Legislature(1993 - 1994)
03/20/1993 08:00 AM House STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 46: STATE-PAID TRAVEL MILEAGE CREDITS CHAIRMAN VEZEY read the title to HB 46 and invited Representative Terry Martin to present the Sponsor Statement. Number 114 REPRESENTATIVE TERRY MARTIN, PRIME SPONSOR OF HB 46, stated the decision facing the committee was a simple one: Whether the mileage credits given by airlines are property of the state or state employees. He noted Alaska is unique because our employees are not able to travel county to county as in other states, and the amount of air travel done here is far more substantial. He advised state paid air travel is 7.3% of the total travel in Alaska, which, if mileage credits became state property, could account for $2.3 million in savings. Number 191 REPRESENTATIVE FRAN ULMER noted Alaska Airlines had opposed such a plan earlier and asked if Representative Martin had spoken with the company. REPRESENTATIVE MARTIN replied in the negative, but knew the airline was still unwilling to go with the plan because it has a monopoly on state travel. Number 215 REPRESENTATIVE ULMER stated because of that monopoly, it should make no difference to Alaska Airlines who got the credit unless there was a problem in setting up the state accounts for mileage. REPRESENTATIVE MARTIN stated Alaska Airlines may be benefitting from extra travel by state employees because they could benefit from getting such mileage. He stated there is the possibility of cutting down on unneeded travel if the incentive was taken away, and said setting up departmental accounts should be no problem. Number 272 CHAIRMAN VEZEY asked how the federal government handled mileage credits. REPRESENTATIVE MARTIN stated the federal accounts were regional, and that other major companies like BP and Arco had set up company wide accounts. He stated the University of Alaska made it a point of honor for employees not to claim mileage. Number 296 REPRESENTATIVE ULMER stated it was apparent to her most states did not monitor mileage because it is not cost effective and not worth the trouble. REPRESENTATIVE MARTIN restated that Alaska employees travel far more by air than any other state, and he saw nothing simpler than one state working with one airline to monitor a limited number of accounts. Number 380 BRUCE LUDWIG, BUSINESS MANAGER, ALASKA PUBLIC EMPLOYEES ASSOCIATION (APEA), opposed HB 46 and stated APEA members routinely traveled during non-working hours and spent several nights away from family, and the mileage credits are the only compensation for the inconvenience. He also stated lawmakers are getting into collective bargaining when they approach this as a money source, since the union considers it a contractually agreed benefit. Number 451 CHAIRMAN VEZEY asked Representative Martin about the Class B misdemeanor HB 46 mandated for those who violate it. He expressed concern jail time for employees might counter the dollar savings HB 46 might provide. REPRESENTATIVE MARTIN explained jail time probably would not be a factor often, and that it might be a fitting punishment anyway. Number 476 CHAIRMAN VEZEY asked if the $2.3 million savings still might be offset by putting people in jail. REPRESENTATIVE MARTIN reiterated he did not think that would be a large factor, and noted it was not fair for the administration to negotiate deals with the union and then expect legislators to fund them with no input. Number 511 REPRESENTATIVE ULMER replied that in past years, the legislature entered labor negotiations with disastrous results. She reminded the committee the legislature ended that practice in 1971, and said returning to it would be a bad idea. Number 529 REPRESENTATIVE MARTIN stated after 20 years, and with the current contracts in the condition they are, it might be a good time to reenter those negotiations. Number 537 REPRESENTATIVE JERRY SANDERS, as a point of information, stated as a print shop owner, he would like it if all state employees submitted their printing jobs to his company, and said he might even consider a 7.5% kickback to them, just like the airline gives. REPRESENTATIVE MARTIN stated employees were getting other perks as well, including hotel benefits, and per diem for meals. Number 554 REPRESENTATIVE KOTT asked if Representative Martin had any dialogue with the administration on getting a special rate from the airline as opposed to claiming the air miles. REPRESENTATIVE MARTIN said he had not, because he did not think he would get anywhere. He pointed out the majority of air travel is done by upper level employees who might block such an idea. Number 568 REPRESENTATIVE KOTT asked why the airline might negotiate to set up mileage accounts for each department. REPRESENTATIVE MARTIN explained there was no incentive, and there is no control on how much employees travel. Number 584 REPRESENTATIVE KOTT suggested instead of claiming air miles from employee travel, cutting the travel budget of each agency by the amount expected to be saved might be the solution. Number 608 REPRESENTATIVE HARLEY OLBERG MOVED passage of HB 46. Number 610 REPRESENTATIVE KOTT asked the committee to check the statutes on the potential penalties for a Class B misdemeanor before taking a vote. Number 617 CHAIRMAN VEZEY asked Representative Olberg to WITHDRAW his MOTION to allow a possible amendment. REPRESENTATIVE OLBERG did so. CHAIRMAN VEZEY then put the committee at ease. Number 630 CHAIRMAN VEZEY called the committee back to order and noted the penalty for a Class B misdemeanor is zero to 90 days. Number 641 REPRESENTATIVE KOTT asked what would happen if the airline refused to go along with the single account idea. Number 650 REPRESENTATIVE SANDERS replied other airlines would fill the void. Number 660 REPRESENTATIVE OLBERG suggested leaving penalties up to a judge. Number 662 CHAIRMAN VEZEY suggested leaving the penalty up to the administration. Number 670 REPRESENTATIVE GARY DAVIS suggested AMENDING HB 46 to DELETE section 2, paragraph b. REPRESENTATIVE OLBERG OBJECTED. REPRESENTATIVE G. DAVIS felt agents responsible for issuing travel vouchers should be held accountable to just doing their job and be subject to penalties. Number 690 REPRESENTATIVE OLBERG said after looking closer at HB 46, he interpreted it to read that penalties would be applied to employees of the airline. Number 692 REPRESENTATIVE G. DAVIS said he now understood, and WITHDREW his MOTION. TAPE 93-30, SIDE B Number 000 REPRESENTATIVE OLBERG MOVED passage of HB 46. Number 012 REPRESENTATIVE ULMER OBJECTED, saying mileage credits are covered under a collective bargaining agreement. Number 042 HB 46 FAILED to pass by a 3-3 vote, Representatives Vezey, Olberg and Sanders voting YES; Representatives Kott, G. Davis and Ulmer voting NO.
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