03/06/2000 09:04 AM Senate FIN

SENATE BILL NO. 269                                                                                                             
"An Act relating to the deadline for the submission of                                                                          
monetary terms of collective bargaining contracts                                                                               
between the state and a labor or employee organization                                                                          
representing state employees to the legislature."                                                                               
                                                                                                                                
                                                                                                                                
SENATOR PEARCE stated that SB 269 would modify current law                                                                      
and set an April 1st deadline for the submission of                                                                             
monetary terms included in collective bargaining agreements                                                                     
negotiated by the State Employee Union.  She continued that                                                                     
often the Alaska Legislature finds itself receiving                                                                             
monetary terms of contracts in the final days of session                                                                        
often before they are able to look at the intricacies of                                                                        
the different contracts.  She noted that under the current                                                                      
law, the legislature must make reasoned decisions involving                                                                     
these contracts in an extremely short period of time.  She                                                                      
added that SB 269 allows the state to begin the negotiation                                                                     
process whenever necessary, while still providing a                                                                             
significant amount of time within a calendar year for                                                                           
legislative review of the terms.  She cited the case                                                                            
University of Alaska vs. The Alaska Supreme Court, where it                                                                     
was decided that monetary terms in collective bargaining                                                                        
agreements do not become effective until the legislature                                                                        
specifically funds them.  She then gave the history of this                                                                     
litigation.                                                                                                                     
                                                                                                                                
Senator Leman asked how this legislation would affect the                                                                       
legislature trying to limit session to a 90-day period.  He                                                                     
wondered if it would not accomplish the same thing by                                                                           
stating that, "terms shall be submitted no later than 40                                                                        
days before the constitutional deadline for regular                                                                             
session," rather than specifying a date.                                                                                        
                                                                                                                                
Co-Chair Parnell suggested that language could state that                                                                       
the final contract terms must be in place so many days                                                                          
following the commencement of the legislative session.  A                                                                       
general discussion about how this language should be                                                                            
drafted took place.                                                                                                             
                                                                                                                                
Co-Chair Torgerson asked if the Committee should consider                                                                       
an immediate effective date.                                                                                                    
                                                                                                                                
Senator Pearce responded affirmatively.  She added that the                                                                     
legislature usually responds to the monetary aspects of                                                                         
these contracts, while there are changes to language should                                                                     
be considered at the same.                                                                                                      
                                                                                                                                
Co-Chair Torgerson referred to page one, line ten, which                                                                        
makes note of a calendar year, rather than a fiscal year.                                                                       
                                                                                                                                
Senator Pearce responded that if for some reason the                                                                            
legislature did not deal with contractual terms, she                                                                            
assumed that most governors would bring the body back for                                                                       
special session.  She noted that Alaska's session did work                                                                      
on a calendar year and then weighed the pros and cons of                                                                        
each calendar year versus a fiscal year.                                                                                        
                                                                                                                                
Amendment #1: This amendment makes the following changes to                                                                     
this legislation.                                                                                                               
                                                                                                                                
 Page 1, line 1:                                                                                                                
                                                                                                                                
  Delete "monetary terms of"                                                                                                    
                                                                                                                                
 Page 1, line 9:                                                                                                                
                                                                                                                                
  Delete "terms"                                                                                                                
  Insert "final contract"                                                                                                       
                                                                                                                                
Co-Chair Parnell made a motion to adopt Amendment #1.  He                                                                       
explained that this amendment would make clear the contract                                                                     
language presented to the union members for ratification,                                                                       
the same language that the administration will submit to                                                                        
the legislature for appropriation purposes.                                                                                     
                                                                                                                                
Senator Adams asked if all final contracts in this                                                                              
situation would be arrived at by April 1, as noted in this                                                                      
legislation and pointed out that the previous "terms"                                                                           
language was a bit more general.                                                                                                
                                                                                                                                
Co-Chair Parnell responded to this query with his previous                                                                      
statement regarding language consistency.                                                                                       
                                                                                                                                
Senator Adams pointed out that this legislation affected                                                                        
numerous contracts and he wondered if negotiations could be                                                                     
completed by April 1.                                                                                                           
                                                                                                                                
Co-Chair Torgerson responded that the unions are only                                                                           
required to submit the monetary terms of an agreement to                                                                        
the legislature within 10 days of final negotiations.  He                                                                       
added that the parties can adjust negotiations to arrive at                                                                     
a new deadline regardless of what final date is chosen.                                                                         
                                                                                                                                
Co-Chair Torgerson hearing no objection ADOPTED Amendment                                                                       
                                                                                                                                
Senator Leman proposed a conceptual amendment, which would                                                                      
read "40 days before the end of the constitutional                                                                              
deadline," rather than a set date of April 1.                                                                                   
                                                                                                                                
Senator Pearce felt as though so many days from the                                                                             
beginning of session for a deadline might be a better                                                                           
approach.  She outlined her reasoning for this assessment.                                                                      
There was additional discussion about the rational behind                                                                       
an up-front session deadline or at the end of session                                                                           
deadline for these employee contracts and how either of                                                                         
these options would affect future constitutional language                                                                       
changes to terms of session.                                                                                                    
                                                                                                                                
Amendment #2: This was a conceptual amendment which would                                                                       
conceptually strike "April 1," on page one, line ten and                                                                        
insert "45 days after the start of the legislative                                                                              
session."                                                                                                                       
                                                                                                                                
Senator Wilken made a motion to adopt Amendment #2.                                                                             
                                                                                                                                
Co-Chair Parnell responded that this language would square                                                                      
with the language in existing law.   There was additional                                                                       
discussion about deadlines for contract negotiations.                                                                           
                                                                                                                                
Co-Chair Torgerson hearing no objection ADOPTED Amendment                                                                       
                                                                                                                                
Co-Chair Parnell made a motion to move SB 269, Version                                                                          
LS1386\A as amended from the committee with individual                                                                          
recommendations and attached zero fiscal note from the                                                                          
Department of Administration.                                                                                                   
                                                                                                                                
Co-Chair Torgerson hearing no objection moved SB 269 FROM                                                                       
THE COMMITTEE.