SENATE BILL NO. 65 "An Act requiring a study to determine if gender is a determinant in state employee compensation." Co-Chair Donley stated that SB 65 would require the State of Alaska to conduct a study to determine if gender is a determent in State employee compensation. The State has never performed a pay equity study. The bill would provide a mechanism to bring the State into compliance with federal law and put an end to any wage-based sex discrimination in State employment. Co-Chair Donley continued that state employees should be paid based on the value of the work they perform, not based on whether they are men or women. He stated that passage of SB 65 is the right thing to do. Failure to address the situation will expose the State to expensive, time-consuming and divisive litigation. The approach established in the bill would first identify if there were instances in which the State is illegally paying women less than men. If the study finds such instances, then the State will develop phased strategies to eliminate such sex discrimination. SB 65 promotes fairness in the workplace and recognizes the valuable work that is being performed by the men and women in State government. SENATOR ROBIN TAYLOR indicated that a major question was being raised and that the pay equity question is one that has always haunted the State of Alaska. He acknowledged that a study does need to be done. In the last 15 to 20 years, the State has seen a lot of change and tremendous transition. He pointed out that anyone could go to most construction jobs and see women operating heavy equipment. Senator Taylor noted that he supported Co-Chair Donley's effort. DAVID STEWART, Personnel Manager, Division of Personnel, Department of Administration, understood that the Department of Administration would be required to create a study to determine if gender plays an inappropriate role in determining State of Alaska personnel wages. He pointed out that the current system follows the laws adopted by the Legislature, which requires a regular integrated salary program based on the nature of the work being done. It requires equal treatment of employees and applicants and requires recruitment and advancement of employees based on their relative ability, knowledge and skill. Furthermore, Alaska Statute (AS) 18-80-220, makes it unlawful to discriminate against sex when the reasonable demands of the position don't require that on the basis of sex. The State's current pay systems have been tested in Court and have been found to be fair. Mr. Stewart added that the Department would work with the bill sponsors to help define the problem and the issues inherent within. The current system contains supervisory and management reviews and Union appeal processes. Decisions affecting pay are not unilateral and based on universally applied criteria. He added that the external review processes was designed to produce appropriate warning signals. Mr. Steward advised that rarely does the State receive pay disputes. The current system does not illegally assign pay raises based on gender. He noted that the Department does support checking the efforts and practices. Senator Green asked if there was anyway to allow "lag" time for corrective action to take place. Co-Chair Donley believed that could happen with a simple majority vote. He recommended consulting with the legislative drafters to see if that was correct. Co-Chair Kelly asked if there had been discrimination claimed against men. He recommended that the criteria of the study should be broadened in order to look at sex discrimination both ways. Co-Chair Donley responded that the legislation would be gender based and not limited. Language referenced in the sectional analysis was used only as an example and that there would be a full analysis of both gender classes. Co-Chair Kelly pointed out that the proposed legislation was not an equal pay for equal work-study, but rather pay equity. He asked Senator Donley to explain the difference. Co-Chair Donley discussed that given two truck drivers, a man and a woman, if either of them is paid differently with the same duties and experience, then an equal pay problem exists. However, if there is a class called assistant truck drivers and a class called truck driver assistant, and one is dominated by women and the other is dominated by men, and one class is paid differently from the other, then there exists a pay equity situation. Senator Leman asked what the legislation was attempting to solve. He did not think that the legislation really addressed the concerns voiced by Senator Donley. He suggested that looking at the class could determine the difference in the pay scheme. Co-Chair Donley pointed out that Alaska has the advantage of looking at the results from other states that have already undertaken the study. He stressed that there is legitimate concern and perception that there is discrimination happening in Alaska against women. It is a fact that women in the State are paid less than men overall. He reiterated that there could be a potential problem and the only way to alleviate the concern would be to undertake such a study. SFC 01 # 24, Side B 09:56 AM Co-Chair Donley interjected that there is no conclusion that discrimination exists, however, there exists a possibility. Senator Leman suggested there could be other ways to address the concern. He proposed "actively recruiting" into those classifications. Additionally, wages paid should be marketplace wages. Implementing both of those would accomplish more than going through the recommendations proposed in the bill. Co-Chair Kelly perceived that the career path within State workers appears to be clear and that women do not seem to be impeded on that path. He stated that different job classifications have to do with the marketplace. He encouraged Mr. Stewart to work with Senator Donley in order to guarantee that the study was crafted to answer all the questions and concerns. Co-Chair Kelly stated that the bill would be HELD in Committee until Senator Donley and the Department could determine what was needed done. Senator Austerman asked if the study would be contracted out or if it would be an independent study. Mr. Stewart replied that the study would be contracted out. Co-Chair Donley acknowledged that was the intent and in other states where it had been contracted out, it was successful. Senator Green questioned why the Department of Labor or the Department of Community & Economic Development were not being used. Co-Chair Donley explained that he was trying to integrate the State of Alaska's employment system and compare it with other state surveys. He added that job classifications in our State system are different from the surveys performed in other states. Senator Ward reminded members that the University of Alaska had undertaken a study like this. He recommended checking with them regarding the company who was contracted with. That study exposed that the engineers were predominately males and that other classes were predominately female. He believed that there was justification for doing the survey. Co-Chair Kelly inquired if it had been an equal pay study undertaken by the University. Senator Ward remembered that the study addressed classifications. The females were being paid less because of their classification and that the study had been done five years ago. Co-Chair Kelly claimed that women tend to be the lower paid member of most family units because they make the lifestyle choices for the betterment of the family. He did not know how that information would be quantified in a study. Co-Chair Donley cautioned that the Committee must be careful not to override a truly objective study. There needs to be an objective frame of reference and analysis. Until that occurs, the perception will continue. SB 65 was HELD in Committee.