Legislature(2017 - 2018)SENATE FINANCE 532

05/07/2018 09:30 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 47 MUNICIPAL PERS CONTRIBUTIONS/INTEREST TELECONFERENCED
Moved HB 47 Out of Committee
+= HB 233 EXTEND EDUCATION TAX CREDITS TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
HOUSE BILL NO. 47                                                                                                             
                                                                                                                                
     "An  Act   requiring  certain  municipalities   with  a                                                                    
     population  that  decreased  by more  than  25  percent                                                                    
     between 2000  and 2010 that participate  in the defined                                                                    
     benefit  retirement  plan   of  the  Public  Employees'                                                                    
     Retirement  System  of  Alaska  to  contribute  to  the                                                                    
     system an  amount calculated by  applying a rate  of 22                                                                    
     percent of the  total of all base salaries  paid by the                                                                    
     municipality to  employees of the municipality  who are                                                                    
     active members  of the system during  a payroll period;                                                                    
     authorizing  the administrator  of the  defined benefit                                                                    
     retirement  plan of  the  Public Employees'  Retirement                                                                    
     System  of  Alaska  to  reduce  the  rate  of  interest                                                                    
     payable by  certain municipalities that  are delinquent                                                                    
     in transmitting employee  and employer contributions to                                                                    
     the  retirement plan;  and providing  for an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
9:34:02 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  read the  title of  the bill.  She noted                                                                    
that  the bill  had been  heard  in committee  on April  25,                                                                    
2018;  and  the  committee  had  opened  and  closed  public                                                                    
testimony. Her office had received no proposed amendments.                                                                      
                                                                                                                                
Vice-Chair Bishop discussed FN 4 from State Retirement                                                                          
Payments. He read passages from the Analysis on page 2 of                                                                       
the fiscal note:                                                                                                                
                                                                                                                                
     Conduent Human  Resource Services (Conduent),  the PERS                                                                    
     actuarial  consultant,  has  calculated  the  financial                                                                    
     effects  if this  bill should  pass.  The basic  result                                                                    
     will  be  a  shortfall in  actuarially  projected  PERS                                                                    
     employer contributions in the  following amounts ($ are                                                                    
     in thousands):                                                                                                             
                                                                                                                                
     FY2019 FY2020 FY2021 FY2022 FY2023 FY2024                                                                                  
     $141.0 $133.0 $124.0 $116.0 $107.0 $98.0                                                                                   
                                                                                                                                
     EXPLANATION - SUPPLEMENTAL APPROPRIATION                                                                                 
     Since  the bill  is  effective  immediately, this  bill                                                                    
     would also  assume an FY2018  supplemental contribution                                                                    
     for  the   impacted  PERS  municipalities   for  salary                                                                    
     contributions that  would not be collected  as a result                                                                    
     of the reduction  of the salary floor for  the four (4)                                                                    
     municipalities.  Conduent estimates  that amount  to be                                                                    
    $148.0, and the fund source is state general funds.                                                                         
                                                                                                                                
     This bill is effective  immediately and is prospective,                                                                    
     principal   amounts   owed   by   the   impacted   PERS                                                                    
     municipalities  (the  difference   between  the  salary                                                                    
     floor  and the  actual  payroll amounts  times 22%  for                                                                    
     each fiscal year)  are still due for  fiscal years 2009                                                                    
     to  2017.   The  interest  rate  to   charge  on  these                                                                    
     outstanding payments  would be  determined by  the Plan                                                                    
     Administrator.  Currently,  principal amounts  owed  by                                                                    
     impacted PERS municipalities are as follows:                                                                               
                                                                                                                                
Co-Chair MacKinnon  added that there would  be an associated                                                                    
estimated FY 18 supplemental budget request of $148,000.                                                                        
                                                                                                                                
9:37:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEAL  FOSTER,  SPONSOR, explained  that  the                                                                    
City of  Galena had lost  over 25 percent of  its population                                                                    
due to the closure of  the United States Air Force facility.                                                                    
As a result,  the city lost a number of  city employees; and                                                                    
was  paying for  employees it  didn't have.  The bill  was a                                                                    
remedy to the situation.                                                                                                        
                                                                                                                                
PAUL  LABOLLE,  STAFF,  REPRESENTATIVE NEAL  FOSTER,  stated                                                                    
that  the  bill  would  reset  the FY  08  floor  for  those                                                                    
communities  that lost  more than  25 percent  of population                                                                    
between the 2000 and 2010 census.  The reset date was FY 12.                                                                    
The  bill  also  allowed the  Public  Employees'  Retirement                                                                    
System (PERS)  administrator to negotiate the  interest rate                                                                    
on delinquent payments.                                                                                                         
                                                                                                                                
Co-Chair MacKinnon summarized the purpose of the bill.                                                                          
                                                                                                                                
Representative Foster affirmed the co-chair's summary.                                                                          
                                                                                                                                
Co-Chair MacKinnon mused that  the legislature was taking on                                                                    
the issues  one community  at a time.  She thought  the bill                                                                    
could be  perceived by others  as unfair. She  mentioned the                                                                    
community  of  St.  George,  which had  lost  all  its  city                                                                    
employees.                                                                                                                      
                                                                                                                                
Representative   Foster   concurred  with   the   co-chair's                                                                    
remarks.                                                                                                                        
                                                                                                                                
Vice-Chair Bishop  MOVED to  report HB  47 out  of Committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
HB  47  was REPORTED  out  of  committee  with a  "do  pass"                                                                    
recommendation  and  with  one previously  published  fiscal                                                                    
impact note: FN 4(ADM).                                                                                                         
                                                                                                                                
9:40:36 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:42:12 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB 233 2018 04 28 UAF CFOS ETC Letter.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 233 Public Testimony Seitz.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 233 Public Testimony Kroska.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 233 Public Testimony Manishin.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 233 Public Testimony Nielsen.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 233 Public Testimony Sutton.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 233 Public Testimony Graham.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 233 Public Testimony Hassell.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 233 Public Testimony Hallinan.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 233 Testimony Northrim Bank.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 233 Public Testimony Bender.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 233 work draft version T.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 233 SCS FIN v. T Summary.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 233 Public Testimony Atchison.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 233 2018 04 27 - UA Foundation HB 233 Hearing Follow-Up.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 233 Testimony Alaska Native Heratige Center.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 233 Public Testimony Batter.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 233 Public Testimony King.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 233 Education Tax Credit extension Atkinson.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 233 Public Testimony Cunningham.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB47 Letters of Support.pdf SFIN 5/7/2018 9:30:00 AM
HB 47
HB47 Sponsor Statement.pdf SFIN 5/7/2018 9:30:00 AM
HB 47
HB47 DOA Documents.pdf SFIN 5/7/2018 9:30:00 AM
HB 47
HB 233 Education Tax Credit Information DOR.pdf SFIN 5/7/2018 9:30:00 AM
HB 233
HB 212 Amendment 1 MacKinnon M.2.pdf SFIN 5/7/2018 9:30:00 AM
HB 212
HB 212 SCS FIN work draft version M.pdf SFIN 5/7/2018 9:30:00 AM
HB 212
HB 212 SCS FIN v. M Explanation.pdf SFIN 5/7/2018 9:30:00 AM
HB 212
SB 142 Work Draft Version R.pdf SFIN 5/7/2018 9:30:00 AM
SB 142
HB 212 SCS CSHB work draft version E.pdf SFIN 5/7/2018 9:30:00 AM
HB 212