Legislature(2013 - 2014)SENATE FINANCE 532
03/21/2014 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB244 | |
| SB182 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 244 | TELECONFERENCED | |
| + | SB 182 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
March 21, 2014
9:06 a.m.
9:06:46 AM
CALL TO ORDER
Co-Chair Meyer called the Senate Finance Committee meeting
to order at 9:06 a.m.
MEMBERS PRESENT
Senator Pete Kelly, Co-Chair
Senator Kevin Meyer, Co-Chair
Senator Anna Fairclough, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
Senator Hoffman
ALSO PRESENT
Representative Wes Keller; Senator Fred Dyson; Christine
Marasigan, Staff, Senator Kevin Meyer; Nicki Neal,
Director, Division of Personnel and Labor Relations; Nancy
Sutch, Deputy Director, Department of Administration;
Joshua Banks, Staff, Senator Dyson.
PRESENT VIA TELECONFERENCE
Senator Hoffman
SUMMARY
HB 244 ADVISORY COMMISSION ON FEDERAL MGT AREAS
SCSHB 244 (FIN) was REPORTED out of committee
with a "do pass" recommendation and with one
previously published fiscal note: FN 1 (DNR).
SB 182 PUBLIC EMPLOYEE SALARY DIFFERENTIALS
SB 182 was HEARD and HELD in committee for
further consideration.
HOUSE BILL NO. 244
"An Act extending the termination date of the
Citizens' Advisory Commission on Federal Management
Areas in Alaska; and providing for an effective date."
9:07:18 AM
Co-Chair Meyer noted that the committee heard the Senate
companion bill, SB 109 on February 24, 2014.
REPRESENTATIVE WES KELLER, discussed the legislation
extending the sunset date for the Citizens Advisory
Commission on Federal Areas (CACFA). He requested a change
in the termination date from 2018 to 2021. He pointed out
that the executive director for CACFA, Stan Leaphart was
available for questions. The change was suggested to avoid
potential delays resulting from the election year. He spoke
about his process of working with CACFA. He stated that
regulations coming before the legislature were often the
result of much work from CACFA. He appreciated the
committee members' time hearing the bill.
Vice-Chair Fairclough MOVED to ADOPT the proposed committee
substitute for HB 244, Work Draft 28-LS1188\U, (Martin
2/27/14). There being NO OBJECTION, it was so ordered. The
CS was adopted.
9:11:20 AM
CHRISTINE MARASIGAN, STAFF, SENATOR KEVIN MEYER, discussed
the two changes made in the CS. The CS shortened the time
to sunset from 2021 to 2018. The second change brought the
bill under AS 44.66.010 (a), which allowed an audit at the
time of the commission sunset. She stated that the fiscal
note would remain unchanged and a funding history was
included in members' packets. She stated that CACFA
operated from 1980 to 1999, when it was eliminated from the
budget. The commission was reestablished in FY 08.
Co-Chair Meyer asked about the rationale for shortening the
termination date to 2018.
Ms. Marasigan mentioned an ongoing discussion regarding
boards' and commissions' sunset dates and costs. The
consensus was that 2021 was too long since the commission
had not been audited since 2008 because it did not fall
under the audit provision. She deferred to Senator
Fairclough for further information as the chair of the
Legislative Budget and Audit Committee.
Vice-Chair Fairclough replied that committee discussion
about Alaska's commissions revealed that CACFA had not yet
been audited. The committee wished to exercise rights
regarding state sovereign, but the commission must
publically notify Alaskans. The audit would allow the
determination that CACFA was living up to the state's
expectations for public process.
9:14:46 AM
Senator Olson asked Vice-Chair Fairclough about elections.
He wondered about the sponsor's intent regarding the
avoidance of termination during an election year.
Vice-Chair Fairclough replied that reauthorization could
happen any time. She stated that she would accept a
termination date of 2017 or 2019. The board had come and
gone without public oversight.
Senator Olson asked about the 2021 option.
Vice-Chair Fairclough replied that 2021 was five years out,
which was a long extension for a board that had yet to be
audited.
9:16:28 AM
Co-Chair Meyer asked the sponsor for a response.
Representative Keller replied that every word was recorded
during CACFA meetings. He mentioned a recent federal
overreach summit in which recordings of the meetings were
available to the public online under the CACFA site on the
Department of Natural Resources portion of the state
website. He stated that CACFA welcomed an audit. He
stressed that he was not requesting an extension to 2021 to
avoid an audit. The reasons were related to potential
delays from an election year. He spoke about times of
public participation that were noticed appropriately and
attended by concerned citizens with recorded comments. The
intent of the commission was for proper notice.
9:18:18 AM
Co-Chair Meyer stated that a compromise could be reached.
He OPENED public testimony.
Co-Chair Meyer CLOSED public testimony. He noted that the
fiscal note was unchanged.
Senator Olson asked about opposition to the bill, the
commission or the extension date.
Representative Keller was not aware of an oppositional
response.
Vice-Chair Fairclough pointed out that bylaws and meeting
notices were not listed on the website. She elaborated that
she was not targeting the commission, but instead
addressing the structure of all state boards similarly and
fairly. She wished for the general public to access the
information to help advocate for the state's rights.
9:21:11 AM
Representative Keller replied that the commission operated
with the highest intent. He appreciated the value of an
audit and welcomed one.
9:21:51 AM
AT EASE
9:24:53 AM
RECONVENED
Vice-Chair Fairclough MOVED to ADOPT a conceptual amendment
on line 6 of SCSHB 244 (FIN) to extend the reauthorization
date to 2021. There being NO OBJECTION, it was so ordered.
The conceptual amendment was ADOPTED.
Vice-Chair Fairclough explained that the committee issue
was with the auditing provision.
Representative Keller shared the desire for audit of all
state boards and commissions. He stated that he would
personally request an audit of CACFA.
Vice-chair Fairclough clarified that the results of the
audit would become available in the 2016 legislative
session.
Vice-Chair Fairclough MOVED to REPORT SCSHB 244 (FIN) out
of committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
SCSHB 244 (FIN) was REPORTED out of committee with a "do
pass" recommendation and with one previously published
fiscal note: FN 1 (DNR).
SENATE BILL NO. 182
"An Act relating to salary differences in collective
bargaining agreements subject to the Public Employment
Relations Act that are based on a difference in the
cost of living outside the state and the cost of
living in the state; and providing for an effective
date."
9:27:50 AM
Vice-chair Fairclough MOVED to ADOPT the proposed committee
substitute for SB 182, Work Draft 28-LS1432\O (Wayne,
3/19/14). There being NO OBJECTION, it was so ordered.
Ms. Marasigan explained the two changes made in the CS. She
noted the first change found on page 2; section 3 where
additional language was included under "transition, salary
differences and collective bargaining agreements." The
change allowed a person eligible on June 30, 2014 to
receive a cost-of-living differential under AS 23.40.210
that shall remain eligible on and after July 1, 2014. She
noted that the second change included a new effective date
of July 1, 2014.
Co-Chair Meyer understood that the changes in the bill
would only affect new employees.
Ms. Marasigan concurred. She stated that additional
testimony was available from the Department of
Administration.
Co-Chair Meyer asked the sponsor for comments about the CS.
SENATOR FRED DYSON (via teleconference), commented that the
bill caused angst for employees of the Alaska Marine
Highway System. The perception was the employees would lose
a significant portion of their salary benefit package. He
hoped that the CS would lessen the anxiety for the existing
employees. He opined that the changes resulted in an
improvement in the legislation for existing employees.
9:31:03 AM
Senator Olson asked about the fiscal impact of the changes
made in the bill.
Senator Dyson stated that he did not have an updated fiscal
note for the CS. He stated that the administration brought
the problem to the attention of his office. He mentioned an
anomaly in the state law; three bargaining units had
established the Cost of Living Differential (COLD) in
statutes based on the difference in the cost of living of
Alaska to Seattle. The administration pointed out that the
differential was obsolete and the intention was for all
Alaskan bargaining units utilized the same differential. He
mentioned anomalies that were unjustified by the
differences in the cost of living leading to greater state
expense. He noted that bargaining with renewable contracts
were in process.
Senator Dyson acknowledged that employees were concerned
with the loss. He expressed confidence that the
administration would provide a competitive salary/wage
benefit package. He discussed various measures of good
management. He believed that North America realized great
competition for employment in the maritime industry. He
discussed the large amount of freight moving by sea to
Alaska. He noted that the current statute was obsolete and
differed greatly from other bargaining units.
9:35:20 AM
Senator Olson requested an example of an antiquated
statute. He assumed that COLD displayed that living in
Alaska was more expensive than Seattle.
Senator Dyson concurred. He noted that using Seattle as a
base was no longer valid.
Senator Olson asked for an example of an antiquated
statute.
Senator Dyson replied that the bill addressed the law in
statute on the basis for the regional COLD.
9:36:37 AM
NICKI NEAL, DIRECTOR, DIVISION OF PERSONNEL AND LABOR
RELATIONS introduced herself to the committee.
NANCY SUTCH, DEPUTY DIRECTOR, DIVISION OF PERSONNEL AND
LABOR RELATIONS, DEPARTMENT OF ADMINISTRATION introduced
herself to the committee.
Ms. Neal replied to Senator Olson's questions regarding a
comparison between Seattle and Alaska. She mentioned the
most recent geographic differential study in 2008 that
determined no significant difference between Anchorage and
Seattle.
9:37:57 AM
Vice-Chair Fairclough asked about a presentation about the
benefit package to compare different mechanisms of the
proposed contracts.
Ms. Neal replied that she was happy to provide a
presentation if requested by the committee.
Vice-Chair Fairclough revealed that the CS would garner
less opposition if greater explanations occurred. She
recalled recent presentations used to educate the committee
and public. She requested further details for the contracts
and how they compare to other state collective bargaining
contracts. She believed that the committee was responsible
for reviewing all payrolls to better understand statewide
collective bargaining agreements and obligations.
9:39:50 AM
Ms. Neal offered to provide presentations for the
committee.
Co-Chair Meyer believed that the concerning aspects of the
bill were altered with the most recent CS.
Senator Olson asked about the reason for the initial
statute.
Ms. Neal replied that language in the current statutory
provision spoke to creating the differential between
Seattle and Alaska. At the time of the statute's creation,
the cost of living between Seattle and Alaska was
significantly different.
Senator Olson asked how many employees of the Alaska Marine
Highway System lived in Anchorage.
Ms. Neal replied that she was unable to give exact figures.
9:41:16 AM
Senator Olson asked where most Alaska Marine Highway
employees lived.
Ms. Neal replied that approximately 29 percent of members
of the Marine Engineer Beneficial Association lived out of
state, while 71 percent lived in state. In the Masters
Mates and Pilots Union, approximately 23 percent lived out
of state, while 77 resided in state. In the Inland
Boatmen's Union, 91 percent of the members lived in Alaska,
while 9 percent lived out of state.
Senator Dunleavy asked if the fiscal note would be adjusted
with the CS.
Co-Chair Meyer stated that a new fiscal note would reflect
the CS.
9:42:48 AM
Senator Bishop discussed the art of collective bargaining.
He understood that the administration was undergoing
negotiations.
Ms. Neal concurred that the administration was negotiating
with all three bargaining units.
Senator Bishop observed that the bill might stress the good
faith efforts made in the negotiation process.
Co-Chair Meyer asked how the negotiations were proceeding.
Ms. Neal discussed proposals made to each union including
grandfathering in current employees. She stated that
agreements had not yet been reached. She appreciated
Senator Bishop's observations.
9:44:43 AM
Senator Dyson addressed the question about the state having
a law in process that changed the rules. He mentioned that
a lawyer from Department of Law specialized in labor law
spoke about federal employment laws. He recalled that there
was no problem with the state changing statutes in the
midst of negotiations. He recalled that contract dates
would be completed in negotiations before the law was in
effect. The law in place when the contracts were signed was
most applicable. He discussed the question of COLD in
state statute as a fair method of establishing the
geographical cost-of-living differentials.
JOSHUA BANKS, STAFF, SENATOR DYSON, stated that an opinion
letter from the Department of Law civil division was
provided in members' packets. He stated that the assistant
attorney general provided a letter. He offered to provide
additional copies.
9:47:36 AM
AT EASE
9:49:23 AM
RECONVENED
Co-Chair Meyer apologized that public testimony would be
rescheduled for next week. He explained that committee
members had been called to the Senate Floor. He wished to
continue public testimony for SB 182 on Monday of the
following week. He hoped that committee member concerns
were addressed in the CS.
SB 182 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
9:52:22 AM
The meeting was adjourned at 9:52 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 244 Letter of Support~FBKS Chamber of Commerce.pdf |
SFIN 3/21/2014 9:00:00 AM |
HB 244 |
| HB244 - SB109 Fairbanks Chamber Letter of Support HB 244 (SB 109).pdf |
SFIN 3/21/2014 9:00:00 AM |
HB 244 SB 109 |
| SB 182 - Letters of Opposition - Combined.pdf |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB 182 - Section Analysis.pdf |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB 182 - Sponsor Statement.pdf |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB 182 - Statutes Pertaining to Senate Bill 182.pdf |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB 182 - Support Document - 2011 CBA.pdf |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB 182 - Supporting Document - COLD Background.pdf |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB 182 - Supporting Document - Transportation Cost Per Capita.pdf |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB 182 - Supporting Document LAW Ltr to Senator Dyson 3-3-14.pdf |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB 182 opposition - McNeill.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB 182 opposition - Milos.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB 182 opposition - Slaght.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB 182 Public Testimony - Griswold.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 - oppopsition - Burch.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 - opposition - Atkins.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 - opposition - Currit.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 - opposition - Loughead.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 - opposition - Marcia.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 - opposition - McDonagh.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 - opposition - Olson.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 - opposition - Pearson.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 - opposition - Volkmann.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 - opposition Juneau Central Labor Council.pdf |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Abell.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| Sb182 opposition - Anderson.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Dahle.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Dixon.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - McCarron.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Platt.docx |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Platt.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Provost.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Stammerjohan.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 Zaugg Testimony.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB 182 opposition - Nye.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Tengs.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Lampert.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Callahan.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Callahan 2.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Morgan.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Rasmussen.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Pedersen.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Nathan.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Meck.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - McNeill.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Gilbert.pdf |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 Chenega_PSWIC_20140319_153655.pdf |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Boyd.pdf |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Gregotatos.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Jones.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Wilson 2.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 opposition - Wilson.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| SB182 Zaugg Testimony.msg |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| HB244 work draft version U.pdf |
SFIN 3/21/2014 9:00:00 AM |
HB 244 |
| SB182 work draft version O.pdf |
SFIN 3/21/2014 9:00:00 AM |
SB 182 |
| HB244 CACFA FY08-FY15 Budget History and Position Detail Report.pdf |
SFIN 3/21/2014 9:00:00 AM |
HB 244 |