Legislature(2005 - 2006)HOUSE FINANCE 519

04/26/2006 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 375 RETIREMENT BENEFIT LIABILITY ACCT. TELECONFERENCED
Moved CSHB 375(FIN) Out of Committee
+ HB 306 CONVEY HATCHER PASS TO MAT-SU BOROUGH TELECONFERENCED
<Bill Hearing Rescheduled to 8:30 AM>
+ SB 305 OIL AND GAS PRODUCTION TAX TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 29 HEALTH CARE INSUR./COMP HEALTH INS. ASSN TELECONFERENCED
Moved CSHB 29(L&C) Out of Committee
+= SB 237 ADDITIONAL JUDGES FOR THIRD DISTRICT TELECONFERENCED
Moved Out of Committee
CS FOR SENATE BILL NO. 237(FIN)                                                                                               
                                                                                                                                
     An  Act relating  to the  compensation  of justices  and                                                                   
     judges, and  to increasing the number of  superior court                                                                   
     judges  designated  for the  third  and fourth  judicial                                                                   
     districts; and providing for an effective date.                                                                            
                                                                                                                                
CHRIS  CHRISTENSEN,  STAFF  COUNSEL,   ALASKA  COURT  SYSTEM,                                                                   
addressed the pay raise for judges.   Over the last 15 years,                                                                   
judges'  salaries  have been  reduced  by  42 percent.    The                                                                   
problem is  made worse by the  way judicial salaries  are set                                                                   
in statute.   Salaries have not  kept up with inflation.   In                                                                   
rural Alaska  the situation is  even worse due  to geographic                                                                   
differentials in salaries.  Judges  are often not the highest                                                                   
paid state  employees  in the community.   Bethel's  position                                                                   
has been vacant for 11 months.                                                                                                  
                                                                                                                                
Mr.  Christensen  spoke about  the  published  list of  state                                                                   
salaries.   Superior Court Judges'  salaries have  dropped to                                                                   
185th.  Salaries  have dropped relative to  other judiciaries                                                                   
and relative  to state  employees.  He  spoke about  the high                                                                   
number of citizens  that come before the court.   A judge has                                                                   
the  power to  destroy  someone's life  and  must make  major                                                                   
decisions.    He  argued  for   employing  the  best  lawyers                                                                   
possible as judges.                                                                                                             
                                                                                                                                
Mr. Christensen related qualifications  for being a judge and                                                                   
common attributes.   He addressed income and  salary decline,                                                                   
which  may cause  lawyers  not to  apply  to be  judges.   He                                                                   
mentioned  judicial  positions that  remain  vacant.   It  is                                                                   
important to have judges with private sector experience.                                                                        
                                                                                                                                
Mr. Christensen noted  that the bill would provide  for a new                                                                   
salary structure, but would remain  below the previous salary                                                                   
structure.   Under the  new salary  structure, Alaska  judges                                                                   
                            th                                                                                                  
that  standards  may  need  to   be  lowered  to  fill  judge                                                                   
positions.  He urged support of the bill.                                                                                       
                                                                                                                                
Mr. Christensen  addressed the perception that  the increased                                                                   
pay raise  in the  bill is 50  percent.   It seems  that high                                                                   
because existing law depicts judges'  salaries ten years ago.                                                                   
He  stated  that  the  increase  is  actually  less  than  30                                                                   
percent.                                                                                                                        
                                                                                                                                
2:01:58 PM                                                                                                                    
                                                                                                                                
Vice Chair Stoltze asked if there  is any component of public                                                                   
service with value,  such as a retirement system  for judges.                                                                   
He also  wondered if  the state is  losing judges  to federal                                                                   
judgeships.  Mr.  Christensen replied that there  is a strong                                                                   
component of  public service to being  a judge.  He  spoke of                                                                   
social  restrictions experienced  by judges.   The Bureau  of                                                                   
Labor  Standards  publishes  a survey  that  has  determined,                                                                   
nationwide, the  public service  discount is 20  percent less                                                                   
than a  lawyer of similar  experience in the  private sector.                                                                   
In  Alaska,  judges  are  working for  a  40  percent  public                                                                   
service  discount.   Before Judges  receive  a paycheck  they                                                                   
have to sign a sworn affidavit  that says nothing has been on                                                                   
their desk for  longer than 6 months.  He gave  an example of                                                                   
a  case that  lasted  6 months  and  a judge's  paycheck  was                                                                   
withheld because  cases were backlogged.   There is  a strong                                                                   
public service  component to being  a judge.  He  stated that                                                                   
several state judges have taken federal jobs.                                                                                   
                                                                                                                                
2:07:05 PM                                                                                                                    
                                                                                                                                
SUSAN  PARKS,  DEPUTY ATTORNEY  GENERAL,  CRIMINAL  DIVISION,                                                                   
DEPARTMENT OF LAW,  offered to address the Department  of Law                                                                   
fiscal notes.                                                                                                                   
                                                                                                                                
Representative Hawker inquired  about the Alaska Court System                                                                   
fiscal  note,  which  addresses  a  capital  expenditure  for                                                                   
improvements in the  Kenai facility.  He did  not debate that                                                                   
improvements were  needed, but  wondered why the  expense was                                                                   
not  included  in  the capital  budget.    Co-Chair  Chenault                                                                   
agreed that was odd.                                                                                                            
                                                                                                                                
Mr. Christensen said they were  advised to put all costs into                                                                   
the fiscal note, including capital  costs.  He commented that                                                                   
the costs in Kenai are the same  as the cost for the facility                                                                   
in Palmer and are accurate.                                                                                                     
                                                                                                                                
2:10:17 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault  asked how  many judgeship vacancies  there                                                                   
are.   He wondered if  the judicial council  has ever  made a                                                                   
recommendation to not accept a judicial candidate.                                                                              
                                                                                                                                
LARRY  COHN,  EXECUTIVE DIRECTOR,  ALASKA  JUDICIAL  COUNCIL,                                                                   
ALASKA  COURT  SYSTEM,  replied  that  in  the  80's  several                                                                   
applications for retention were rejected.                                                                                       
                                                                                                                                
Co-Chair  Chenault  listed  all  of  the  fiscal  notes  that                                                                   
accompany  SB 237:  fiscal  note #2  by  the Alaska  Judicial                                                                   
Council, fiscal  note #4 by the  Office of the  Governor, and                                                                   
with  new  fiscal  notes  by the  Alaska  Court  System,  the                                                                   
Department  of  Law, the  Department  of Public  Safety,  the                                                                   
Department   of  Administration,   and   the  Department   of                                                                   
Corrections.                                                                                                                    
                                                                                                                                
2:14:50 PM                                                                                                                    
                                                                                                                                
Representative Hawker  MOVED to REPORT CSSB 237  (FIN) out of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal notes.  Vice Chair Stoltze OBJECTED.                                                                        
                                                                                                                                
Vice Chair  Stoltze said  he has  a concern  with all  of the                                                                   
issues  being tied  together.   He wished  that the  Judicial                                                                   
Council was more receptive to  some of the ideas put forth by                                                                   
the legislature  and by  the public  regarding enhancing  the                                                                   
recruitment process for judges.   Vice Chair Stoltze WITHDREW                                                                   
his OBJECTION.                                                                                                                  
                                                                                                                                
2:16:18 PM                                                                                                                    
                                                                                                                                
Representative Joule noted that  a number of crime bills were                                                                   
passed this  session.  This bill  is the connecting  piece to                                                                   
hold people accountable  for appropriate behavior.   He spoke                                                                   
in support of SB 237.                                                                                                           
                                                                                                                                
Representative Kelly OBJECTED  to the motion to adopt SB 237.                                                                   
He questioned  whether  there is actually  more crime  today.                                                                   
He  admitted to  having difficulty  passing the  bill out  of                                                                   
Committee.                                                                                                                      
                                                                                                                                
2:18:45 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  noted  that  this  is  a  significant                                                                   
policy decision and financial  commitment.  He said he has no                                                                   
reservations  about  passing   SB  237.    He  spoke  to  the                                                                   
"deferred maintenance"  issue in  the judicial system,  where                                                                   
the community has  grown and crime has increased.   He called                                                                   
it the number  one priority legislation in his  district.  He                                                                   
spoke strongly in support of the bill.                                                                                          
                                                                                                                                
Representative Kelly REMOVED his OBJECTION.                                                                                     
                                                                                                                                
Vice  Chair  Stoltze  agreed   with  Representative  Hawker's                                                                   
comments.                                                                                                                       
                                                                                                                                
There being NO further OBJECTION, it was so ordered.                                                                            
                                                                                                                                
CS  SB 237(FIN)  was REPORTED  out  of Committee  with a  "no                                                                   
recommendation"  and  with  fiscal  note  #2  by  the  Alaska                                                                   
Judicial  Council,  fiscal  note  #4  by the  Office  of  the                                                                   
Governor,  and with  new  fiscal notes  by  the Alaska  Court                                                                   
System,  the Department  of  Law,  the Department  of  Public                                                                   
Safety, the Department of Administration,  and the Department                                                                   
of Corrections.                                                                                                                 
                                                                                                                                
2:22:52 PM                                                                                                                    
                                                                                                                                

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