SENATE BILL NO. 180 "An Act implementing pay differentials based on geographic areas for certain state employees and for members of the Alaska State Defense Force; and providing for an effective date." This was the second hearing for this bill in the Senate Finance Committee. This bill was reported from Committee at the previous hearing. Co-Chair Donley noted this bill was referred back to the Senate Finance Committee after further consideration. He referenced a proposed committee substitute that accommodates employees not currently covered by the new geographic pay differential standards. He explained the committee substitute "grandfathers" these employees into the proposed program. Senator Ward moved to adopt CS SB 180, 22-LS0324\O, as a working draft. There was no objection and the committee substitute was ADOPTED. PAUL LYLE, State Employee 18 years, testified via teleconference from Fairbanks in support of the committee substitute as it supports those who have made a commitment to the state. PAM HARTNELL, State Employee, testified via teleconference from Fairbanks in support of the grandfather clause contained in the committee substitute, saying it benefits long-term professionals who work for the state. JOHN ATHENS, State Employee, testified via teleconference from Fairbanks to reiterate the previous testifiers and support the committee substitute. JONI ATHENS, State Employee, testified via teleconference from Fairbanks in support of the committee substitute. Senator Austerman noted the geographic pay differential system was first established according to election districts and asked how the current redistricting efforts correlate to this legislation and whether there is a provision in the committee substitute addressing this. Co-Chair Donley explained the geographic pay differential system was first established shortly after statehood, using the original election districts in place in 1961. He noted that as the pay system has been updated, the 1961 election district boundaries have been retained for this purpose. He said the committee substitute also applies to the original boundaries, as did the original version of the bill introduced by the Governor. ROXANNE STEWART, Legislative Liaison, Department of Administration, affirmed. Senator Wilken spoke on behalf of Co-Chair Kelly and Senator Therriault that this committee substitute is a fairer system that does not detriment the 71 families that would have been adversely impacted by the original version of this bill. However, he noted the committee substitute does make structural changes necessary to provide a fairer pay system across the state. Senator Wilken offered a motion to report CS SB 180 (FIN) from Committee. The bill MOVED from Committee without objection. At EASE 9:49 AM /9:50 AM Senator Wilken moved to rescind the Committee's action in reporting the bill from Committee. Without objection the action was RESCINDED. The bill was before the Committee. Senator Wilken offered a motion to report CS SB 180 (FIN) from Committee with forthcoming fiscal notes from the Alaska Court System and all agencies. There was no objection and the bill MOVED from Committee.