05/13/2003 04:41 PM Senate FIN

                                                                                                                                
     SENATE BILL NO. 117                                                                                                        
     "An Act eliminating the longevity bonus program and making                                                                 
     related conforming changes; and providing for an effective                                                                 
     date."                                                                                                                     
                                                                                                                                
                                                                                                                                
This  was the third  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Senator  Taylor  moved  to adopt  CS  SB 117,  23-GS1100\B,  as  the                                                            
working document.                                                                                                               
                                                                                                                                
Senator Hoffman objected for explanation.                                                                                       
                                                                                                                                
Senator  Taylor  explained  that  the  committee   substitute  would                                                            
provide for  a five-year  phase out of the  longevity bonus  program                                                            
with  the  program  being  eliminated  from  State  statute  at  the                                                            
conclusion of that time.  He communicated that he is furthering this                                                            
proposal, not  because he avidly supports  it, but because  it is an                                                            
acceptable  solution  to  the  Pioneers  of Alaska  and  AARP  whose                                                            
"wisdom" in the matter he acknowledges.                                                                                         
                                                                                                                                
Co-Chair Wilken  stated that the committee substitute's  fiscal note                                                            
would be forthcoming.                                                                                                           
                                                                                                                                
Senator Hoffman  removed his objection, although he  opined that the                                                            
legislation  does not  reflect  the wishes  of "the  masses" of  the                                                            
State's senior citizen population.                                                                                              
                                                                                                                                
Without further  objection, Version  "B" was ADOPTED as the  working                                                            
document.                                                                                                                       
                                                                                                                                
Senator  Taylor  moved  to  report  the  bill  from  Committee  with                                                            
individual recommendations and forthcoming fiscal note.                                                                         
                                                                                                                                
Senator Hoffman and Senator Olson objected.                                                                                     
                                                                                                                                
Senator Hoffman reiterated  that this legislation does not represent                                                            
the desire of the majority of the State's seniors.                                                                              
                                                                                                                                
Senator Olson  argued that the process  has not provided  sufficient                                                            
time for public  input. He noted that the elders in  his Legislative                                                            
District do not support the proposal.                                                                                           
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator B. Stevens,  Senator Taylor, Senator Bunde and Co-                                                            
chair Wilken                                                                                                                    
                                                                                                                                
OPPOSED: Senator Olson and Senator Hoffman                                                                                      
                                                                                                                                
ABSENT: Co-chair Green                                                                                                          
                                                                                                                                
The motion PASSED (4-2-1)                                                                                                       
                                                                                                                                
CS  SB 117(FIN)  was  REPORTED  from Committee  with  a forthcoming                                                             
fiscal note.