HOUSE BILL NO. 239 An Act establishing a pilot program for a regional learning center. LARRY LABOLLE, STAFF, REPRESENTATIVE RICHARD FOSTER, st explained that the 21 Legislature through the Legislative Budget and Audit Committee (LBA) hearings, found indications of broad support for regional learning centers. Several communities have expressed interest in creating regional boarding programs focused on the special interests of their regions. He noted that the Bering Strait School District and the Nome City School District have been exploring the feasibility of a cooperative program that would utilize the existing Nome Beltz School complex to develop and operate a pilot regional learning program. Both these districts have taken actions to support the creation of a pilot program and to seek federal funding to help cover program planning and the initial operation costs. Mr. LaBolle pointed out that a conceptual overview of the program was contained in the March 20, 2001 letter from Dr. John Davis, Superintendent of the Bering Strait School District. [Copy on File]. That letter helps to define and support the concept proposed in the legislation. Representative Lancaster asked if the Department's report would be available to the Legislature. Mr. LaBolle replied that there would be a report available. He added that the program was accompanied by a sunset clause in order to review the concept. He noted that the districts had consented to provide a third party evaluation to the Department and to the Legislature. Representative Davies asked if the proposal would be similar to the boarding school concept as Mt. Edgecumbe. Mr. LaBolle explained that in the proposed program, the student would not be leaving their home village for any extended length of time. They would be learning independent living skills during short periods of time away from their homes. These skills would help the student with the transition from village life to larger community living. Representative Davies inquired the time frame, which the student would be living in the program. Mr. LaBolle replied that the initial program would look something like what the Bering Strait School district has been running but expanded. The legislation would expand that program and bring it into Nome, where there is a larger population. Representative J. Davies spoke in support of the program. Representative Foster MOVED to report HB 239 out of Committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. HB 239 was reported out of Committee with a "do pass" recommendation and with a fiscal note by Department of Education & Early Development #1 dated 4/25/01. #HB198 HOUSE BILL NO. 198 An Act relating to a post-retirement pension adjustment and cost-of-living allowance for persons receiving benefits under the Elected Public Officers Retirement System; and increasing the compensation of the governor. REPRESENTATIVE BILL HUDSON explained that the proposed bill had resulted from an effort to contain costs on the most extreme cases requiring inequity correction between retirement benefit calculations for the Elected Public Officials Retirement System (EPORS) and Public Employees' Retirement System (PERS) members. A statistical review of EPORS retirees, or their surviving spouses, revealed that many members have or will be receiving a benefit adjustment but rather from changes in the salaries or additional allowances in the position from which they retired. The current language concentrates on narrowing the focus to members who have not had any cost of living or other benefit adjustments to their EPORS retirement benefits, as have their peers who retired under the PERS retirement system. Representative Hudson stated that HB 198 is a fair bill designed to equalize future benefits only of the few EPORS retirees and their surviving spouses who have not otherwise seen any change in retirement received for their service to the State of Alaska. Vice-Chair Bunde asked how many people would be involved with passage of the legislation. Representative Hudson replied five or less. He reiterated that the bill was an issue of "fairness". Vice-Chair Bunde MOVED to ADOPT Amendment #1. [Copy on File]. Representative Croft OBJECTED for an explanation. Vice-Chair Bunde explained that the Division of Retirement and Benefits had proposed the amendment. The amendment would limit the bill to the five people mentioned. In response to Representative J. Davies, Representative Hudson stated that there are only a few who have not received an increase in the last years. The language provided in Amendment #1 is necessary to isolate those five. There are approximately twenty-two EPORS retirees that have continued their employment with the State. Those people have been receiving their annual cost-of-living increases under the programs. The other five have not received anything for fifteen years and they would be covered under this bill. Co-Chair Mulder interjected that the legislation would be restricted. Representative Davies commented that he did not want it to be restrictive to only the favorites. Representative Hudson replied that some are still under the EPORS system, which has been responsible for those costs. Initially, there were 35 and now there are five. GUY BELL, DIRECTOR, DIVISION OF RETIREMENT AND BENEFITS, DEPARTMENT OF ADMINISTRATION, explained that the bill was designed to cover those people that have not received an increase for fifteen years. Effectively, there are only two people in that category. The retirement and benefit is based on the salary of the position that person last held. Those benefits have been fixed. All other EPORS members have received some increase. The increase is based on the salary and other compensation of the position that the person left. Representative Croft commented that it rest on the fact that the Governor's salary had not been increased since 1983. The legislation would provide a retirement benefit roughly equal to what Governor Hammond would have received if he had gone on to another system or his salary was raised. Mr. Bell replied that the legislation would provide a 75% change in the Consumer Price Index (CPI) since that benefit was last changed in 1983. The original bill raised the Governor's salary, which would have effectively increased the benefit, however, that section was dropped. He added, Section 2 of the bill guarantees that there is no "double dipping". Representative Croft inquired the situation of the other 25- 30 people that are on a similar track. Mr. Bell replied that the general theory behind EPORS was that overtime and salaries would increase. He noted that system was based on the judicial retirement system, which is effectively the same. The way that it works is that a person's retirement benefit is based on current salary of the position that they vacated. For the EPORS members that has been more erratic and for some, non-existent. He added that legislative salaries have increased. Mr. Bell explained that there was a challenge ballot measure, which was disapproved. There was an option to stay in. Some of those people have not yet retired and the remainder are drawing benefits for public service. Discussion followed between Representative Croft and Mr. Bell regarding the history of the Judicial Retirement statute. Vice-Chair Bunde clarified that the amendment would only effect retired persons under the EPORS system. Mr. Bell interjected that the person would have had to been retired for at least 15 years. Representative Hudson emphasized that the bill would provide equal treatment for the retiree and would bring those few people up to "speed". Representative Davies asked if the amendment would be excluding anyone. Mr. Bell stated that the Department was comfortable with the amendment because excluded persons would be eligible for an increased amount at a future date. He reiterated that there would a benefit at sometime in the future. There being NO OBJECTION, Amendment #1 was adopted. Representative Croft MOVED a conceptual amendment to the bill. He stated that the root of the problem was that the Governor's salary had not been increased in twenty years. He suggested that the language indicate that the Governor's salary be $100,000 dollars, effective with the swearing in of the next Governor. Representative Hudson OBJECTED. He commented that the bill simply was trying to make parity and pointed out that there is a salary bill to address other concerns. A roll call vote was taken on the motion. IN FAVOR: Croft, Davies, Moses OPPOSED: Foster, Harris, Hudson, Lancaster, Whitaker, Bunde, Mulder, Williams The MOTION FAILED (3-8). Representative Hudson MOVED to report CS HB 198 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. Representative Whitaker OBJECTED for further discussion. Representative Whitaker voiced concern if equality was being created with passage of the legislation. Mr. Bell responded that the system had been classified as EPORS. Representative Whitaker asked if the three persons who made the decision to stay, had been placed into that category with the option to "opt out". Mr. Bell acknowledged that was correct. Representative Whitaker indicated that he maintained his objection. A roll call vote was taken on the motion. IN FAVOR: Davies, Foster, Harris, Hudson, Lancaster, Moses, Bunde, Williams, Mulder OPPOSED: Whitaker, Croft The MOTION PASSED (9-2). CS HB 198 (FIN) was reported out of Committee with "individual" recommendations and with a fiscal note by Department of Administration #1 dated 4/16/01 and a zero fiscal note #2 by the Office of the Governor dated 4/16/01. #HB53 HOUSE BILL NO. 53 An Act establishing the Alaska Seismic Hazards Safety Commission. REPRESENTATIVE JOHN DAVIES explained that HB 53 would create a Seismic Hazards Safety commission. The Commission would be situated in the Governor's office. The Commissioner would be established to address pressing needs in providing a consistent policy framework and a means for ongoing coordination of programs and public safety practices related to seismic hazards. Current needs are not being addressed by any state government organization. The seismic Hazard Safety Commission would encourage long-term progress toward mitigating the effects of earthquakes. TAPE HFC 01 - 105, Side A  Representative J. Davies emphasized that there should be people within the State focusing on building code needs, which are cost effective. Members of the commission would be appointed by the Governor to represent the University, various governmental agencies, as well as members of the public who are knowledgeable in earthquake hazard mitigation. The Commission would recommend to the public and governmental sector goals and priorities for reducing earthquake effects. The authority and responsibility of other various state agencies, boards, councils, commissions and/or local governments would not be intended to be transferred to the Alaska Seismic Hazards Safety Commission. Co-Chair Williams pointed out that last year, the bill had passed through the House and made it to Senate Rules Committee. Representative Davies MOVED to report HB 53 out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. HB 53 was reported out of Committee with a "do pass" recommendation and with a fiscal note #1 by Department of Natural Resources dated 3/30/01.