03/26/1997 01:50 PM Senate JUD

       SB 114 EMPLOYEES: POLITICAL CONTRIB & ACTIVITIES                       
                                                                              
  SENATOR PEARCE  moved to adopt CSSB 114(JUD) (3/24, version E)               
 in lieu of the original bill.                                                 
                                                                               
 SENATOR MILLER  explained the committee substitute contains two               
 amendments: the 12 month requirement was changed to one calendar              
 year; and the recordkeeping requirement was changed from three                
 years to four years.  Both changes were requested by APOC.                    
                                                                               
  CHAIRMAN TAYLOR  announced there were no objections to the adoption          
 of CSSB 114(JUD), therefore the motion carried.                               
                                                                               
  JOHN CYR ,   President of NEA-Alaska, described how NEA's political          
 action committee (PAC) functions.  When new employees begin work in           
 a school district, they are asked whether they want to join NEA.              
 If they elect to join, they fill out a form that lists the dues               
 amount and contains a section for a $15 annual PAC contribution.              
 The first time payroll contributions are withheld, NEA sends the              
 employees a form asking whether they want their PAC contribution              
 refunded or diverted to another area.  NEA uses that format for a             
 specific reason.  There are 53 or 54 school districts.                        
 Standardizing the dues amount is beneficial to school districts               
 because it minimizes accounting procedures.  Of the 10,000 school             
 district employees, about 1,000 request the $15 PAC deduction be              
 reimbursed.  NEA reimburses as soon as it has confirmation that               
 those people are employees or members.  This system removes any               
 liability from the school districts and allows employees to decide            
 whether to contribute to NEA's PAC in the privacy of their own                
 homes so the school districts do not know who contributes.  NEA               
 does not do any political campaining to raise money in schools; the           
 process is done uniformly.  NEA maintains the files and believes              
 this system is cleanest.                                                      
                                                                               
  SENATOR PEARCE  referred to page 2, lines 7-14, subsection (b), and          
 asked whether NEA members have to notify NEA every year whether or            
 not they want a reimbursement.   MR. CYR  replied NEA sends a form to         
 every member, every fall, asking whether they want a reimbursement.           
  SENATOR PEARCE  asked if those members are also given the                    
 opportunity to terminate their memberships.   MR. CYR  answered yes.          
                                                                               
 Number 382                                                                    
  SENATOR PEARCE  commented one member she knows of objects to the             
 fact that every year she has to request the $15 reimbursement and             
 would prefer that NEA automatically refund the money unless she               
 notifies it of a change.   MR. CYR  said NEA would be willing to use          
 a form that provides for an automatic refund unless it is notified            
 otherwise.                                                                    
                                                                               
  CHAIRMAN TAYLOR  noted because the membership is continuing, one             
 avoids the obligation by requesting from one's union that he/she be           
 reimbursed for money already withheld.                                        
                                                                               
  MR. CYR  said the money is reimbursed before it is withheld.  He             
 explained NEA deducts dues and the PAC contribution monthly and               
 might deduct $30 for dues and $1.50 for the PAC.  With the first              
 monthly deduction, the member receives a card asking if he/she                
 wants the $15.00 reimbursement and if so, the money is reimbursed.            
 That bookkeeping system is used because it is easier for both NEA             
 and the school districts.                                                     
                                                                               
 Number 343                                                                    
                                                                               
  SENATOR MILLER  stated the members could be automatically reimbursed         
 unless they notify NEA to continue the deduction.  He did not have            
 a preference for methods but he felt continuing the reimbursement,            
 once the member has requested it and until the member requests                
 otherwise, should be reviewed further.                                        
                                                                               
  MR. CYR  explained NEA sends the reimbursement forms to every member         
 each year and would continue to do so even if it changed it's                 
 approach, so that members could easily notify NEA of any changes              
 they desired.                                                                 
                                                                               
  SENATOR PEARCE  thought the amended language on page 2, lines 13-14,         
 that states the written notification is valid for only one calendar           
 year, works against an automatic reimbursement or contribution                
 until notified differently.   CHAIRMAN TAYLOR  clarified the member           
 will have to authorize the deduction before any money is taken from           
 the check.  If the member does not file the next year, no money can           
 be deducted.  If a member wanted to make an ongoing ten-year                  
 contribution to the NEA PAC, he/she would have to fill out ten                
 authorization forms.                                                          
                                                                               
 Number 304                                                                    
                                                                               
  SENATOR PEARCE  said the school district will have an increased              
 administrative cost if it can no longer withhold a standard                   
 deduction from everyone's check and has to send out forms to each             
 member.  She thought there may be a less burdensome way to achieve            
 the goal of ensuring members' money is not automatically deducted             
 for PACs.                                                                     
                                                                               
  CHAIRMAN TAYLOR  emphasized the school district will only deduct             
 money for the PAC if the member notifies the school district to do            
 so.  The person who does not choose to participate does not have to           
 file anything.                                                                
                                                                               
  MR. CYR  noted the liability question needs to be addressed.  At             
 this point, NEA is totally liable.  NEA has an arbitration hearing            
 every year.  All records are kept by NEA and are open to any                  
 member.  If the school districts handle the paperwork, the                    
 liability will be placed on them.  Not only will the school                   
 districts have the expense of processing the paperwork, they may              
 have legal expenses.                                                          
                                                                               
 Number 244                                                                    
                                                                               
  KATHRYN THOMAS , Chair of the Alaska State Chamber of Commerce,              
 testified in support of CSSB 114(JUD) because it fairly provides              
 for the individual rights of employees.  The State Chamber does not           
 believe the bookkeeping requirements are burdensome on the                    
 employer, however it does believe the activity of dues collection             
 and payment is most appropriately handled directly between unions             
 and its members.                                                              
                                                                               
  CHAIRMAN TAYLOR  asked if Ms. Thomas was suggesting the legislation          
 should be expanded to require union members who want to send checks           
 to the union do so independently.   MS. THOMAS  thought a lot of              
 employers would support that.                                                 
                                                                               
  CHAIRMAN TAYLOR  stated committee staff is reviewing the liability           
 issue as well as whether APOC or the Department of Labor is the               
 appropriate agency to be involved.  He said his concern is that an            
 agency have proper oversight so that the union member has someone             
 to appeal to.  He noted those issues can be discussed as the bill             
 gets closer to the floor.                                                     
                                                                               
  SENATOR MILLER  moved CSSB 114(JUD) out of committee with individual         
 recommendations.  There being no objection, the motion carried.               
 The meeting was adjourned at 3:20 p.m.