02/15/2022 03:30 PM Senate STATE AFFAIRS

             SB 145-LEGISLATOR RETROACTIVE PER DIEM                                                                         
                                                                                                                                
4:17:56 PM                                                                                                                    
CHAIR SHOWER announced the consideration of SENATE BILL NO. 145                                                                 
"An Act relating  to per diem for legislators;  and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
[The bill was previously heard on 2/1/2022.]                                                                                    
                                                                                                                                
4:18:23 PM                                                                                                                    
SENATOR HOLLAND,  speaking as  sponsor of  SB 145,  recapped that                                                               
the  current statute  regarding per  diem for  legislators states                                                               
that  legislators are  not entitled  to  daily per  diem for  the                                                               
period that a budget is not  in place [after the 121st day]. That                                                               
has  somehow  been  interpreted  to  mean  that  legislators  are                                                               
allowed retroactive per  diem payments. SB 145  honors the intent                                                               
of  a  past  ballot  initiative   and  quells  the  concern  that                                                               
legislators have a monetary incentive  to go into special session                                                               
before passing the operating budget.                                                                                            
                                                                                                                                
4:20:04 PM                                                                                                                    
SENATOR  KAWASAKI   questioned  whether   this  would   give  the                                                               
executive branch an advantage when  it negotiates the budget with                                                               
the legislative  branch. He offered  his experience  that special                                                               
sessions are often because of the "Third Floor."                                                                                
                                                                                                                                
SENATOR HOLLAND  replied he  did not  believe that  separation of                                                               
powers was  involved. The  bill simply seeks  to clarify  what is                                                               
already in statute.                                                                                                             
                                                                                                                                
SENATOR  COSTELLO asked  whether the  budget would  need to  pass                                                               
both bodies to be considered passed.                                                                                            
                                                                                                                                
SENATOR HOLLAND  offered his belief  that both bodies  would need                                                               
to pass the budget and send it to the governor.                                                                                 
                                                                                                                                
CHAIR SHOWER pointed to the last  sentence in Section 1, which is                                                               
in current statute.                                                                                                             
                                                                                                                                
      In this subsection, "passed by the legislature" has                                                                       
     the meaning given in AS 01.10.070.                                                                                         
                                                                                                                                
SENATOR COSTELLO  asked the sponsor  if he had  contemplated that                                                               
if the  budget is not  passed before day  121, there could  be an                                                               
incentive  to move  the special  session to  a community  where a                                                               
majority of legislators live and would not collect per diem.                                                                    
                                                                                                                                
SENATOR HOLLAND said he wasn't sure what she was asking.                                                                        
                                                                                                                                
4:23:15 PM                                                                                                                    
SENATOR  COSTELLO said  she supports  aligning laws  with voters'                                                               
intent when they  pass initiatives, but her concern  is that some                                                               
people may not be able to afford  to do without per diem and that                                                               
may have unintended consequences.                                                                                               
                                                                                                                                
4:24:16 PM                                                                                                                    
SENATOR HOLLAND said the concern  about creating a legislature of                                                               
elite  incomes would  not be  a  problem if  legislators were  to                                                               
prioritize the  job of passing the  budget in 121 days.  He added                                                               
that he  would support leaving  the capital in Juneau  but moving                                                               
the legislature to Anchorage.                                                                                                   
                                                                                                                                
CHAIR SHOWER pointed out that  legislatures in some states, Texas                                                               
for example, meet every other year and get the job done.                                                                        
                                                                                                                                
SENATOR  HOLLAND said  the legislature  does get  distracted with                                                               
issues like  the size  of the permanent  fund dividend  (PFD) and                                                               
that should be fixed so it's  automatic. He noted that the Fiscal                                                               
Plan  Working Group  pushed for  that last  year. He  offered his                                                               
view  that collecting  $300 per  day in  per diem  after day  121                                                               
could  be  a  motivation  to  not  pass  the  budget  timely.  He                                                               
disclosed  that he  did  not collect  per diem  in  the first  or                                                               
second  special session  last year  to  honor the  intent of  the                                                               
voters when they passed the initiative on the topic of per diem.                                                                
                                                                                                                                
SENATOR REINBOLD commented  that leadership will have  to lead to                                                               
ensure that the Senate receives  the budget from the House before                                                               
it's down  to the wire.  She added  that she believes  the budget                                                               
process is  backwards and the solution  is to place a  cap on the                                                               
budget. She voiced  support for the bill and  thanked the sponsor                                                               
for bringing it forward.                                                                                                        
                                                                                                                                
CHAIR SHOWER  commented on the  difference between  talking about                                                               
moving the legislature as opposed to moving the capital.                                                                        
                                                                                                                                
4:29:16 PM                                                                                                                    
SENATOR HOLLAND summarized that SB 145 does not change the law;                                                                 
it reinforces and clarifies the existing statute.                                                                               
                                                                                                                                
CHAIR SHOWER held SB 145 in committee.