Legislature(2003 - 2004)
03/25/2003 03:35 PM Senate STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 26-STATE EMPLOYEES CALLED TO MILITARY DUTY
SENATOR KIM ELTON, bill sponsor, told a short story about Master
Sergeant Steve Fernandez, a HH-60 Pavehawk gunner and a Williams
Refinery employee who was recently called to serve a twelve
month tour of active duty. His employer agreed to backfill his
salary, which means his income won't be diminished while he is
serving the state and nation.
SB 26 allows the Governor to do the same thing for state
employees. It provides that the Governor may backfill salaries
and may extend benefits to both army and air guardsmen that are
called for active duty. He noted there is a proposed amendment
that would extend the benefit to the Alaska State Defense Force.
This would affect a total of 138 state employees; 43 in the Army
National Guard, 83 in the Air National Guard and 12 belong to
the State Defense Force. Currently eight to ten of these
employees have been called to active duty and last year just
eight were called.
The effective date is retroactive to 9/11/01 and the benefits
that may be included are credited service, health and life
insurance and SBS [Supplemental Benefit System].
He presented an amendment [1] that would delete "Alaska National
Guard and the Alaska Naval Militia" following "including the" on
page 1, line 9 and insert "organized militia of Alaska,
consisting of the Alaska National Guard, the Alaska Naval
Militia, and the Alaska State Defense Force".
CHAIR GARY STEVENS asked him whether the Governor would be
required to make the bill retroactive to 9/11/01.
SENATOR ELTON explained the Governor isn't required to do
anything; Administrative Order allows him the opportunity to
extend benefits retroactively to anyone called to active duty
post 9/11/01.
SENATOR GRETCHEN GUESS asked for a review of what happens in the
private sector and other governmental entities.
SENATOR ELTON advised Tennessee was the most recent state to
have passed the same type of legislation. The Williams Refinery
employee is a private sector example and Chugach in Anchorage
has also covered benefits and salary. This isn't an uncommon
situation in the private sector, particularly in large
companies.
SENATOR GUESS recapped saying it's a choice in the private
sector and this would extend the choice to the Governor for
state employees.
SENATOR ELTON agreed and advised this doesn't require the
Governor provide the extension of benefits; it allows him to do
so. There is also a provision that takes into account that some
of the benefits are done under the purview of a negotiated
contract and provides that for these benefits to be extended
there would have to be a contract amendment.
SENATOR GUESS noted she has a friend who is with the Anchorage
Police Department who was called to active duty and has had to
do without his salary for a year. She asked whether the state
would have any authority over municipalities if the Governor
were to elect this option.
SENATOR ELTON assumed that would have to be addressed at the
local level. The police officer clearly took a financial hit,
but not all state employees who are called up would lose money.
Some would actually make more money than in their state job. SB
26 would allow the extension of state benefits - credited
service, SBS, and health and life insurance.
SENATOR GUESS asked if PERS would be included.
SENATOR ELTON replied just SBS and credited service.
SENATOR COWDERY asked what the present requirements were for
employers who have employees called for duty in addition to
giving them their job back upon their return.
SENATOR ELTON replied it is his understanding that is the only
requirement. He didn't believe there was any requirement that
the company provide extended benefits while the employee was in
service. He advised he would check again to make sure that was
correct.
SENATOR COWDERY asked what other states do in this regard.
SENATOR ELTON advised him that Tennessee adopted similar
legislation recently. He pointed out the benefit package
protects the employees family as well.
SENATOR COWDERY asked how many Alaskans would be eligible.
SENATOR ELTON replied it is hard to predict, but the Department
of Administration reported eight state employees were called to
active duty last year.
SENATOR COWDERY related a story about a friend who is an Alaska
Air National Guardsman who also works with Alaska Airlines and
makes more money with the guard. He asked if there was a
projected cost.
SENATOR ELTON said if this had been in place last year, and if
the Governor had extended the backfill provisions as well as the
health benefits, SBS, and credited service benefit, the
estimated cost to the state would have been $80,000. He admitted
it's more difficult to look forward than back.
SENATOR COWDERY asked if they anticipated any cap on the monthly
pay benefit.
SENATOR ELTON replied that is possible because the language
provides that the Governor may do this. The language,
particularly with regard to benefits, is purposefully flexible.
SENATOR COWDERY asked if this would cover just regular time and
not overtime.
SENATOR ELTON conceded that was an interesting question. The
bill language gives the Governor latitude to give the employees
the equivalent of their state compensation. There is nothing
that would preclude the Governor from taking overtime into
account, but he would be somewhat surprised if that were to
happen.
SENATOR COWDERY asked for an accounting of overtime pay. He
thought there were court cases to review.
SENATOR ELTON agreed to check and added there is nothing to
preclude the Governor from including this through Administrative
Order. The intent of SB 26 is to keep the employee whole, to
ensure they don't lose benefits for themselves and their family.
CHAIR GARY STEVENS called for public testimony.
MS. DEBRA GERRISH said she was the wife of an Army National
Guard officer and her family will have to make do on $15,000
less while he is on active duty. Health insurance is a vital
part of this bill because many families are left without any
insurance when a family member is called to active duty. This is
a shortcoming to which much of the public is unaware. Guard
families have no organized support system and this would help
those families.
MS. JULIE BENSON testified via teleconference and said she is
the wife of an Alaska State Trooper and Alaska National
Guardsman. Her husband joined the Alaska Air National Guard when
he left the Army and spent six month active duty in the Middle
East during Operation Enduring Freedom. She said, "SB 26 is
essential legislation for state employees who make the difficult
choice to serve not only their state, but also their country."
When her husband was activated, the benefits he received as an
Alaska State Trooper were immediately terminated, which resulted
in lost retirement contributions, lost health care to his family
and forfeited pay raises. She urged passage of SB 26.
4:00 pm
MR. BUTCH STEIN testified via teleconference that he is a
th
retired, active duty member of the 168 Air Refueling Wing at
Eielson Air Force Base. He served on the state steering
committee for employers who support the guard and reserve. This
bill would put the State of Alaska inline with Title 3080 United
States Code, Chapter 43, which is also known as USERRA,
Uniformed Services Employment and Reemployment Rights. SB 26
actually goes beyond the federal requirement, but he knows some
states have done that. In the private sector, it is a case-by-
case basis. He said, "These people are patriots and I don't
think that word is used enough and I don't think most people
realize the sacrifice these people make."
SENATOR FRED DYSON said, "Amen."
There was no further testimony.
CHAIR GARY STEVENS asked for a motion to adopt amendment #1.
SENATOR GUESS made a motion to adopt amendment #1.
There being no objection, it was so ordered.
SENATOR GUESS made a motion to move SB 26, as amended, from
committee with individual recommendations and attached fiscal
note.
SENATOR DYSON acknowledged he was out of order but he wanted to
state he was embarrassed the state treated Trooper Benson the
way it did. He wanted the record to reflect that he thinks the
trooper should be fully reimbursed by the state.
CHAIR GARY STEVENS thanked the Senator for his comments. He
advised members the motion before them was to move CSSB 26 (STA)
from committee with individual recommendations and indeterminate
fiscal note. There being no objection, it was so ordered.
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