Legislature(1999 - 2000)
02/26/1999 09:10 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
GENERAL SUBJECT(S): SB 30 Operating Budget Appropriations
SB 83 Supplemental/Capital Appropriations
SB 72 Constitutional Budget Reserve Fund
Appropriations
The following overview was taken in log note format. Tapes and
handouts will be on file with the Senate Finance Committee through the
21st Legislative Session, contact 465-2618. After the 21st
Legislative session they will be available through the Legislative
Library at 465-3808.
Time Meeting Convened: 9:10 A.M.
Tape(s): SFC-99 #39, Side A (000 - 589)
Side B (589 - 000)
PRESENT:
x
Senator Parnell
Senator Adams
Senator Torgerson
Senator P. Kelly
x
Senator Donley
x
Senator Green
x
Senator Leman
x
Senator Phillips
Senator Wilken
ALSO PRESENT: ALISON ELGEE, Deputy Commissioner, Department of
Administration; SHARON BARTON, Division of Administrative Services,
Department of Administration; BRUCE BOTHELO, Attorney General, State
of Alaska, Department of Law; BARBARA RITCHIE, Deputy Attorney
General, Civil Division, Department of Law; KATHRYN DAUGHHETEE,
Director, Division of Administrative Services, Department of Law;
KAREN REHFELD, Director, Division of Education Support Services,
Department of Education; KEN BISCHOFF, Director, Division of
Support Services, Department of Public Safety; NANCY SLAGLE,
Director, Division of Administrative Services, Department of
Transportation and Public Facilities; DWIGHT PERKINS, Deputy
Commissioner, Department of Labor; VIRGINIA STONKUS, Financial
Services, Division of Administrative Services, Department of
Environmental Conservation; DAVID TEAL, Director, Division of
Legislative Finance; JIM HAUCK and GINGER BLAISDELL, Fiscal
Analysts, Division of Legislative Finance; aides to committee
members and other members of the Legislature.
LOG
SPEAKER
DISCUSSION
000
Co-chair Parnell
Called the committee to order and set out the
schedule for SB 83. It was noted that SB 30
and SB 72 would not be heard today.
Barbara Ritchie
Assistant Attorney General, Civil Division,
Department of Law was invited to join the
committee. She noted also the presence of
Kathryn Daughhetee.
Kathryn Daughhetee
Director, Division of Administrative Services,
Department of Law was invited to join the
committee.
Senator Donley
Referred to Kachemak Bay, item #4 and said that
it had not been responded to.
Barbara Ritchie
Explained the Department of Law memorandum,
judgements and claims, dated 26 February
1999.
Senator Donley
Does not feel judgment should be paid with
regards to item #5.
Co-chair Parnell
Item #6, Robert Boyd vs. State DOTPF, Chitty
and Campbell.
Barbara Ritchie
With reference to Senator Donley's comment on
item #5, reversal of Judge Hart's decision.
She gave a brief background of the case and
explained Mr. Boyd's employment with the
State from 1983 to 1993.
The major difficulty in the case was the
process used for evaluation and termination
of Mr. Boyd.
There is a covenant of good faith and
agreement for employment with the State.
These are judicially created documents.
An employer must treat you with good faith.
This situation usually comes up with non-
bargaining unit employees.
Problems with how Mr. Boyd's evaluations
were handled. On evaluation he was
initially rated as mid-acceptable; later
the evaluation was changed and a new one
put in without notice to the employee.
Explained wrongful discharge claim in the
amount of $175,000.00.
Main issue was how this was handled with
Mr. Boyd.
There should be more training on state
evaluation and supervision issues in order
to prevent this kind of litigation.
Senator Phillips
Asked Ms. Ritchie if she ever looked at
evaluation policies? He also asked if she
thought the policy was flawed?
He felt the situation was costing the State
money.
Barbara Ritchie
Personally, she felt the evaluation process
does not include changing evaluation in files
or rating down an employee without notice to
the employee.
There were also ADA complaints.
In discussion with the committee she said that
unfortunately, errors are made.
Senator Phillips
"Once you really have a bad apple it is
difficult to get it out of the bushel." He
understands the necessity to protect the rights
of the worker, but also the general rights of
the people of Alaska and the State of Alaska.
Perhaps the training method is flawed.
Co-chair Parnell
Read a portion of Commissioner Campbell's
comments into the record regarding this case.
He said the Commissioner could have made a
better decision.
Is there any kind of systematic training of
supervisory personnel on evaluation policies.
Ms. Ritchie
There are a variety of courses that are
offered. They try to do training of human
resource managers and common issues and matters
that are seen and stop them.
However, in particular, this matter was not
handled very well.
Co-chair Parnell
Asked if the training was required?
Ms. Daughhetee
She advised that training is not required.
Agencies can ask that it be required.
Co-chair Parnell
Item #7 Muhammed Khan vs. State
Ms. Ritchie
Explained this matter. It was alleged that Mr.
Khan suffered from discrimination due to race.
He is a Pakistani Moslem. Dr. Khan sought
compensatory and punitive damages.
Facts were quite difficult for the State of
Alaska.
$190,000 lost wages.
Also filed grievance for layoff.
Arbitrator found that the State did not have a
legitimate case to layoff Dr. Khan.
Case went to Federal Court. Parties,
however, entered into settlement talks.
The plaintiff also claimed damages for
emotional distress and future lost wages.
Had he prevailed he would have been able to
collect his attorney fees also.
Senator Phillips
Is Dr. Khan in California? It had been
noticed that his checks were going to an
individual in California.
Ms. Ritchie
Explained that he had obtained out of State
attorneys from California to participate in
conjunction with attorneys from Alaska.
Senator Donley
Commented on discrimination and probable
cause. Has the State done anything to
identify these individuals? Anything done
to address the culpability of these
individuals?
Ms. Ritchie
There were witnesses willing to come
forward and say there was discrimination
against Dr. Khan.
Layoff decisions need to be carefully
documented. People are unhappy and will
see lawsuits.
Senator Donley
Department of Law is doing its job and
feels they have to solve the case. He
wondered if there was a letter put in
anyone's file representing the settlement
or award. He felt they were not getting
the proper accountability for these issues.
The Department of Law cannot be held
accountable but the individual departments
should be held accountable. The problem
was not getting fixed because there was no
accountability. The private sector does
not have this problem because they would
never tolerate this kind of situation.
There was no representation that anyone was
ever even admonished for this kind of
behavior.
Senator Green
She noted that the judgment precluded any
talking or discussion about the matter by
anyone.
Co-chair Parnell
Asked if they were prohibited from taking
any action against the supervisor?
Ms. Ritchie
Responded that as far as the issue of
letter of reference related to Dr. Khan
they were and that he was concerned about
this. Dr. Khan did not want the issues to
be held against him at some later date.
She further explained the release against
the State as they only wanted to resolve
this case in total which would then prevent
Dr. Khan from coming back at a later date
and bring up another issue.
The reason for the settlement and release
was to get the matter behind us.
Senator Green
Asked if there was not a blank record? As
if it had never happened?
Ms. Ritchie
Will have to do further follow up with the
particular attorney who handled the matter.
Co-chair Parnell
Asked to work on judgments and claims so they
can get to other department heads.
Ms. Ritchie
Explained that the appropriation was to the
Department of Law. Try to get judgements paid
so no further interest accumulates.
Co-chair Parnell
Was this a consolidation effort by all
departments?
Ms. Ritchie
Yes. This made it easier to deal with. Was
continually asked why they were not all in one
place. Refers to Department of Health and
Social Services case.
Senator Donley
At the last meeting you went to in the
executive branch did you talked about
accountability for judgements?
Ms. Ritchie
Comes up with Office of Management and Budget.
Senator Donley
Does not mean from a financial point of view
but the holding to accountability of the
departments.
Barbara Ritchie
Comes up in the context of individual cases.
Departments are concerned with these kinds of
activities.
Senator Donley
Have you ever discussed changes in personnel
laws?
Ms. Ritchie
Some cases are "whistle blower" cases. She
explained what constitutes a violation of the
"whistle blower" act.
Senator Donley
Is there any process of establishing who is
responsible?
Ms. Ritchie
Does not know the answer to this.
Senator Donley
Feels that the matter is being ignored.
Senator Phillips
Lawsuits are dealing with symptoms rather than
the disease. Not only need to stabilize the
patient but also stop the disease.
Ms. Ritchie
Employment area has seen a dramatic increase of
lawsuits. Realizes this is a large one but it
represents a small percentage per State
employees.
Senator Donley
If it is a small number they should be able to
invoke accountability.
Senator Leman
This case in particular troubles him. Half of
the settlement is going to the plaintiff's
attorneys. He is not going to realize any of
the settlement. Feels this is going to happen
again and no one is going to be held
accountable.
Explained his concept of religious and racial
discrimination. Has not found anything
relating to religious persecution in this case.
However, racial epithets were spoken in his
presence. Used himself as an example. If he
could collect every time something was said in
his presence he would be wealthier than Dr.
Khan. Going to have to do something about
this.
Senator Donley
Good role for Department of Law would be to
suggest legal changes to develop exactly what
Senator Leman is talking about.
Co-chair Parnell
Item #8 Weiss and Alaska Center for the
Environment vs. State (Superior Court)
Senator Donley
Not had a chance to read #8.
Senator Leman
Was involved in helping to settle the mental
health claim.
Ms. Ritchie
Explained that this was a judgment.
Senator Leman
Continued. The State prevailed and then ended
up paying the entire fee. This case also
seemed to be a recurrent matter.
Co-chair Parnell
Covering Items #8 and #9.
Ms. Ritchie
Concurred. The plaintiffs put efforts into the
matter also. Supreme Court identified the
plaintiffs as the prevailing party. Issue as
to amount of fees was also challenged by the
State. Large sum of money and matter occurred
in the early 1990's.
Public interest litigant issue.
Interpretation over the years of Civil Law 82.
Co-chair Parnell
Item #10 Newton vs. State Department of Labor
Item #11 Vidal vs. Vidal
Item #12 Waltz vs. Waltz
Item #13 Planned Parenthood of Alaska vs. State
Senator Leman
He felt the Superior Court judge erred
egregiously. Case was scheduled for hearing
and judgment was entered without evidentiary
hearing. This was in conflict. Believed the
Judge was wrong.
(Tape #39, Side A, log number 590 switched to
Side B at 10:00 a.m.)
Senator Leman
Could share other strong feelings, also.
Co-chair Parnell
Senator Donley
Perhaps new judges should be appointed.
Senator Leman
Noted that the Governor appointed this
particular judge from the Department of Law.
Senator Phillips
Planned parenthood matter.
Ms. Ritchie
Court does know the settlement came from the
State of Alaska.
Co-chair Parnell
Item #14 Planned Parenthood of Alaska vs. State
Senator Phillips
What if we refused to pay this?
Ms. Ritchie
Judgments are against the State of Alaska.
Senator Phillips
Who has the right of appropriation?
Ms. Ritchie
Legislature.
Senator Phillips
Perhaps we should stand up to this.
Senator Donley
Should be taken up in Judiciary, perhaps.
Ms. Ritchie
Legislators would hear from their constituents.
Ultimately it would be litigated.
Senator Donley
Status of lower court cases being litigated.
Do we still have to pay attorney fees for lower
court cases if Supreme Court reverses matter?
Ms. Ritchie
Yes.
Co-chair Parnell
Status of final judgments in #13 and #14.
Ms. Ritchie
These are final judgments being handled by the
criminal division. Issue of attorney fees was
not appealed.
Co-chair Parnell
Are not appeals stayed?
Ms. Ritchie
These were final judgments and not appealed.
Co-chair Parnell
Said it was his understanding that attorney
fees were not paid if case is on appeal.
HELD SB 83 judgment and claims.
Sharon Barton
$35. For Finance will help defray costs of
travel cards.
(Brief at ease at 10:10 a.m.)
Co-chair Parnell
Moved to Section 6(d).
Brant McGee
Public Advocate, Office of Public Advocacy
testified via teleconference.
He explained section 6(d). $563,000 money
needed to pay bills to the private sector.
Problems with that number. Guardian ad
litem for children need to be paid.
Generating new number of cases. Forces
that are going to continue to drive up
costs in their office.
Senator Donley
What cost saving measures have you looked into
during the last six month?
Mr. McGee
Continuing to monitor this matter. The CASA
program, which is a volunteer guardian ad litem
program, has been expanded. Explained savings.
Senator Donley
Average contracted hourly rate?
Mr. McGee
Rates are typically 1/3 to 1/2 of the going
rate. He said, "we pay our bills on time.
That's how we can survive."
Senator Donley
Asked how cases were separated.
Mr. McGee
Cases were separated into groups, adult and
child. Criminal defense, abuse and neglect of
children, incapacitated adults, mental
incompetence, seniors suffering from dementia
were the basic groups.
Senator Green
Asked if there was another group of advocacy
attorneys for mentally disabled adults.
Mr. McGee
Explained there was another group called the
Disability Law Center. They get their funds
from the Federal government. Their duty is to
take cases of mentally ill adults. He said
they get these cases only if there is no
available family member to take on matter.
These individuals literally have no one and are
at the bottom end. But they still get a
substantial number of cases.
Senator Green
Do you refer cases to the Disability Law
Center?
Mr. McGee
OPA are not lawyers, however, they help
make decisions regarding housing, life and
death matters, for instance. Not obliged
to provide lawyer services.
Barbara Brink
Director, Public Defender Agency explains
Section 6(e). Problems in Bethel and
Dillingham office. Have received Smart
Start money as appropriated by the Governor
and have filled those positions.
Additional office space was not allocated
for these individuals.
Anchorage office handling all children's
matters. Very crowded situation.
Increased travel costs and criminal
funding. Handled 13 additional remote
sites. Have tried to institute
restrictions on travel but must travel to
remote locations at least once a month.
Attorneys are limited to travel to remote
areas only in the matter of a jury trial.
Many times the attorneys never meet their
clients. Total estimate is $297.0 of
supplemental.
They have consolidated all appeal matters;
now handled out of Anchorage. Remote
offices take more in court cases. Do not
have investigators in remote areas.
Senator Donley
How many new attorneys added?
Ms. Brink
Filled vacancies as listed. Did add new
child protection attorney in Anchorage,
appellate attorney in Anchorage. Juneau
secretary and Anchorage under Smart Start.
Vacancies occurred over one year.
Attorneys hired were four. Appellate
attorney hired equals five. This included
child protection attorney. Lawyers were
hired in positions vacated by other
attorneys.
Ms. Barton
Explains positions filled. $600,000
intended to more fully fund the agency.
Would have taken $800,000.
Senator Donley
How many attorneys in appellate office?
Ms. Brink
Five and one-half.
Senator Donley
Case driven organization argument.
Appellate division creates its own
increase. There are a lot of ways to
control the case load based on the types of
appeals they take. He stated that the PD
argued cases in an attempt to create new
law not anywhere established in the U.S.
Last year got initial $640,000 plus Smart
Start monies. There were offices where
there were two public defenders but the
prosecutor has no one. Recommended they
not count on getting additional money this
year. The agency should have tried to live
with the money they had.
Ms. Brink
Disagreed with the Senator that they can
control the cases they pursue. Defendants
no longer can contact the agency
themselves, must be court appointed.
There are cases where they prepare appeals
on that they would prefer not to, but it is
the client's constitutional right to the
appeal. Do try to make whatever plausible
arguments they can. They have two new
lawyers hired under Smart Start and one of
the positions will terminate 30 June 1999.
The Department of Law, Civil Division has
added under Smart Start, also.
Have seen a great increase of child
protection cases.
Handle parole revocation hearings and child
protection cases. Many functions they
provide that the District Attorney does
not. Prepared staffing chart indicating
number of attorneys in locations, last
year.
Senator Donley
Has asked the questions before and will
submit the answers he receives to the
committee.
Senator Parnell
Referred to section 6(a) of SB 83.
Ms. Barton
Explained the implementation of the new
travel card program. Charge card issued to
all state travelers for charging rentals,
hotels, etc. for use during their travels.
Benefit is one bill to pay for all
travelers rather than myriad of bills to
individual.
Senator Green
What about accountability using the charge
cards?
Ms. Barton
This provided better accountability and
tracking of costs of travel. Cards are
issued to State employees. If there are
problems they will deal with the employee
accordingly.
There is a savings as seen with the
American Express corporate card.
Negated the need for travel advances for
employees, which are expensive to process.
Senator Leman
Agrees with processing. Why should we be
allocating another $35.0?
Ms. Barton
Savings appear out in user agencies.
Central agency in Finance who has to gear
up to process and pay vendor do have some
costs.
Senator Leman
Not acquainted with Master Charge? Does
this reflect on purchase of tickets or any
other benefits?
Ms. Barton
No rebates or incentives to the individual
travelers. The State, however, can receive
cash rebates throughout the year. Rebate
depends on efficient handling of account.
Hoped to process up to their standards and
get into more automated handling of travel
records.
Co-chair Parnell
Section 6(b). (Excuses all other
department heads as he will not get to any
other section than Administration this
morning.)
Alison Elgee
Deputy Commissioner, Department of
Administration was invited to join the
committee.
Explained Section (b) Property Management.
City of Bethel got tremendous break in the
cost of the fuel.
Unfortunately a valve was left open and
some fuel leaked into the ground. Bethel
Native Corporation has since sued the
State, City of Bethel and the Federal
Government to determine clean-up costs and
extent of damage.
Senator Phillips
Confused. Asked the sequence of events.
Ms. Elgee
The State was to provide for the costs of
Department of Environmental Conservation
conducting the investigation.
Senator Phillips
Was one State agency purchasing services
from another agency?
Ms. Elgee
She indicated that was correct. This was
an extraordinary activity.
Co-chair Parnell
Asked Ms. Barton to provide further
information for Senator Phillips.
(Tape change from #39, Side B to tape #40
at approximately 10:50 a.m.)
Ms. Barton
Explains section 6 Leases.
Co-chair Parnell
HELD in committee. He advised they would
take up Pioneer Homes at the next meeting.
ADJOURNED at approximately 10:55 a.m., tape
number 40, side A, log number 030.
SENATE FINANCE COMMITTEE
LOG NOTES
2/26/99
SFC-99 Page 1 2/26/99
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