HB 260-STATE OFFICERS COMPENSATION COMMISSION 12:43:26 PM CHAIR LYNN announced that the last order of business was HOUSE BILL NO. 260, "An Act relating to a State Officers Compensation Commission and establishing how legislators, the governor, the lieutenant governor, and executive department heads shall be compensated; providing for an effective date by repealing the effective dates of certain sections of ch. 124, SLA 1986; and providing for an effective date." [Amendment 1 was pending before the committee with an objection.] 12:43:50 PM REPRESENTATIVE MIKE DOOGAN, Alaska State Legislature, reviewed the bill, which he had introduced at the last committee meeting on Thursday, January 17, 2008. He said the proposed legislation attempts to recreate a salary commission similar to the one that existed at the end of the 1970s. The commission would consist of five members [appointed by the governor], with one of those members chosen from a list provided by the Speaker of the House and one chosen from a list provided by the President of the Senate. The commission would make recommendations at least every two years regarding the salaries of the governor, lieutenant governor, legislature, and commissioners of the State of Alaska, and those recommendations would become law within 60 days unless specifically rejected by the legislature. The recommendations would be subject to appropriations. 12:46:12 PM REPRESENTATIVE ROSES, at the request of the chair, reviewed Amendment 1, which read as follows: Page 3, line 18, following "not": Insert ", in the four years preceeding [sic] that member's appointment," REPRESENTATIVE ROSES explained that the amendment would not disallow former legislators or commissioners from serving. He said he felt it is important to allow people to serve who know the background of the jobs they are reviewing. 12:47:23 PM REPRESENTATIVE DOOGAN said his intent was to prevent criticism of the commission for "helping out their friends." Notwithstanding that, he said he does not object to Amendment 1, because four year's time seems appropriate for anyone who has been involved to have been out of office. 12:48:03 PM REPRESENTATIVE COGHILL removed his objection to Amendment 1. There being no further objection, Amendment 1 was adopted. 12:48:37 PM REPRESENTATIVE COGHILL directed attention to language on page 3, beginning on line 23, which defines the duties of the commission, and he asked if there is a reason why the sponsor chose to have the administration only in the review process and "not include some staff support, since we're the ones instituting this." 12:49:22 PM REPRESENTATIVE DOOGAN answered that his choice was simply a matter of keeping the legislature at arm's-length. 12:49:50 PM REPRESENTATIVE COGHILL pointed out that executive branch members are in the equation, too; therefore, the arm's-length consideration is one-sided. REPRESENTATIVE DOOGAN said Representative Coghill is absolutely right. He explained that the arm's-length arrangement in this case is based on the history of the past salary commission, where the problems have all been related to legislative compensation. 12:50:40 PM REPRESENTATIVE ROSES directed attention to page 3, lines 23-25, which read: Sec. 39.23.530. Staff. The director of personnel in the Department of Administration shall serve as ex officio secretary to the commission and provide research, technical, and administrative services. REPRESENTATIVE ROSES pointed out that an ex officio member does not get to vote; therefore, the staff would not be in a decision-making position. REPRESENTATIVE DOOGAN confirmed that it is not his intent that the Commissioner of the Department of Administration or his/her designee would be a voting member on the salary commission. 12:51:43 PM REPRESENTATIVE COGHILL turned to page 4, line 5, which proposes: "The commission shall prepare its preliminary findings and recommendations for the compensation of state officers by November 15." He asked Representative Doogan if this would be done annually. REPRESENTATIVE DOOGAN responded that the recommendation would need to be made every two years. 12:52:35 PM REPRESENTATIVE ROSES, regarding the November 15 date, observed that another section of the bill proposes that the recommendation of the commission would automatically take effect in 60 days, unless the legislature rejects it. He said, "Well, 60 days from November 15 would put us into January 15, and that would be the day we usually gavel in, if our 90-day session date that we have remains ... the same. So, we'd have to have a special session in order to act on it if ... indeed the 60 days kicked in." REPRESENTATIVE DOOGAN explained that November 15 would be the date for preliminary findings, with the assumption that there would then be time for public comment and other activity before the commission completed its report and handed it over to the legislature. He said the timing is intended to ensure the recommendations are given to the legislature "and there are 60 days." 12:53:37 PM REPRESENTATIVE COGHILL noted that the language [in subsection (d)], on page 4, proposes that the commission will submit its findings and recommendations during the first 10 days of a legislative session. He surmised that the language requiring the commission to "give reasonable public notice" [on page 4, line 7], refers to reasonable accommodation, not reasonable time. REPRESENTATIVE DOOGAN said that's correct. REPRESENTATIVE COGHILL directed attention to the phrase, "a bill disapproving all the recommendations", one page 4, line 15, and he offered his understanding that the legislature can only reject through a resolution. He indicated that that is the case concerning the constitution. He asked Representative Doogan if he has considered that. REPRESENTATIVE DOOGAN replied that he had not. He committed to sorting that issue out before the bill leaves the next committee of referral, which is the House Finance Committee. 12:56:14 PM REPRESENTATIVE COGHILL directed attention to page 4, lines 24- 25, which read: (e) The commission may prepare amendments to the report submitted under (d) of this section and notify the legislature that the amendments are available. REPRESENTATIVE COGHILL asked Representative Doogan how he envisions that process working. REPRESENTATIVE DOOGAN answered: The amendment portion is intended to take care of a situation in which the commission has made a final report and subsequently finds out that it made a big mistake. ... It's simply to give them a mechanism to fix that while the bill is still before the legislature, so that, essentially, the final product is not flawed. REPRESENTATIVE COGHILL said he agrees with that; however, he said that through his years of service with the legislature, he has found that "every door that lets something in, also lets something out." He asked the sponsor to ponder possible areas of misuse. 12:58:19 PM REPRESENTATIVE COGHILL moved on to page 5, lines 15-17, which read as follows: Sec. 39.23.560. Policy of the legislature. It is the policy of the legislature that the commission recommend an equitable rate and form of compensation, benefits, and allowances for legislators. REPRESENTATIVE COGHILL said that was the original intent of the first commission. He asked Representative Doogan if he intends to leave it to the commission to decide what equitable means. REPRESENTATIVE DOOGAN answered yes. He said he thought it important to have a statement in HB 260 describing the intent of the legislature in establishing the commission. REPRESENTATIVE COGHILL drew focus to page 6, lines 19-21, which read as follows: (b) If the first recommendations submitted by the State Officers Compensation Commission under (a) of this section are disapproved or are not fully funded, the commission may continue to submit recommendations under (a) of this section until secs. 1-5 of the Act take effect. REPRESENTATIVE COGHILL stated, "Because of the amendment capacity and the recommendation capacity, now we have somebody knocking at the door, kind of in perpetuity." He asked the bill sponsor if that was his intent. REPRESENTATIVE DOOGAN answered yes. He explained, "The failure of the previous method is that it stopped." REPRESENTATIVE COGHILL observed that the legislature could be forced with the same question on a regular basis. He said, "I guess we'll just leave that to reasonable people. And you're expectation is that they would have that capacity." REPRESENTATIVE DOOGAN responded that it is his fervent hope that the governor will appoint reasonable people who will take reasonable positions. If that proves not to be true, he stated, the ultimate authority continues to rest with the legislature, because it can always repeal a law, if fitting to do so. 1:01:09 PM REPRESENTATIVE COGHILL said he would look into his previous concern regarding whether the rejection of the legislature would need to be by resolution or by bill. 1:01:25 PM REPRESENTATIVE JOHANSEN said the crux of the problem is that the legislature is reluctant to set new salaries because of perception, and a commission would force the issue every two years. He concluded, "I think the concept is ... well." 1:02:06 PM REPRESENTATIVE COGHILL moved to report HB 260, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 281(STA) was reported out of the House State Affairs Standing Committee.