Legislature(2001 - 2002)
04/09/2002 08:06 AM House STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
April 9, 2002
8:06 a.m.
MEMBERS PRESENT
Representative John Coghill, Chair
Representative Jeannette James
Representative Hugh Fate
Representative Gary Stevens
Representative Peggy Wilson
Representative Harry Crawford
Representative Joe Hayes
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 444
"An Act relating to buildings covered under the Alaska public
building fund; and providing for an effective date."
- MOVED HB 444 OUT OF COMMITTEE
CONFIRMATION HEARING
Alaska Public Offices Commission
Sheila Gallagher - Anchorage
- CONFIRMATION ADVANCED
SENATE CONCURRENT RESOLUTION NO. 29
Relating to urging the Governor to institute a hiring freeze on
state government.
- MOVED HCS SCR 29(STA) OUT OF COMMITTEE
CONFIRMATION HEARING
State Commission for Human Rights
Kathy K. Wisthoff - Anchorage
- CONFIRMATION ADVANCED
HOUSE BILL NO. 380
"An Act relating to reimbursement for certain Medicare premium
charges for persons receiving benefits from the teachers'
retirement system, the judicial retirement system, the elected
public officers retirement system, and the public employees'
retirement system."
- MOVED HB 380 OUT OF COMMITTEE
HOUSE BILL NO. 487
"An Act relating to fireworks; and providing for an effective
date."
- BILL HEARING POSTPONED TO 4/11
PREVIOUS ACTION
BILL: HB 444
SHORT TITLE:ALASKA PUBLIC BUILDING FUND
SPONSOR(S): REPRESENTATIVE(S)JAMES
Jrn-Date Jrn-Page Action
02/19/02 2308 (H) READ THE FIRST TIME -
REFERRALS
02/19/02 2308 (H) STA
04/09/02 (H) STA AT 8:00 AM CAPITOL 102
BILL: SCR 29
SHORT TITLE:HIRING FREEZE
SPONSOR(S): SENATOR(S) KELLY
Jrn-Date Jrn-Page Action
02/19/02 2224 (S) READ THE FIRST TIME -
REFERRALS
02/19/02 2224 (S) FIN
02/26/02 (S) FIN AT 9:00 AM SENATE FINANCE
532
02/26/02 (S) Heard & Held
02/26/02 (S) MINUTE(FIN)
03/22/02 (S) FIN AT 9:00 AM SENATE FINANCE
532
03/22/02 (S) Moved Out of Committee
03/22/02 (S) MINUTE(FIN)
03/22/02 2501 (S) COSPONSOR(S): DONLEY, LEMAN
03/22/02 2496 (S) FIN RPT 7DP 2NR
03/22/02 2496 (S) DP: DONLEY, KELLY, GREEN,
AUSTERMAN,
03/22/02 2496 (S) WILKEN, WARD, LEMAN;
03/22/02 2496 (S) NR: HOFFMAN, OLSON
03/26/02 (S) RLS AT 11:00 AM FAHRENKAMP
203
03/26/02 (S) MINUTE(RLS)
03/27/02 2540 (S) RULES TO CALENDAR 1OR 3/27/02
03/27/02 2544 (S) READ THE SECOND TIME
03/27/02 2545 (S) PASSED Y15 N5
03/27/02 2545 (S) ELTON NOTICE OF
RECONSIDERATION
03/28/02 2561 (S) RECON TAKEN UP - IN THIRD
READING
03/28/02 2561 (S) PASSED ON RECONSIDERATION Y14
N3 E3
03/28/02 2563 (S) TRANSMITTED TO (H)
03/28/02 2563 (S) VERSION: SCR 29
04/01/02 2733 (H) READ THE FIRST TIME -
REFERRALS
04/01/02 2733 (H) STA, FIN
04/09/02 (H) STA AT 8:00 AM CAPITOL 102
BILL: HB 380
SHORT TITLE:REIMBURSE CERTAIN RETIREE MEDICARE CHARGE
SPONSOR(S): REPRESENTATIVE(S)JAMES
Jrn-Date Jrn-Page Action
02/04/02 2143 (H) READ THE FIRST TIME -
REFERRALS
02/04/02 2143 (H) STA, FIN
02/19/02 2329 (H) COSPONSOR(S): HUDSON
02/28/02 (H) STA AT 8:00 AM CAPITOL 102
02/28/02 (H) Scheduled But Not Heard
03/14/02 (H) STA AT 8:00 AM CAPITOL 102
03/14/02 (H) Scheduled But Not Heard
03/19/02 (H) STA AT 8:00 AM CAPITOL 102
03/19/02 (H) Heard & Held
03/19/02 (H) MINUTE(STA)
03/19/02 2611 (H) COSPONSOR(S): STEVENS,
CRAWFORD
03/26/02 (H) STA AT 8:00 AM CAPITOL 102
03/26/02 (H) Heard & Held
03/26/02 (H) MINUTE(STA)
04/09/02 (H) STA AT 8:00 AM CAPITOL 102
WITNESS REGISTER
CHRIS PARCE, Director
Central Office
Division of General Services
Department of Administration
PO Box 110210
Juneau, Alaska 99811-0210
POSITION STATEMENT: Testified on HB 444.
SHEILA GALLAGHER, Appointee
to the Alaska Public Offices Commission
200 West 34th Street, PMB 774
Anchorage, Alaska 99503
POSITION STATEMENT: Testified as Appointee to the Alaska Public
Offices Commission.
WENDY HALL, Staff
to Senator Pete Kelly
Alaska State Legislature
Capitol Building, Room 518
Juneau, Alaska 99801
POSITION STATEMENT: Presented SCR 29 on behalf of sponsor.
JACK KREINHEDER, Chief Analyst
Office of the Director
Office of Management & Budget
Office of the Governor
PO Box 110001-0001
Juneau, Alaska 99811-0001
POSITION STATEMENT: Answered questions on SCR 29.
KATHY K. WISTHOFF, Appointee
to the State Commission for Human Rights
18739 Villages Scenic Parkway
Anchorage, Alaska 99516
POSITION STATEMENT: Testified as Appointee to the State
Commission for Human Rights.
ACTION NARRATIVE
TAPE 02-37, SIDE A
Number 0001
CHAIR JOHN COGHILL called the House State Affairs Standing
Committee meeting to order at 8:06 a.m. Representatives
Coghill, James, Fate, Stevens, and Hayes were present at the
call to order. Representatives Wilson and Crawford arrived as
the meeting was in progress.
HB 444 - ALASKA PUBLIC BUILDING FUND
CHAIR COGHILL announced that the first order of business would
be HOUSE BILL NO. 444, "An Act relating to buildings covered
under the Alaska public building fund; and providing for an
effective date."
Number 0080
REPRESENTATIVE JEANNETTE JAMES, sponsor, presented HB 444. She
explained that the original bill [HB 112, 21st Legislative
Session] that passed on the Alaska Public Building Fund listed
the facilities that were covered for deferred maintenance for
only a trial period. The advantage of setting up the Alaska
public building fund was to put the amount of depreciation in
the fund that was allowed on the rentals. She explained how the
state was able to gather more money through this process to have
the money for deferred maintenance. She noted that this will
not take care of all the maintenance issues, but that it goes in
that direction. The building fund carries over year to year if
the money is not used. The legislature can take that money for
something else; in fact, the first year it did that, which very
much distressed her.
REPRESENTATIVE JAMES indicated that there are some very serious
needs in some of the buildings on the list in Juneau. Since it
worked well on the buildings during the trial period, this bill,
instead of defining what covered buildings means, just simply
says, "'covered buildings' means any building owned by the state
for which the responsibility for operation, maintenance, and
management has been assigned to the Department of
Administration."
Number 0450
CHAIR COGHILL asked if increasing the number of buildings would
diminish the ability to take care of the buildings.
REPRESENTATIVE JAMES said no and that wasn't the intent. The
intent is the ability to determine what the rent ought to be.
The only things being paid for now in the budget are the lights
and the specifics. In this case, the rent on the space will be
determined and then the budget would cover the rent, which
includes some depreciation as well as the other things. She
commented that it is a rational way to handle the buildings. It
provides the opportunity to charge other agencies or groups that
use any part of the buildings the same rent that the state
charges itself. Instead of getting a free ride, they'll have to
pay some rent toward the depreciation of the building. She
noted that the day after this legislation is passed, not all the
buildings around the state will be included; it'll go gradually
forward as the numbers are established.
Number 0590
REPRESENTATIVE JAMES said if the agencies are paying so much per
square foot for rent, she believes that they may choose to be in
a smaller space, so there will be more money for programs or
whatever they do. She has always been opposed to the state
owning anything. She supports the private sector's owning the
buildings, and the state should rent them for an amount that
manages to keep them in good condition. That's a hard sell
because it's more money, she suggested. The state is going to
continue to come up with extra money to fix things, because this
isn't going to fix everything, but this is a lot better than
what used to be. She urged everyone to support it.
Number 0690
REPRESENTATIVE STEVENS commented that this is not really an
issue of garnering rent but rather establishing a fund from
which the buildings would be maintained adequately. He agreed
it is a wise thing to do and expressed surprise that it hadn't
been done before.
Number 0740
CHAIR COGHILL asked if there were any reports of how it's gone
on any of the specific designated buildings.
REPRESENTATIVE JAMES answered that the Department [of
Administration] has indicated things are working well. She said
she has visited some of the buildings on the list and noted they
are in desperate need of more maintenance than this would
provide, but that's because they started out needing a lot of
maintenance. There is another piece of legislation that would
allow bonding to do some of that repair work. She commented
that it is an embarrassment to her to have state workers working
in the conditions of some of the buildings.
Number 0830
REPRESENTATIVE FATE asked why this hasn't been done before.
REPRESENTATIVE JAMES said it has been done for the last two
years, and it was just lucky to get that bill through the "other
end of this building." She also explained that she has been
working on this issue for eight years before that, trying to get
some methodology to set aside the amount of money needed for
keeping things up. It had to start as a trial issue in order to
get it through. In fact, the other body took the money out of
it that year and put it in the budget for another purpose.
There are probably lots of reasons why it wasn't done before,
but that's not important now, she commented; it's starting now
and needs to go forward.
REPRESENTATIVE JAMES explained that in her very first House
State Affairs Standing Committee meeting, she had a wonderful
plan to manage maintenance on all facilities, but the fiscal
note was enough to "choke a horse." All the committee members
liked the idea, but they couldn't deal with the fiscal note.
She said, "We'd be a lot further if we could've done that."
Number 1025
CHRISTINE PARCE, Director, Central Office, Division of General
Services, Department of Administration (DOA), agreed that HB 112
had been a success and much to the credit of Representative
James. It provided the opportunity to charge rent, determine
depreciation, garner those funds, and bring new money to the
state to be used to stop the further deterioration of the
buildings. There are many large projects the deferred
maintenance list can't address. It is a good thing that the
department is able to use these depreciation dollars now to
prevent further deterioration.
Number 1107
REPRESENTATIVE STEVENS asked how the fund works and if the funds
can be used on any of the buildings.
MS. PARCE explained that each building is regressed to its date
of origin, and an accounting process determines how the building
can be depreciated. That number is an expense in the rent
factor, along with utilities and regular maintenance expenses
such as cleaning, janitorial, and that sort of thing. Those
monies are particular to a building, and the expenses are
tracked building by building. It is all in one pool, so she
supposed if there were a desperate need somewhere, that money
could be used from one building to another in an emergency, but
that isn't the purpose. The purpose is for the funds to be
retained for that building.
REPRESENTATIVE STEVENS asked if the money would be enough to
replace the building eventually.
MS. PARCE said she didn't think that was true. It's just for
basic maintenance. The depreciation doesn't bring in a lot of
money. She estimated the amount for the nine buildings for 2002
at $1.7 million.
Number 1275
CHAIR COGHILL asked about the process for adding buildings to
the list.
MS. PARCE told the committee that on July 1, 2001, the
department took over the buildings on the list of HB 112. There
had been a lot of work in anticipation of that in calculating
costs and figuring the rent and depreciation. In November, the
department entered into a management agreement with DOT&PF
[Department of Transportation & Public Facilities] to look at
other buildings: the Dimond Courthouse, the museum, and the
subport building. With the expenditures in FY 01 and the bills
DOT&PF had paid on those buildings, there was a body of
information. One by one, each building will be regressed and
the true value, replacement value, and depreciation will be
determined. It's not going to be in one fell swoop, she noted.
Most of the buildings covered are in the Southeast region. Also
covered are the FROB [Fairbanks Regional Office Building] and
the [Robert B.] Atwood [Building] in Anchorage, but the
department won't be expanding into those areas immediately.
Number 1430
REPRESENTATIVE STEVENS said he assumes that the covered
buildings in the bill include most state buildings. He asked if
courthouses and fish and game buildings in various communities
are generally covered by the DOA, or are owned by the individual
agencies.
MS. PARCE answered that some departments are responsible for
facilities. The buildings on the list from HB 112 are under the
responsibility of the Department of Administration. The DOT&PF
continues to maintain many facilities, including office
buildings, airports, and harbors; the Department of Corrections
maintains prisons; and the [Alaska Department of] Fish and Game
and the Department of Public Safety have facilities they
maintain. She said she foresees the DOA trying to take the
management responsibility for office structures.
REPRESENTATIVE STEVENS wondered if eventually all the state
buildings would be under the Department of Administration.
MS. PARCE said she didn't know; that's a "big world."
REPRESENTATIVE JAMES commented that DOT&PF is certainly one of
the larger administrations, and that she would be pleased to
have it getting back to building roads instead of managing
buildings.
REPRESENTATIVE STEVENS said he sees the wisdom in having a
maintenance fund, whether it is under DOA or not.
Number 1583
REPRESENTATIVE JAMES noted there are still horrible situations
in buildings, even though it's been worked on the last ten
years.
CHAIR COGHILL commented that the state built a lot in the 1980s
and didn't anticipate the maintenance and operation.
Number 1602
REPRESENTATIVE HAYES asked if the current GO [general
obligation] bond would cover deferred maintenance or just new
buildings.
MS. PARCE explained that the governor's bill is for many
deferred maintenance projects.
Number 1694
REPRESENTATIVE WILSON moved to report HB 444 out of committee
with individual recommendations and the accompanying zero fiscal
notes. There being no objection, HB 444 was reported from the
House State Affairs Standing Committee.
CONFIRMATION HEARING
Alaska Public Offices Commission
Number 1724
CHAIR COGHILL announced the next order of business would be the
confirmation hearing for the appointee to the Alaska Public
Offices Commission.
Number 1772
SHEILA GALLAGHER, Appointee to the Alaska Public Offices
Commission (APOC), testified via teleconference. She told the
committee that she wants to serve on this commission because she
was asked and it is her civic responsibility. She said that she
has the background and can do it.
CHAIR COGHILL expressed his appreciation to Ms. Gallagher for
her willingness to serve on APOC. He noted her law and
mediation experience and asked about her experience with APOC
now.
MS. GALLAGHER answered that she just started in June.
REPRESENTATIVE FATE asked how many attorneys are working with
her on APOC.
MS. GALLAGHER answered there are none on the staff right now.
CHAIR COGHILL asked her if she anticipated any problems.
MS. GALLAGHER answered that she thinks one of the problems will
be implementing the new bill [SB 103] and conforming to Judge
Singleton's decision, since there has been such a radical change
on the soft-money issue.
CHAIR COGHILL asked her if the forms will be changed as a result
of SB 103.
MS. GALLAGHER answered that the staff is working on changing
some forms and working on some proposed regulations for the
commission to review at the next meeting.
CHAIR COGHILL asked her if there was much talk of online
reporting.
MS. GALLAGHER answered yes, ultimately, almost all of the forms
will be filed online. The commission also has discussed how to
educate the people in communities who also have to file these
forms.
Number 1990
[Although there was no formal motion, the confirmation of Sheila
Gallagher was treated as advanced from committee.]
SCR 29 - HIRING FREEZE
Number 2020
CHAIR COGHILL announced that the next order of business would be
SENATE CONCURRENT RESOLUTION NO. 29, Relating to urging the
Governor to institute a hiring freeze on state government.
Number 2032
WENDY HALL, Staff to Senator Pete Kelly, Alaska State
Legislature, presented SCR 29 on behalf of Senator Pete Kelly,
sponsor. She told the committee that Senator Kelly put forth
this resolution urging the governor to institute a hiring freeze
for all the positions funded by the general fund. She said that
Senator Kelly and his office feel that this is the most logical
first step when facing a fiscal crisis. Right now the deficit
stands at 46 percent of the general funds. This isn't a
solution to the problem, but it would help.
Number 2080
REPRESENTATIVE HAYES asked if the 858 full-time positions with
the price tag of $115 million are all general fund money.
MS. HALL replied she wasn't sure.
REPRESENTATIVE HAYES asked if SCR 29 addresses bills in this
legislative session that have fiscal notes to implement new
employees or addresses just the governor's budget.
MS. HALL answered that it would be every position funded through
general fund money, except for health and safety positions such
as firefighters.
REPRESENTATIVE HAYES said there are bills addressing economic
development to address shortages in departments for permitting,
so just involving health and safety doesn't necessarily help the
economic development. In order to move the state forward, some
people will have to be hired to help with the permitting and
economic development. If those positions are included in the
freeze, the state would move backward, he commented. He asked
if the sponsor had looked at that.
MS. HALL replied that this isn't a permanent hiring freeze. She
said that she doesn't see the gas pipeline coming in the next
year or so. Obviously, if people are needed to build the
pipeline, that would be an exception, or hopefully the hiring
freeze would be over by then.
Number 2280
REPRESENTATIVE CRAWFORD pointed out that the Department of Labor
& Workforce Development is shorthanded right now. There are not
enough people in Wage & Hour in Anchorage to do the job now. A
lot of enforcement isn't being done because they are
shorthanded. If there is a hiring freeze, then the work will
still not get done. He asked what efficacy would this have by
not getting the work done.
MS. HALL said she wasn't familiar with the problems in the
Department of Labor & Workforce Development. She indicated that
this bill was primarily aimed at those departments where
positions haven't been filled for six months to a year, and
suggested that those positions perhaps weren't necessary.
Number 2353
REPRESENTATIVE JAMES said that this is certainly just a
statement to the governor that the legislature wishes he would
do this. She doesn't find it to be very effective, she
commented, except for making a statement, but it is a statement
that is okay to make. She said her biggest concern is there is
no date by which this is requested and no timeline. It is open-
ended. She agreed that economic development issues are being
looked at, but she doesn't expect any in the next few months;
however, within six months or more, there may be some
opportunities. Certainly if that is the case, something will
have to be done. This resolution doesn't say it can't; it is
just urging the governor to stop hiring for now. Based on that
fact, she indicated that she can support this.
Number 2542
REPRESENTATIVE STEVENS commented that he hoped the state won't
have to face this issue, and that the legislature will address
the fiscal gap and deal with the current revenue shortfalls.
This resolution is saying if that isn't done, the hemorrhaging
has to stop; money can't be spent when it isn't coming in. He
expressed support for the resolution.
Number 2579
REPRESENTATIVE FATE agreed the resolution sends a message to
make the government more effective and efficient. He commented
that he does not believe that a freeze, not cuts, would hurt the
state in going ahead in developing its economy. It might be
just the converse. He said that he doesn't believe a freeze
would have a sudden impact, because it's the attrition that
would begin to reduce the size of government. He expressed
support for this resolution.
Number 2749
REPRESENTATIVE WILSON asked if there are vacancies that aren't
filled in various departments, whether the money sit there
waiting for that person to be hired, so there is excess money in
that department.
Number 2776
JACK KREINHEDER, Chief Analyst, Office of the Director, Office
of Management & Budget, Office of the Governor, told
Representative Wilson that it tends to be case-specific and
time-specific. If a position were vacant a whole year and
funded through the capital budget, the money would lapse at the
end of the year, so it wouldn't sit there in the department
forever. If a position were vacant for a few months, the money
could be available if the department was short on money for
another position. The excess money for the vacant position
might be used if it were in the same component of the
department; money can't be transferred across on appropriations.
Number 2844
REPRESENTATIVE WILSON asked how much money is represented by the
858 positions in the resolution.
MR. KREINHEDER replied that he cannot give an exact number on
that but will get back to her with a more specific answer.
REPRESENTATIVE WILSON agreed with Representative Fate that this
is something to look at. This is a way to at least put a halt
to growth now, while there is such a budget deficit with the
least destruction to the state. She said she thinks this is an
excellent resolution.
CHAIR COGHILL asked Mr. Kreinheder to answer Representative
Hayes's question about how many of these positions are funded
out of the general fund.
MR. KREINHEDER answered that not all of the positions are funded
out of the general fund, but he doesn't have the specific
breakdown. The 858 figure is from the Division of Legislative
Finance. The administration strives to have its numbers match
the division's numbers, but there is a different set of numbers
in this case, so it is difficult to reconcile it. As an
example, he shows that approximately one-third of the new
positions added for FY 03 would be either federally funded or
self-supporting.
CHAIR COGHILL said he understands that many of the Department of
Labor & Workforce Development's new positions would be federally
funded.
MR. KREINHEDER agreed.
Number 2963
REPRESENTATIVE FATE asked how many employees in state government
are funded from the general fund.
MR. KREINHEDER said he didn't have that number off the top of
his head but would get back to Representative Fate.
TAPE 02-37, SIDE B
Number 2968
MR. KREINHEDER said the administration shows 536 new positions.
The main reason for the difference is that the administration
numbers look what agencies have in place compared with the
governor's proposed FY 03 budget. The 858 number from the
Division of Legislative Finance is from the FY 02 authorized
budget enacted by the legislature. He commented that it is
comparing apples and oranges.
CHAIR COGHILL reminded the committee that there are many
positions that were authorized but not filled.
Number 2897
REPRESENTATIVE JAMES expressed her concern about the increased
use of and dependency on federal funds.
Number 2798
MR. KREINHEDER asked Ms. Hall if the resolution had a timeframe
or would it be just a one-year hiring freeze.
MS. HALL answered that it would be up to the governor's
discretion after the deficit decreased.
Number 2760
MR. KREINHEDER said the administration had a hiring freeze in
1999 when the oil price fell below $10 per barrel. The exact
dollar amount that hiring freeze saved was not calculated, but
there were some modest savings. He stated that the
administration's viewpoint is that a hiring freeze is a short-
term solution. Alaska's fiscal gap is not a short-term problem;
it's a long-term problem. He emphasized that the focus needs to
be on fixing the long-term problem with a long-term solution.
MR. KREINHEDER referred to the hiring freeze as management by
chance. It depends who decides to move or take another job and
whether that position is a vital one. He said that is not a
good way to do business for the long term.
Number 2635
MR. KREINHEDER commented that although SCR 29 does have an
exemption for health and safety, there is concern about the
economic development impact. For example, biologists are needed
to open fisheries, but the Alaska Department of Fish and Game
(ADFG) is losing biologists to the federal government because
the wages are more competitive with the 25 percent COLA [cost of
living adjustment]. There are already problems with recruitment
and retention, and a hiring freeze will only aggravate that.
MR. KREINHEDER also noted that some positions in the Department
of Revenue are vital for collecting revenue. If those positions
were vacant, that could actually worsen the fiscal gap rather
than help it. He said he presumes that state troopers would not
be part of the hiring freeze, but asked about all the
administrative staff that support those troopers. The
department can't be run effectively without the administrative
staff to provide the support and help hire new troopers, he
stated.
CHAIR COGHILL announced that the hearing on SCR 29 would be
continued after the testimony on the confirmation hearing.
CONFIRMATION HEARING
State Commission for Human Rights
CHAIR COGHILL announced that the next order of business would be
the confirmation hearing for the appointee to the State
Commission for Human Rights. He asked Ms. Wisthoff to explain
why she wants to serve and what she expects to be able to
accomplish.
Number 2508
KATHY K. WISTHOFF, Appointee to the State Commission for Human
Rights, testified via teleconference. She told the committee
that she has just completed a five-year term and this will be a
reappointment. She said she is interested in human rights and
believes that everyone is entitled to a fair playing field in
whatever areas are protected by the state. She has enjoyed
serving on this commission and looks forward to serving another
five years.
CHAIR COGHILL asked Ms. Wisthoff what she sees as issues in
Alaska.
MS. WISTHOFF answered that one area is discrimination of Alaska
Natives. Other than that, the discrimination issues are
probably the same as those faced by other states, which continue
to be gender, age, and race discrimination, mainly in employment
and housing.
Number 2390
REPRESENTATIVE JAMES asked Ms. Wisthoff about the profiling
issue, which is really bias based on race, religion, or national
origin, not whether the issue is based on some behavior.
Number 2282
MS. WISTHOFF agreed that is a concern. There are cases where
people have been fired for being a bad employee but claimed it
was due to discrimination. The investigators working for the
commission have been very good about finding out that indeed the
person was a bad employee and the cases were dismissed. It
isn't always a case of discrimination. She said she thinks the
commission has done a good job of seeking out that information.
CHAIR COGHILL asked how the commission deals with complaints
when there are quotas for hiring.
MS. WISTHOFF replied she didn't know; she'd never had a case
like that.
CHAIR COGHILL asked how the commission proves whether someone
was not hired because of discrimination.
MS. WISTHOFF answered that it comes down to a very thorough
investigation. The history of the person doing the hiring has
to be investigated. There is an interview process with the
supervisor and all of the co-workers that could have been
involved with the supervisor.
Number 2095
CHAIR COGHILL asked how retribution would be handled in these
cases.
MS. WISTHOFF said there is protection from retribution in the
human rights law. If there are reported cases of retribution,
they are thoroughly investigated because it is not legal. She
explained that mediation is used in some cases. The commission
doesn't have the authority to demand back pay; all it can do is
make the agency fix an offending behavior through training of
staff. Personnel records can be changed to reflect that someone
wasn't fired for a bad performance if indeed it turns out to
have been discrimination. There have been awards of pay, but
there have never been huge claims. The commission's job is to
find out if these things are happening, and if they are, train
the people on how to avoid them and make sure the offending
behavior stops.
MS. WISTHOFF said claimants can file a claim in court if they
feel that the commission didn't respond in the way they wanted
to see it resolved.
CHAIR COGHILL asked if the commission's report was an item of
discovery in a court hearing.
MS. WISTHOFF said she thought it was but wasn't sure because she
had not followed cases that had gone on to court.
CHAIR COGHILL thanked Ms. Wisthoff for her willingness to serve.
[Although there was no formal motion, the confirmation of Kathy
Wisthoff was treated as advanced from committee.]
SCR 29 - HIRING FREEZE
CHAIR COGHILL announced that the committee would resume the
hearing on SENATE CONCURRENT RESOLUTION NO. 29, Relating to
urging the Governor to institute a hiring freeze on state
government.
.
Number 1860
MR. KREINHEDER reported that he'd had a chance to check on the
total number of state employees. As of October 2001, there were
23,500 part-time and full-time state employees, which includes
the University of Alaska.
Number 1753
REPRESENTATIVE WILSON asked if contracted employees were counted
in that number.
MR. KREINHEDER answered that he didn't believe so, but he would
have to confirm that.
Number 1669
REPRESENTATIVE JAMES said she thinks there is some benefit to a
hiring freeze where it works, but she is not convinced that it
works across the board.
Number 1540
REPRESENTATIVE CRAWFORD agreed with Representative James. He
said he thinks a blanket hiring freeze is bad policy. "If there
are some jobs we don't want done, we ought to make that
decision," he said.
Number 1372
REPRESENTATIVE HAYES made a motion to adopt Amendment l, which
read:
Page 2, line 3, change "healthy" to "health"
Page 2, line 3:
Following "health"
Delete "and" and insert ","
Following "safety"
Insert "and economic development"
CHAIR COGHILL objected and said economic development could be
anything.
REPRESENTATIVE HAYES explained that there are some economic
development bills in the legislative process and that the hiring
freeze would not take those positions into consideration, which
could cause a problem.
Number 1219
REPRESENTATIVE JAMES agreed that economic development is broad,
but it certainly has a purpose: it makes money. She suggested
new wording. The resolution is only sending a message, she
said.
REPRESENTATIVE FATE suggested that what constitutes an emergency
might be a part of the amendment.
Number 1043
REPRESENTATIVE HAYES said he wasn't sure if economic development
would fall into an emergency. Permitting for new oil leases is
not such an emergency, but it would enhance economic growth.
REPRESENTATIVE FATE asked what is going to be the least painful
way to deal with the deficit. The situation in Alaska demands
some sort of stricture on government spending, he stated.
REPRESENTATIVE HAYES said he wants the message to be that Alaska
is open for business.
CHAIR COGHILL said he is inclined to leave the resolution as it
is.
Number 0606
REPRESENTATIVE JAMES made a motion to adopt an amendment to
Amendment 1 and strike "and economic development" but maintain
the technical change of "healthy" to "health."
REPRESENTATIVE HAYES objected.
Number 0380
A roll call vote was taken. Representatives Fate, James,
Stevens, and Coghill voted for the amendment to Amendment 1.
Representatives Crawford, Hayes, and Wilson voted against it.
Therefore, the amendment to Amendment 1 was adopted by a vote of
4-3.
CHAIR COGHILL asked if there was objection to Amendment 1.
There being no further objection, Amendment 1 was adopted.
Number 0305
REPRESENTATIVE HAYES explained that he doesn't necessarily have
a problem with SCR 29. The five-year plan was introduced to
reduce government, but it did not address the revenue side of
things. The main issue he has with the resolution is that it is
a simple solution to a complex problem, he commented. Last week
some bill was passed out of committee to encourage folks to work
for the state, but now the message is that no one is going to be
hired anyway.
REPRESENTATIVE FATE noted that the five-year plan reduced
spending by cutting the budget.
TAPE 02-38, SIDE A
Number 0233
REPRESENTATIVE STEVENS asked Ms. Hall for clarification on the
temporary positions referred to on page 2, line 2, of SCR 29.
Number 0280
MS. HALL answered that those temporary positions would be
paramedics and/or firefighters needed during the fire season in
the summer and those needed for health and safety reasons. It
doesn't necessarily mean the positions would be temporary; they
would be full-time.
Number 0326
REPRESENTATIVE CRAWFORD said he is opposed to any statement that
says, "We're afraid to grow our state's economy." He added, "I
believe ... this doesn't set our priorities, and it says we're
closed for business."
Number 0365
REPRESENTATIVE FATE moved to report SCR 29, as amended, out of
committee with individual recommendations.
REPRESENTATIVE CRAWFORD objected.
A roll call vote was taken. Representatives Fate, James,
Stevens, Wilson, and Coghill voted in favor of moving the
resolution. Representatives Crawford and Hayes voted against
it. Therefore, HCS SCR 29(STA) was reported out of the House
State Affairs Standing Committee by a vote of 5-2.
HB 380 - REIMBURSE CERTAIN RETIREE MEDICARE CHARGE
Number 0565
CHAIR COGHILL announced that the final order of business would
be HOUSE BILL NO. 380, "An Act relating to reimbursement for
certain Medicare premium charges for persons receiving benefits
from the teachers' retirement system, the judicial retirement
system, the elected public officers retirement system, and the
public employees' retirement system."
Number 0625
CHAIR COGHILL indicated that the fiscal note on HB 380 is not
coming out of general funds; it will come out of the PERS
[Public Employees' Retirement System] and TRS [Teachers
Retirement System] accounts.
REPRESENTATIVE JAMES moved to report HB 380 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 380 was reported out of the
House State Affairs Standing Committee.
ADJOURNMENT
Number 0816
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at
9:50 a.m.
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