SENATE BILL NO. 89 "An Act relating to retirement benefits for members of the Alaska Territorial Guard; and providing for an effective date." 9:03:54 AM Co-Chair Stedman explained that the bill was first heard on February 3 and was set aside to allow Congress and the U.S. Army to arrive at a solution. He noted a letter from the congressional delegation (March 18, 2009, Copy on File) informing the committee that the benefits for the Guard will cease and asking the legislature to provide temporary payments until Congress resolves the issue later in the year. Senate Bill 89 is necessary to ensure payment of the benefits. Senator Huggins MOVED to ADOPT Work Draft LS0432\S, Bannister, 3/21/09. Co-Chair Stedman OBJECTED for discussion. DARWIN PETERSON, STAFF, SENATOR BERT STEDMAN, SPONSOR, informed the committee that members of the committee worked with the Department of Military and Veterans Affairs (DMVA) to draft a new CS in light of the fact that Congress is unable to make retirement payments until a defense authorization bill is passed. The CS changes the payments to interim payments until the issue is resolved. The original bill had a set amount of $550 per month appropriated to each guardsman; the CS takes into account the amount each person is getting paid by the military in relation to the amount they should be getting paid if territorial guard work was credited. He explained that the March 20 fiscal note by the DMVA reflects the cost of $83,500 for the payments through February 2010, when the bill sunsets. If Congress does not resolve the issue before the next legislative session, the issue will need to be revisited in February 2010. Co-Chair Stedman reiterated that the measure was intended to bridge the payments until Congress could act. Co-Chair Stedman removed his objection to the adoption of the CS. There being NO OBJECTION, it was so ordered. Co-Chair Stedman queried the administration's position on the legislation. MCHUGH PIERRE, LIAISON, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS, spoke in support of the legislation. He reminded the committee that 26 Alaska Territorial Guard members will be receiving a deduction in their federal pay. They were receiving federal retirement pay for federal services performed through the federal military. The Division of Personnel of the U.S. Department of Army decided that the law currently on the books did not fully meet the payment requirements for the guard members and is therefore suspending the payment for the time served in the Alaska Territorial Guard from approximately 1942 through 1946 or 1947. Mr. Pierre emphasized that DMVA is proud of the committee for taking care of the elders, but expressed disappointment in the federal government for refusing to make the payments until the problem is corrected. 9:09:05 AM Co-Chair Stedman asked whether the administration supports the bill. Mr. Pierre responded that the administration supports serving veterans. Co-Chair Stedman pointed out that quick action was required to make sure veterans do not miss payments. He asked if the governor's signature was forthcoming. Mr. Pierre responded that DMVA can get the money to the veterans who are in need. Senator Huggins directed attention to page 2, line 10 of the CS regarding the individual reimbursing the department [in case of overpayment]. He asked if the department had full confidence that individuals would make the reimbursement. Mr. Pierre answered that the department would monitor the situation closely and make certain that the veterans were not put in a position to have to repay the department. The department will also make sure veterans do not miss payments. Senator Huggins commented that people he had spoken to want to do the right thing. 9:11:32 AM Senator Olson asked how veterans could be sure that the payments would be made in a timely matter. Mr. Pierre assured the committee that after the bill is signed the department would make payments as quickly as possible. He anticipated that payments will need to be sent out in April. Senator Olson expressed appreciation on behalf of guardsmen. 9:12:21 AM AT EASE 9:12:40 AM RECONVENED Senator Thomas commented that $83,000 is a small amount of money compared to the service rendered by the veterans. Senator Huggins MOVED to REPORT CS SB 89 out of committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CS SB 89 was REPORTED out of committee with a "do pass" recommendation and with accompanying fiscal note 1 by the Department of Military and Veterans Affairs.