Legislature(1995 - 1996)
04/16/1996 08:07 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 545 - PUB. EMPLOYEE COST OF LIVING DIFFERENTIAL The next order of business to come before the House State Affairs Committee was CSHB 545(STA) (9-GH2067/F). CHAIR JAMES called on Patrick Gullufsen, Department of Law, to present the committee substitute. Number 1345 PATRICK GULLUFSEN, Assistant Attorney General, Governmental Affairs Section, Civil Division, Department of Law, said the committee substitute addressed the concerns of the definition of state residency. The definition was taken directly from the permanent fund dividend (PFD) statute. The authority was also given to the Commissioner of the Department of Administration to implement and clarify the criteria for the purposes of the cost-of-living differential (COLD) through regulations. Furthermore, in subsection (c), page 2, it clarified that the criteria were not subject to negotiation. The allowable absences were also clarified that they were temporary absences in comparison to the five year absence for the PFD, for example. He referred the committee members to Section 2, subsection (b), and explained it was an attempt to resolve the dispute if a person was only in the state for purposes of the ferry that time was not counted towards residency. Number 1531 CHAIR JAMES explained her concerns in the beginning were the issues surrounding a state resident. She wondered about the seasonal workers on the ferry. She did not consider them a state resident because they did not live in Alaska during the off-period. However, she did believe they were entitled to the COLD. She recognized that was hard to address in a statute, however. She further wondered about some of the allowable absences cited in the bill. She asked Mr. Gullufsen if service in Congress was reasonable? She could not imagine a state employee serving time in Congress for any reason. Number 1699 MR. GULLUFSEN replied it would be an unusual circumstance. The provision was taken directly from the PFD definition. It was possible that a marine highway system employee would run for Congress and get elected. CHAIR JAMES replied, in that case, he could not continue to be a state employee. MR. GULLUFSEN said the question to consider was should he lose his residency for the period of time he was in Washington D.C. The provision would allow him to maintain his residency status to receive the COLD upon his return. He reiterated it would be an unusual circumstance. Number 1749 CHAIR JAMES wondered how long a person had to be in Alaska before he received the COLD. She also wondered, if a person that just moved to Alaska with the intention to stay, would receive the COLD. Number 1766 MR. GULLUFSEN replied, "most likely he would." He said the issue needed to be looked at harder, however. He said other criteria needed to be looked at further for additional support, such as, home ownership. If the person still owned a home in Seattle, Washington, for example, that was an indication that he did not intend to remain in Alaska. Number 1824 CHAIR JAMES asked Mr. Gullufsen if service in the Peace Corps was needed? Number 1827 MR. GULLUFSEN replied that was part of the PFD definitions. He said it would be an unusual circumstance. It would be unfortunate to exclude eligibility for the COLD upon return from the Peace Corps, however. Number 1843 CHAIR JAMES stated a COLD was intended to cover the extra cost incurred to live in Alaska. This could be simply stated. It was difficult for her to understand that all of these provisions were needed. She even believed a seasonal employee should receive the COLD while he was living in Alaska. She felt that the PFD was a benefit to Alaskans, and the COLD was intended to help offset the cost of living in Alaska. It was a comparison of apples and oranges. Number 1910 REPRESENTATIVE PORTER said he did not consider a person working seasonally in Alaska then returning to Washington, for example, an Alaskan resident. That was not the purpose of the COLD. Number 1924 CHAIR JAMES replied the legislators were not Juneau residents when here for session in Juneau. However, a per diem was paid because it cost money to be here. She understood that was a different issue, but that was what she envisioned the COLD would be used for. REPRESENTATIVE PORTER replied when he left Juneau he did not go to Seattle, for example. CHAIR JAMES said she understood the response of Representative Porter. She wondered about a married couple whereby one worked seasonally in Alaska and the rest of the family remained in Seattle, for example. It should be the entire family. She said she would let the Department of Administration hammer the details out. She was not convinced the bill would give the department all the necessary tools, however. Number 1964 REPRESENTATIVE GREEN wondered if the word "temporarily" would create a problem for interpretation in the future. Number 1986 MR. GULLUFSEN replied he did not think the word "temporarily" would create a problem. He felt the word actually helped the issue. Regulations would be needed to address the main and specific problems that were raised. Number 2010 REPRESENTATIVE GREEN said he was not questioning a temporary absence. He was concerned that the PFD criteria would cause a problem for the marine highway system. Number 2046 MR. GULLUFSEN replied, "time will tell." It was a good point. Number 2051 REPRESENTATIVE ROBINSON explained a piece of legislation in the Senate addressed eliminating all allowable absences from the PFD program. She did not know how that would impact the COLD if both bodies decided to accept the legislation. She asked Mr. Gullufsen how he would draft the bill if there was not a permanent fund program? Number 2088 MR. GULLUFSEN replied he did not know. He thought the Administration would look at not allowing any absences. However, that would present legal and fairness issues. The Administration would probably look at allowing absences but not opening the door too wide. It was nice to have the guidance from the PFD program. Number 2121 CHAIR JAMES stated if CSHB 545(STA) (9-GH2067/F) was passed the criteria would be put into statute. Therefore, if the PFD criteria were changed, it would not affect this bill. She reiterated the criteria for the PFD and the COLD were different because the PFD was based on presence in Alaska rather than residency. She did not feel that state residency was the way to pursue this issue. However, the bill was important because it would eliminate the possibility of future arbitration. Number 2200 CHAIR JAMES further said the bill was premature and had not been thoroughly thought out. Number 2219 REPRESENTATIVE PORTER moved that CSHB 545(STA) (9-GH2067/F) be adopted as a working document. Hearing no objection, it was so adopted. Number 2249 REPRESENTATIVE PORTER moved to delete "E" and "G" on page 2. Representative Robinson objected for discussion purposes. REPRESENTATIVE PORTER said, if someone was to join the Peace Corps or get elected to Congress, he severed the ties with the marine highway system. Number 2291 REPRESENTATIVE ROBINSON said if the system wanted to adopt the PFD criteria then it should accept all of the criteria. Number 2302 REPRESENTATIVE PORTER replied the committee substitute already tailored the criteria. The PFD was for on-going activity as a resident with certain allowable absences on a long-term basis. The COLD was for a very specific benefit for a small group of state employees. The difference was obvious to him. Number 2324 CHAIR JAMES said the difference between the two for her was the word "temporarily." Regulations would be needed to define the word "temporarily." Number 2335 REPRESENTATIVE ROBINSON responded many of the provisions allowed an absence for one to two years, such as the Peace Corps. She stated she did not really know what was right either. She reiterated the provisions were included for a reason for the PFD. CHAIR JAMES stated a person could continue to be a state employee according to some of the provisions. A person, however, that went to the Peace Corps did not continue to be a state employee. Number 2385 MR. GULLUFSEN said the word "temporarily" allowed the Administration to look at a person in the Peace Corps and determine if there was also a change in residency. The Administration would prefer to see the provisions remain in the bill. Number 2431 CHAIR JAMES said a state resident was one who was physically present in the state with the intent to remain permanently. There was nothing in the bill to indicate how long a person had to be in Alaska to receive the COLD. CHAIR JAMES called for a roll call vote. Representatives James, Ogan, Ivan, and Porter voted in favor of the motion. Representatives Robinson and Willis voted against the motion. The motion passed. TAPE 96-53, SIDE B Number 0005 REPRESENTATIVE PORTER moved that CSHB 545(STA) (9-GH2067/F) am move from the committee with individual recommendations and attached fiscal notes. Hearing no objection, it was so moved from the House State Affairs Committee. CHAIR JAMES announced she would order the committee substitute and distribute it to the committee members before moving it forward to the next committee of referral - the House Judiciary Committee.
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