HB 46: STATE-PAID TRAVEL MILEAGE CREDITS Number 205 CHAIRMAN VEZEY introduced a new CSHB 46, and asked its acceptance for purposes of discussion. REPRESENTATIVE OLBERG MOVED ADOPTION of CSHB 46 (STA). There was no objection, and CSHB 46 (STA) WAS ADOPTED. CHAIRMAN VEZEY explained the changes in CSHB 46 (STA), which included the deletion of jail terms for those who violate the law; the recognition that federal law codifies the airlines frequent flier programs as property of the airlines; and the deletion of section two and its subsequent replacement with a section that says state employees are no longer allowed to accept frequent flier mileage. Number 244 REPRESENTATIVE G. DAVIS noted the last time HB 46 was discussed, a union official claimed the mileage program was included in a formal labor agreement, and asked for verification that was true. Number 254 CHAIRMAN VEZEY noted the papers provided the committee were unsigned, and subsequent discussions with the Department of Administration led to the realization no such agreement occurred. Number 262 REPRESENTATIVE G. DAVIS was concerned about the unsigned document and wondered if other members were concerned about the veracity of the union official's testimony. CHAIRMAN VEZEY stated there was no evidence the agreement was ever made. Number 277 REPRESENTATIVE ULMER wanted the point clarified for the record, and wanted to know from the Department of Administration's Commissioner, Nancy Usera, if such an agreement ever existed, rather than depend on a single phone call. It seemed to her CSHB 46 (STA) simply ruled employees could not claim credit for mileage, with no provision for the state getting that credit, which seemed to contradict the original intent of HB 46. Number 312 CHAIRMAN VEZEY stated the committee staff requested any documentation that might prove the existence of frequent flier mileage being included in labor agreements with the state, and none was produced by the Department of Administration. He went on to state CSHB 46 (STA) simply paved the way for state agencies to collect frequent flier mileage because of the incentive provided the airlines. Number 340 REPRESENTATIVE OLBERG stated that since Juneau is down to one major airline serving the city, and if employees not getting the mileage would help that one airline economically, he would opt for helping the airline. Number 356 REPRESENTATIVE ULMER understood Representative Olberg's point, but says with the prices Alaska Airlines charges in Southeast Alaska, she feels the community has done enough economically for the airline. REPRESENTATIVE G. DAVIS shared Representative Ulmer's concerns, and stated CSHB 46 (STA) needed a statement of intent that the state should eventually collect the frequent flier mileage. Number 393 REPRESENTATIVE OLBERG stated it was appropriate to include a statement saying CSHB 46 (STA) was the first step for the state collecting the mileage. Number 400 CHAIRMAN VEZEY felt it would be a simple matter for the Department of Administration to find a way to collect the mileage, and was not opposed to an amendment for intent language. Number 416 REPRESENTATIVE G. DAVIS replied he would get another chance at CSHB 46 (STA) in the House Transportation Committee, and would address his concerns there. He then MOVED PASSAGE of CSHB 46 (STA). Number 423 VICE CHAIR KOTT hoped the House Transportation Committee would also look at ways to claim travel mileage from both hotel and car rentals during its deliberations. Number 448 The House State Affairs Committee Substitute to HB 46 was PASSED from committee by a 5-1 vote, with Representative Ulmer voting NO. ADJOURNMENT Number 460 CHAIRMAN VEZEY adjourned the committee at 10:05 a.m.