HOUSE BILL NO. 457 "An Act making appropriations to satisfy the monetary terms of certain collective bargaining agreements for certain public safety employees under an arbitrator's decision; and providing for an effective date." NANCY BEAR-USERA, COMMISSIONER, DEPARTMENT OF ADMINISTRATION testified in support of HB 457. She explained that HB 457 is the result of an arbitrator's finding. The arbitrator's agreement resolves negotiations between the state of Alaska and the Public Safety Employees Association (PSEA). Commissioner Usera provided members with a memorandum, dated 2//07/94, enunciating typographical errors contained in HB 457 (copy on file). Representative Martin asked for a separation of FY 94 and FY 95 requested amounts. DAN SPENCER, FISCAL ANALYST, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR provided members with three charts summarizing PSEA COLA provisions by year (copies on file). Commissioner Usera reiterated that the contract negotiation is retroactive. The contract will expire prior to January 1995. Mr. Spencer reviewed the breakdown of COLA expenses by year. He observed that the legislation does not break out FY 92 to FY 94 amounts. Commissioner Usera emphasized that the legislation delineates between retroactive amounts and prospective FY 95 amounts. Sections one and three contain retroactive appropriations. Sections 2 and 4 contain prospective appropriations for FY 95. In response to a question by Representative Hanley, Commissioner Usera explained that the retroactive raise was 3.6 percent initiated in FY 92. There is a COLA increase effective January 1, 1994. A portion of the COLA increase 4 will be deposited into the Health and Welfare Fund. The portion deposited into the Health and Welfare Trust will be continued forward for each succeeding year of the contract. The health benefit level to the trust is increased from $385 to $470 hundred dollars a month per employee. In response to a question by Representative Navarre, Commissioner Usera reiterated that the legislation was the result of arbitration. She added that 7 of the last 11 contracts of this bargaining unit have been resolved through arbitration. She noted that the Administration prefers prospective contracts. She further explained that a one time lump sum payment equal to 1.5 percent of the calendar 1994 regular wages for the bargaining unit is to be made to the PSEA Health and Welfare Trust. BRUCE LUDWIG, BUSINESS MANAGER, AFL-CIO spoke in support of HB 457. He emphasized that the agreement is the result of protracted negotiations. He maintained that Alaska State Troopers, Fish and Wildlife Officers and Airport Safety Officers paid their increased health costs from their wages, during negotiations. He noted that PSEA lost a floating holiday in the negotiations. He observed that management gained the flexibly to schedule officers in order to minimize overtime. Representative Brown asked for clarification of criminal investigation indemnification of employees. ART CHANCE, LABOR RELATIONS, DIVISION OF PERSONNEL, DEPARTMENT OF ADMINISTRATION discussed provisions regarding the indemnification of employees. He stressed that the bargaining unit has had an indemnification provision in cases where an employee may be charged in a civil action if the action was taken within the normal scope of duties and authority. Mr. Chance noted that the arbitrated contract states "if the member is charged criminally or is the target of a criminal investigation for acts occurring during the course of his or her employment, the member shall be entitled to reimbursement of reasonable cost of attorney fee if the member is not charged or is acquitted. Any dispute regarding fees shall be submitted to agreements arbitration proceedings." In response to a question by Co-Chair Larson, Commissioner Usera did not think that an officer who was injured buying groceries on their way home would be eligible for workman's compensation. HB 457 was HELD in Committee for further discussion. 5