Legislature(2021 - 2022)GRUENBERG 120

03/31/2022 03:00 PM House STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 124 FILLING VACANCY IN LEGISLATURE TELECONFERENCED
<Bill Hearing Canceled>
-- Public Testimony <Time Limit May Be Set> --
+= SB 7 STATE TROOPER POLICIES: PUBLIC ACCESS TELECONFERENCED
Moved CSSB 7(JUD) Out of Committee
-- Public Testimony <Time Limit May Be Set> --
+ "An Act relating to the confirmation of TELECONFERENCED
appointees to the Board of Trustees of the
Alaska Permanent Fund Corporation; relating to
the appointment of public members of the Alaska
Industrial Development and Export Authority;
and providing for an effective date."
<Pending Introduction & Referral>
*+ HB 226 PAY INCREASES FOR STATE ATTORNEYS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
            HB 226-PAY INCREASES FOR STATE ATTORNEYS                                                                        
                                                                                                                                
3:29:55 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS  announced that  the next order  of business                                                               
would  be   HOUSE  BILL  NO.   226,  "An  Act  relating   to  the                                                               
compensation   of  certain   public   officials,  officers,   and                                                               
employees  not  covered   by  collective  bargaining  agreements;                                                               
increasing  the salaries  of certain  attorneys  employed by  the                                                               
state; and providing for an effective date."                                                                                    
                                                                                                                                
3:30:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ANDY JOSEPHSON,  Alaska State  Legislature, prime                                                               
sponsor,  introduced   HB  226.    He   paraphrased  the  sponsor                                                               
statement,  which  read  in its  entirety  as  follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     The Alaska  Department of  Law, Public  Defender Agency                                                                    
     and Office of Public  Advocacy have struggled in recent                                                                    
     years to attract and retain  attorneys. HB 226 provides                                                                    
     a much-needed  boost in pay  for these  essential legal                                                                    
     personnel  by  raising  pay rates  for  state  employed                                                                    
     lawyers by 10 percent across the board.                                                                                    
                                                                                                                                
     The State,  as an employer,  is unable to  compete with                                                                    
     salaries  offered by  the private  sector and  has even                                                                    
     started  to  lag  other   public  sector  employers  in                                                                    
     compensation.  Further aggravating  this difficulty  is                                                                    
     the   fact   that   state   lawyers   fall   into   the                                                                    
     classification   of   "partially   exempt"   employees,                                                                    
     meaning  they do  not belong  to a  union and  can only                                                                    
     receive   pay   increases   at  the   behest   of   the                                                                    
     legislature.  A pay  increase for  this employee  class                                                                    
     has not taken place since 2015.                                                                                            
                                                                                                                                
     Factors  that previously  attracted attorneys  to state                                                                    
     service  like certain  pensions  or a  chance for  more                                                                    
     work  life balance  are no  longer  a reality.  Lawyers                                                                    
     across state  agencies are experiencing  a higher-than-                                                                    
     average volume  of work due  to vacancies and  this has                                                                    
     led  to   increased  turnover.   A  lack   of  adequate                                                                    
     compensation  and   large  workloads  create   a  self-                                                                    
     perpetuating cycle of burn out and non-retention.                                                                          
                                                                                                                                
     Our criminal  justice system  relies on  prosecutors to                                                                    
     ensure  that   laws  are  being  enforced   and  public                                                                    
     defenders  to  guarantee   that  low-income  defendants                                                                    
     receive  the  representation   they  are  entitled  to.                                                                    
     Additionally,  Department of  Law  attorneys deal  with                                                                    
     litigation   on  varied   and  important   topics  like                                                                    
     consumer  protection,   oil  tax  disputes   and  child                                                                    
     support. Without  quality pay  we will  not be  able to                                                                    
     keep quality legal professionals  working in the public                                                                    
     sector.  HB  226  is  a small  and  concrete  step  the                                                                    
     legislature  can take  to make  employment  as a  state                                                                    
     lawyer more  attractive and palatable  to those  in the                                                                    
     legal profession.                                                                                                          
                                                                                                                                
     I urge your support for this measure. Please feel free                                                                     
     to discuss this issue with me in more detail.                                                                              
                                                                                                                                
3:41:14 PM                                                                                                                    
                                                                                                                                
ELISE  SORUM-BIRK, Staff,  Representative Andy  Josephson, Alaska                                                               
State Legislature,  on behalf of Representative  Josephson, prime                                                               
sponsor of  HB 226, introduced a  PowerPoint presentation, titled                                                               
"HB  226  - Increase  to  Pay  for  State Attorneys"  [hard  copy                                                               
included in the  committee packet].  She began on  slide 2, which                                                               
read as follows [original punctuation provided]:                                                                                
                                                                                                                                
     WHAT HB 226 DOES-                                                                                                          
                                                                                                                                
     .notdefSection 5 of the Bill is the Core                                                                                   
     .notdefIncreases Pay for State Attorneys by 10%                                                                            
          .notdefAs Partially Exempt Employees this must be done                                                                
          through statutory change                                                                                              
     .notdefApplies to attorneys under AS 39.25.120(c)(3)                                                                       
          .notdef"attorney members of the staff of the Department                                                               
          of Law, of the public  defender agency, and of the                                                                    
          office  of public  advocacy in  the Department  of                                                                    
          Administration"                                                                                                       
                                                                                                                                
3:43:48 PM                                                                                                                    
                                                                                                                                
MS. SORUM-BIRK  skipped slide 3  and proceeded to slide  4, which                                                               
highlighted the  aging attorney  pool in  Alaska.   She explained                                                               
that the aging  segment of attorneys would lead to  a shortage of                                                               
lawyers in  the state, ultimately threatening  people's access to                                                               
justice.                                                                                                                        
                                                                                                                                
3:45:56 PM                                                                                                                    
                                                                                                                                
MS.  SORUM-BIRK advanced  to slide  5,  which displayed  graphics                                                               
from the  annual 2021  salary report.   The  graphics illustrated                                                               
the median  salary for  prosecutors in  anchorage in  addition to                                                               
the recommended salary of $87,576.                                                                                              
                                                                                                                                
3:46:38 PM                                                                                                                    
                                                                                                                                
MS.  SORUM-BIRK  concluded on  slide  6,  which read  as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
       EXAMPLES OF OTHER SIMILAR JOB CLASSES TO CONSIDER                                                                        
     ADDING                                                                                                                     
                                                                                                                                
    .notdefPartially Exempt Legal  Support   Positions   in                                                                     
     Department of Law                                                                                                          
     .notdefe.g. Associate Attorneys                                                                                            
     .notdefAdministrative Law Judge Positions                                                                                  
     .notdefWorkers' Compensation Adjudicators                                                                                  
                                                                                                                                
3:47:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  shared  that  the  administration  had                                                               
indicated unequivocal support for increasing attorney pay.                                                                      
                                                                                                                                
REPRESENTATIVE EASTMAN shared his  understanding that the process                                                               
by  which  salaries were  adjusted  in  statute  was a  slow  and                                                               
cumbersome process.  He asked how the process could simplified.                                                                 
                                                                                                                                
REPRESENTATIVE JOSEPHSON deferred to Ms. Reardon.                                                                               
                                                                                                                                
3:49:56 PM                                                                                                                    
                                                                                                                                
CATHERINE REARDON,  Staff, Representative Andy  Josephson, Alaska                                                               
State Legislature,  on behalf of Representative  Josephson, prime                                                               
sponsor,  opined  that  the legislature  could  consider  passing                                                               
legislation  that  provided  flexibility  through  regulation  or                                                               
other processes  to make adjustments within  the partially exempt                                                               
category of employees.                                                                                                          
                                                                                                                                
REPRESENTATIVE  EASTMAN asked  which  public  officials would  be                                                               
impacted by the bill.                                                                                                           
                                                                                                                                
REPRESENTATIVE JOSEPHSON  answered attorneys  in 39.25.120(c)(3),                                                               
which included attorney  members at the Department  of Law (DOL),                                                               
the Public  Defender Agency, Department of  Administration (DOA),                                                               
and the Office of Public Advocacy (OPA), DOA.                                                                                   
                                                                                                                                
REPRESENTATIVE EASTMAN asked why  those positions were classified                                                               
as public officials,  as opposed to "attorney"  or "staff" within                                                               
a non-public official category.                                                                                                 
                                                                                                                                
3:52:42 PM                                                                                                                    
                                                                                                                                
MS. REARDON shared her understanding  that "public officials" was                                                               
the general  term for different  subsections of  partially exempt                                                               
employees.                                                                                                                      
                                                                                                                                
3:53:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE requested information  on retention rates in                                                               
the Municipality  of Anchorage.   She asked whether  the increase                                                               
in  pay by  10 percent,  or roughly  $6,200, was  lower than  the                                                               
bonuses that were included in the subcommittee process.                                                                         
                                                                                                                                
REPRESENTATIVE JOSEPHSON answered yes.                                                                                          
                                                                                                                                
REPRESENTATIVE  VANCE  requested   a  comparative  analysis  that                                                               
illustrated a  scaled approach to  salary increases.   She agreed                                                               
that an increase of 10 percent was not enough.                                                                                  
                                                                                                                                
REPRESENTAIVE  JOSEPHSON  conveyed  that a  10  percent  increase                                                               
would be  in the  $5 million  range for all  three agencies.   He                                                               
agreed to follow up with the requested information.                                                                             
                                                                                                                                
3:59:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CLAMAN directed  attention  to  Section 1,  which                                                               
detailed  the  new  salary  schedule.    He  inquired  about  the                                                               
reflected increase from current levels.                                                                                         
                                                                                                                                
MS.  SORUM-BIRK  clarified  that  sections  1-3  would  not  make                                                               
changes to the current salary  schedule, which was adopted by the                                                               
legislature in  2013.   She directed attention  to Section  2, AS                                                               
39.27.011(e), which  reflected the  updated salary  schedule from                                                               
2014.    She continued  to  note  that  Section 3  reflected  the                                                               
updates  from  2015.    She reiterated  that  Sections  1-3  were                                                               
updating the salary schedule in  Section 1 to reflect the current                                                               
reality, as opposed to increasing the salary schedule.                                                                          
                                                                                                                                
REPRESENTATIVE CLAMAN  recognized that the legislature  should be                                                               
considering  increases for  other classes  of state  employees as                                                               
well.   He pointed out  that faced with current  inflation rates,                                                               
the 10 percent increase would  not go very far towards addressing                                                               
the hiring problems.  He  wondered whether the increase should be                                                               
greater and whether the effective date should be earlier.                                                                       
                                                                                                                                
REPRESENTATIVE   JOSEPHSON  said   those  suggestions   would  be                                                               
considered friendly amendments.                                                                                                 
                                                                                                                                
CHAIR  KREISS-TOMKINS  associated   himself  with  Representative                                                               
Claman's   comments   and   Representative   Eastman's   question                                                               
regarding flexibility within the executive branch.                                                                              
                                                                                                                                
4:03:51 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
[Chair Kreiss-Tomkins passed the gavel to Vice-Chair Claman.]                                                                   
                                                                                                                                
4:04:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE asked whether  the state [attorney] salaries                                                               
would  have to  be increase  by  approximately 40  percent to  be                                                               
reciprocal to attorney salary in the Municipality of Anchorage.                                                                 
                                                                                                                                
REPRESENTATIVE JOSEPHSON answered yes.                                                                                          
                                                                                                                                
REPRESENTATIVE VANCE requested a  comparative analysis of benefit                                                               
packages.   She  directed attention  to Section  6, which  stated                                                               
that  Section 1  would apply  to employees  hired before,  on, or                                                               
after the effective  date.  She asked why the  sponsor worded the                                                               
language as such.                                                                                                               
                                                                                                                                
REPRESENTATIVE JOSEPHSON deferred to Ms. Sorum-Birk.                                                                            
                                                                                                                                
MS. SORUM-BIRK  said the  intent was to  ensure that  all current                                                               
state attorneys in DOL, OPA,  and the Public Defender Agency were                                                               
included.                                                                                                                       
                                                                                                                                
4:08:15 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
[Vice-Chair Claman returned the gavel to Chair Kreiss-Tomkins.]                                                                 
                                                                                                                                
4:08:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   JOSEPHSON  offered   to  follow   up  with   the                                                               
information requested by Representative Vance.                                                                                  
                                                                                                                                
4:08:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CLAMAN  recalled   the  DOL  budget  subcommittee                                                               
meetings that shared  the starting salaries for  attorneys in the                                                               
Washington  Office  of the  Attorney  General.   He  requested  a                                                               
comparative   analysis  that   included   attorney  salaries   in                                                               
Washington and Oregon in addition  to DOL and the Municipality of                                                               
Anchorage.                                                                                                                      
                                                                                                                                
REPRESENTATIVE JOSEPHSON acquiesced.                                                                                            
                                                                                                                                
4:11:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN  inquired  about the  effective  date  in                                                               
Section 5.                                                                                                                      
                                                                                                                                
REPRESENTATIVE JOSEPHSON  was unsure  whether the  effective date                                                               
was a quick decision or a  method "to coax the administration and                                                               
legislature  into   seeing  the  wisdom   of  the  bill   by  not                                                               
implementing it too fast."                                                                                                      
                                                                                                                                
REPRESENTATIVE  EASTMAN  surmised  that  essentially,  Section  5                                                               
would create a  new effective date for Section  5; however, there                                                               
was  no separate  effective date  clause to  be voted  on by  the                                                               
legislature.  He characterized it as "strange."                                                                                 
                                                                                                                                
REPRESENTATIVE  JOSEPHSON pointed  out that  the bill  would take                                                               
effect July 1, 2022, per Section 9.                                                                                             
                                                                                                                                
4:18:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR  wondered  whether a  sunset  provision  was                                                               
considered  by the  bill sponsor  as  a mechanism  to prompt  the                                                               
reconsideration of the bill in five years, for example.                                                                         
                                                                                                                                
REPRESENTATIVE JOSEPHSON said that had not been considered.                                                                     
                                                                                                                                
REPRESENTATIVE TARR remarked:                                                                                                   
                                                                                                                                
     If we put  the bonuses in this year, that  would be the                                                                    
     FY 23, and then if this  dovetails on the July 1, 2023,                                                                    
     then  that would  be  the  FY 24,  so  it  should be  a                                                                    
     seamless transition into this bonus then to pay raise.                                                                     
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  opined  that   it  was  drafted  in  a                                                               
seamless  way; however,  he expressed  concern  about what  could                                                               
happen in a conference committee  or by veto, which explained the                                                               
two-pronged approach.                                                                                                           
                                                                                                                                
4:20:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  opined that the  FY 23 bonuses  should match                                                               
the  salary increase,  so  that  in FY  24,  attorneys would  not                                                               
experience a  pay cut even  if that meant increasing  salaries by                                                               
13 percent, for example, as opposed to 10 percent.                                                                              
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  agreed  that Representative  Tarr  had                                                               
highlighted a reason to increase Section 5.                                                                                     
                                                                                                                                
REPRESENTATIVE  TARR   asked  whether   someone  from   the  bill                                                               
sponsor's  office could  calculate what  percentage pay  increase                                                               
would stabilize the bonus pay from FY 23 to FY 24.                                                                              
                                                                                                                                
REPRESENTATIVE JOSEPHSON answered yes.                                                                                          
                                                                                                                                
4:23:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY commented on the high turnover in OPA.                                                                     
                                                                                                                                
4:23:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CLAMAN  asked  whether  it would  be  simpler  to                                                               
remove the bonuses  entirely and make the effective  date July 1,                                                               
2022, with a 25 percent pay increase.                                                                                           
                                                                                                                                
REPRESENTATIVE JOSEPHSON  touched on the difficulty  of turning a                                                               
bill  into  law.   He  indicated  that  it  would depend  on  the                                                               
administration.                                                                                                                 
                                                                                                                                
REPRESENTATIVE   CLAMAN  recalled   that   in   the  DOL   Budget                                                               
Subcommittee, the department repeatedly  declined to answer where                                                               
they stood on the proposed legislation.                                                                                         
                                                                                                                                
4:26:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE  asked whether anyone had  analyzed State of                                                               
Alaska employee salaries at the macro level.                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON answered  no.   Nonetheless, he  shared                                                               
his  belief  that  this  was  a  problem  that  stretched  across                                                               
departments.                                                                                                                    
                                                                                                                                
4:29:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY emphasized the  importance of this issue for                                                               
all state  employees.   She expressed  concern that  a two-parent                                                               
household could  not afford to let  one parent stay at  home with                                                               
the children on a current state employee salary.                                                                                
                                                                                                                                
CHAIR KREISS-TOMKINS announced that HB 226 would be held over.                                                                  

Document Name Date/Time Subjects
HB 226 Supporting Document- Public Defender Budget Challenges 2.20.22.pdf HSTA 3/31/2022 3:00:00 PM
HB 226
HB 226 Supporting Document- OPA Budget Challenges 1.20.22.pdf HSTA 3/31/2022 3:00:00 PM
HB 226
HB 226 Supporting Document- DOL Key Department Challenges 2.20.22.pdf HSTA 3/31/2022 3:00:00 PM
HB 226
HB 226 Version A.PDF HSTA 3/31/2022 3:00:00 PM
HB 226
HB 226 Supporting Document- DOL 2020 Recruitment and Retention Report 1.20.22.pdf HSTA 3/31/2022 3:00:00 PM
HB 226
HB 226 Hearing Request 1.20.22.pdf HSTA 3/31/2022 3:00:00 PM
HB 226
HB 226 PowerPoint Presentation 03.30.22.pdf HSTA 3/31/2022 3:00:00 PM
HB 226
HB 226 Sectional Anaylsis 1.20.22.pdf HSTA 3/31/2022 3:00:00 PM
HB 226
HB 226 Sponsor Statement 1.20.22.pdf HSTA 3/31/2022 3:00:00 PM
HB 226
SB 7 Supporting Document - Testimony Received by 4.12.2022.pdf HJUD 4/13/2022 1:00:00 PM
HJUD 4/25/2022 1:00:00 PM
HSTA 3/31/2022 3:00:00 PM
SB 7
HB 226 Supporting Document - Feb 2022 Slides from DOL to Budget Subcommittee.pdf HSTA 3/31/2022 3:00:00 PM
HB 226