Legislature(2001 - 2002)
04/28/2001 09:10 AM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 239
An Act establishing a pilot program for a regional
learning center.
LARRY LABOLLE, STAFF, REPRESENTATIVE RICHARD FOSTER,
st
explained that the 21 Legislature through the Legislative
Budget and Audit Committee (LBA) hearings, found indications
of broad support for regional learning centers. Several
communities have expressed interest in creating regional
boarding programs focused on the special interests of their
regions.
He noted that the Bering Strait School District and the Nome
City School District have been exploring the feasibility of
a cooperative program that would utilize the existing Nome
Beltz School complex to develop and operate a pilot regional
learning program. Both these districts have taken actions
to support the creation of a pilot program and to seek
federal funding to help cover program planning and the
initial operation costs.
Mr. LaBolle pointed out that a conceptual overview of the
program was contained in the March 20, 2001 letter from Dr.
John Davis, Superintendent of the Bering Strait School
District. [Copy on File]. That letter helps to define and
support the concept proposed in the legislation.
Representative Lancaster asked if the Department's report
would be available to the Legislature. Mr. LaBolle replied
that there would be a report available. He added that the
program was accompanied by a sunset clause in order to
review the concept. He noted that the districts had
consented to provide a third party evaluation to the
Department and to the Legislature.
Representative Davies asked if the proposal would be similar
to the boarding school concept as Mt. Edgecumbe. Mr.
LaBolle explained that in the proposed program, the student
would not be leaving their home village for any extended
length of time. They would be learning independent living
skills during short periods of time away from their homes.
These skills would help the student with the transition from
village life to larger community living.
Representative Davies inquired the time frame, which the
student would be living in the program. Mr. LaBolle replied
that the initial program would look something like what the
Bering Strait School district has been running but expanded.
The legislation would expand that program and bring it into
Nome, where there is a larger population.
Representative J. Davies spoke in support of the program.
Representative Foster MOVED to report HB 239 out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
HB 239 was reported out of Committee with a "do pass"
recommendation and with a fiscal note by Department of
Education & Early Development #1 dated 4/25/01.
#HB198
HOUSE BILL NO. 198
An Act relating to a post-retirement pension adjustment
and cost-of-living allowance for persons receiving
benefits under the Elected Public Officers Retirement
System; and increasing the compensation of the
governor.
REPRESENTATIVE BILL HUDSON explained that the proposed bill
had resulted from an effort to contain costs on the most
extreme cases requiring inequity correction between
retirement benefit calculations for the Elected Public
Officials Retirement System (EPORS) and Public Employees'
Retirement System (PERS) members. A statistical review of
EPORS retirees, or their surviving spouses, revealed that
many members have or will be receiving a benefit adjustment
but rather from changes in the salaries or additional
allowances in the position from which they retired.
The current language concentrates on narrowing the focus to
members who have not had any cost of living or other benefit
adjustments to their EPORS retirement benefits, as have
their peers who retired under the PERS retirement system.
Representative Hudson stated that HB 198 is a fair bill
designed to equalize future benefits only of the few EPORS
retirees and their surviving spouses who have not otherwise
seen any change in retirement received for their service to
the State of Alaska.
Vice-Chair Bunde asked how many people would be involved
with passage of the legislation. Representative Hudson
replied five or less. He reiterated that the bill was an
issue of "fairness".
Vice-Chair Bunde MOVED to ADOPT Amendment #1. [Copy on
File]. Representative Croft OBJECTED for an explanation.
Vice-Chair Bunde explained that the Division of Retirement
and Benefits had proposed the amendment. The amendment
would limit the bill to the five people mentioned.
In response to Representative J. Davies, Representative
Hudson stated that there are only a few who have not
received an increase in the last years. The language
provided in Amendment #1 is necessary to isolate those five.
There are approximately twenty-two EPORS retirees that have
continued their employment with the State. Those people
have been receiving their annual cost-of-living increases
under the programs. The other five have not received
anything for fifteen years and they would be covered under
this bill.
Co-Chair Mulder interjected that the legislation would be
restricted. Representative Davies commented that he did not
want it to be restrictive to only the favorites.
Representative Hudson replied that some are still under the
EPORS system, which has been responsible for those costs.
Initially, there were 35 and now there are five.
GUY BELL, DIRECTOR, DIVISION OF RETIREMENT AND BENEFITS,
DEPARTMENT OF ADMINISTRATION, explained that the bill was
designed to cover those people that have not received an
increase for fifteen years. Effectively, there are only two
people in that category. The retirement and benefit is
based on the salary of the position that person last held.
Those benefits have been fixed. All other EPORS members
have received some increase. The increase is based on the
salary and other compensation of the position that the
person left.
Representative Croft commented that it rest on the fact that
the Governor's salary had not been increased since 1983.
The legislation would provide a retirement benefit roughly
equal to what Governor Hammond would have received if he had
gone on to another system or his salary was raised.
Mr. Bell replied that the legislation would provide a 75%
change in the Consumer Price Index (CPI) since that benefit
was last changed in 1983. The original bill raised the
Governor's salary, which would have effectively increased
the benefit, however, that section was dropped. He added,
Section 2 of the bill guarantees that there is no "double
dipping".
Representative Croft inquired the situation of the other 25-
30 people that are on a similar track. Mr. Bell replied
that the general theory behind EPORS was that overtime and
salaries would increase. He noted that system was based on
the judicial retirement system, which is effectively the
same. The way that it works is that a person's retirement
benefit is based on current salary of the position that they
vacated. For the EPORS members that has been more erratic
and for some, non-existent. He added that legislative
salaries have increased.
Mr. Bell explained that there was a challenge ballot
measure, which was disapproved. There was an option to stay
in. Some of those people have not yet retired and the
remainder are drawing benefits for public service.
Discussion followed between Representative Croft and Mr.
Bell regarding the history of the Judicial Retirement
statute.
Vice-Chair Bunde clarified that the amendment would only
effect retired persons under the EPORS system. Mr. Bell
interjected that the person would have had to been retired
for at least 15 years. Representative Hudson emphasized
that the bill would provide equal treatment for the retiree
and would bring those few people up to "speed".
Representative Davies asked if the amendment would be
excluding anyone. Mr. Bell stated that the Department was
comfortable with the amendment because excluded persons
would be eligible for an increased amount at a future date.
He reiterated that there would a benefit at sometime in the
future.
There being NO OBJECTION, Amendment #1 was adopted.
Representative Croft MOVED a conceptual amendment to the
bill. He stated that the root of the problem was that the
Governor's salary had not been increased in twenty years.
He suggested that the language indicate that the Governor's
salary be $100,000 dollars, effective with the swearing in
of the next Governor.
Representative Hudson OBJECTED. He commented that the bill
simply was trying to make parity and pointed out that there
is a salary bill to address other concerns.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Davies, Moses
OPPOSED: Foster, Harris, Hudson, Lancaster, Whitaker,
Bunde, Mulder, Williams
The MOTION FAILED (3-8).
Representative Hudson MOVED to report CS HB 198 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. Representative Whitaker OBJECTED
for further discussion.
Representative Whitaker voiced concern if equality was being
created with passage of the legislation. Mr. Bell responded
that the system had been classified as EPORS.
Representative Whitaker asked if the three persons who made
the decision to stay, had been placed into that category
with the option to "opt out". Mr. Bell acknowledged that
was correct. Representative Whitaker indicated that he
maintained his objection.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Foster, Harris, Hudson, Lancaster,
Moses, Bunde, Williams, Mulder
OPPOSED: Whitaker, Croft
The MOTION PASSED (9-2).
CS HB 198 (FIN) was reported out of Committee with
"individual" recommendations and with a fiscal note by
Department of Administration #1 dated 4/16/01 and a zero
fiscal note #2 by the Office of the Governor dated 4/16/01.
#HB53
HOUSE BILL NO. 53
An Act establishing the Alaska Seismic Hazards Safety
Commission.
REPRESENTATIVE JOHN DAVIES explained that HB 53 would create
a Seismic Hazards Safety commission. The Commission would
be situated in the Governor's office. The Commissioner
would be established to address pressing needs in providing
a consistent policy framework and a means for ongoing
coordination of programs and public safety practices related
to seismic hazards. Current needs are not being addressed
by any state government organization. The seismic Hazard
Safety Commission would encourage long-term progress toward
mitigating the effects of earthquakes.
TAPE HFC 01 - 105, Side A
Representative J. Davies emphasized that there should be
people within the State focusing on building code needs,
which are cost effective.
Members of the commission would be appointed by the Governor
to represent the University, various governmental agencies,
as well as members of the public who are knowledgeable in
earthquake hazard mitigation. The Commission would
recommend to the public and governmental sector goals and
priorities for reducing earthquake effects. The authority
and responsibility of other various state agencies, boards,
councils, commissions and/or local governments would not be
intended to be transferred to the Alaska Seismic Hazards
Safety Commission.
Co-Chair Williams pointed out that last year, the bill had
passed through the House and made it to Senate Rules
Committee.
Representative Davies MOVED to report HB 53 out of Committee
with individual recommendations and with the accompanying
fiscal note. There being NO OBJECTION, it was so ordered.
HB 53 was reported out of Committee with a "do pass"
recommendation and with a fiscal note #1 by Department of
Natural Resources dated 3/30/01.
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