Legislature(2007 - 2008)BELTZ 211

03/25/2008 01:30 PM Senate LABOR & COMMERCE


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Audio Topic
01:32:23 PM Start
01:34:07 PM Confirmation Hearing - Alcohol Beverage Control Board and Regulatory Commission of Alaska
01:52:34 PM SB179
02:08:38 PM SB77
02:27:06 PM SB179
02:27:56 PM SJR18
02:43:17 PM SB179
02:49:18 PM HB289
02:57:18 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Governor's Appointments TELECONFERENCED
+ SB 77 USING UNION DUES FOR POLITICAL PURPOSES TELECONFERENCED
Heard & Held
*+ SB 305 RECORKING WINE SERVED WITH A MEAL TELECONFERENCED
Scheduled But Not Heard
+ SJR 18 CHILD PRODUCT SAFETY TELECONFERENCED
Heard & Held
+ HB 289 EMPLOYMENT TAX EXEMPTION: SPILL RESPONSE TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
Including But Not Limited to:
+= SB 179 DEPENDENT HEALTH INSURANCE; AGE LIMIT TELECONFERENCED
Moved CSSB 179(L&C) Out of Committee
+= HB 320 SEARCH & RESCUE: CERTIFICATION/WORK.COMP TELECONFERENCED
Moved CSHB 320(FIN) Out of Committee
         SB  77-USING UNION DUES FOR POLITICAL PURPOSES                                                                     
                                                                                                                                
2:08:38 PM                                                                                                                    
CHAIR ELLIS announced SB 77 to be up for consideration.                                                                         
                                                                                                                                
SENATOR  BUNDE, sponsor  of  SB  77, explained  that  there is  a                                                               
difference between union  dues and agency fees. An  agency fee is                                                               
what everyone  pays for activities  of the union; it's  the major                                                               
cost  to an  employee. Recent  court cases  have held  that if  a                                                               
union  wants to  use a  portion of  a member's  fee to  engage in                                                               
political activity,  that member can "opt  out." Unfortunately in                                                               
existing  situations, the  option  comes after  the  fact. If  an                                                               
employee's  union, for  instance,  gets involved  in a  political                                                               
activity  he disagrees  with,  he  can file  a  notice of  appeal                                                               
within 30  days that  goes to  a committee of  the union  and six                                                               
months or  a year  later, it  will maybe decide  to give  him his                                                               
money back.                                                                                                                     
                                                                                                                                
SB 77 very simply says we should  have an "opt in" rather than an                                                               
"opt out" procedure. However, even if  he gets his money back, he                                                               
can't withdraw  the impact on  the political activity.  This bill                                                               
would require  getting an  "opt in"  procedure from  the employee                                                               
every  year that  allows  the union  to use  the  agency fee  for                                                               
political  activities. He  explained that  courts have  held that                                                               
money is  political speech and that  people should have a  lot of                                                               
control over it.                                                                                                                
                                                                                                                                
2:12:48 PM                                                                                                                    
SENATOR STEVENS  said he is  very sympathetic to  Senator Bunde's                                                               
comments, because they  were in the same union.  He recalled that                                                               
he paid a  small amount of dues and an  enormous amount of agency                                                               
fees  and  those  were  moved around  without  his  knowledge  or                                                               
understanding. He asked if dues  could also be used for political                                                               
purposes.                                                                                                                       
                                                                                                                                
SENATOR BUNDE said  he didn't have an answer,  but his experience                                                               
is that  the dues  are nominal  and the major  fee is  the agency                                                               
fee.                                                                                                                            
                                                                                                                                
CHAIR ELLIS asked if something specific motivated this bill.                                                                    
                                                                                                                                
SENATOR BUNDE replied  that he has heard from some  folks as well                                                               
as having  some personal experience.  When his wife was  a member                                                               
of a  union that campaigned  for his  opponent unknown to  her at                                                               
the time, she researched the issue  and found and found she could                                                               
ask for her money back. She  did receive it, but they had already                                                               
campaigned against him.                                                                                                         
                                                                                                                                
He said he  followed this issue in the State  of Washington where                                                               
it went  to court and  the employee prevailed  - for an  "opt in"                                                               
system. While he  shared his personal experience, he  said, it is                                                               
more than just Con Bunde against the universe here.                                                                             
                                                                                                                                
CHAIR  ELLIS  asked if  this  bill  targeted  a certain  type  of                                                               
operation  that he  disagreed  with, because  he  is starting  to                                                               
learn that different unions operate  in different ways. Will this                                                               
bill affect some and not others?                                                                                                
                                                                                                                                
SENATOR  BUNDE said  the  title  is focused  on  agency fees  and                                                               
people who pay them should expect more.                                                                                         
                                                                                                                                
2:17:31 PM                                                                                                                    
MARK TORGERSON, Administrator and  Hearing Examiner, Alaska Labor                                                               
Relations Agency,  Department of Labor and  Workforce Development                                                               
(DOLWD),  said he  was available  for questions  and had  a minor                                                               
suggestion.                                                                                                                     
                                                                                                                                
SENATOR STEVENS  asked if  union dues can  be used  for political                                                               
purposes.                                                                                                                       
                                                                                                                                
MR.  TORGERSON   replied  the  language  in   the  proposed  bill                                                               
discusses  agency  fees  used  for  political  contributions  and                                                               
expenditures. Under  the Alaska Public Employment  Relations Act,                                                               
when non-members  or employees start  employment with  the state,                                                               
they have  30 days  to decide  to be  union members  or non-union                                                               
members. If  they decide to be  a non-union member, they  have to                                                               
pay, under proposed language, an  "agency shop fee." This service                                                               
fee can only  be used for three purposes based  on a U.S. Supreme                                                               
Court  case. The  three purposes  are for  collective bargaining,                                                               
contract administration  or grievance adjudication.  He explained                                                               
that dues  are currently  divided into the  service fee  part and                                                               
the member's contribution, the smaller of the two.                                                                              
                                                                                                                                
SENATOR STEVENS  asked if the  agency fees  and member dues  of a                                                               
member of the union can be used for political purposes.                                                                         
                                                                                                                                
MR. TORGERSON answered  yes; there is no  prohibition on members'                                                               
fees  being  used  for  political   purposes.  Some  unions  have                                                               
political action  committees that employees may  join and perhaps                                                               
even make  an additional contribution  to. There is  no statutory                                                               
prohibition  against  using  a  part of  the  members'  dues  for                                                               
political purposes.                                                                                                             
                                                                                                                                
2:21:50 PM                                                                                                                    
JOHN ALCANTRA, Government  Relations Director, National Education                                                               
Association (NEA) Alaska,  opposed SB 77. He said  that about 400                                                               
of 13,000  NEA members are agency  fee payers. They do  not pay a                                                               
single dollar towards the political  activity of NEA Alaska. Also                                                               
they  do  not  contribute  to the  NEA  Alaska  Political  Action                                                               
Committee for Education  or the NEA Alaska  PACE Committee. Since                                                               
"there is absolutely no political  involvement through the use of                                                               
agency fee payers in the business  of NEA Alaska," he asked, what                                                               
is  the  point of  this  legislation?  Aren't there  enough  real                                                               
issues to deal with in the legislative process?                                                                                 
                                                                                                                                
MR.  ALCANTRA said  that Senator  Bunde  states his  constituents                                                               
have said  they did not  know their  agency fees were  being used                                                               
for political involvement  until after the fact. But  the fact is                                                               
as he  stated, that of the  NEA agency fee members,  not a single                                                               
dollar  is spent  on political  activity  or campaigning  related                                                               
activities. This  means quite  simply that  only members  pay for                                                               
his time in Juneau. NEA Alaska  strictly adheres to all the rules                                                               
set  forth  by the  legislature  and  the Alaska  Public  Offices                                                               
Commission;  its  campaign  activity  is  conducted  through  NEA                                                               
Alaska  PACE. His  members are  protected by  the union  and this                                                               
superfluous bill will do nothing to change that.                                                                                
                                                                                                                                
2:24:10 PM                                                                                                                    
SENATOR BUNDE  asked why he  opposes SB  77 if it  doesn't affect                                                               
NEA.                                                                                                                            
                                                                                                                                
MR.  ALCANTRA  answered  it goes  into  tracking  and  accounting                                                               
issues. NEA's  400 agency payer fees  add up to $6,000  and those                                                               
don't  go into  PACE. NEA  already does  everything this  bill is                                                               
trying to address.                                                                                                              
                                                                                                                                
2:24:57 PM                                                                                                                    
DON  ETHERIDGE,  Alaska  AFL-CIO,  said he  was  concerned  about                                                               
having  to "opt  in" every  year instead  of once  in perpetuity.                                                               
That  would  generate a  lot  of  wasted  paper from  its  60,000                                                               
members.                                                                                                                        
                                                                                                                                
CHAIR ELLIS held SB 77 for further work.                                                                                        

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