05/08/2005 01:00 PM Senate FINANCE

                                                                                                                                
     CS FOR HOUSE BILL NO. 98(RLS)                                                                                              
     "An  Act relating  to  the compensation  of  the governor,  the                                                            
     lieutenant  governor, and certain  public officials,  officers,                                                            
     and employees not  covered by collective bargaining agreements;                                                            
     and providing for an effective date."                                                                                      
                                                                                                                                
                                                                                                                                
This  was the third  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Green reminded  that this legislation  would address  non-                                                            
union public employee salaries and benefits.                                                                                    
                                                                                                                                
Co-Chair  Wilken moved to  adopt committee  substitute, Version  24-                                                            
GH1099\X as the working document.                                                                                               
                                                                                                                                
Co-Chair Green  explained that language in Sec. 12  page four, lines                                                            
17 through  24 has  been modified  to address  the issue of  bonuses                                                            
paid to Legislative employees. This language reads as follows.                                                                  
                                                                                                                                
     Sec. 12. The uncodified law of the State of Alaska is amended                                                              
     by adding a new section to read:                                                                                           
          BONUSES FOR CERTAIN LEGISLATIVE EMPLOYEES. In addition to                                                             
     compensation authorized  under AS 24.10.200, an employee of the                                                            
     house  of representatives or  senate may be awarded  and paid a                                                            
     bonus   to  reward   extraordinary  effort,   competency,   job                                                            
     performance, or uncompensated  overtime. However, after January                                                            
     1,  2005, the authority  to award  and pay  a bonus under  this                                                            
     section is  terminated, and bonuses may not be  awarded or paid                                                            
     after that date.                                                                                                           
                                                                                                                                
Co-Chair Green  stated that this language would clarify  this ruling                                                            
in Statute.                                                                                                                     
                                                                                                                                
Co-Chair Green stated that  in addition, language in Section 1, page                                                            
one, lines  six and seven would specify  that Legislators'  salaries                                                            
would be "equal  to Step A, Range 10, of the salary  schedule in AS.                                                            
39.27.011(a)."  The Speaker  of the House  and the Senate  President                                                            
would each be entitled  to an additional $500 a year while they held                                                            
that position.                                                                                                                  
                                                                                                                                
Co-Chair Green  also noted that Sec.  2 page one line 12  and Sec. 3                                                            
page  two line  one  would reflect  the  proposed  increased  salary                                                            
levels for the  Governor and Lieutenant Governor,  respectfully. The                                                            
proposed pay scales  for various non-union employees  for classified                                                            
and partially  exempt  employees in  the Executive  branch of  State                                                            
government  are reflected in  Sec. 5 page  two line 12 through  page                                                            
three line eight.                                                                                                               
                                                                                                                                
AT EASE 8:13:22 PM / 8:19:00 PM                                                                                             
                                                                                                                                
Without objection, the  Version "X" committee substitute was ADOPTED                                                            
as the working document.                                                                                                        
                                                                                                                                
Conceptual  Amendment #1:  This amendment  adds  "and AS  24.10.210"                                                            
after  "AS 24.10.200,"  and replaces  "house  of representatives  or                                                            
senate" with "legislature"  in Sec. 12, page four,  lines 20 and 21.                                                            
                                                                                                                                
Senator Dyson  moved the amendment. He explained that  utilizing the                                                            
term "legislature"  would widen the  applicability of the  provision                                                            
to include  Legislative support staff.  The existing language  would                                                            
limit the provision  to the members of the House of  Representatives                                                            
and Senate staff.                                                                                                               
                                                                                                                                
Co-Chair  Green agreed that  the proposed  language "would  properly                                                            
cover the proper employees".                                                                                                    
                                                                                                                                
There being no objection, Conceptual Amendment #1 was ADOPTED.                                                                  
                                                                                                                                
Co-Chair  Wilken  moved  to  report   the  bill,  as  amended,  from                                                            
Committee with  individual recommendations  and accompanying  fiscal                                                            
notes.                                                                                                                          
                                                                                                                                
There being no  objection, the S CS CS HB 98(FIN)  was REPORTED from                                                            
Committee  with $1,650,200  fiscal note #2,  dated January  24, 2005                                                            
from  the Legislative  Affairs  Agency;  $1,616,300  fiscal note  #4                                                            
dated April 12, 2005 from  the Alaska Court System,; and $10,463,000                                                            
fiscal note #5,  dated April 27, 2005 from the Office  of Management                                                            
and Budget.                                                                                                                     
                                                                                                                                
RECESS TO THE CALL OF THE CHAIR: 8:22:29 PM / 10:05:44 PM.                                                                  
                                                                                                                                
[NOTE: The adjournment of this meeting was not recorded.]