Legislature(1997 - 1998)
04/16/1997 08:11 AM Senate FIN
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* first hearing in first committee of referral
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MINUTES
SENATE FINANCE COMMITTEE
April 16, 1997
8:11 A.M.
TAPES
SFC-97, # 112, Sides 1 & 2 (000-590, 590-000)
SFC-97, # 113, Side 1 (000-425)
CALL TO ORDER
Senator Bert Sharp, Cochair, Senate Finance Committee,
convened the meeting at approximately 8:11 A.M.
PRESENT
In addition to COCHAIR SHARP, COCHAIR PEARCE, SENATORS
PHILLIPS, DONLEY, TORGERSON, PARNELL and ADAMS were present
when the meeting was convened.
Also Attending:
ALISON ELGEE, Deputy Commissioner, Department of
Administration; MIKE GREANY, Director, Legislative Finance
Division; RANDY WELKER, Legislative Auditor, Division of
Legislative Audit; ED FLANAGAN, Deputy Commissioner,
Department of Labor; ART CHANCE, Consultant, House and
Senate Finance Committees; and aides to committee members.
SUMMARY INFORMATION
SB 55 AMEND DEFINITION OF "PROGRAM RECEIPTS"
COCHAIR PEARCE MOVED for adoption of a draft CS.
SENATOR ADAMS objected, then withdrew his objection.
Without further objection, CSSB 55(FIN) was adopted.
SENATOR PHILLIPS MOVED for adoption of Amendment #1.
COCHAIR PEARCE objected. Testimony was heard from
ALISON ELGEE, RANDY WELKER and MIKE GREANY. Amendment
offered. COCHAIR PEARCE MOVED CSSB 55(FIN) from
committee with individual recommendations and an
updated fiscal note. Without objection, CSSB 55(FIN)
was REPORTED OUT with a zero fiscal note from the
Senate Finance Committee.
SB 105 LEGISLATIVE ETHICS CODE REFORM
SENATOR PHILLIPS MOVED to rescind previous action in
failing to adopt Amendment #1. SENATOR DONLEY
objected. The motion CARRIED by a 6 to 1 vote and
Amendment #1 was before the committee. Amendment #1
FAILED by a 2 to 5 vote. COCHAIR PEARCE MOVED CSSB
105(FIN) from committee with individual
recommendations. Without objection, CSSB 105(FIN) was
REPORTED OUT with a previous zero fiscal note from
Legislative Affairs Agency, a previous fiscal note from
the Department of Administration (151.2), a new fiscal
note from the Department of Administration (58.9) and
new zero fiscal notes from the Department of Labor and
the Department of Law.
SB 151 PUBLIC EMPLOYMENT LABOR RELATIONS
COCHAIR PEARCE MOVED for adoption of Amendment #1.
COCHAIR SHARP objected. Testimony was heard from ED
FLANAGAN. The objection was withdrawn, and Amendment
There being no objection, Amendment #2 was ADOPTED.
COCHAIR PEARCE MOVED Amendment #3. COCHAIR SHARP
objected, then withdrew his objection. Without further
objection, Amendment #3 was ADOPTED. SENATOR ADAMS
MOVED Amendment #4. COCHAIR SHARP and COCHAIR PEARCE
objected. Amendment #4 FAILED by a 3 to 3 vote.
SENATOR ADAMS MOVED Amendment #5. COCHAIR PEARCE
objected. Amendment #5 FAILED by a 3 to 3 vote.
SENATOR ADAMS MOVED Amendment #6. COCHAIR PEARCE
objected. Amendment #6 FAILED by a 3 to 3 vote.
SENATOR ADAMS MOVED Amendment #7. COCHAIR SHARP
objected. Testimony was heard from ART CHANCE.
COCHAIR SHARP withdrew his objection and Amendment #7
was ADOPTED. SENATOR ADAMS MOVED Amendment #8.
COCHAIR PEARCE objected. Amendment #8 FAILED by a 3 to
3 vote. SENATOR ADAMS did not offer Amendments #9 -
PEARCE objected. SENATOR ADAMS withdrew his motion
without objection. COCHAIR SHARP MOVED Amendment #15.
SENATOR ADAMS objected, then withdrew his objection.
Without further objection, Amendment #15 was ADOPTED.
COCHAIR SHARP MOVED Amendment #16. SENATOR DONLEY MOVED
for adoption of an Amendment to Amendment #16. Without
objection, the Amendment to Amendment #16 was ADOPTED.
Amendment #16 was ADOPTED by a 6 to 1 vote. COCHAIR
SHARP MOVED Amendment #17. There being no objection,
Amendment #17 was adopted. SENATOR ADAMS MOVED
Amendment #14. COCHAIR PEARCE objected. Amendment #14
FAILED by a 2 to 4 vote. COCHAIR PEARCE MOVED
Amendment #18. COCHAIR SHARP objected, then withdrew
his objection. Without further objection, Amendment
previous action in failing to adopt Amendment #14.
There being no objection, Amendment #14 was before the
committee. Amendment #14 FAILED by a 3 to 4 vote.
COCHAIR PEARCE MOVED CSSB 151(FIN) from committee with
individual recommendations. SENATOR ADAMS objected.
By a vote of 4 to 3, CSSB 151(FIN) was REPORTED OUT
with individual recommendations, a previous fiscal note
from the Department of Law (277.0), new fiscal notes
from the Department of Labor (263.9), the Court System
(14.7), and forthcoming fiscal notes from the
Department of Administration and the Department of
Labor.
SENATE BILL NO. 55
"An Act relating to the definition of certain state
receipts; and providing for an effective date."
COCHAIR PEARCE MOVED for adoption of a draft CS, version B.
SENATOR ADAMS objected for the purpose of an explanation.
COCHAIR PEARCE noted the changes on page 2, lines 3-6 using
language from a similar bill passed last year, and a change
on page 3, lines 9-13 that added specific entities to the
list of fund receipts, those being the children's trust,
commercial fisheries test fishing operations, and the public
utilities commission. Contracting language from the
governor's bill was moved up to page 2, line 6.
SENATOR ADAMS withdrew his objection. Without further
objection, CSSB 55(FIN) was adopted.
SENATOR PHILLIPS MOVED for adoption of Amendment #1. He
requested the drafter insert the language in the appropriate
sections. It would add rental receipts to page 2, line 3
and cover Pioneer Homes, Public Safety and Fish and Game
employees, and Foreign Trade Offices. It had been a concern
brought up by the department and he offered it on their
behalf.
COCHAIR PEARCE objected.
ALISON ELGEE, Deputy Commissioner, Department of
Administration, testified that they were interested in
recognizing the rents that Pioneer Home residents pay for
residing there as something other than general fund program
receipts. The revenues would continue to be appropriated
and subject to the same scrutiny, but as rents were raised,
they would get some credit toward the general fund
expenditures by recognizing them as being specific to the
Pioneer Home programs.
There was discussion between SENATOR PARNELL and MS. ELGEE
about where the language should appear in the bill.
COCHAIR PEARCE invited Mr. Welker and Mr. Greany to the
table to comment on their recommendations.
In response to a question from SENATOR TORGERSON, MS. ELGEE
discussed employee housing rental receipts and noted there
was not lease agreement.
MIKE GREANY, Director, Legislative Finance Division,
described the bill and the columns of appropriations. He
informed the committee that SB 55 would move some of the
general fund appropriations to the other funds column and
they would no longer be counted as general fund. It would
move about $55 million of designated receipts from the
general fund and move them off budget. He expressed
concerns about moving closer to a form of dedication and
away from the notion that the majority of receipts the state
takes in were not dedicated were available to the
legislature for appropriation. He explained in further
detail.
RANDY WELKER, Legislative Auditor, Division of Legislative
Audit, testified that the bill represented strictly a
budgetary consideration of which column you want the
receipts to show up in. He said it didn't matter from an
accounting perspective because there were still mechanisms
to track the receipts. The bill was drafted to narrowly
define what receipts were moving out of the general fund
category into other funds so that only those things where a
third party had a significant influence over how the funds
must be spent would be moved.
In response to a question from COCHAIR SHARP, MR. GREANY
responded that there would be less than $500 thousand of
receipts for Fish and Game, Foreign Trade offices and Public
Safety.
Additional discussion ensued among COCHAIR PEARCE, SENATOR
PHILLIPS and MS. ELGEE about keeping a narrow definition and
housing receipts.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Adams, Phillips
OPPOSED: Torgerson, Parnell, Pearce, Sharp
Amendment #1 FAILED by a 2 to 4 vote.
Amendment #2 was not offered.
COCHAIR PEARCE MOVED CSSB 55(FIN) from committee with
individual recommendations and an updated fiscal note.
Without objection, CSSB 55(FIN) was REPORTED OUT with a zero
fiscal note from the Senate Finance Committee.
SENATE BILL NO. 105
"An Act relating to legislative ethics; relating to the
filing of disclosures by certain legislative employees and
officials; and providing for an effective date."
COCHAIR SHARP noted that SB 105 was back before the
committee on a rescind vote. He noted there were a number
of amendments that had been considered.
SENATOR DONLEY brought up previous discussion about a
peculiarity in existing law. The only state official
allowed to continue to raise money during the legislative
session was the Lieutenant Governor and he believed it
should be equal for all candidates. He had a draft
amendment on the issue but thought it had been adequately
addressed.
SENATOR PHILLIPS MOVED to rescind previous action in failing
to adopt Amendment #1. COCHAIR SHARP and SENATOR DONLEY
objected.
A roll call vote was taken on the MOTION.
IN FAVOR: Phillips, Torgerson, Parnell, Adams, Pearce, Sharp
OPPOSED: Donley
The motion CARRIED by a 6 to 1 vote and Amendment #1 was
before the committee.
There was brief discussion on the merits of the amendment.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Adams, Phillips
OPPOSED: Torgerson, Parnell, Donley, Pearce, Sharp
Amendment #1 FAILED by a 2 to 5 vote.
COCHAIR PEARCE MOVED CSSB 105(FIN) from committee with
individual recommendations. Without objection, CSSB
105(FIN) was REPORTED OUT with a previous zero fiscal note
from Legislative Affairs Agency, a previous fiscal note from
the Department of Administration (151.2), a new fiscal note
from the Department of Administration (58.9) and new zero
fiscal notes from the Department of Labor and the Department
of Law.
SENATE BILL NO. 151
"An Act relating to public employment labor relations;
relating to the protection of the rights of public employees
under the Public Employment Relations Act; establishing
ethical standards for union representatives of public
employees; and establishing disclosure requirements for
public employee labor organizations."
SENATOR ADAMS objected to the bill as expensive and not
needed. He cited previous legislative appropriation
concerning Indian Country, audits of native corporations and
believed they should get away from people bashing.
End SFC-97 #112, Side 1, Begin Side 2
COCHAIR PEARCE MOVED for adoption of Amendment #1. COCHAIR
SHARP objected for the purpose of explanation. COCHAIR
PEARCE stated the amendment included employees of juvenile
detention facilities in the list of employees prohibited
from striking.
SENATOR DONLEY asked for the administration's position on
the amendment.
ED FLANAGAN, Deputy Commissioner, Department of Labor,
testified that the amendment would mitigate some of the harm
and lessen the negative impact of language in the bill.
There would still be many employees in youth correction
facilities eligible to strike, but youth correction officers
would be excluded. He supported the amendment.
The objection was withdrawn, and Amendment #1 was ADOPTED.
COCHAIR PEARCE MOVED Amendment #2. She explained it had
been suggested by the unions because of concern over
representation by labor organizations. There being no
objection, Amendment #2 was ADOPTED.
COCHAIR PEARCE MOVED Amendment #3. COCHAIR SHARP objected.
COCHAIR PEARCE explained that the bill was not intended to
break up unions and the amendment clarified that certain
bargaining unions could continue. Those affected would
include the Fairbanks North Star Borough and another
political subdivision of the state.
COCHAIR SHARP removed his objection. Without further
objection, Amendment #3 was ADOPTED.
SENATOR ADAMS MOVED Amendment #4. COCHAIR SHARP and COCHAIR
PEARCE objected. SENATOR ADAMS explained that the amendment
decertified all current unions from representing any other
public employees if peace officers were members. He further
explained the impact of the legislation on Petersburg and
that the amendment would cut some of the costs of the
legislation. COCHAIR PEARCE spoke to her objection,
pointing out that Amendment #3 fixed the problem affecting
Petersburg.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Donley, Adams, Phillips
OPPOSED: Parnell, Pearce, Sharp
Amendment #4 FAILED by a 3 to 3 vote.
SENATOR ADAMS MOVED Amendment #5. COCHAIR PEARCE objected.
SENATOR ADAMS explained that the amendment eliminated the
findings in Section 1. SENATOR DONLEY spoke in favor of the
amendment, stating that the findings language was
inflammatory and not necessary. COCHAIR PEARCE spoke to her
opposition. She commented that it was inflammatory that
members of public unions had hired private investigators to
investigate legislative members to find something to use to
blackmail them in a vote, which happened last session.
SENATOR PHILLIPS declared a conflict of interest concerning
the legislation in that his wife was a state employee and
asked to refrain from voting. COCHAIR SHARP objected.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Adams, Phillips, Donley
OPPOSED: Parnell, Pearce, Sharp
Amendment #5 FAILED by a 3 to 3 vote.
SENATOR ADAMS MOVED Amendment #6. COCHAIR PEARCE objected.
SENATOR ADAMS explained that the amendment deleted the
federal labor management reporting and disclosure act being
rolled into PERA and spoke to the cost. Discussion was had
among COCHAIR PEARCE, SENATORS ADAMS, DONLEY and PHILLIPS
regarding the amendment.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Phillips, Donley, Adams
OPPOSED: Parnell, Pearce, Sharp
Amendment #6 FAILED by a 3 to 3 vote.
SENATOR ADAMS MOVED Amendment #7. COCHAIR SHARP objected.
SENATOR ADAMS explained that the amendment would delete the
provision to allow copying of a list of union members'
addresses. COCHAIR PEARCE stated her support of the
amendment. There was additional discussion among members.
SENATOR PARNELL asked to hear from Mr. Chance as he was not
familiar with labor elections.
ART CHANCE, Consultant, House and Senate Finance Committees,
stated the way the current language had been characterized
was inaccurate. The language would insure that a member of
the union could have a list of the membership if the member
was a bonafide candidate for office. It would not make the
list public record.
COCHAIR SHARP withdrew his objection and Amendment #7 was
ADOPTED.
SENATOR ADAMS MOVED Amendment #8. COCHAIR PEARCE objected.
SENATOR ADAMS explained that the amendment deleted the
requirement that current arbitration awards could be funded
within the state agency budget if the money was available.
Current language in the bill would require that award,
extensions or modifications be approved by the legislature
which would delay settlement of cases and generate interest
costs. COCHAIR PEARCE spoke to her objection that some
modifications had been large and should be brought before
the legislature. SENATOR ADAMS requested the department's
response.
MR. FLANAGAN stated that the amendment would allow interest
arbitrations to stand and take effect without waiting for
legislative approval.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Adams, Phillips, Donley
OPPOSED: Parnell, Pearce, Sharp
Amendment #8 FAILED by a 3 to 3 vote.
SENATOR ADAMS did not offer Amendments #9 - #13 as they were
duplicates of previous amendments.
SENATOR ADAMS MOVED Amendment #14. COCHAIR PEARCE objected.
SENATOR ADAMS explained that the amendment exempted anything
having to do with NEA and established a separate PERA for
school employees. SENATOR DONLEY asked to hear from the
department on the amendment.
MR. FLANAGAN explained that it left school employees in the
status quo and lessened the impact and workload of required
reporting. He was supportive of the amendment.
COCHAIR PEARCE informed the committee that she had a
forthcoming amendment that would remove NEA from the bill
and asked SENATOR ADAMS to withdraw his amendment. SENATOR
ADAMS withdrew his motion without objection.
COCHAIR SHARP MOVED a conceptual Amendment #15 that would
change a majority of the total number of employees in a
union to a total number of employees voting in a union
election. SENATOR ADAMS objected and requested comment from
the department.
MR. FLANAGAN stated that the amendment addressed one of
their many concerns and he was supportive.
SENATOR ADAMS withdrew his objection. Without further
objection, Amendment #15 was ADOPTED.
COCHAIR SHARP MOVED Amendment #16. He explained that it
excluded unpaid volunteers, such as shop stewards and
chapter representatives, from reporting requirements.
End SFC-97 #112, Side 2
Begin SFC-97 #113, Side 1
SENATOR DONLEY MOVED for adoption of an Amendment to
Amendment #16 to add the language "other than reimbursement
for actual expenses."
Without objection, the Amendment to Amendment #16 was
ADOPTED.
COCHAIR PEARCE objected to Amendment #16 for the purpose of
hearing from Mr. Chance on the section.
MR. CHANCE stated the section did not require a generalized
reporting by officers, stewards or representatives unless
they did certain things, such as exchanging money with a
public employer or engaging in a business relationship or
contract with a public employer.
MR. FLANAGAN didn't dispute Mr. Chances interpretation. He
gave an example and stated that it would lessen the number
of people required to report and thereby reduce the
workload. He supported the amendment.
SENATOR DONLEY inquired about what would trigger the
disclosure reporting. MR. CHANCE and MR. FLANAGAN responded
to the questions.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Phillips, Donley, Torgerson, Parnell, Pearce,
Sharp
OPPOSED: Adams
Amendment #16 as amended was ADOPTED by a 6 to 1 vote.
COCHAIR SHARP MOVED Amendment #17. He explained that it was
intended to address the problem of making a contribution to
a state or local candidate for public office. It would not
be reportable if it was $100 or less, similar to APOC
requirements. There was brief discussion. Without
objection, Amendment #17 was adopted.
COCHAIR PEARCE brought up Amendment #14 previously offered
by SENATOR ADAMS, and noted she had Amendment #18 that
exempted NEA. She noted Amendment #14 exempted NEA from the
entire bill, whereas Amendment #18 exempted them from the
reporting requirements.
SENATOR ADAMS MOVED Amendment #14. COCHAIR PEARCE objected.
There was brief discussion.
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Adams, Phillips
OPPOSED: Torgerson, Parnell, Pearce, Sharp
Amendment #14 FAILED by a 2 to 4 vote.
COCHAIR PEARCE MOVED Amendment #18. COCHAIR SHARP objected
for the purpose of explanation.
MR. CHANCE described the amendment. It would clarify the
cost that could be charged to a fee payer to include
contract administration. Also, if an organization had its
fee established by arbitration or court action, the filing
with the commissioner of Labor would satisfy the reporting
requirement for labor organizations. It that was done, then
the officers and employees would be exempt from the
individual reporting requirements. It would avoid a
duplication of effort.
COCHAIR SHARP withdrew his objection. Without further
objection, Amendment #18 was ADOPTED.
SENATOR DONLEY stated for the record his support of
Amendment #14.
SENATOR ADAMS MOVED to rescind previous action in failing to
adopt Amendment #14. There being no objection, Amendment
A roll call vote was taken on the MOTION to adopt Amendment
IN FAVOR: Adams, Phillips, Donley
OPPOSED: Torgerson, Parnell, Pearce, Sharp
Amendment #14 FAILED by a 3 to 4 vote.
COCHAIR PEARCE MOVED CSSB 151(FIN) from committee with
individual recommendations. SENATOR ADAMS objected. He
pointed out there had been no public support to the
legislation and he believed it was bad public policy. He
reiterated previous comments in opposition. SENATOR
PHILLIPS had concern that it was the wrong approach to get
at the problem, instead it gets at the "rank and file."
A roll call vote was taken on the MOTION.
IN FAVOR: Parnell, Torgerson, Pearce, Sharp
OPPOSED: Adams, Phillips, Donley
By a vote of 4 to 3, CSSB 151(FIN) was REPORTED OUT with
individual recommendations, a previous fiscal note from the
Department of Law (277.0), new fiscal notes from the
Department of Labor (263.9), the Court System (14.7), and
forthcoming fiscal notes from the Department of
Administration and the Department of Labor.
COCHAIR SHARP made announcements about upcoming committee
agendas. SENATOR DONLEY brought up discussion about an
operating budget amendment concerning ASMI which was briefly
addressed by COCHAIR PEARCE.
ADJOURNMENT
The meeting was adjourned at approximately 10:30 A.M.
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