HB 327 - STATE EMPLOYEES CALLED TO MILITARY DUTY CHAIR COGHILL announced that the next order of business would be HOUSE BILL NO. 327, "An Act relating to state employees who are called to active duty as reserve or auxiliary members of the armed forces of the United States; and providing for an effective date." Number 0629 DAVE STEWART, Personnel Manager, Division of Personnel, Department of Administration, came forward to present HB 327. He explained that HB 327 contemplates emergency situations that are not covered under current law. The governor has the authority to activate the Alaska National Guard or the Alaska Naval Militia to active military service. State law provides for state employees who are activated to receive five days of paid leave, regardless of the duration of the service. If they're activated under federal guidelines by the President of the United States, there is federal legislation that lets them return to work, but doesn't protect their income or benefits. Based on whether the activation is state or federal, the individual activated to military service may be covered for health insurance, but the dependents might not be for extended periods of activation. MR. STEWART explained that this legislation allows the executive to issue an administrative order declaring an emergency and defining the nature of that emergency; allows state employees who are called to active service either by the governor or President to have their wages supplemented to the level of their state wage, if their military wage is less; allow them to have their health insurance contributions continued for purposes of both their own or dependent care; and under certain circumstances, to have their retirement contribution made during times of active service. Number 0847 MR. STEWART noted that the zero fiscal note was changed to an indeterminate fiscal note because there is no way to predict who might be activated for the duration of occupation. It does show an FY [fiscal year] 02 cost based on 41 employees activated on September 11 [2001] for $44,000. MR. STEWART explained that there are 189 state employees in the air or army national guard and the naval militia. Since September 11, 41 of the 189 have been called to active duty, and only 8 of those 41 would have qualified under this legislation for wage supplementation. The average duration of activation is three months. REPRESENTATIVE STEVENS asked if this includes employees of the University of Alaska, and if it doesn't, he stated that it should. MR. STEWART pointed out that the fiscal note doesn't include university employees, but the bill contemplates all state employees. REPRESENTATIVE FATE said there is an ongoing debate as to whether the employees of the University of Alaska are state employees, and that needs clarification. He is bothered that the health insurance benefit is continued even though those members that go into the armed forces usually have the same benefits, so benefits are being paid for them that are not needed. He said he thinks if an individual goes into the reserve and is not covered by benefits, then that person shall continue the coverage by the state, but if he/she has coverage, the state certainly doesn't need to provide that coverage until such time as that person gets out of the service and returns to his/her old job. Number 0679 MR. STEWART said the nature of the activation is under either presidential order or executive order. Most employees were activated for less than 30 days. The people who have been activated since September 11 for security at the airports are running about 140 days. Under federal guidelines for activation, a state employee who has health insurance has to be activated for 180 days or more for that individual's military health to cover dependents. The activated individual would be covered but the dependents wouldn't. REPRESENTATIVE FATE said he wasn't against this but would like more scrutiny on the fiscal impact. Number 1169 CHAIR COGHILL announced that HB 327 would be held over.