Legislature(1999 - 2000)

04/20/2000 09:10 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
MINUTES                                                                                                                         
SENATE FINANCE COMMITTEE                                                                                                        
April 20, 2000                                                                                                                  
9:10 AM                                                                                                                         
                                                                                                                                
TAPES                                                                                                                           
                                                                                                                                
SFC-00 # 101, Side A & B                                                                                                        
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
Co-Chair John Torgerson convened the meeting at                                                                                 
approximately 9:10 AM                                                                                                           
                                                                                                                                
PRESENT Co-Chair John Torgerson, Co-Chair Sean Parnell,                                                                         
Senator Al Adams, Senator Loren Leman, Senator Randy                                                                            
Phillips, Senator Gary Wilken, Senator P. Kelly, Senator                                                                        
Donley, Senator Green.                                                                                                          
                                                                                                                                
Also Attending:  PETER TORKELSON, Staff to Representative                                                                       
Dyson; REPRESENTATIVE DYSON; JOHN MANLY, Staff to                                                                               
Representative Harris; MELINDA HOFSTAD, Staff to                                                                                
Representative Hudson; GUY BELL, Director, Division of                                                                          
Retirement & Benefits, Department of Administration; BILL                                                                       
CHURCH, Retirement Supervisor, Division of Retirement &                                                                         
Benefits, Department of Administration; CHARLES HOSACK,                                                                         
Deputy Director, Division of Motor Vehicles, Department of                                                                      
Administration; JANET SEITZ, Staff to Representative                                                                            
Rokeberg; PAUL GROSSI, Director, Division of Workers'                                                                           
Compensation, Department of Labor and Workforce                                                                                 
Development; DARROLL HARGRAVES, Executive Director, Alaska                                                                      
Council of School Administrators.                                                                                               
                                                                                                                                
Attending via Teleconference:  From Matsu: SHEILA DICKMAN,                                                                      
President, Matsu Classified Employees Association.                                                                              
                                                                                                                                
SUMMARY INFORMATION                                                                                                             
                                                                                                                                
HB 58-OIL & GAS AUDITS                                                                                                          
                                                                                                                                
This bill was scheduled but not heard.                                                                                          
                                                                                                                                
HB 325-MEDICAL ASSISTANCE: LIENS & CLAIMS                                                                                       
                                                                                                                                
The amended bill was reported from Committee.                                                                                   
                                                                                                                                
HB 372-CRIMINAL SENTENCING AND RESTITUTION                                                                                      
                                                                                                                                
The sponsor testified.  The bill was reported from                                                                              
Committee.                                                                                                                      
                                                                                                                                
HB 206-FISH AND GAME LICENSES & TAGS                                                                                            
                                                                                                                                
The sponsor testified.  The bill was held.                                                                                      
                                                                                                                                
HB 335-STATE RETIREMENT SYSTEMS AND BENEFITS                                                                                    
                                                                                                                                
The sponsor and the Division of Retirement & Benefits                                                                           
testified.  The amended bill was reported from Committee.                                                                       
                                                                                                                                
HB 324-PERSONAL INFO IN MOTOR VEH. RECORDS                                                                                      
                                                                                                                                
The Division of Motor Vehicle testified.  The bill was                                                                          
reported from Committee.                                                                                                        
                                                                                                                                
HB 419-WORKERS' COMPENSATION                                                                                                    
                                                                                                                                
The sponsor and the Division of Workers' Compensation                                                                           
testified.  The bill was held.                                                                                                  
                                                                                                                                
HB 432-BOARD OF STORAGE TANK ASSISTANCE                                                                                         
                                                                                                                                
The amended bill was reported from Committee.                                                                                   
                                                                                                                                
HB 277-RETIREMENT BENEFITS FOR REHIRED TEACHERS                                                                                 
                                                                                                                                
The Division of Retirement & Benefits testified.  The bill                                                                      
was held.                                                                                                                       
                                                                                                                                
CS FOR HOUSE BILL NO. 325(JUD)                                                                                                  
"An Act relating to priorities, claims, and liens for                                                                           
payment for certain medical services provided to                                                                                
medical assistance recipients; and providing for an                                                                             
effective date."                                                                                                                
                                                                                                                                
Amendment #2: This amendment deletes old and inserts new                                                                        
language as follows:                                                                                                            
                                                                                                                                
 Page 2, line 1, following "has priority":                                                                                      
                                                                                                                                
  Delete "over"                                                                                                                 
                                                                                                                                
  Insert "immediately after"                                                                                                    
                                                                                                                                
The sentence then reads, "A lien perfected by the                                                                               
Department of Health and Social Services under AS 47.05.075                                                                     
has priority immediately after a lien perfected by a                                                                            
hospital, nurse, or physician under AS 34.35.450 -                                                                              
34.35.480."                                                                                                                     
                                                                                                                                
Co-Chair Parnell made a motion to adopt Amendment #2.  He                                                                       
explained that this amendment, grants a lien perfected by                                                                       
the Department of Health and Social Services on recoveries                                                                      
made by people provided medical assistance under Medicaid.                                                                      
He continued that this amendment still allows the State of                                                                      
Alaska to secure a lien, but not in priority to those ones                                                                      
perfected by a hospital, nurses or physicians.                                                                                  
                                                                                                                                
Co-Chair Torgerson hearing no objection, ADOPTED Amendment                                                                      
                                                                                                                                
Senator Phillips requested that he refrain from voting due                                                                      
to a conflict of interest.  There was an objection.                                                                             
                                                                                                                                
Co-Chair Parnell made a motion to move HB 325, version "1-                                                                      
GH2058\I" from committee with individual recommendations                                                                        
and a fiscal note in the amount of $52,700.00 from the                                                                          
Department of Health and Social Services.  Hearing no                                                                           
objection HB 325 was MOVED FROM COMMITTEE.                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 372(JUD)                                                                                                  
"An Act relating to criminal sentencing and                                                                                     
restitution."                                                                                                                   
                                                                                                                                
                                                                                                                                
PETER TORKELSON, Staff to Representative Dyson stated the                                                                       
goal of this legislation was for crimes involving an                                                                            
individual against another, bur rather for arson where a                                                                        
life is possibly threatened, or for property damage.  He                                                                        
added that in these instances the court may permit a victim                                                                     
and offender to work out a sentence that meets the needs of                                                                     
the victim and in the courts opinion, serves the interest                                                                       
of justice.  He continued that if for some reason the                                                                           
defendant did not follow through on the agreed terms, the                                                                       
standard, criminal penalty could be applied.  He noted that                                                                     
in other states these programs have proven to be very                                                                           
effective.                                                                                                                      
                                                                                                                                
Senator Leman asked what the process was for approaching                                                                        
the community for input into a criminal's sentences, in                                                                         
other words, who would be participating in this process.                                                                        
                                                                                                                                
Mr. Torkelson responded that in some cases a crime may not                                                                      
have one specific victim, for example, a public building is                                                                     
damaged in downtown Anchorage.  He pointed out that the                                                                         
victim in this case might be the Downtown Merchant's                                                                            
Association and one of their representatives might suggest                                                                      
that in lieu of a fine, that the defendant help restore                                                                         
what damage has been inflicted on this piece of property.                                                                       
                                                                                                                                
Senator Leman asked that in an instance such as this one,                                                                       
whether some type of advertisement might be appropriate so                                                                      
other citizens are aware that this option is available.                                                                         
                                                                                                                                
Mr. Torkelson responded that as part of its intent, this                                                                        
legislation allows for announcements about the program.  He                                                                     
remarked that literal advertisements would be up to a                                                                           
judge's discretion.                                                                                                             
                                                                                                                                
REPRESENTATIVE DYSON stated that in essence, all justice                                                                        
systems throughout history have aimed at the restoration of                                                                     
the victim to a pre-offense condition.  He pointed out that                                                                     
now, a criminal makes payment to governmental entities                                                                          
rather than to the victim.  He noted that this legislation                                                                      
would rectify this situation.  He added that this                                                                               
legislation would require an offender to work to repay the                                                                      
community or the victim for their crime.                                                                                        
                                                                                                                                
Co-Chair Parnell referred to Section 3 of the bill, which                                                                       
allows for the court's ability to set aside a proposed                                                                          
amount, unless the defendant at sentencing establishes by                                                                       
clear and convincing evidence the inability to pay the                                                                          
amount proposed.  He pointed out that presently, a                                                                              
defendant is required to show by a preponderance of the                                                                         
evidence his or her inability to pay.  He wondered why this                                                                     
standard with this legislation would be changed from                                                                            
preponderance, to clear and convincing.                                                                                         
                                                                                                                                
Mr. Torkelson responded that the Department of Law felt as                                                                      
though the proposed draft language was crafted in a double                                                                      
negative manner and difficult to apply.  He continued that                                                                      
the language was then crafted to reflect the clear and                                                                          
convincing standard that now exists.                                                                                            
                                                                                                                                
Co-Chair Parnell made a motion to move HB 372 with                                                                              
individual recommendations and a Department of Corrections                                                                      
zero fiscal note from Committee.  Hearing no objection, HB
372 was MOVED FROM COMMITTEE.                                                                                                   
                                                                                                                                
CS FOR HOUSE BILL NO. 206(RES)                                                                                                  
"An Act relating to migratory game bird hunting; to a                                                                           
nonresident combined sport fishing and hunting                                                                                  
license, to the nonresident military small game and                                                                             
sport fishing license, to applications for certain                                                                              
licenses, tags, registrations, and permits issued by                                                                            
the Department of Fish and Game, and to duplicate                                                                               
crewmember licenses."                                                                                                           
                                                                                                                                
                                                                                                                                
JOHN MANLY, Staff to Representative John Harris stated that                                                                     
this legislation was presented at the request of the                                                                            
Department of Fish and Game, consisting of a general                                                                            
cleanup of existing statutes.  He pointed out that in six                                                                       
sections of the current statute, the word "water fowl" was                                                                      
changed to "migratory game bird," in order to bring this                                                                        
designated species (more specifically Snipes and Cranes)                                                                        
into a federal reporting program.  He continued that                                                                            
Section 3 of the bill allows disabled Veterans and five                                                                         
dollar license holders to register in the National                                                                              
Migratory Game Bird harvest program by one of two different                                                                     
methods.  He gave the specifics of these.  He noted that                                                                        
Section 4 of the bill created a new combination of seven-                                                                       
day nonresident hunting and fishing license, which are                                                                          
currently is issued separately.  He cited that this                                                                             
legislation sets a fee for special non-resident military                                                                        
small game licenses.  He remarked that a provision was                                                                          
added allowing residents of the Yukon Territory to obtain a                                                                     
non-resident sport-fishing license at a resident fee.  He                                                                       
noted that these individuals would be governed under the                                                                        
non-resident seasons and bag limits.  He added that this                                                                        
would not go into affect until a reciprocal courtesy was                                                                        
extended.  He concluded that in Sections 9 and 10, the                                                                          
protocol for administering an oath regarding residency                                                                          
would be replaced by language on the application for                                                                            
licensure.  He outlined a general technical change                                                                              
regarding the addition of the word "registration."  He                                                                          
summed up that Section 17 authorizes the department to                                                                          
issue replacement commercial fishing, crew licenses for                                                                         
five dollars.                                                                                                                   
                                                                                                                                
Co-Chair Torgerson stated that the bill would be HELD and                                                                       
brought up at the next scheduled meeting.                                                                                       
                                                                                                                                
CS FOR HOUSE BILL NO. 335(STA)                                                                                                  
"An Act relating to information contained in                                                                                    
retirement system records; relating to retirement                                                                               
boards; relating to procedures and hearings under                                                                               
state retirement systems; relating to benefits for                                                                              
reemployed retired members of retirement systems;                                                                               
relating to eligibility for normal retirement for                                                                               
members of the teachers' retirement system who have                                                                             
Alaska BIA credited service; relating to disability                                                                             
benefits for members of state retirement systems;                                                                               
relating to deduction of premiums from retirement                                                                               
benefits; relating to protection of, and assignment                                                                             
and transfer of, amounts held in retirement systems;                                                                            
relating to retirement benefits for certain employees                                                                           
earning high salaries; relating to qualified domestic                                                                           
relations orders in state retirement systems; relating                                                                          
to the definition of 'retirement fund' in the                                                                                   
teachers' retirement system; relating to membership of                                                                          
state employees in the teachers' retirement system;                                                                             
relating to refund of contributions made to the                                                                                 
judicial retirement system or to the former elected                                                                             
public officers retirement system and repayment of                                                                              
refunded contributions in those systems; relating to                                                                            
self-insurance and excess loss insurance for persons                                                                            
receiving benefits from a state retirement system;                                                                              
relating to participation of elected officials in the                                                                           
public employees' retirement system; relating to the                                                                            
level income option benefit under the public                                                                                    
employees' retirement system; relating to                                                                                       
participation of employees of political subdivisions                                                                            
and public organizations in the public employees'                                                                               
retirement system; relating to crimes for defrauding a                                                                          
state retirement system; relating to the definition of                                                                          
'pension fund' in the public employees' retirement                                                                              
system; relating to calculation of years of service                                                                             
and of benefits under the public employees' retirement                                                                          
system for noncertificated employees of certain                                                                                 
educational employers; and relating to individual                                                                               
accounts maintained for members of the former elected                                                                           
public officers retirement system."                                                                                             
                                                                                                                                
                                                                                                                                
MELINDA HOFSTAD, Staff to Representative Bill Hudson,                                                                           
explained that this legislation was a retirement and                                                                            
benefits cleanup effort and it was introduced at the                                                                            
request of Division of Retirement and Benefits.  She noted                                                                      
that this legislation would bring the State of Alaska in                                                                        
compliance with federal laws, court settlements and other                                                                       
technical issues addressed in updated laws.  She added that                                                                     
efficiency measures requested by the various retirement                                                                         
boards, was also included.  She declared that there was                                                                         
nothing in this legislation that enhances or diminishes                                                                         
retirement benefits currently available to any state                                                                            
employees or retirees.                                                                                                          
                                                                                                                                
Senator Phillips asked if the word "interpret" was included                                                                     
in this legislation, with regard to allowing the                                                                                
Administration the authority to make arbitrary                                                                                  
interpretations of the statutes.                                                                                                
                                                                                                                                
GUY BELL, Director, Division of Retirement & Benefits,                                                                          
Department of Administration stated that he did not think                                                                       
that this word was included anywhere in the bill.   He                                                                          
reiterated that this bill outlined technical clean up to                                                                        
existing statutes.  He noted that this legislation                                                                              
clarifies the hearing process available to members, which                                                                       
usually center around disability appeals.  He advised that                                                                      
this legislation addressed confidentiality of member                                                                            
records and more specifically it makes needed changes to a                                                                      
law enacted last session, SB 9, based on a settlement with                                                                      
National Education Association (NEA) Alaska.  He specified                                                                      
that it addresses physician board member appointments and                                                                       
reporting issues.  He continued that this bill separates                                                                        
the Public Employees Retirement (PERS) Board from the                                                                           
Personnel Board.  He added that currently three of the five                                                                     
members on the PERS Board serve by virtue of being                                                                              
appointed to the Personnel Board.  He asserted that because                                                                     
of the volume of work involved for each of these boards, it                                                                     
was decided that these board appointments should be made                                                                        
separate.  He then outlined general changes to related                                                                          
board election rules.                                                                                                           
                                                                                                                                
Mr. Bell outlined technical issues relating to the ability                                                                      
to roll member contributions directly into individual                                                                           
retirement accounts.  He noted that this specifically                                                                           
addressed previous problems regarding the division of these                                                                     
accounts under qualified domestic relation orders.  He                                                                          
addressed the small, related fiscal note for $29,000, which                                                                     
allows for a $150 honorarium for members who serve on the                                                                       
PERS Board.                                                                                                                     
                                                                                                                                
Senator Phillips referred to Sections 58 and 59.  He asked                                                                      
for an explanation regarding each.  He wondered if these                                                                        
sections were in place before the bill passed out of the                                                                        
House.                                                                                                                          
                                                                                                                                
Mr. Bell responded that, yes, they were.  He pointed out                                                                        
that the Elected Public Officers Retirement System (EPORS)                                                                      
language was added to the Public Employees and Teachers                                                                         
Retirement Statute for simple and technical clarification                                                                       
related to payment of indebtedness.  He noted that this                                                                         
language would only affect 62 individuals eligible for                                                                          
EPORS benefits and of this, quite a number of them are                                                                          
still living and not receiving retirement benefits.                                                                             
                                                                                                                                
Senator Phillips pointed out that these individuals                                                                             
withdrew their money, and they are now given the ability to                                                                     
opt back into the system.  He then referred to lines 21 -                                                                       
23, on page 29.  He read the following language: ".who has                                                                      
withdrawn the balance of the officer's individual account,                                                                      
who returns to service as the governor, lieutenant                                                                              
governor, or as a member of the legislature."  He commented                                                                     
that this was a very exclusive group of people and pointed                                                                      
out that this measure was repealed by the voters in 1976.                                                                       
He pointed out that if someone has withdrawn his or her                                                                         
money, this should be a final decision.                                                                                         
                                                                                                                                
Mr. Bell responded that the idea of this clause supports an                                                                     
individual who has chosen to withdraw their membership                                                                          
contribution accounts.  He continued that if this same                                                                          
individual needs to return to work, they must pay this                                                                          
refund back, the employers contribution has already been                                                                        
made to the system for this individual.  He noted that this                                                                     
clause would create a consistency situation with all other                                                                      
state public employees.                                                                                                         
                                                                                                                                
Senator Phillips responded that these particular                                                                                
individuals are elected, this being the main difference,                                                                        
and he wondered if these individuals were really state                                                                          
employees.                                                                                                                      
                                                                                                                                
Mr. Bell countered that from the perspective of the Public                                                                      
Employees Retirement System, yes.                                                                                               
                                                                                                                                
Senator Phillips stated that he had a problem with this                                                                         
provision.                                                                                                                      
                                                                                                                                
SHEILA DICKMAN, President, Matsu Classified Employees                                                                           
Association testified via teleconference from Matsu.  She                                                                       
explained that she was speaking on the behalf of the Matsu                                                                      
School District employees.  She stated that this                                                                                
legislation makes many changes to the retirement system,                                                                        
more specifically Sections 37 through 40.  She added that                                                                       
there are a number of employees in Matsu with work hours                                                                        
reduced from 12 months to 10 or 11 months beginning in                                                                          
August of 2000.  She noted that these employees have two                                                                        
options under current law, they can do nothing and receive                                                                      
a partial year's credit for the rest of their work life or                                                                      
they can participate in the alternative option under SB 9.                                                                      
She advised that if they choose the latter, they must pay                                                                       
for the year 1999-2000 even though they will not receive                                                                        
any benefit for this school year.  She pointed out this was                                                                     
an oversight, which occurred in SB 9, and HB 335 will fix                                                                       
this problem.  She added that this change would also allow                                                                      
for members who are paying for this service to revoke their                                                                     
choice under some very strict guidelines if their job                                                                           
status changes in the future.                                                                                                   
                                                                                                                                
Ms. Dickman read a written statement by an employee named                                                                       
Gloria Lee as follows: "Public Employee's Retirement system                                                                     
confirms that if HB 335 does not pass, all current                                                                              
employees must choose to participate in alternative                                                                             
retirements or they will not be eligible next year.  That                                                                       
means current twelve-month employees will be required to                                                                        
pay for the 1999-2000 school year, even though they do not                                                                      
receive any benefits.  PERS states that the division has no                                                                     
choice due to the way the bill was drafted last year.  I                                                                        
thank Senator Green for her assistance on this bill and I                                                                       
support to move this bill from the Committee for the                                                                            
benefit of classified employees."                                                                                               
                                                                                                                                
Amendment #2: This conceptual amendment removes Sections 58                                                                     
& 59 from page 29, line 14 through page 31, line 21 of HB
335.                                                                                                                            
                                                                                                                                
Senator Adams objected.  He stated that these state                                                                             
employees should be treated fairly.  He continued that                                                                          
these 62 individuals have completed their public service to                                                                     
the state.                                                                                                                      
                                                                                                                                
Senator Phillips countered that this was a special                                                                              
arrangement passed a previous legislature, which changed                                                                        
from a two percent to a five percent standing per year up                                                                       
to 15 years or 75 percent of a person's salary.  He added                                                                       
that after this action was taken, in 1976, voters repealed                                                                      
this section.  He commented that at this same time, if an                                                                       
employee withdrew their money from EPORS and then wanted to                                                                     
come back into the system, the employee [indiscernible.]                                                                        
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR:  Senator Leman, Senator Donley, Senator Phillips,                                                                     
Co-Chair Torgerson.                                                                                                             
                                                                                                                                
OPPOSED:  Senator Adams, Senator Wilken, Senator P. Kelly.                                                                      
                                                                                                                                
PASS:  Senator Green.                                                                                                           
                                                                                                                                
The roll was voided to allow Senator Green to amend her                                                                         
nonvoting status.                                                                                                               
                                                                                                                                
BILL CHURCH, Retirement Supervisor, Division of Retirement                                                                      
& Benefits, Department of Administration clarified the                                                                          
issue raised by Senator Phillips regarding repayment of                                                                         
refunded contributions as noted in Section 58.  He detailed                                                                     
the way in which this legislation presently reads.  He                                                                          
continued that someone who has withdrawn his or her                                                                             
contribution and returns to work, has the opportunity to                                                                        
reinstate their credited service and repay the indebtedness                                                                     
of the reinstatement cost including interest within one                                                                         
year of the date of re-employment.  He continued that this                                                                      
section treats this group of individuals like any other                                                                         
under various state retirement systems.                                                                                         
                                                                                                                                
Senator Phillips agreed with this illustration that most                                                                        
state employees are presently at two percent for the first                                                                      
ten years, but he pointed out that a special piece of                                                                           
legislation passed in 1975, set these 62 employees at a                                                                         
five- percent benefits advantage and to that he objected.                                                                       
                                                                                                                                
Senator Donley stated that he agreed with Senator Phillips.                                                                     
He stated that these individuals are receiving an added                                                                         
benefit that no state employee has gotten since.  He noted                                                                      
that going back retroactively in this instance, would not                                                                       
be the same thing.                                                                                                              
                                                                                                                                
Mr. Bell referred to Section 59, which does not deal with                                                                       
indebtedness payments, but deals with distribution of                                                                           
member accounts under qualified domestic relation orders in                                                                     
the event of divorces.  He pointed out that this section                                                                        
would bring the State of Alaska in compliance with federal                                                                      
law.                                                                                                                            
                                                                                                                                
Senator P. Kelly asked if these individuals would                                                                               
repurchase time under the old system or under the present                                                                       
two percent system.                                                                                                             
                                                                                                                                
Mr. Bell responded that these individuals would repurchase                                                                      
as EPORS members at five percent.                                                                                               
                                                                                                                                
Senator Leman made a motion to move to divide the question                                                                      
between Section 58 and Section 59.                                                                                              
                                                                                                                                
Co-Chair Torgerson stated that Amendment #2A would be to                                                                        
delete Section 58 and Amendment #2B would be to delete                                                                          
Section 59.                                                                                                                     
                                                                                                                                
Senator Adams objected for discussion purposes.  He asked                                                                       
how many of the 62 individuals would actually buy back                                                                          
their service time.  He wondered how old these individuals                                                                      
were as well.                                                                                                                   
                                                                                                                                
Mr. Church responded that the majority of these individuals                                                                     
were between 40 to 60 years old.  He added that he did not                                                                      
have the exact numbers of how many of them would                                                                                
participate, but that it would probably be a minority.                                                                          
                                                                                                                                
A roll call vote was taken on the motion to adopt Amendment                                                                     
                                                                                                                                
IN FAVOR:  Senator P. Kelly, Senator Green, Senator                                                                             
Phillips, Senator Donley, Senator Leman, Co-Chair                                                                               
Torgerson.                                                                                                                      
                                                                                                                                
OPPOSED:  Senator Wilken, Senator Adams.                                                                                        
                                                                                                                                
The MOTION PASSED (6-2)                                                                                                         
                                                                                                                                
Senator Phillips made a motion to WITHDRAW Amendment #2B.                                                                       
                                                                                                                                
Amendment #1: This amendment adds new and deletes old                                                                           
language as follow:                                                                                                             
                                                                                                                                
The governor shall fill a [A] vacancy in an unexpired                                                                           
elective term [SHALL BE FILLED] by [ELECTION FOR A NEW                                                                          
SIX-YEAR] appointment for the remainder of the term.                                                                            
                                                                                                                                
Senator Wilken made a motion to adopt Amendment #1, and                                                                         
referred to page 15, line 18 and 19, by reading the                                                                             
following language: "A vacancy and an unexpired elected                                                                         
term shall be filled by elections for a new year term."  He                                                                     
explained that during the subcommittee budget process, this                                                                     
exact situation happened and the department was required to                                                                     
conduct an election, which cost $100,000.  He then read the                                                                     
pertinent language of Amendment #1 as noted above.                                                                              
                                                                                                                                
Co-Chair Torgerson asked if the terms of office were six                                                                        
years.                                                                                                                          
                                                                                                                                
Senator Wilken responded affirmatively and that they were                                                                       
six-year staggered terms.                                                                                                       
                                                                                                                                
Co-Chair Torgerson suggested a conceptual change to fill                                                                        
the term until the next election.                                                                                               
                                                                                                                                
Senator Leman asked if Senator Wilken had considered                                                                            
another way to fill these vacancies, such as having the                                                                         
existing board fill this vacancy rather than the governor.                                                                      
                                                                                                                                
Senator Wilken explained that the governor appoints three                                                                       
of these members and that two are elected.                                                                                      
                                                                                                                                
Senator Green suggested the addition of language, "by                                                                           
appointment until the next regularly scheduled election."                                                                       
                                                                                                                                
Mr. Bell responded that this would create a situation where                                                                     
there are no longer any staggered terms.  He added that                                                                         
this was not necessarily a bad thing, but there could                                                                           
potentially be new people re-instated every six years.                                                                          
                                                                                                                                
Co-Chair Torgerson disagreed and pointed out that                                                                               
municipalities do this type of thing all the time.  He used                                                                     
the example of appointing someone to take a position until                                                                      
the next election, remaining in this capacity for the                                                                           
remainder of this term.                                                                                                         
                                                                                                                                
Co-Chair Torgerson called an at ease at 10:05 AM and                                                                            
reconvened at 10:08 AM.                                                                                                         
                                                                                                                                
Senator Wilken made a conceptual amendment that would                                                                           
essentially allow the Governor to fill a vacancy in an                                                                          
unexpired elected term for a new six-year term until the                                                                        
next regularly scheduled election, while giving the                                                                             
Department of Legal Services the ability to conform the                                                                         
language accordingly.                                                                                                           
                                                                                                                                
Hearing no objection, the amendment to the amendment was                                                                        
adopted and Amendment #1 was AMENDED.                                                                                           
                                                                                                                                
Hearing no objection, Amendment #1 as amended, was ADOPTED.                                                                     
                                                                                                                                
                                                                                                                                
Tape: SFC - 00 #101, Side B, 9:59 AM                                                                                            
                                                                                                                                
                                                                                                                                
Senator Wilken made a motion to move HB 335, version 1-                                                                         
LS1217\M as amended from committee with individual                                                                              
recommendations and a $29,200 fiscal note from the                                                                              
Department of Administration.  Hearing no objection HB 335                                                                      
was MOVED FROM COMMITTEE.                                                                                                       
                                                                                                                                
HOUSE BILL NO. 324                                                                                                              
"An Act requiring written consent by the person who is                                                                          
the subject of the information before releasing                                                                                 
personal information contained in motor vehicle                                                                                 
records, to comply with 18 U.S.C. 2721; and providing                                                                           
for an effective date."                                                                                                         
                                                                                                                                
                                                                                                                                
CHARLES HOSACK, Deputy Director, Division of Motor                                                                              
Vehicles, Department of Administration testified via                                                                            
teleconference from Anchorage.  He stated that this                                                                             
legislation would bring Alaska into compliance with federal                                                                     
law regarding release of information.  He noted that Alaska                                                                     
and federal law currently allows the release for 11                                                                             
permitted uses and added that this bill, including the                                                                          
federal law change will affect two of these permitted uses.                                                                     
He added that one of these was for marketing and                                                                                
solicitation and the other for open release of vehicle                                                                          
records.  He advised that these uses are currently                                                                              
permitted, unless a person specifically informs the                                                                             
division not to release this information.  He asserted that                                                                     
the changes to these two uses will not be allowed unless                                                                        
the person specifically requests that their specific                                                                            
information be released or that they want to receive                                                                            
solicitations.                                                                                                                  
                                                                                                                                
Co-Chair Torgerson asked how the division would notify the                                                                      
public of these changes in law.                                                                                                 
                                                                                                                                
Mr. Hosack responded that this would be accomplished                                                                            
through public releases and along with registration renewal                                                                     
notices.                                                                                                                        
                                                                                                                                
Senator Phillips asked if this legislation would restrict a                                                                     
person from researching the history of a vehicle.                                                                               
                                                                                                                                
Mr. Hosack responded affirmatively and added that if an                                                                         
individual wishes to buy a used vehicle, the division would                                                                     
not be able to release this vehicle's history of use.  He                                                                       
pointed out that this same provision is already signed into                                                                     
federal law and will go into effect June 1st.                                                                                   
                                                                                                                                
Senator Phillips asked what someone would do if they                                                                            
collected antique or classic cars.                                                                                              
                                                                                                                                
Mr. Hosack responded that the division would not be able to                                                                     
release this information unless the collector obtained a                                                                        
signed release from the vehicle owner.                                                                                          
                                                                                                                                
Co-Chair Torgerson asked if the state would be out of                                                                           
compliance by making an exception for historical antique                                                                        
vehicles and classics.                                                                                                          
                                                                                                                                
Mr. Hosack responded that the state would be out of                                                                             
compliance with federal law.  He noted that the state and                                                                       
the individuals who release this information could be fined                                                                     
$5000 per day by the U.S. Attorney General's office.                                                                            
                                                                                                                                
Senator Donley added that his interpretation of this                                                                            
legislation was that it requires written consent from the                                                                       
person who is the subject of the requested information and                                                                      
he wondered why Mr. Hosack specified that permission must                                                                       
be granted by the vehicle's owner.                                                                                              
                                                                                                                                
Mr. Hosack responded that the owner information would be                                                                        
information such as name, address and vehicle type related                                                                      
to this individual.                                                                                                             
                                                                                                                                
Senator Donley disagreed and added that this information                                                                        
could include a lot more, such as prior owners.  He noted                                                                       
that this would solve the present problem with this                                                                             
legislation, because before an individual buys a classic                                                                        
car, the present owner could give permission for                                                                                
researching the vehicle's history.  He stated that he                                                                           
thought this language went to the "subject of the                                                                               
information."  He asked if the federal law specified.                                                                           
                                                                                                                                
Mr. Hosack responded that the federal law reads exactly as                                                                      
the proposed language before the Committee, i.e., the                                                                           
subject of the information.                                                                                                     
                                                                                                                                
Senator Leman referred to the definition of "personal                                                                           
information" in statute.  He read the following excerpt:                                                                        
"Personal information includes name, address, telephone                                                                         
number and medical or disability information, but does not                                                                      
include information on vehicular accidents, driving or                                                                          
equipment related violations, drivers license or                                                                                
registration status or a zip code."  He wondered why zip                                                                        
code would not be included if someone's address and                                                                             
telephone is included.                                                                                                          
                                                                                                                                
Mr. Hosack responded this was set aside for statistical                                                                         
purposes in generating reports on where vehicles are                                                                            
located.                                                                                                                        
                                                                                                                                
Senator Donley stated this exemption could be a way for                                                                         
individuals who are interested in buying antique cars to                                                                        
get some of the pertinent information regarding the history                                                                     
of the vehicle.                                                                                                                 
                                                                                                                                
Senator Leman made a motion to move HB 324, version 1-                                                                          
GH2063.A from Committee with individual recommendations and                                                                     
a zero fiscal note from the Division of Motor Vehicles.                                                                         
Hearing no objection the bill was MOVED FROM COMMITTEE.                                                                         
                                                                                                                                
SENATE CS FOR CS FOR HOUSE BILL NO. 419(JUD)                                                                                    
"An Act relating to the weekly rate of compensation                                                                             
and minimum and maximum compensation rates for                                                                                  
workers' compensation; specifying components of a                                                                               
workers' compensation reemployment plan; adjusting                                                                              
workers' compensation benefits for permanent partial                                                                            
impairment, for reemployment plans, for rehabilitation                                                                          
benefits, for widows, widowers, and orphans, and for                                                                            
funerals; relating to permanent total disability of an                                                                          
employee receiving rehabilitation benefits; relating                                                                            
to calculation of gross weekly earnings for workers'                                                                            
compensation benefits for seasonal and temporary                                                                                
workers and for workers with overtime or premium pay;                                                                           
setting time limits for requesting a hearing on claims                                                                          
for workers' compensation, for selecting a                                                                                      
rehabilitation specialist, and for payment of medical                                                                           
bills; relating to termination and to waiver of                                                                                 
rehabilitation benefits, obtaining medical releases,                                                                            
and resolving discovery disputes relating to workers'                                                                           
compensation; setting an interest rate for late                                                                                 
payments of workers' compensation; providing for                                                                                
updating the workers' compensation medical fee                                                                                  
schedule; and providing for an effective date."                                                                                 
                                                                                                                                
                                                                                                                                
JANET SEITZ, Staff to Representative Norman Rokeberg,                                                                           
stated that this legislation was introduced at the request                                                                      
of the Adhoc Committee on Workers Compensation and the                                                                          
Department of Labor and Workforce Development.    She noted                                                                     
that this legislation updated the Workers Compensation law,                                                                     
which was last extensively revised in 1998.  She added that                                                                     
this was a technical bill.                                                                                                      
                                                                                                                                
PAUL GROSSI, Director, Division of Workers' Compensation,                                                                       
Department of Labor and Workforce Development stated that                                                                       
the department supports this bill.  He added that this                                                                          
legislation provides needed increased benefits for injured                                                                      
workers and gave examples of how this was effectuated.   He                                                                     
disclosed that these benefits have not been raised for 12                                                                       
years taking into account inflation.  He recited other                                                                          
specific examples of how this legislation was modified.                                                                         
                                                                                                                                
Senator Phillips referred to a workers compensation audit                                                                       
and asked what recommendations generated from it were                                                                           
included in this legislation.                                                                                                   
                                                                                                                                
Mr. Grossi responded that the parties who drafted this                                                                          
legislation did not have the advantage of this audit's                                                                          
recommendations.  He referred to those same concerns                                                                            
addressed in the audit and this legislation as follows:                                                                         
increase in permanent and partial impairment benefit,                                                                           
increases in retraining, and overtime pay included in the                                                                       
calculation of compensation rate, etceteras.                                                                                    
                                                                                                                                
Senator Phillips noted that the audit came out in January.                                                                      
                                                                                                                                
Ms. Seitz stated that the audit came out in March of 2000,                                                                      
which was after the introduction of this legislation.  She                                                                      
added that this legislation did not bring the department                                                                        
into compliance with the audit and gave specific examples,                                                                      
such as employer penalties, or uninsured employees issues.                                                                      
                                                                                                                                
Senator Wilken asked about problems with controverted                                                                           
claims and wondered if this legislation addressed this                                                                          
issue.                                                                                                                          
                                                                                                                                
Mr. Grossi responded that this area was not addressed in                                                                        
the bill.                                                                                                                       
                                                                                                                                
Senator Green voiced her concerns about the strong comments                                                                     
outlined in the audit regarding the administration of this                                                                      
program.  She gave highlights of the deficiencies given in                                                                      
the audit.  She asked if the "ten-year review" regarding                                                                        
workers rehab was addressed in this legislation.                                                                                
                                                                                                                                
Mr. Grossi responded that this review process had not been                                                                      
addressed in this legislation.  He pointed out that in                                                                          
order to qualify for retrain benefits, an individual must                                                                       
be able to show that they are unable to return to the type                                                                      
of work performed at the time of injury to any job held                                                                         
within the last ten years.  He noted that there were                                                                            
problems inherent in this requirement.                                                                                          
                                                                                                                                
Co-Chair Torgerson stated that the Committee would HOLD                                                                         
this legislation.                                                                                                               
                                                                                                                                
                                                                                                                                
HOUSE BILL NO. 432                                                                                                              
"An Act extending the termination date of the Board of                                                                          
Storage Tank Assistance; expanding the authority of                                                                             
the board to issue recommendations concerning cleanup                                                                           
decisions; and providing for an effective date."                                                                                
                                                                                                                                
                                                                                                                                
Amendment #1: This amendment reduces the extension date of                                                                      
four years to two years from June 30, 2003 to June 30,                                                                          
2001.  The amended language on page one, line seven of the                                                                      
bill would read, "(18) Board of Storage Tank Assistance (AS                                                                     
46.03.360) -- June 30, 2001.                                                                                                    
                                                                                                                                
Senator Leman made a motion to adopt Amendment #1. He                                                                           
stated that he supports the Board of Storage Tank                                                                               
Assistance and he had previously recommended a two-year                                                                         
extension.  He then gave an overview of how this                                                                                
legislation had progressed since the House of                                                                                   
Representatives had heard it.                                                                                                   
                                                                                                                                
Senator Green stated that the legislature had basically                                                                         
gutted this whole bill and noted the amount of time it has                                                                      
taken for this negotiated time extension.  She stated that                                                                      
she did not understand why, this two year requirement                                                                           
should be instituted, while at the same time the board                                                                          
could be negotiating with Department of Environmental                                                                           
Conservation.                                                                                                                   
                                                                                                                                
Co-Chair Torgerson responded that there would always be                                                                         
work for people regarding this issue.  He noted that if the                                                                     
Committee wanted to offset the Department of Environmental                                                                      
Conservation's power with this, they might as well take out                                                                     
the termination dates.                                                                                                          
                                                                                                                                
Senator Adams objected and noted that it takes four years                                                                       
to close out underground storage tank projects.                                                                                 
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR:  Senator Phillips, Senator Leman, Co-Chair                                                                            
Torgerson.                                                                                                                      
                                                                                                                                
OPPOSED:  Senator Green, Senator Adams, Senator Wilken,                                                                         
Senator P. Kelly.                                                                                                               
                                                                                                                                
PASS:  Senator Donley.                                                                                                          
                                                                                                                                
The MOTION FAILED:  (3-3)                                                                                                       
                                                                                                                                
Co-Chair Torgerson announced an at ease at 10:32 AM and                                                                         
reconvened the meeting at 10:35 AM.                                                                                             
                                                                                                                                
Senator Leman made a motion to RESCIND the previous action                                                                      
for failure to adopt Amendment #1.  Hearing no objection,                                                                       
Amendment #1 was once again before the Committee.                                                                               
                                                                                                                                
Senator Adams again objected to the adoption of this                                                                            
amendment.  A roll call vote was taken on whether to adopt                                                                      
Amendment #1.                                                                                                                   
                                                                                                                                
IN FAVOR:  Senator Phillips, Senator Donley, Senator Leman,                                                                     
Senator Wilken, Senator P. Kelly, Co-Chair Parnell, Co-                                                                         
Chair Torgerson.                                                                                                                
                                                                                                                                
OPPOSED:  Senator Adams, Senator Green.                                                                                         
                                                                                                                                
The MOTION PASSED:  (7 - 2)                                                                                                     
                                                                                                                                
Senator Leman made a motion to move HB 432, version 1-                                                                          
LS1539\G from Committee as amended with individual                                                                              
recommendations and a $51,400 fiscal note from the                                                                              
Department of Environmental Conservation.  Hearing no                                                                           
objection HB 432 was MOVED FROM COMMITTEE.                                                                                      
                                                                                                                                
HOUSE BILL NO. 277                                                                                                              
"An Act relating to payment of retirement benefits for                                                                          
subsequently reemployed retired members of the                                                                                  
teachers' retirement system."                                                                                                   
                                                                                                                                
                                                                                                                                
DARROLL HARGRAVES, Executive Director, Alaska Council of                                                                        
School Administrators commended the Committee for                                                                               
considering the serious teacher shortage developing in                                                                          
Alaska.  He added that field reports indicate that it is                                                                        
becoming more difficult to find qualified and certifiable                                                                       
teachers to enter classrooms, as well as Administrator                                                                          
slots.  He commended the Committee on subsection (b) on                                                                         
page two as well.                                                                                                               
                                                                                                                                
Senator P. Kelly stated that Alaska should seriously                                                                            
consider alternatives to certification in order to fill                                                                         
these teaching positions.                                                                                                       
                                                                                                                                
Co-Chair Torgerson asked for an explanation related to this                                                                     
legislation's fiscal note, especially the associated                                                                            
benefits, which might go up an additional ten percent.  He                                                                      
asked what section of the bill this increase referred to.                                                                       
                                                                                                                                
GUY BELL, Director, Division of Retirement and Benefits,                                                                        
Department of Administration responded that actuaries had                                                                       
looked at the state's cost for a person who, after 20 years                                                                     
retires and then is rehired.  He noted that this reference                                                                      
reflected a ten-percent increase in the net present value                                                                       
of the expected life line value of this individual's                                                                            
benefits.  He continued that if half the members decided to                                                                     
participate the cost to the system would be about .75                                                                           
percent of Teachers' Retirement System (TRS) payroll, which                                                                     
would be about $3.6 million.  He gave an example of a                                                                           
teacher with 20 years of service at a high salary of                                                                            
$50,000 per year.  He explained that if a teacher was                                                                           
rehired back into the system, the second retirement would                                                                       
be calculated on the teacher's higher salary, while not                                                                         
affecting their original benefits.                                                                                              
                                                                                                                                
BILL CHURCH, Retirement Supervisor, Division of Retirement                                                                      
& Benefits, Department of Administration added that an                                                                          
individual who had participated in a Retirement Incentive                                                                       
Plan (RIP) and who was rehired would lose the incentive                                                                         
credit given at their original retirement.  He continued                                                                        
with the example of a teacher first hired under the Tier 1                                                                      
level of benefits, who retires at age 43 after 17 years of                                                                      
service.  He noted that this individual would not be                                                                            
eligible to commence this first benefit until they reached                                                                      
age 55 for a normal benefit or age 50 for an early benefit.                                                                     
He noted that this would be the penalty for returning to                                                                        
employment, although this does not prevent anyone who has                                                                       
retired from being eligible for rehire under this scenario.                                                                     
                                                                                                                                
Co-Chair Parnell referred to the teacher shortage as                                                                            
previously noted and asked how many new teachers are                                                                            
presently needed in the state.  He wondered what the annual                                                                     
gross on average was in Alaska and if this was not enough,                                                                      
he asked what it should be.                                                                                                     
                                                                                                                                
Mr. Guy responded that the state must consider how many                                                                         
teachers are quitting and how many are retiring.  He noted                                                                      
that about 500 teachers retire each year and guessed that                                                                       
the same amount of teachers leave for various other                                                                             
reasons.  He added that about the same number of teachers                                                                       
come into the system for any given year.  He generally                                                                          
stated that there are 10,000 teachers in the system                                                                             
statewide, with roughly a 10 percent annual turnover.                                                                           
                                                                                                                                
Co-Chair Parnell stated that it seemed the numbers were                                                                         
staying level, along with a population decrease statewide.                                                                      
He wondered if there was a need for this legislation with                                                                       
these types of projections.                                                                                                     
                                                                                                                                
Mr. Church responded that districts were reporting                                                                              
shortages in some disciplines, something that has been on                                                                       
going for many years.                                                                                                           
                                                                                                                                
Co-Chair Parnell declared that he thought this legislation                                                                      
was a short-term fix and that it does not look towards the                                                                      
future, as to recruit and keep teachers.                                                                                        
                                                                                                                                
                                                                                                                                
Tape: SFC - 00 #102, Side A, 10:49 AM                                                                                           
                                                                                                                                
                                                                                                                                
Senator Green stated that this shortage of teachers was                                                                         
cyclical, just the same as overages.  She noted that this                                                                       
was not an unusual phenomenon.                                                                                                  
                                                                                                                                
Co-Chair Torgerson inquired about the advantage or                                                                              
disadvantage of a teacher who works twenty years and                                                                            
retires, as versus a teacher that stays on for the same                                                                         
period of time.                                                                                                                 
                                                                                                                                
Mr. Bell responded that he could not think of any advantage                                                                     
one way or the other.                                                                                                           
                                                                                                                                
Mr. Church added that either way, after twenty years, an                                                                        
individual would receive the same multiplier, which                                                                             
increases after twenty years from two percent per year to                                                                       
two and a half percent per year.                                                                                                
                                                                                                                                
Co-Chair Torgerson stated that HB 277 would be HELD in                                                                          
Committee.                                                                                                                      
ADJOURNED                                                                                                                       
                                                                                                                                
Senator Torgerson recessed the meeting at 10:54 AM to the                                                                       
call of the chair.                                                                                                              
SFC-00 (1) 04/20/00                                                                                                             

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