Legislature(1993 - 1994)
01/28/1993 08:00 AM House STA
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
HOUSE STATE AFFAIRS STANDING COMMITTEE January 28, 1993 8:00 a.m. MEMBERS PRESENT Representative Al Vezey, Chair Representative Pete Kott, Vice Chair Representative Harley Olberg Representative Jerry Sanders Representative Gary Davis Representative Fran Ulmer Representative Bettye Davis MEMBERS ABSENT None OTHER HOUSE MEMBERS PRESENT Representative Terry Martin SENATE MEMBERS PRESENT Senator Jim Duncan COMMITTEE CALENDAR *HB 44: "An Act making a special appropriation to the principal of the permanent fund; and providing for an effective date." HELD IN COMMITTEE FOR FURTHER CONSIDERATION *HB 36: "An Act relating to retirement incentive programs for the public employees' retirement system, the teachers' retirement system, and certain persons under the judicial retirement system; and providing for an effective date." HELD IN COMMITTEE FOR FURTHER CONSIDERATION *HB 42: "An Act relating to retirement incentive programs for the public employees' retirement system, the teachers' retirement system, and certain persons under the judicial retirement system; and providing for an effective date." HELD IN COMMITTEE FOR FURTHER CONSIDERATION *HB 49: "An Act relating to facsimile absentee ballot application and facsimile absentee voting." PLACED IN SUBCOMMITTEE OF ONE: REPRESENTATIVE PETE KOTT *HB 47: "An Act relating to the delivery of the primary ballots to persons making application for them when, by operation of political party rule, two or more primary ballots must be provided to the public." NOT HEARD (* first public hearing) WITNESS REGISTER Representative Terry Martin State Capitol, Room 411 Juneau, AK 99811-1182 465-3783 Position Statement: Prime Sponsor of HB 44 and HB 49 Jim Kelly, Research and Liaison Officer Permanent Fund Corporation Enserch Building 550 West Seventh Street Anchorage, AK 99501-3510 277-1496 Position Statement: Explained how the permanent fund related to legislation for reserves Representative Jerry Mackie State Capitol Court Building, Room 602 Juneau, AK 99811-1182 465-4925 Position Statement: Prime Sponsor of HB 36; Supported HB 42 Barry Haight Public Safety Employees 991 Vail View Drive Fairbanks, AK 99712 457-2545 Position Statement: Supported HB 36 and HB 42 Robert Stalnaker, Director Division of Retirement and Benefits Department of Administration P.O. Box 110203 Juneau, AK 99811-0203 465-4470 Position Statement: Discussed program administration Phyllis Taylor, Director Federal Voting Assistance Program Office of the Secretary of Defense Room 1B, 457 Pentagon Washington, D.C. 20301-1155 (800) 438-8683 Position Statement: Supported HB 49 Joe Kerwin, Chief of Elections Office of the Secretary of State State Capitol Helena, Montana 59620 (406) 444-4732 Position Statement: Supported HB 49 Charlot Thickstun, Director Division of Elections P.O. Box 110017 Juneau, AK 99811-0017 465-4611 Position Statement: Inquired about absentee ballots and the availability of federal monies Willie Anderson, Lobbyist National Education Association 114 Second Street Juneau, AK 99801 586-3090 Position Statement: Supported HB 42 and HB 36 Representative Bill Hudson State Capitol, Room 108 Juneau, AK 99811-1182 465-3744 Position Statement: Prime Sponsor of HB 42; Supported HB 36 Senator Jim Duncan State Capitol, Room 119 Juneau, AK 99811-1182 465-4766 Position Statement: Supported HB 42 and HB 36 PREVIOUS ACTION BILL: HB 44 SHORT TITLE: APPROP: TO PERMANENT FUND PRINCIPAL BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MARTIN,Olberg TITLE: "An Act making a special appropriation to the principal of the permanent fund; and providing for an effective date." JRN-DATE JRN-PG ACTION 01/11/93 35 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 35 (H) STATE AFFAIRS, FINANCE 01/18/93 102 (H) COSPONSOR(S): OLBERG 01/26/93 (H) STA AT 08:00 AM CAPITOL 102 01/28/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HB 36 SHORT TITLE: RETIREMENT INCENTIVE PROGRAM BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MACKIE TITLE: "An Act relating to retirement incentive programs for the public employees' retirement system, the teachers' retirement system, and certain persons under the judicial retirement system; and providing for an effective date." JRN-DATE JRN-PG ACTION 01/08/93 33 (H) PREFILE RELEASED 01/11/93 33 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 33 (H) STATE AFFAIRS, LABOR & COMMERCE, FINANCE 01/28/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HB 42 SHORT TITLE: RETIREMENT INCENTIVE PROGRAM BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) HUDSON,Ulmer TITLE: "An Act relating to retirement incentive programs for the public employees' retirement system, the teachers' retirement system, and certain persons under the judicial retirement system; and providing for an effective date." JRN-DATE JRN-PG ACTION 01/11/93 35 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 35 (H) STATE AFFAIRS, LABOR & COMMERCE, FINANCE 01/28/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HB 49 SHORT TITLE: ABSENTEE BALLOTING BY FAX BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MARTIN,Brice TITLE: "An Act relating to facsimile absentee ballot application and facsimile absentee voting." JRN-DATE JRN-PG ACTION 01/13/93 52 (H) READ THE FIRST TIME/REFERRAL(S) 01/13/93 53 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/20/93 117 (H) COSPONSOR(S): BRICE 01/28/93 (H) STA AT 08:00 AM CAPITOL 102 ACTION NARRATIVE TAPE 93-7, SIDE A Number 000 CHAIRMAN AL VEZEY called the meeting to order at 8:03 a.m., and noted a quorum was present. HB 44: APPROP: TO PERMANENT FUND PRINCIPAL CHAIRMAN VEZEY read the title of HB 44 and invited Representative Martin, the bill's sponsor, to testify before the committee. Number 024 REPRESENTATIVE TERRY MARTIN, PRIME SPONSOR of HB 44 discussed his handouts regarding funds within the permanent fund. He stated future generations would pay the price in large taxes if we did not put funds away in reserves. Number 145 CHAIRMAN VEZEY discussed the handouts and monies within the fund. Number 160 REPRESENTATIVE MARTIN discussed the table in the handouts. CHAIRMAN VEZEY discussed the table in the handouts. Number 206 JIM KELLY, RESEARCH AND LIAISON OFFICER, PERMANENT FUND CORPORATION (PFC), explained how the permanent fund related to legislation for reserves. He stated it was the responsibility of the PFC to manage money and maximize income and the legislature's responsibility to designate where the income was used. He explained a chart in the committee member's packets. Number 260 CHAIRMAN VEZEY discussed the projection made in December for the end of the year. Number 267 REPRESENTATIVE HARLEY OLBERG asked for clarification of funds in the account to date. Number 268 MR. KELLY explained the funds within the account. Number 287 CHAIRMAN VEZEY discussed the reinvestment funds were put into the permanent fund which came from investments out of Alaska. Number 306 MR. KELLY discussed investments in Alaska such as the Alaska Housing Finance Corporation, the Alaska Industrial Development Association, and Alaskan companies. He stated the investments would stay in Alaska when the returns were comparable and the risk not greater than investments out of state or the country. Number 326 CHAIRMAN VEZEY discussed investments in Alaska. Number 330 MR. KELLY discussed investment requirements. Number 340 REPRESENTATIVE HARLEY OLBERG stated he had experience in banking and had never seen anyone go broke from investing. Number 345 MR. KELLY discussed market assumptions. HB 36: RETIREMENT INCENTIVE PROGRAM Number 361 CHAIRMAN VEZEY held HB 44 in committee for further consideration and read the title of HB 36. He invited Representative Jerry Mackie, the sponsor of HB 36 to testify before the committee. Number 379 REPRESENTATIVE JERRY MACKIE, PRIME SPONSOR of HB 36, stated the bill was patterned after SB 337 from 1992. He read his sponsor summary and discussed other pieces of information within the packet. Number 437 CHAIRMAN VEZEY discussed the fiscal note. Number 445 REPRESENTATIVE MACKIE discussed information within the handouts he gave to the committee. Number 487 CHAIRMAN VEZEY asked questions regarding the cost savings of the program over a three year period. REPRESENTATIVE MACKIE discussed the savings by the Hoonah School District as a sample of money that can be saved with early retirement. HB 42: RETIREMENT INCENTIVE PROGRAM Number 515 CHAIRMAN VEZEY discussed the evaluation. He then opened discussion on HB 42 which also related to retirement incentive programs. BARRY HAIGHT testified on behalf of Public Safety employees in support of HB 42. Number 565 REPRESENTATIVE JERRY SANDERS discussed the penalty for those who retire and then return to work. Number 581 BOB STALNAKER, DIRECTOR, DIVISION OF RETIREMENT AND BENEFITS, DEPARTMENT OF ADMINISTRATION, discussed questions regarding how the program was administered. Number 590 REPRESENTATIVE VEZEY asked questions regarding the costs of administering the program. Number 593 MR. STALNAKER described the administration costs to the retiring person. Number 602 CHAIRMAN VEZEY discussed the liabilities of the pension fund being paid out of the general fund. Number 619 MR. STALNAKER discussed how the system received monies from the participating employee. Number 628 CHAIRMAN VEZEY stated the fiscal note did not address the obligation to the pension fund. Number 640 REPRESENTATIVE SANDERS discussed exceptions to legislative and university employees. Number 642 MR. STALNAKER explained that the difficulty in getting certain employees in certain positions could be the reason for the exemption. Number 664 REPRESENTATIVE SANDERS asked if there were certain people we did not want to attract back. Number 668 MR. STALNAKER stated he could not answer Representative Sanders' query because he was not the author of HB 42. Number 677 REPRESENTATIVE FRAN ULMER discussed the Budget and Audit savings statement in the committee packet. Number 685 MR. STALNAKER stated employers were allowed to make a determination on participation. They reported the anticipated savings before they decided to participate, he said. Number 698 CHAIRMAN VEZEY clarified it was not the responsibility of the department to review the report. "You just trust if they say they will save money that it is enough to participate in the retirement program," he said. TAPE 93-7, SIDE B Number 000 MR. STALNAKER stated the calculations done by employers were not audited. HB 49: ABSENTEE BALLOTING BY FAX Number 048 CHAIRMAN VEZEY, after a short recess, read the title of HB 49. He tabled HB 36 and 42 until later so testimony could be heard on HB 49. Number 047 REPRESENTATIVE MARTIN, PRIME SPONSOR of HB 49, stated Ms. Phyllis Taylor in Washington D. C. was on the line to testify in support of HB 49. Number 128 PHYLLIS TAYLOR, DIRECTOR, FEDERAL VOTING ASSISTANCE PROGRAM, OFFICE OF THE SECRETARY OF DEFENSE, spoke in support of HB 49 and discussed electronic application for absentee voting. She referenced her written testimony within the committee packet. She also referenced the "Uniformed and Overseas Citizens Absentee Voting Act" 99-40 HR 4393. Number 289 JOE KERWIN, CHIEF OF ELECTIONS, OFFICE OF THE SECRETARY OF STATE in Montana spoke in support of HB 49. He discussed the absentee ballot process. Number 306 REPRESENTATIVE ULMER stated concerns of voter fraud. MS. TAYLOR explained there was one central system to prevent fraud. She discussed provisions of checks and balances just the same as receiving it through the mail. Number 335 CHAIRMAN VEZEY discussed actions to prevent fraud. Number 344 MS. TAYLOR explained controls were in place which Alaska would utilize. Number 365 CHAIRMAN VEZEY asked if the results were satisfactory. MR. KERWIN explained the rules that were in place. It was not a secret ballot, signatures were compared to confirm the voter was the voter registered, he added. Number 379 CHAIRMAN VEZEY requested a copy of the regulations. Number 386 CHARLOT THICKSTUN, DIRECTOR, DIVISION OF ELECTIONS, asked what the voter turn out was for absentee ballots. MR. KERWIN stated eight people in Montana voted by fax. Number 440 MS. TAYLOR said there was a total of 4,000 application forms, 1,000 absentee, 600 other documents, and 140 voted fax ballots nationally. Number 484 REPRESENTATIVE MARTIN reminded the committee everyone had the right to vote. Even those on submarines! Number 521 CHAIRMAN VEZEY made reference to military persons who spend six months underwater. MS. TAYLOR stated the service was free. MS. THICKSTUN asked if there were federal monies available. Number 564 CHAIRMAN VEZEY clarified the only cost to the state would be in equipment, not service. Number 580 REPRESENTATIVE PETE KOTT agreed to be a subcommittee of one, by request of the Chair, and stated he would report back to the committee. HB 42 and HB 36: RETIREMENT INCENTIVE PROGRAM Number 596 WILLIE ANDERSON, a lobbyist for the National Education Association, spoke in support of HB 36 and HB 42. Number 626 CHAIRMAN VEZEY invited Representative Bill Hudson to speak on behalf of HB 42. Number 630 REPRESENTATIVE BILL HUDSON, PRIME SPONSOR of HB 42, stated the purpose of HB 42 was to save public dollars. The retirement incentive program was a tool to save the state money, he added. TAPE 93-8, SIDE A Number 000 CHAIRMAN VEZEY invited Senator Jim Duncan to speak on behalf of the retirement incentive program. Number 110 SENATOR JIM DUNCAN related the history of the retirement program. He explained the cost savings to the state. ANNOUNCEMENTS Number 296 CHAIRMAN VEZEY announced HB 36 and HB 42 would be held in committee for further consideration. ADJOURNMENT CHAIRMAN VEZEY then adjourned the meeting at 10:03 a.m.