Legislature(1997 - 1998)
03/31/1998 03:32 PM Senate STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE STATE AFFAIRS COMMITTEE
March 31, 1998
3:32 p.m.
MEMBERS PRESENT
Senator Lyda Green, Chairman
Senator Jerry Ward, Vice-Chairman
Senator Mike Miller
MEMBERS ABSENT
Senator Jerry Mackie
Senator Jim Duncan
COMMITTEE CALENDAR
CS FOR HOUSE BILL NO. 206(FIN) am
"An Act relating to credit under the Public Employees' Retirement
System for service as a village public safety officer."
- MOVED CSHB 206(FIN) am OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 362(STA)
"An Act relating to the use of space for military lounges in state-
owned or state- controlled airports."
- MOVED CSHB 362(STA) OUT OF COMMITTEE
PREVIOUS SENATE COMMITTEE ACTION
HB 206 - No previous action to record.
HB 362 - No previous action to record.
WITNESS REGISTER
Joel Lounsbury, Staff to Representative Brian Porter
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Presented sponsor statement on
CSHB 206(FIN) am
Guy Bell, Director
Division of Retirement & Benefits
Department of Administration
P.O. Box 110203
Juneau, AK 99811-0203
POSITION STATEMENT: Offered information on CSHB 206(FIN) am
Bill Church, Retirement Supervisor
Division of Retirement & Benefits
Department of Administration
P.O. Box 110203
Juneau, AK 99811-0203
POSITION STATEMENT: Offered information on CSHB 206(FIN) am
John Cyr, President
NEA-Alaska
114 Second St.
Juneau, AK 99801
POSITION STATEMENT: Testified in support of CSHB 206(FIN) am
Captain Ted Bachman
Division of Alaska State Troopers
Department of Public Safety
5700 E. Tudor Road
Anchorage, AK 99501-1225
POSITION STATEMENT: Testified in support of CSHB 206(FIN) am
Craig Persson
Public Safety Employees Association
P.O. Box 6044
Fairbanks, AK 99706
POSITION STATEMENT: Testified in support of CSHB 206(FIN) am
Don Stolworthy, Staff to House Special Committe on
Military & Veterans' Affairs
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Offered information on CSHB 262(STA)
Tom Morgan
19341 Upper Skyline
Anchorage, AK 99577
POSITION STATEMENT: Testified in support of CSHB 362(STA)
Ms. Bonnie Dorman
8831 Cross Pointe LP
Anchorage, AK 99504
POSITION STATEMENT: Supports CSHB 362(STA)
Richard Foster
30-344 B Cherry Drive
Elmendorf Air Force Base, AK 99506
POSITION STATEMENT: Testified in support of CSHB 362(STA)
Dennis Poschard, Legislative Liaison/Special Assistant
Department of Transportation & Public Facilities
3132 Channel Drive
Juneau, AK 99801-7898
ACTION NARRATIVE
TAPE 98-15, SIDE A
Number 001
CHAIRMAN GREEN called the Senate State Affairs Committee to order
at 3:32 p.m., and noted the presence of Senators Ward, Miller and
Green.
CSHB 206(FIN) am - PERS FOR VILLAGE PUBLIC SAFETY OFFICERS
CHAIRMAN GREEN introduced CSHB 206(FIN) am as the first order of
business.
JOEL LOUNSBURY, staff to Representative Porter, explained HB 206 is
a bill that would allow former village public safety officers
(VPSOs) to get retirement credit for prior service. He read the
following sponsor statement into the record:
"Throughout the State the Village Public Safety Officer Program has
provided a very important means of maintaining peace and harmony in
the villages. Most of these individuals were not covered by a
retirement program. Now some of these former officers are working
for other organizations that are covered by the State PERS program.
The work experience these individuals obtained by participating in
this program has proven to be an invaluable asset in their present
endeavors.
"This bill would allow them to obtain retirement credit for the
service rendered under the VPSO program. The eligible participant
could receive credit for up to 5 years of service in the VPSO.
Once their service had been verified, an indebtedness would be
determined, and the vested employee would have to arrange to buy
this time back into the State PERS system. The provisions of this
bill will help in the recruiting and the retention of participants
of the VPSO program in the villages. Turnover and a lack of
qualified applicants has been a historic problem for the VPSO
program."
Number 047
SENATOR MILLER asked if it was correct that a police officer in the
state of Alaska would need to have the required 20 years of service
for retirement before being eligible to receive the credit for VPSO
service. MR. LOUNSBURY acknowledged that the up to 5 years of VPSO
service does not count towards the individual's vestment in the
PERS program.
SENATOR MILLER referenced the analysis section of the Department of
Administration's fiscal note and asked for an explanation of the
language which says the bill would also, for the first time, allow
employees to claim credited service for non government employment.
MR. LOUNSBURY said VPSOs are not directly employed by the state;
they are funded through grants to the nonprofit organizations that
actually employ the VPSO officers.
Number 075
GUY BELL, Director, Division of Retirement and Benefits, Department
of Administration, said if it is the desire of the Legislature to
give people who have worked as VPSOs an incentive to work as public
safety officers, either as a state trooper or with a local
government, the department would suggest amending the bill to
adjust it to give service credit if a person goes into the police
side of the PERS system. The bill, as written, allows the person
to enter PERS and buy that service whether they go on the police
track or on some other public service track.
Speaking to the issue of claiming credit service for non government
employment, Mr. Bell said that right now a person can buy credit
for military service in PERS, etc.
Number 103
BILL CHURCH, Retirement Supervisor, Division of Retirement and
Benefits, Department of Administration, added that there are other
areas, however, all of the service that is purchasable is directly
related to some other form of governmental service, either within
the state government or for the federal government. Previously
there has been no legislation to allow granting credit under a non
public, private organization. Even though the Department of Public
Safety has oversight over the VPSO program, these contracts are
still private contracts.
Number 121
CHAIRMAN GREEN asked if there were any other types of non
government employment that might qualify under this. MR. BELL
cited as an example the state having a contract with an entity to
provide a service on behalf of the state such as a correctional
facility, or public health nurse services, or emergency medical
services. These would be individuals employed either by the
federal government or some other organization.
CHAIRMAN GREEN asked if it was correct that there would be no cost
to the state under this legislation. MR. BELL explained that there
is a very small system wide actuarial. System wide liability for
those people who would come into the system would be approximately
$450,000 out of a total liability of approximately $5.5 billion.
A similar situation applies with total employer contributions per
year. The total system wide employer contribution would go up by
$40,000; the entire population of employers in one year pays $145
million. So from an actuarial prospective and from a percentage
perspective, it is infinitesimal.
Number 135
CHAIRMAN GREEN asked if, at some future time, the present language
would allow an individual to negotiate, as part of their contract,
that the state pay the indebtedness on their credited service
under the VPSO program. MR. CHURCH responded that there is nothing
in statute that would legally allow something like that, but he
also acknowledged there was nothing in statute that he was aware of
that would prohibit it.
Number 180
JOHN CYR, President, NEA-Alaska, testifying in support of HB 206,
said while it may seem on the surface that the legislation has
nothing to do with NEA-Alaska, it relates directly to village
safety and, particularly, with what goes on in rural schools. A
big concern has been safety across Rural Alaska and safety of
children and school employees, and in most of these rural villages,
the VPSOs are the only form of public safety. NEA-Alaska believes
that whatever the state can do to enhance and enrich the VPSO
program works for the betterment of children across Alaska, and
that this will work as an incentive for more individuals to become
involved in the program.
Number 216
CAPTAIN TED BACHMAN of the Alaska State Troopers in Anchorage
testified from Anchorage in strong support of HB 206. He noted
there are two individuals in the Alaska State Troopers who would
qualify for this program and that there may be a few more in
municipal agencies across the state, but the numbers are very
small. He agrees the legislation provides an incentive for
individuals to give to the profession and know that while they are
doing that their time can count ultimately towards retirement. He
said AST supports anything that can be done to get more people,
particularly Native Alaskans, into trooper positions. He pointed
out that the VPSOs are the only law enforcement agency in this
state that are not presently covered under a formal retirement
system such as PERS, and although it does not bring them directly
into the program, it gives them credit for service provided just as
is accorded to members of the military when they are vested by the
state.
Number 262
CRAIG PERSSON, representing the Public Safety Employees Association
and testifying from Fairbanks, voiced their full support for HB
206, and he echoed Captain Bachman's remarks regarding VPSOs and
the incentive this legislation will provide, as well as giving
recognition to their efforts in public safety throughout the state.
Number 275
CHAIRMAN GREEN asked if at any point this legislation applied only
to a VPSO who became a trooper or a law enforcement officer. MR.
LOUNSBURY answered that there was discussion in one committee to
limit it to public safety type positions, but it was decided to
provide that the VPSO could get credit for VPSO service for any
employment that is covered by PERS.
Number 288
SENATOR WARD asked if there was discussion relating to a VPSO
receiving retirement benefits from a nonprofit and then receiving
credit under PERS for the same service. MR. LOUNSBURY responded
that it was discussed and subsection (d) was added to preclude
double dipping.
Number 305
There being no further questions or testimony on HB 206, CHAIRMAN
GREEN requested a motion to move the bill out of committee.
SENATOR WARD moved CSHB 206(FIN)am and the accompanying zero fiscal
note be passed out of committee with individual recommendations.
Hearing no objection, it was so ordered.
CSHB 362(STA) - AIRPORT MILITARY LOUNGES
CHAIRMAN GREEN brought CSHB 362(STA) before the committee as the
final order of business.
Number 314
DON STOLWORTHY, staff to the House Special Committee on Military &
Veterans' Affairs, presented the following remarks on behalf of the
committee:
"The presence of a facility for military personnel is beneficial to
an airport's operations. It eases the congestion in public waiting
areas, and promotes good will between the state and military
personnel.
"The committee is pleased to sponsor HB 362, a bill which ensures
the continued operation of military lounges in Alaska's airports.
"In 1996 and 1997, more than 20,000 military personnel took
advantage of the Anchorage International Airport's military lounge.
"Operated by the Anchorage Armed Services YMCA, the Anchorage
International Airport's military lounge provides a valuable service
to our dedicated men and women serving in the defense of our state
and nation. At no cost to the state, this lounge is staffed by
volunteers from squadron booster clubs.
"House Bill 362 will guarantee that as long as nonprofits are
willing to operate courtesy lounges for our military service men
and women, the state of Alaska is willing to provide those spaces
free of charge when they are available.
"House Bill 362 does not require the state to provide the space.
It only requires the state to provide the space at no charge, if
and when available.
"House Bill 362 passed the House by unanimous vote.
"It is the committee's hope that the Senate State Affairs Committee
will approve this bill and let Alaska's military community know
that this Legislature is committed to their cause."
Number 334
SENATOR WARD asked why the legislation is needed. MR. STOLWORTHY
explained that the FAA requires an airport to maximize its
revenues, and one of the things airports do is lease space.
Offering the lounge at a $10 yearly fee without the authority put
the airport director in a precarious situation with the FAA, so the
legislation provides the airport director with the authority to do
what he has been doing.
Number 362
TOM MORGAN, testifying from Anchorage, said for many years the
Armed Services YMCA has been quietly and competently serving the
traveling military through the military courtesy lounge located at
the Anchorage International Airport. A safe and secure place has
been dedicated to the Armed Forces at no expense to the state or to
the military. Alaska continues to be of strategic importance in
the training of the military and the defense of the nation. He
pointed out that existing statute does not allow the Armed Services
YMCA to provide these services without a rental charge, and HB 362
cleans that up. The legislation will allow the Armed Services YMCA
to continue their work and, at the same time, authorize the
Anchorage International Airport to offer the space rent free. He
added that this arrangement would then be consistent with other
military lounge airport programs run by the Armed Services YMCA
and/or the USO nationwide.
Number 388
BONNIE DORMAN, representing the Armed Force YMCA and testifying
from Anchorage in support of HB 362, said the supervisors and
families utilize these facilities in their official and leisure
travel. They volunteer as a squadron; they are able to take one
month out of the year and volunteer up to 480 hours to the lounge.
This builds morale within their organization and promotes
volunteerism.
Number 396
RICHARD FOSTER testifying from Anchorage, said he represents all
the enlisted men and women in the Third Wing at Elmendorf Base. He
said all members of the Armed Services utilize the lounge, and it
is a great opportunity for their members who are departing for the
Far East, or even to the Lower 48 when they deploy out. It
provides opportunity for the young folks to get out and promote
volunteerism throughout the community. He urged the committee's
support of HB 362.
Number 406
DENNIS POSHARD, Legislative Liaison/Special Assistant, Department
of Transportation and Public Facilities, stated the department
supports HB 362. They worked with the sponsor in making one minor
change that makes the bill much more acceptable.
Number 416
There being no further testimony or questions on CSHB 362(STA),
CHAIRMAN GREEN asked the pleasure of the committee.
SENATOR WARD moved CSHB 362(STA) and the accompanying zero fiscal
note be passed out of committee with individual recommendations.
Hearing no objection, it was so ordered.
There being no further business to come before the committee, the
meeting adjourned at 4:05 p.m.
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