03/14/2002 09:41 AM Senate FIN

                                                                                                                                
     SENATE BILL NO. 180                                                                                                        
     "An Act implementing pay differentials based on geographic                                                                 
     areas for certain state employees and for members of the                                                                   
     Alaska State Defense Force; and providing for an effective                                                                 
     date."                                                                                                                     
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.  This bill was  reported from  Committee at the  previous                                                            
hearing.                                                                                                                        
                                                                                                                                
Co-Chair  Donley noted  this bill  was referred  back to the  Senate                                                            
Finance  Committee  after further  consideration.  He  referenced  a                                                            
proposed  committee  substitute  that  accommodates   employees  not                                                            
currently covered by the  new geographic pay differential standards.                                                            
He  explained   the  committee   substitute   "grandfathers"   these                                                            
employees into the proposed program.                                                                                            
                                                                                                                                
Senator Ward  moved to adopt  CS SB 180,  22-LS0324\O, as a  working                                                            
draft.                                                                                                                          
                                                                                                                                
There was no objection and the committee substitute was ADOPTED.                                                                
                                                                                                                                
PAUL LYLE,  State Employee  18 years, testified  via teleconference                                                             
from  Fairbanks  in  support  of  the  committee  substitute  as  it                                                            
supports those who have made a commitment to the state.                                                                         
                                                                                                                                
PAM HARTNELL,  State  Employee,  testified via  teleconference  from                                                            
Fairbanks  in support  of the grandfather  clause  contained in  the                                                            
committee  substitute, saying  it benefits  long-term professionals                                                             
who work for the state.                                                                                                         
                                                                                                                                
JOHN  ATHENS,  State Employee,  testified  via  teleconference  from                                                            
Fairbanks  to reiterate  the  previous  testifiers  and support  the                                                            
committee substitute.                                                                                                           
                                                                                                                                
JONI  ATHENS,  State Employee,  testified  via  teleconference  from                                                            
Fairbanks in support of the committee substitute.                                                                               
                                                                                                                                
Senator Austerman  noted the geographic pay differential  system was                                                            
first established according  to election districts and asked how the                                                            
current  redistricting  efforts correlate  to this  legislation  and                                                            
whether there is a provision  in the committee substitute addressing                                                            
this.                                                                                                                           
                                                                                                                                
Co-Chair  Donley explained  the geographic  pay differential  system                                                            
was first established  shortly after  statehood, using the  original                                                            
election  districts  in place  in 1961.  He  noted that  as the  pay                                                            
system has been updated,  the 1961 election district boundaries have                                                            
been retained  for this  purpose. He said  the committee  substitute                                                            
also  applies  to  the original  boundaries,  as  did  the  original                                                            
version of the bill introduced by the Governor.                                                                                 
                                                                                                                                
ROXANNE STEWART, Legislative  Liaison, Department of Administration,                                                            
affirmed.                                                                                                                       
                                                                                                                                
Senator  Wilken  spoke  on behalf  of  Co-Chair  Kelly  and  Senator                                                            
Therriault  that this committee substitute  is a fairer system  that                                                            
does not detriment  the 71 families  that would have been  adversely                                                            
impacted  by the original  version of this  bill. However,  he noted                                                            
the committee  substitute does make structural changes  necessary to                                                            
provide a fairer pay system across the state.                                                                                   
                                                                                                                                
Senator  Wilken offered  a motion  to report  CS SB  180 (FIN)  from                                                            
Committee.                                                                                                                      
                                                                                                                                
The bill MOVED from Committee without objection.                                                                                
                                                                                                                                
At EASE 9:49 AM /9:50 AM                                                                                                        
                                                                                                                                
Senator Wilken moved to  rescind the Committee's action in reporting                                                            
the bill from Committee.                                                                                                        
                                                                                                                                
Without objection the action  was RESCINDED. The bill was before the                                                            
Committee.                                                                                                                      
                                                                                                                                
Senator  Wilken offered  a motion  to report  CS SB  180 (FIN)  from                                                            
Committee  with  forthcoming  fiscal  notes from  the  Alaska  Court                                                            
System and all agencies.                                                                                                        
                                                                                                                                
There was no objection and the bill MOVED from Committee.