Legislature(1997 - 1998)

05/11/1997 02:45 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                      HOUSE FINANCE COMMITTEE                                  
                           May 11, 1997                                        
                             2:45 P.M.                                         
                                                                               
 TAPE HFC 97-139, Side 1, #000 - end.                                          
                                                                               
 CALL TO ORDER                                                                 
                                                                               
 Co-Chair Therriault called the House Finance Committee meeting to             
 order at 2:45 p.m.                                                            
                                                                               
 PRESENT                                                                       
                                                                               
 Co-Chair Hanley               Representative Kelly                            
 Co-Chair Therriault           Representative Kohring                          
 Representative Davies         Representative Martin                           
 Representative Davis          Representative Moses                            
 Representative Foster         Representative Mulder                           
 Representative Grussendorf                                                    
                                                                               
 ALSO PRESENT                                                                  
                                                                               
 Art Chance, Staff, Senate Finance Committee; Ed Flanagan, Deputy              
 Commissioner, Department of Labor.                                            
                                                                               
 SUMMARY                                                                       
                                                                               
 SB 151    "An Act relating to public employment labor relations;              
           relating to the protection of the rights of public                  
           employees under the Public Employment Relations Act;                
           establishing ethical standards for union representatives            
           of public employees; and establishing disclosure                    
           requirements for public employee labor organizations."              
                                                                               
           SB 151 was HELD in Committee for further consideration.             
                                                                               
 SENATE BILL NO. 151                                                           
                                                                               
      "An Act relating to public employment labor relations;                   
      relating to the protection of the rights of public employees             
      under the Public Employment Relations Act; establishing                  
      ethical standards for union representatives of public                    
      employees; and establishing disclosure requirements for public           
      employee labor organizations."                                           
                                                                               
 Representative Mulder MOVED to adopt Work Draft #O-LS0675\Q (copy             
 on file).  There being NO OBJECTION, it was so ordered.                       
                                                                               
 ART CHANCE, STAFF, SENATE FINANCE COMMITTEE reviewed section 9.  He           
 clarified that the obligation of the employee to pay a fee is                 
 dictated by contract.  He further explained that it is a mandatory            
 subject of bargaining which survives until impasse.  At impasse the           
 employer is free to implement a lock-out and the union is free to             
 strike.  A check-off refers to dues authorization or a fee                    
 authorization.  This is the employee's action to have the employer            
 take a fee from their check and transmit it to the union.  The                
 earlier version of the legislation would not have allowed a check-            
 off prior to the effective date of a contract or subsequent to the            
 expiration of the contract.  The work draft states that the check-            
 off is not irrevocable beyond the expiration of a contract or one             
 year, whichever occurs first.  The employee's obligation to pay               
 dues is not changed.  If the dues are not paid the union can ask              
 that the employee be dismissed.                                               
                                                                               
 Co-Chair Therriault noted that there were concerns regarding                  
 fragmentation.  Mr. Chance noted that those sections were removed.            
 He added that everything in the original version relating to                  
 definitions of groups of employees or bargaining unit composition             
 have also been removed.                                                       
                                                                               
 Representative Davis noted that the definition of supervisory                 
 status was deleted.  Mr. Chance explained that the Department of              
 Labor felt that the Alaska Labor Relations Agency should address              
 the issue.                                                                    
                                                                               
 ED FLANAGAN, DEPARTMENT OF LABOR stated that section 9 is                     
 problematic.  He stated that the affect of section 9 is the same.             
 The earlier version stated that the voluntary authorization to                
 deduct fees could not commence before the start of the contract or            
 beyond its expiration.  The committee substitute states, in section           
 8, that the authorization cannot be irrevocable beyond the                    
 expiration of the agreement or one year, whichever occurs first.              
 He noted that an action by the fee payer would be necessary.  He              
 suggested that many of the fee payers will assert their right to no           
 longer have a deduction at the expiration of the contract.  He                
 maintained that this could deprive the union of funds at a time               
 when funds are most needed.  He noted that the General Governmental           
 Union went two years without a contract.  He estimated that the               
 committee substitute will result in more requests for termination.            
                                                                               
 Mr. Flanagan acknowledged that some concerns by the Department have           
 been addressed.  He noted that the Department of Labor still has              
 serious concerns regarding the far reaching disclosure                        
 requirements.  He asserted that the disclosure requirements exceed            
 requirements under federal law.  He noted that federal law requires           
 reports of payments in excess of $10 thousand dollars to employees            
 or officers.  The committee substitute requires disclosure of                 
 payments of $500 hundred dollars or more and expands those that are           
 covered.  Any amount spent on political activities would have to be           
 reported.  He maintained that the Alaska Public Offices Commission            
 (APOC) should handle the reporting of political funding.                      
                                                                               
 Mr. Flanagan noted that municipal concerns have been obviated with            
 the changes made by the committee substitute.                                 
                                                                               
 Mr. Flanagan discussed the fiscal impact of the legislation.  He              
 noted that the Department of Labor's fiscal note was over $200                
 thousand dollars.  He acknowledged that the Alaska Labor Relations            
 Agency's fiscal note would be reduced by the legislation.  He                 
 stressed that there will still be an increase in unfair labor                 
 practice activity.  He stated that the Department of Labor,                   
 Commissioner's Office fiscal note will be $98 thousand dollars the            
 first year and $91 thousand dollars each succeeding year.  This               
 would fund one Accounting Technician II position and a one-quarter            
 time assistant attorney general for criminal prosecution.                     
                                                                               
 Co-Chair Therriault referred to the Consent Decree.  He summarized            
 that unless there is a mechanism to determine which fees go to                
 collective bargaining and which goes to other, that a certain fee             
 cannot be mandated.  Mr. Flanagan noted that the accounting method            
 has to be acceptable to the court.  Co-Chair Therriault maintained            
 that any employee could opt out of paying any fee.                            
                                                                               
 Representative Kelly stated that he is opposed to Alaska being a              
 right to work state.                                                          
                                                                               
 Co-Chair Therriault stressed that any employees that raise the same           
 concern and would be exempt from the payment of fees.  He stated              
 that he supports the right of employees to be represented by a                
 collective bargaining agreement.  He emphasized that employees                
 should be compelled to pay for the benefit of services they                   
 receive.                                                                      
                                                                               
 Representative Kelly expressed concern with section 9.  He                    
 maintained that employees living under a negotiated contract should           
 pay for the services they receive.  He stated that he would not               
 support legislation that allows employees to benefit from a                   
 negotiated contract without paying for the services.                          
                                                                               
 Mr. Chance asserted that as long as the contract is in effect, the            
 person who derives a benefit from the contract has an obligation to           
 pay a fee.  He noted that they could revoke the check-off.  If they           
 revoke the check-off the payment of the fee would be between the              
 employee and the union, not the employee and the State.                       
                                                                               
 Co-Chair Therriault pointed out that defendants are not entitled to           
 collect any agency fees from the plaintiffs.  Mr. Chance clarified            
 that the Court concluded that there was not a system in place which           
 provided the necessary constitutional protection to a service fee             
 payer.  The Court ruled that the union security agreement could not           
 be enforced.                                                                  
                                                                               
 Co-Chair Therriault concluded that individual employees will have             
 to pay for the services they receive, as long as the organization             
 has an accounting system that is adequate to separate the                     
 collective bargaining fee, under federal law.                                 
                                                                               
 Representative Davies did not agree that the court decision                   
 resulted in Alaska becoming a right to work state.  He noted that             
 some labor groups may have to change their accounting practices.              
 He stated that new legislation is not needed to allow labor groups            
 to change their accounting practices.                                         
                                                                               
 Representative Davies noted that the legislation utilizes double              
 negatives.  He noted that nothing prohibits a public employer from            
 making an agreement.  He observed that there is no positive                   
 requirement that fees be paid.  He stressed that there would be no            
 requirement for a service payer to pay the service fee after a year           
 of negotiations.                                                              
                                                                               
 Mr. Chance stressed that the obligation to pay a fee should not be            
 confused with the authority to have a check-off.  Representative              
 Davies maintained that many people will not pay the fee and it will           
 be impossible to enforce the fee.  He noted that it is not feasible           
 to take people to court over the accumulation of fees.                        
                                                                               
 Mr. Flanagan pointed out that the committee substitute suspends the           
 grievance procedure, which the fee is calculated to include.  He              
 maintained that the court may not uphold the obligation to pay.               
                                                                               
 SB 151 was HELD in Committee for further consideration.                       
                                                                               
 ADJOURNMENT                                                                   
                                                                               
 The meeting adjourned at 3:15 p.m.                                            

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