Legislature(2001 - 2002)
05/07/2002 09:51 AM Senate FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE CS FOR HOUSE BILL NO. 162(STA)
"An Act relating to absences from the state under the
longevity bonus program."
This was the first hearing for this bill in the Senate Finance
Committee.
JASON HOOLEY, Staff of Representative Fred Dyson, informed the
Committee that this legislation would extend a longevity program
participant's allowable absence from the State from the current 30-
consecutive days to 60 consecutive days, in addition to extending
the allowable unpaid sabbatical term from 90 days to three years.
He stated that the extension of these two program components would
lower the overall cost of the longevity program to the State.
ALISON ELGEE, Deputy Commissioner, Department of Administration,
stated that the Department's fiscal note addresses the two
extensions separately. She explained that extending allowable
absences from 30 days to 60 days would cost the program additional
money; however, extending the allowable unpaid sabbatical term to
three years would save money. She stated that the three-year
sabbatical would be applicable to such eligible longevity
participants as those who move to Arizona and realize it was a
"mistake" and move back, or those participants who wish to spend
extended time with family out of State. She stated this provision
would allow those individuals to return to the State and resume
their residency without jeopardizing their longevity bonus
eligibility. She stated that the three-year deadline provides the
Department with a "necessary end-point."
Ms. Elgee stated the Department projects that if ten percent of
current longevity bonus participants were out of the State an
additional month, as would be allowed under the extended unpaid
sabbatical plan, the State would save up to $435,000. She noted
significant interest has been expressed favoring this legislation
and she predicted that participants would take advantage of the
extensions.
Co-Chair Donley asked for clarification that, "people do not get
paid if they are out of State for any given month."
Ms. Elgee responded that currently, individuals would not receive a
monthly longevity check if they were out of the State for more than
30 days. She stated that this bill would increase the allowable
absence time from 30 days to 60 days.
Co-Chair Donley summarized that if this legislation becomes
effective, a participant who is out of the State for two months
would receive benefits for those two months, but would not receive
benefits during any time spent out of the State beyond two months.
Ms. Elgee agreed and clarified that their eligibility status would
be suspended after the initial 60 days.
Senator Austerman asked how long a person could be absent from the
State without losing their eligibility status.
Ms. Elgee responded that a person is currently allowed "to be
consecutively absent for up to 90 days at which point you would
need to return to the State for a least ten days" to retain your
eligibility. She continued that another 90 consecutive day
absenteeism period could occur; however, there is an absenteeism
limit of 180 days in a 12-month period. She explained that other
allowable absences could occur as a result of an approved medical
leave or sabbatical leave which would allow a person to be absent
from the State for up to a year within a given five-year period.
Senator Austerman asked whether there are any other exemptions.
Ms. Elgee voiced there are not; however, she would verify this as
the exemptions are identified in State regulations. She stated,
"that medical absences are the most common."
Senator Green affirmed that the sabbatical component of this
legislation provides significant savings for the longevity bonus
program; however, she mentioned that as the longevity "program
begins to wane," the overall expenses of the program lessen. She
referred the Committee to the saving projections detailed in the
Department's fiscal note.
Co-Chair Kelly asked the testifier the amount of the current total
program "payout."
Ms. Elgee responded that this year's program expenses amount to $50
million; however, expenses are being reduced $3 to $4 million a
year as the number of eligible participants decrease.
Senator Austerman asked whether the Department would be tracking
the two components of this bill, if enacted, to ensure that
projected savings are occurring.
Ms. Elgee responded that the Department tracks absences, therefore,
this information would be available.
Co-Chair Donley asked if the Department of Administration supports
this legislation.
Ms. Elgee replied that the Department has not taken a formal
position on the legislation; however, she noted that the Department
"does not oppose it." She mentioned that all current longevity
bonus recipients are over 70 years old, so "we think that as a
policy call, if the Legislature chooses to pass this legislation,
we think it's fine."
Senator Green offered a motion to move "House Bill 162, Version L,
from Committee with individual recommendations and accompanying
fiscal notes."
There being no objections, SCS for HB 162(STA) was REPORTED from
Committee with a new Department of Administration fiscal note dated
April 24, 2002 with a net savings of $146,700.
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