Legislature(1995 - 1996)
03/25/1996 03:08 PM House L&C
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 25, 1996
3:08 p.m.
MEMBERS PRESENT
Representative Pete Kott, Chairman
Representative Norman Rokeberg, Vice Chairman
Representative Kim Elton
Representative Jerry Sanders
Representative Brian Porter
Representative Gene Kubina
MEMBERS ABSENT
Representative Beverly Masek
OTHER HOUSE MEMBERS PRESENT
Representative Bill Williams
COMMITTEE CALENDAR
*HOUSE BILL NO. 497
"An Act relating to chiropractic peer review; and providing for an
effective date."
- PASSED OUT OF COMMITTEE
HOUSE RESOLUTION NO. 12
Supporting the collective bargaining agreement between the
University of Alaska and the Alaska Community Colleges' Federation
of Teachers.
- PASSED CSHR 12(L&C) OUT OF COMMITTEE
*HOUSE BILL NO. 432
"An Act relating to the practice of veterinary medicine."
- PASSED OUT OF COMMITTEE
(* First public hearing)
PREVIOUS ACTION
BILL: HB 497
SHORT TITLE: CHIROPRACTIC PEER REVIEW
SPONSOR(S): REPRESENTATIVE(S) MULDER BY REQUEST
JRN-DATE JRN-PG ACTION
02/12/96 2723 (H) READ THE FIRST TIME - REFERRAL(S)
02/12/96 2723 (H) LABOR & COMMERCE
03/20/96 (H) L&C AT 3:00 PM CAPITOL 17
03/20/96 (H) MINUTE(L&C)
03/25/96 (H) L&C AT 3:00 PM CAPITOL 17
BILL: HR 12
SHORT TITLE: UNIV. COLLECTIVE BARGAINING CONTRACT
SPONSOR(S): REPRESENTATIVE(S) WILLIAMS,B.Davis
JRN-DATE JRN-PG ACTION
02/12/96 2721 (H) READ THE FIRST TIME - REFERRAL(S)
02/12/96 2721 (H) HES, LABOR & COMMERCE
03/19/96 (H) HES AT 2:00 PM CAPITOL 106
03/19/96 (H) MINUTE(HES)
03/21/96 (H) HES AT 3:00 PM CAPITOL 106
03/21/96 (H) MINUTE(HES)
03/21/96 3258 (H) COSPONSOR(S): B.DAVIS
03/22/96 3265 (H) HES RPT 2DP 3NR
03/22/96 3265 (H) DP: ROBINSON, BRICE
03/22/96 3265 (H) NR: ROKEBERG, BUNDE, TOOHEY
03/22/96 3265 (H) FISCAL NOTE (UA)
03/22/96 (H) MINUTE(HES)
03/22/96 3265 (H) REFERRED TO LABOR & COMMERCE
03/25/96 (H) L&C AT 3:00 PM CAPITOL 17
BILL: HB 432
SHORT TITLE: VETERINARY LICENSING
SPONSOR(S): LABOR & COMMERCE
JRN-DATE JRN-PG ACTION
01/19/96 2484 (H) READ THE FIRST TIME - REFERRAL(S)
01/19/96 2485 (H) STATE AFFAIRS, LABOR & COMMERCE
02/15/96 (H) STA AT 8:00 AM CAPITOL 102
02/15/96 (H) MINUTE(STA)
02/15/96 2772 (H) STA RPT 1DP 5NR
02/15/96 2772 (H) DP: JAMES
02/15/96 2772 (H) NR: PORTER, GREEN, ROBINSON, WILLIS
02/15/96 2772 (H) NR: OGAN
02/15/96 2772 (H) ZERO FISCAL NOTE (ADM)
02/15/96 2772 (H) REFERRED TO LABOR & COMMERCE
02/26/96 (H) L&C AT 3:00 PM CAPITOL 17
02/26/96 (H) MINUTE(L&C)
03/25/96 (H) L&C AT 3:00 PM CAPITOL 17
WITNESS LIST
TIM SULLIVAN, Staff
Representative Eldon Mulder
Alaska State House of Representatives
Capitol Building, Room 411
Juneau, Alaska 99811
Telephone: (907) 465-2647
POSITION STATEMENT: Offered sponsor statement on behalf of
HB 497.
KYLE JOHANSEN, Staff
Representative Bill Williams
Alaska State House of Representatives
Capitol Building, Room 128
Juneau, Alaska 99811
Telephone: (907) 465-3424
POSITION STATEMENT: Offered sponsor statement on behalf of
HR 12.
RALPH MCGRATH, President
Alaska Community College Federation of Teachers
2533 Providence Drive
Anchorage, Alaska 99501
Telephone: (907) 562-2660
POSITION STATEMENT: Testified in support of HR 12.
ERIC LEEGARD, ACCFT Representative
University of Alaska Southeast
P.O. Box 32306
Juneau, Alaska 99803
Telephone: (907) 780-4021
POSITION STATEMENT: Testified in support of HR 12.
RAY ZAGORSKI
Kenai Peninsula College
P.O. Box 3474
Soldotna, Alaska 99669
Telephone: (907) 262-0348
POSITION STATEMENT: Testified in support of HR 12.
DAYNE CLARK, ACCFT Representative
Kenai Peninsula College
34820 College Drive
Soldotna, Alaska 99669
Telephone: (907) 262-3541
POSITION STATEMENT: Testified in support of HR 12.
PHILIP SLATTERY, ACCFT Representative
Sitka Campus, University of Alaska Southeast
P.O. Box 1864
Sitka, Alaska 99835
Telephone: (907) 747-8482
POSITION STATEMENT: Testified in support of HR 12.
CHARLES WADE, Professor of Applied Business
University of Alaska
Kuskokwim Community Campus
P.O. Box 506
Bethel, Alaska 99559
Telephone: (907) 543-2847
POSITION STATEMENT: Testified in support of HR 12.
JOLI MORGAN, Professor of Applied Business
University of Alaska
Kuskokwim Community Campus
P.O. Box 844
Bethel, Alaska 99559
Telephone: (907) 543-2013
POSITION STATEMENT: Testified in support of HR 12.
WILLIAM K. JERMAIN, Attorney
Jermain, Dunnagan and Owens, P.C.
3000 A Street, Suite 300
Anchorage, Alaska 99503
Telephone: 563-8844
POSITION STATEMENT: Testified in support of HR 12.
DAVE DAU, Treasurer
Alaska Community College Federation of Teachers
2533 Providence
Anchorage, Alaska 99508
Telephone: (907) 562-2660
POSITION STATEMENT: Testified in support of HR 12.
GEORGE GUTHRIDGE, Associate Professor of English
Dillingham Community Campus
University of Alaska
P.O. Box 883
Dillingham, Alaska 99576
Telephone: (907) 842-5483
POSITION STATEMENT: Testified in support of HR 12.
ROE THOMAS, CHAIRMAN
Ketchikan Central Labor Council
P.O. Box 8282
Ketchikan, Alaska 99901
Telephone: (907) 225-4858
POSITION STATEMENT: Testified in support of HR 12.
BOB WARNER, Associate Professor of Library Science
University of Alaska Southeast, Ketchikan Campus
888 Monroe Street
Ketchikan, Alaska 99901
Telephone: (907) 225-4722
POSITION STATEMENT: Testified in support of HR 12.
PRISCILLA SCHULTE, ACCFT Representative
Ketchikan Campus
University of Alaska Southeast
P.O. Box 5721
Ketchikan, Alaska 99901
Telephone: (907) 225-4722
POSITION STATEMENT: Testified in support of HR 12
WENDY REDMAN, Vice President
University Relations
University of Alaska
P.O. Box 155000
Fairbanks, Alaska
Telephone: (907) 474-7582
POSITION STATEMENT: Testified in opposition to HR 12, and
in support of attached fiscal note.
GEORGE DOZIER, Staff
Representative Pete Kott
Alaska State House of Representatives
Capital Building, Room 432
Juneau, Alaska 99801
Telephone: (907) 465-3306
POSITION STATEMENT: Offered sponsor statement in support of
HB 432.
DEANNA J. THORNELL, D.V.M.
Board of Veterinary Examiners
P.O. Box 61263
Fairbanks, Alaska 99706
Telephone: (907) 479-2800
POSITION STATEMENT: Testified in support of HB 432.
ACTION NARRATIVE
TAPE 96-29, SIDE A
Number 0025
CHAIRMAN PETE KOTT called the House Labor and Commerce Standing
Committee to order at 3:08 p.m. Members present at the call to
order were Representatives Kott and Sanders. Chairman Kott
announced the committee would stand at ease until a quorum was
present. He called the committee back to order when
Representatives Elton and Kubina arrive. Representatives Porter
and Rokeberg arrived late. Representative Masek was absent.
HB 497 - CHIROPRACTIC PEER REVIEW
Number 0095
CHAIRMAN KOTT announced the first order of business to come before
the House Labor and Commerce Committee was HOUSE BILL NO. 497, "An
Act relating to chiropractic peer review; and providing for an
effective date."
TIM SULLIVAN, of Representative Eldon Mulder's staff, read a
sponsor statement for HB 497, as follows: "The Chiropractic Peer
Review Committee was formed by the Board of Chiropractic Examiners
in 1994 pursuant to statute 08.20.185(a), the statute we are
proposing to amend today with this bill. The initial Peer Review
Committee consisted of three chiropractors. The board then added
a lay person to the committee. Under current statute, only the
chiropractors on the committee have immunity for decisions they
make as committee members. The lay person does not have immunity
for those same decisions. House Bill 497 would extend immunity to
the lay person by extending immunity to all members of the
committee."
Number 0314
REPRESENTATIVE GENE KUBINA made a motion to move HB 497 from the
House Labor and Commerce Committee, with attached zero fiscal note
and individual recommendations. It was noted for the record that
the Board of Chiropractic Examiners supports HB 497.
Number 0348
CHAIRMAN KOTT announced that, there being no objection, HB 497 was
passed out of the House Labor and Commerce Committee with attached
zero fiscal note and individual recommendations.
HR 12 - UNIV. COLLECTIVE BARGAINING CONTRACT
Number 0438
CHAIRMAN KOTT announced that the next order of business to come
before the committee was HOUSE RESOLUTION NO. 12, "Supporting the
collective bargaining agreement between the University of Alaska
and the Alaska Community Colleges' Federation of Teachers."
KYLE JOHANSEN, of Representative Bill Williams' staff, read a
sponsor statement in support of HR 12, as follows: "I introduced
House Resolution 12 on behalf of the Alaska Community College
Federation of Teachers.
"It is my understanding that on May 8, 1992 the University of
Alaska Board of Regents approved a Collective Bargaining Agreement
between the University of Alaska and the ACCFT.
"In June of 1993, through a change in University policy, the
Collective Bargaining Agreement was compromised. An April 1995
arbitration decision ruled the original Collective Bargaining
Agreement should be fulfilled.
I am asking that the legislature support the ruling of the
arbitrator."
Number 0536
REPRESENTATIVE JERRY SANDERS asked where the fiscal note came from.
MR. JOHANSEN responded that he was not prepared to testify on that
subject.
CHAIRMAN KOTT noted that the fiscal note resulted from the contract
not being funded by the University.
Number 0600
REPRESENTATIVE KIM ELTON stated his belief that the fiscal note
represents "a little bit of trickery."
CHAIRMAN KOTT concurred, and stated that the committee would take
up the matter of the fiscal note, after hearing testimony from
witnesses.
CHAIRMAN KOTT called on the first witness, Ralph McGrath.
Number 0800
RALPH MCGRATH, President, Alaska Community College Federation of
Teachers (ACCFT), stated that the ACCFT is the bargaining agent for
approximately 280 faculty, who are largely responsible for the
continuation and delivery of community college programs within the
University of Alaska. This includes vocational\technical, adult
basic education, and continuing education type courses. He further
stated that the ACCFT supports HR 12 as it was originally
submitted. The current version, which was amended in the House
Health, Education and Social Services Committee, contains a fiscal
note which the ACCFT does not support.
Number 1041
MR. MCGRATH further testified that HR 12 came about because a
contract between the ACCFT and the University of Alaska Board of
Regents, which provided for a 3 percent cost of living increase,
was not honored by the board of regents. The matter was then taken
to arbitration, and the arbitrator directed the university
administration to pay the 3 percent. The university took the
position that the arbitrator's award meant that the university had
to request the money from the legislature. During last year's
legislative session, the university made a funding request.
However, no action was ever taken on the request. When the
legislative session ended in May, the university communicated to
the ACCFT that the legislature had rejected the funding necessary
for the 3 percent pay increase. The ACCFT takes the position that
non-action by the legislature is not the same as action to reject.
The university now takes the position that they will not request
the money to fund the increase for 1995. Therefore, HR 12 is
intended to express legislative intent.
Number 1061
MR. MCGRATH explained that the ACCFT believes legislative intent is
consistent with last year's session, when the legislature was
looking at the funding of Local 71 and the Inland Boatman's
contracts. At that time, the legislature requested an
interpretation from legislative legal counsel, Teresa Cramer. The
ACCFT based its resolution on Ms. Cramer's interpretation, which
states that if the legislature does not take a specific action to
reject, but does appropriate salaries, then they have in fact
appropriated the terms of the contract. Mr. McGrath reiterated
that the ACCFT believes the fiscal note attached in House HESS is
not necessary. In closing, he reminded the committee that if the
university had honored the arbitrator's award, he would not be
appearing before them today. Mr. McGrath reiterated that the
university has failed to perform its responsibilities as a state
agency.
Number 1097
CHAIRMAN KOTT asked if the fiscal note alluded to would cover the
costs for FY 95 or FY 96.
MR. MCGRATH responded that it would cover FY 95. His understanding
is that the $500,000 the university is requesting would simply
bring the faculty up to where they should have been. The
additional one million dollars is to maintain the level for future
years, which would cover only FY 95 costs.
CHAIRMAN KOTT stated his understanding of the proposed resolution.
In early 1992, the university negotiated a collective bargaining
agreement with the ACCFT, which became binding when approved by the
board of regents in May of 1992. In June of 1993, the university
suspended that policy.
Number 1190
MR. MCGRATH concurred. However, there was no impact on the faculty
members until July of 1994. At that time, the ACCFT filed a
grievance. The grievance process resulted in binding arbitration,
and the arbitrator ruled in April of 1995 that the faculty members
were entitled to a 3 percent pay increase.
CHAIRMAN KOTT asked if the negotiations which took place in July of
1992 applied to FY 93.
MR. MCGRATH responded that the terms of the contract applied
through July of 1994. Then, according to the contract and state
law, the conditions remain in place until a successor contract is
negotiated. A successor agreement has not yet been reached.
Number 1236
REPRESENTATIVE NORMAN ROKEBERG asked if the contract was now the
subject of litigation.
MR. MCGRATH responded in the affirmative. He stated that Mr. Bob
Jermain, ACCFT attorney, was on line to answer questions related to
the legal case, but that it is his understanding that the legal
case focuses on the university's statutory and constitutional
obligations.
REPRESENTATIVE ROKEBERG commented that he would like the committee
to discuss the Cramer legal opinion. He stated that HR 12 had
received two hearings in the House Health, Education and Social
Services Committee, and there were comments that Ms. Cramer's
opinion had been taken out of context.
MR. MCGRATH responded that the ACCFT's legal counsel feels the
proposed resolution is consistent with Ms. Cramer's opinion.
Number 1334
CHAIRMAN KOTT announced that the next witness would be Eric
Leegard.
ERIC LEEGARD, ACCFT representative for the University of Alaska
Southeast campus, noted that he and other ACCFT members had
submitted written testimony for the committee. ACCFT members
believe that they have upheld their end of the contract, and are
asking that the university uphold its end.
Number 1417
CHAIRMAN KOTT announced that the committee would now take testimony
via teleconference. He stated that the first person on the line
was Mr. Ray Zagorski, testifying from Kenai.
RAY ZAGORSKI, a faculty member at Kenai Peninsula College,
testified that he feels the university must stop passing the buck.
Mr. Zagorski explained that he came to the university in March of
1994, under a tenure track appointment. He came with teaching
experience from four other universities. When he came, certain
promises were made to him as a tenure track faculty member, which
included an annual 3 percent cost of living increase. He noted
that the university's actions are negatively impacting on faculty
morale. Mr. Zagorski reiterated that faculty should receive the
compensation they are entitled to, under the terms of their
collective bargaining agreement.
Number 1511
DAYNE CLARK, testifying via teleconference from Kenai, stated that
he is the Kenai campus faculty representative for ACCFT. Mr. Clark
emphasized that the university knew the consequences of failing to
honor the ACCFT's contract, and stated it is his feeling that the
university is playing games, and trying to get rid of the union.
He urged the committee to pass HR 12, so that the university would
be encouraged to honor its contract, and faculty could go back to
concentrating on teaching.
Number 1566
PHILIP SLATTERY, Sitka campus representative for the ACCFT,
testified via teleconference from Sitka. He stated that nine
faculty members on the Sitka campus are represented by the ACCFT.
Mr. Slattery concurred with previous testimony. He pointed out
that in the arbitration which resulted in the pay increase, the
university won on three other items. The university was pleased to
accept the arbitrator's decision on those items. Yet, they refuse
to honor the faculty pay increase. Mr. Slattery explained that he
has been with the university for 22 years, and that this type of
difficulty has been ongoing.
Number 1652
CHARLES WADE, Professor of Applied Business with the University of
Alaska Kuskokwim Community Campus, testified via teleconference
from Bethel. He expressed his frustration with the university
administration, a frustration which he believes is shared by all
the faculty at the Bethel campus. These faculty entered into a
negotiated contract with the university. Faculty have upheld their
part of the bargain, and the university hasn't. Mr. Wade stated it
has been his experience, over his 19-year association with the
university, that this type of behavior is not unusual. He asked
the committee to help the university do the right thing, by passing
HR 12 out of the committee.
Number 1715
JOLI MORGAN, Professor of Applied Business with the University of
Alaska Kuskokwim Community Campus, testified via teleconference
from Bethel. He stated that he has been with the university since
1976. Professor Morgan noted that other countries, such as Japan,
have learned from their management-labor strife. In Japan,
management and labor now share a common goal: the success of the
enterprise. Refusal to learn this simple lesson has made the
United States not number one, but number ten. Professor Morgan
asserted that today's hearing bears witness to this fact. Rather
than spending his time developing lesson plans, teaching courses,
and advising students, he has had to siphon time from his duties in
order to testify. The university broke its contract with the
union, which resulted in both sides agreeing to binding
arbitration. At the arbitration hearing, the university won three
decisions but lost on one--the 3 percent raise. Yet, the
university has not honored the arbitration award. Article 4 of the
ACCFT's negotiated contract states, "The decision of the arbitrator
shall be final, and the parties shall abide by it."
PROFESSOR MORGAN further stated that HR 12 asks the legislature, as
representatives of the people, to tell the university to act in a
responsible manner, to honor its contracts, and to abide by the
arbitrator's decision. He urged the committee to support HR 12.
Number 1800
CHAIRMAN KOTT noted the presence in the committee room of
Representative Bill Williams, prime sponsor of HR 12. He then
announced that the committee would hear from Bill Jermain.
WILLIAM K. JERMAIN, attorney for ACCFT Local 2404, stated that he
has represented the ACCFT for 22 years. He further stated that HR
12 is a rare opportunity for the legislature to express its own
statement of intent, as opposed to having its intent interpreted by
the courts. The resolution deals with a fairly narrow issue. The
University of Alaska has taken the position that unless the
legislature specifically appropriates funds to pay its obligations
under collective bargaining agreements, then it will not pay them,
no matter how much money the legislature may appropriate for
personal services, or other items that would cover the negotiated
amounts. At the same time, the university has taken the position
that it will pay any type of increase for any of the non-
represented faculty, without having any expression of legislative
intent.
MR. JERMAIN further stated that the university interprets the
Public Employee Relations Act (PERA) to restrict its ability to
meet the obligations that it has agreed to at the collective
bargaining table; in this case, an obligation that the legislature
approved as early as 1992. Mr. Jermain explained that he is well
aware of the history of PERA. As Deputy Commissioner of Labor from
1967 to 1970, he helped draft the first PERA legislation, which
became law in 1972. He believes that it is not PERA's intent to
discourage collective bargaining. It is also not the intent of the
law to have employers fail to honor their obligations.
MR. JERMAIN asserted that the university's position has been that
it will honor obligations arbitrated in its favor, but that it will
not honor its obligations under general funds or personal service
funds for pay increases. This is totally incompatible with the
purpose of PERA and collective bargaining agreements. HR 12 only
addresses the university's responsibility to honor its obligations
under a collective bargaining agreement. Mr. Jermain further
stated that HR 12 is based on the opinion of Teresa Cramer. The
resolution does not interfere with the separation of powers. The
legislature has the power to reject contracts, but it has not done
so in this case. By failing to honor its fiscal responsibility,
the university has passed the buck to the legislature.
Number 2015
REPRESENTATIVE KUBINA thanked Mr. Jermain for his testimony.
REPRESENTATIVE ROKEBERG asked about the status of the lawsuit.
MR. JERMAIN responded that two suits have been filed. One was
filed by the Classified Employees' Association, against the
University of Alaska. The other suit was filed by the Alaska
Community College Federation of Teachers Local 2404 against the
University of Alaska. Both suits are in the preliminary stages.
Mr. Jermain further explained that both lawsuits address
constitutional issues regarding university obligations. The ACCFT
lawsuit also addresses the arbitration award, which is a different
issue than what is contained in HR 12. He emphasized that the
courts will attempt to determine legislative intent, and that HR 12
provides an opportunity for the legislature to express its intent
with regard to the obligation.
Number 2026
REPRESENTATIVE ROKEBERG noted that the resolution does speak to the
arbitration.
MR. JERMAIN replied that the university did not appeal the
arbitrator's award. Therefore, the union is now attempting to
enforce that award. That is one aspect of the litigation.
CHAIRMAN KOTT called on the next witness, Dave Dau.
Number 2148
DAVE DAU, Treasurer of the ACCFT and Professor of Psychology at the
University of Alaska Anchorage, testified via teleconference from
Anchorage. He noted that during the House HESS Committee hearings,
he had heard University Vice President Wendy Redman testify that
the university does not like HR 12 because it bypasses the
collective bargaining process. Professor Dau noted that the
hearing was being held only because the university has violated a
collective bargaining agreement, and has refused to honor the award
of an arbitrator in binding arbitration. The university has
consistently demonstrated callous disregard for the collective
bargaining process. Professor Dau urged the committee's support
for HR 12. He emphasized that HR 12 asks for no new appropriation
from the legislature.
Number 2215
CHAIRMAN KOTT announced that the next witness would be George
Guthridge, testifying via teleconference from Dillingham.
GEORGE GUTHRIDGE, Associate Professor of English at the Dillingham
Community Campus, testified in support of HR 12. He stated that
the university has a long history of picking and choosing what it
will and won't pay, and obscuring that fact with a lot of rhetoric.
Litigation will only add more costs, and will result in the
university having to ask the legislature for additional money.
Professor Guthridge emphasized that the university has a legal and
moral obligation to meet its contractual responsibilities.
Number 2273
ROE THOMAS, Chairman of the Ketchikan Central Labor Council,
testified via teleconference from Ketchikan. Mr. Thomas stated it
is unconscionable for the university regents not to honor a moral
and legal obligation to faculty members.
Number 2331
BOB WARNER, Associate Professor of Library Science, University of
Alaska Southeast, Ketchikan campus, testified via teleconference
from Ketchikan. He stated that his major concern is the
frustration, and the time lost from teaching to deal with this
matter. Professor Warner thanked Representative Williams for
bringing the matter to the attention of the legislature.
PRISCILLA SCHULTE, Professor of Anthropology and Sociology and
Campus ACCFT representative at the University of Alaska Southeast
Ketchikan Campus, testified via teleconference from Ketchikan.
Professor Schulte urged the committee to support HR 12. She
emphasized that teachers want to spend their time teaching, and
find it very frustrating when their salary agreements are not
honored. When they are told that the university cannot honor its
agreements without direction from the legislature, they don't know
which way to turn. Professor Schulte further testified that new
faculty coming into the system cannot understand why an agreement
is not an agreement.
Number 2405
CHAIRMAN KOTT asked if anyone else wished to testify regarding HR
12.
WENDY REDMAN, Vice President for Public Relations at the University
of Alaska, Fairbanks, testified via teleconference from Fairbanks.
Ms. Redman stated she is perplexed and somewhat incredulous over HR
12. She has been with the university for 25 years, and has been
representing the university in Juneau for 20 years. Ms. Redman
stated that HR 12 would set several precedents. It is an
intervention in the collective bargaining process, as well as an
intervention in an issue that is currently being litigated. It
will cause significant budget reductions to the university's base
budget, and re-writes a legislative history. Ms. Redman emphasized
that she wished to clarify several issues. The arbitration award
did tell the university that it must pay the salary increase
provided by the contract. Provided by the contract is the relevant
phrase. The collective bargaining contract states that
compensation increases shall be subject to legislative
appropriation. It further states that any provision of the
agreement requiring a legislative appropriation to permit its
implementation will be subject to legislative approval.
TAPE 96-29, SIDE B
Number 0024
MS. REDMAN further testified that the university has never taken an
issue which was turned down by the legislature and funded it
internally. The contract language is very clear, from the
university's standpoint. The Teresa Cramer memo dealt with the
issue of what exactly the legislature had to do to reject
contracts, and the legislature specifically and deliberately failed
to fund legitimately negotiated collective bargaining agreements in
1995, including the university's. The Cramer memo states that
failure to fund requires specific language. However, the last
paragraph of that memo states, "If there were a monetary term of a
contract that required a separate appropriation, unrelated to other
budget items, then, given the language of AS 23.40, that monetary
term would be considered to have failed, unless the legislature
made an appropriation for that purpose. However, I believe that is
an unlikely factual situation." Ms. Redman asserted that is not,
in fact, how state contracts are written. The university's
contracts are written to require specific and separate
appropriations. That is what the legislature was acting on last
year when it failed to fund the university contract. The
university requested the money from the legislature, and the
legislature failed to act. Ms. Redman further noted that the
fiscal note accompanying the current version of HR 12 was added at
her request. If the legislature agrees that the university needs
to pay and honor its contracts, then it is incumbent upon the
legislature to appropriate the necessary funds. She also pointed
out that the legislature currently has before it FY 96 and FY 97
salary amounts for the ACCFT, and asked that the legislature also
fund those.
Number 0126
REPRESENTATIVE ELTON asked how much the university is spending to
litigate this issue.
MS. REDMAN responded that she could not answer that question.
REPRESENTATIVE ELTON then asked if the university was out-sourcing
its legal services, or using in-house counsel.
MS. REDMAN replied that the university is out-sourcing its legal
services on this issue.
REPRESENTATIVE ELTON commented that he would be interested in
seeing a copy of that contract.
MS. REDMAN stated that she would be glad to provide one.
Number 0156
REPRESENTATIVE BRIAN PORTER asserted that the issue goes beyond
binding arbitration. The real issue is legislative intent. Based
upon what occurred last year, the legislature specifically rejected
certain contracts. By omission, it specifically did not reject
other contracts, including the one before the committee. He then
made a motion that HR 12 be passed from the committee with
individual recommendations, and without the accompanying fiscal
note.
REPRESENTATIVE KUBINA asked Ms. Redman if binding arbitration was
supposed to prevent litigation.
MS. REDMAN responded that she could not recall a time in her 25
years at the university when it had not honored an arbitration
ruling. This arbitration ruling states that the university will
pay the increase provided by the collective bargaining agreement.
The agreement outlines how the university obtains funds for pay
increases. Ms. Redman further stated that she was at the House
Finance Committee meeting last year, when the issue was raised as
to whether specific language was needed to reject the university
contract. At that time, the committee decided that specific
language was not needed, because university contracts are clear on
the need for specific and separate appropriations.
Number 0267
REPRESENTATIVE KUBINA suggested a technical amendment to HR 12. On
line 4, insert the words Alaska Community College between "the" and
"Federation". Representative Kubina also suggested that the
resolution should be moved out with a zero fiscal note, rather than
with no fiscal note, as suggested by Representative Porter.
REPRESENTATIVE PORTER withdrew his motion, so that the resolution
could be amended.
CHAIRMAN KOTT announced that there being no objection, the
technical amendment to include the words "Alaska Community College"
was passed.
Number 0326
REPRESENTATIVE PORTER restated his motion, to move HR 12 as
amended, with individual recommendations and a zero fiscal note,
out of the House Labor and Commerce Committee.
REPRESENTATIVE ROKEBERG objected, for discussion purposes. He
stated that the resolution does have fiscal ramifications. He
asked, "Is this an attempt to bypass the Finance Committee?"
REPRESENTATIVE PORTER noted that he could not recall a resolution
ever having a fiscal note. A resolution simply asks someone to do
something. It does not mandate.
REPRESENTATIVE ROKEBERG noted that the resolution attempts to
create gold out of paper. The money has to come from somewhere.
The issue is, is it coming out of the university's appropriated
budget, or does it require a new appropriation?
Number 0377
REPRESENTATIVE ELTON pointed out that the university budget is
handled much differently from agency budgets. The legislature
appropriates a lump sum, and the board of regents allocates the
funds as they see fit. He stated that, even though he is on the
university subcommittee, he does not know whether the university
president's salary has increased, for example, because the money is
not appropriated by position. Therefore, although he would hate to
see it happen, there is nothing to stop the university from using
the financial resources which it has to absorb the costs of this
pay increase. Representative Elton affirmed that his preference
would be to see the legislature do the right thing, and appropriate
the money to fund the pay increase. Even if that doesn't happen,
however, a fiscal note is not needed.
REPRESENTATIVE ROKEBERG commented that the fiscal note is large
enough for him to feel concerned about by-passing it.
CHAIRMAN KOTT noted that on lines 9 - 12, the resolution states
that the legislature funded appropriations for salaries.
Therefore, if you support the resolution, you cannot support a
fiscal note.
MS. REDMAN commented that the legislature funded only base
salaries, and not a salary increase.
Number 0500
REPRESENTATIVE KUBINA stated that last year, the legislature
rejected some contracts. Those contracts were then re-negotiated,
and are now before the legislature again. That is not the case
with the ACCFT contract. His understanding is that once contracts
are funded, they are approved. The university then has a
responsibility to live up to the contract. The purpose of binding
arbitration is to avoid litigation, yet the arbitration still winds
up in court.
REPRESENTATIVE ROKEBERG stated that the purpose of collective
bargaining is to solve a conflict, not to lower costs.
Number 0560
CHAIRMAN KOTT asked if Representative Rokeberg maintained his
objection.
REPRESENTATIVE ROKEBERG replied he sensed it was the will of the
committee to move the resolution. He stated for the record that he
would like to see the university revert to a community
college/university system. He then withdrew his objection.
CHAIRMAN KOTT announced that, there being no further objections, HR
12 as amended was passed out of the House Labor and Commerce
Committee with individual recommendations and a zero fiscal note.
HB 432 - VETERINARY LICENSING
Number 0625
CHAIRMAN KOTT announced that the next order of business to come
before the House Labor and Commerce Committee was HOUSE BILL NO.
432, "An Act relating to the practice of veterinary medicine."
GEORGE DOZIER, staff to Chairman Kott, explained HB 432
accomplishes three or four different goals. He said it contains a
provision which prescribes the fraudulent use or procurement of a
veterinarian license. It also prescribes the act of fraudulently
claiming to have such a license. It makes it a unclassified
misdemeanor with up to a $10,000 fine for violation of those
provisions. Mr. Dozier explained the second section of the bill
recognizes that at one time an organization used to give
standardized tests. That organization is no longer in existence.
It is now called something else and the test is also called
something else. It changes certain references to the licensure
provisions from the National Board of Veterinarian Examiners to the
National Board of Examination Committee. The same thing is done
further on changing the old organization known as the American
Veterinarian Association's Educational Commission for Foreign
Veterinarian Graduates to the National Board of Examination
Committees Education Commission for foreign Veterinarian Graduates.
Mr. Dozier explained the bill also requires veterinary technicians
to be licensed and requires the board to promulgate regulations
concerning that licensure.
Number 0723
CHAIRMAN KOTT announced that the first witness would be Dr. Dee
Thornell, testifying via teleconference from Anchorage.
DEANNA J. THORNELL, of the Board of Veterinary Examiners, stated
that while current law makes it illegal to practice veterinary
medicine in the state without a license, no penalties are mandated.
HB 432 would mandate a $10,000 fine and imprisonment of up to one
year for a person found in violation of the licensing requirements.
Number 0850
CHAIRMAN KOTT asked if all recommendations contained in HB 432 have
been approved by the Board of Veterinary Licensing.
DR. THORNELL responded that they have. She added that the change
related to licensing veterinary technicians is consistent with
every other state in the union.
REPRESENTATIVE ELTON stated he was somewhat surprised that the
provisions for licensing veterinary technicians are to be
supervised by the veterinary board. This seems like having doctors
oversee licensing requirements for nurses. He asked if this was a
common procedure.
DR. THORNELL replied that it is consistent with the other states.
Also, it would not be financially feasible to create a separate
board for licensing veterinary technicians, because there are so
few in the state. Some states do provide extra seats on the
veterinary board for licensed technicians.
REPRESENTATIVE ELTON then asked if the cost of the licensing
procedures for veterinary technicians would be borne by the
veterinarians.
DR. THORNELL responded that the technicians are already bearing the
cost of their own examinations. In essence, the legislation only
changes the title from "registered veterinary technician" to
"licensed veterinary technician." All of the statutes are already
in place for registering veterinary technicians.
Number 1016
CATHERINE REARDON, Director, Division of Occupational Licensing,
Department of Commerce and Economic Development, stated that she
was available to answer questions from the committee.
CHAIRMAN KOTT announced that, there being no questions or
additional witnesses wishing to testify, public testimony on HB 432
was closed.
REPRESENTATIVE ROKEBERG made a motion that HB 432, with individual
recommendations and attached zero fiscal note, be passed out of the
House Labor and Commerce Committee.
CHAIRMAN KOTT announced that, there being no objections, HB 432
with individual recommendations and accompanying zero fiscal note
was passed out of the House Labor and Commerce Committee.
ADJOURNMENT
Number 1021
There being no further business to come before the House Labor and
Commerce Committee, CHAIRMAN KOTT adjourned the meeting at 4:24
p.m.
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