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 3 decision; and providing for an effective date." TERRY CRAMER, LEGAL COUNSEL, DIVISION OF LEGAL SERVICES explained that if the legislature failed to pass HB 457 but did pass an operating budget that funded the salaries at some level for public safety employees, the action on salary would constitute approval of the monetary terms of the arbitrated agreement. In order to disapprove the terms of collective bargaining, the legislature would need to adopt language to the effect of, "failure of the legislature to make a special appropriation to fund the collective bargaining contract, constitutes disapproval of the monetary terms. The legislature cannot disapprove the contract through its inaction. Co-Chair Larson summarized that adoption of the Department of Public Safety's budget contained in HB 370 would constitute an action that would put the terms of the arbitrator into effect. Ms. Cramer agreed that the action would obligate the state to pay at the negotiated level. Ms. Cramer clarified that the legislature cannot selectively approve of terms in the collective bargaining contract. The legislature must approve or disapprove of the total contract. JIM GASPER, ATTORNEY, PUBLIC SAFETY EMPLOYEES ASSOCIATION spoke in support of HB 457. He noted that AS 23.40.215 requires that the legislature make a determination within 60 days. He emphasized that the Alaska Supreme Court has ruled that the ultimate arbitrator's award is final and binding. He maintained that the findings are binding on the executive branch. He stressed that there are no opportunities to renegotiate the basic terms of the agreement. He noted that once the arbitrator's ruling has been given there is no authority to resubmit the ruling for reconsideration. He accentuated that the legislature can only approve or disapprove of the monetary terms of the agreement. Representative Martin asserted that the legislature's constitutional power of appropriation is being challenged. Mr. Gasper discussed court rulings regarding the terms of contractual relationship created under collective bargaining and the legislature's constitutional right of appropriation. He concluded that the contractual relationship created under collective bargaining does not infringe on the legislature's appropriation ability. Representative Hanley stressed that approval is an advisory expression of legislative intent and that disapproval may result in renegotiation. He observed that the legislature 4 must approve or disapprove of the contract. He emphasized that it is not appropriate to do nothing. Representative Hanley MOVED to report HB 457 out of Committee with individual recommendations. Representative Martin expressed concern regarding the legislature's ability to control funding. (Tape Change, HFC 94-144, Side 2) Co-Chair Larson emphasized that appropriation bills are handled at the end of the legislative session. He maintained that it is not the legislature's responsibility to negotiate contracts. He observed that the legislature has been faced with hard decisions regarding reductions in the Department of Public Safety's operating budget. He expressed concern that proponents of the legislation were abusive to committee staff. Co-Chair MacLean expressed concern with the monetary terms of the bargaining agreement. Representative Martin noted that other public employees have not received cost of living increases. Representative Navarre observed that collective bargaining and binding arbitration statutes have not been revisited in a long time. He stressed that statutes provide that the legislative appropriation approval is the final aspect of the collective bargaining process. He expressed concern with reductions to the Department of Public Safety's operating budget. He noted that arbitrators have consistently ruled in favor of the employees. He stated that as part of the collective bargaining process, and with the financial situation in the state, the legislature must say "no" at some point. Representative Navarre OBJECTED to the motion to move HB 457 from Committee. A roll call vote was taken on the motion. IN FAVOR: Brown, Hanley, Martin, Parnell, Grussendorf MacLean, Larson OPPOSED: Therriault, Navarre Representatives Hoffman and Foster were absent from the vote. The MOTION PASSED (7-2). HB 457 was reported out of Committee with individual recommendation. 5