HOUSE BILL NO. 439 An Act relating to the compensation of certain public employees and officials not covered by collective bargaining agreements; and providing for an effective date. ALISON ELGEE, DEPUTY COMMISSIONER, DEPARTMENT OF ADMINISTRATION, stated that the bill provides for cost-of- living increases the same as those provided in the collective bargaining agreements that the Administration has reached with the twelve unions representing State employees, which would be a lump sum payment of up to $1,200 (prorated at $50 per pay period) for fiscal year 2001, a two percent increase in fiscal year 2002, and a three percent in fiscal year 2003. Ms. Elgee noted that the bill was modified in the House State Affairs Committee to remove legislators. She pointed out that the fiscal note accompanying the bill, incorporates the cost of including the legislators. That cost was provided to the Committee as part of the budget amendments submitted in February 2000 from the Governor's Office. PAUL LYLE, (TESTIFIED VIA TELECONFERENCE), FAIRBANKS, asked to waive testimony on the bill until amendments had been proposed. JOHN ATHENS, (TESTIFIED VIA TELECONFERENCE), FAIRBANKS, requested to waive his testimony on the bill until the amendments had been submitted. Representative G. Davis advised that he supported the legislation should the other labor contracts be approved. Representative Bunde stated the only change that he would suggest would be to draw a cut off the increase at Range 24 and higher. Representative J. Davies MOVED to include legislators as well as State employees. Representative Austerman OBJECTED. He questioned what that action would really represent in regard to pay increases. Ms. Elgee explained that the legislators would then become subject to percentage increases as proposed for other employees. Representative Austerman maintained his objection, indicating that until there was a clear message from the Legislature that the employee contract would be funded, he found it difficult to vote for such an amendment. A roll call vote was taken on the motion. IN FAVOR: J. Davies, G. Davis, Foster, Moses OPPOSED: Williams, Austerman, Bunde, Grussendorf Representative Phillips, Co-Chair Mulder and Co-Chair Therriault were not present for the vote. The MOTION FAILED (4-4). HB 439 was HELD in Committee for further consideration.