subjugated and the state corporation defrauded him
in 1983 because the Anchorage Times lied about him. He's never
recovered.
VICE CHAIR COGHILL advised that testimony must be germane to HB
48.
MR. MCKEE said he sent information to his representative's staff
member.
VICE CHAIR COGHILL asked if he had testimony on HB 48.
MR. MCKEE said his testimony does pertain to HB 48 because he
sent the information to a temporary employee.
VICE CHAIR COGHILL suggested he submit written testimony to
[email protected]
4:03:31 PM
VICE CHAIR COGHILL found no further testifiers and closed public
testimony on HB 48.
SENATOR REINBOLD stated particular support for Section 5.
SENATOR MICCICHE recapped that this bill takes care of a problem
but allows the same businesses to continue in a different way
and with more transparency.
4:04:49 PM
SENATOR MICCICHE moved to report HB 48, work order 31-
LS0346\U.A, from committee [with individual recommendations] and
attached fiscal note(s).
4:05:25 PM
VICE CHAIR COGHILL found no objection and CSHB 48(FIN)am was
reported from the Senate State Affairs Standing Committee.