CHAIRMAN RIEGER introduced HB 148 (EXEMPT U OF AK FROM APA PROCEDURES) as the next order of business. REPRESENTATIVE GENE THERRIAULT, prime sponsor of HB 148, said in June 1991, the Alaska Supreme Court found that the university was not specifically excluded from the provisions of the Administrative Procedures Act until such time that the legislature specifically excluded them. When the university was placed under the Administrative Procedures Act in 1977, the intent was that the constitutional and statutory language would allow the regents to retain control of the internal workings of the university. However, the court in reaching its conclusion, did not consider the intent and ruled that the APA would apply unless the legislature gave a specific exemption to the university. Representative Therriault said the adjudication provisions of the APA were not designed for employee or student grievances. The majority of university grievances are resolved with little or no expense at an early stage of review. The procedure outlined in the APA would result in an extraordinary expense. HB 148 would exempt the university from the APA, and would allow the university to go back to the grievance procedure they had in place until 1977. Number 310 SUSAN WARNER and JOANNA LOVING-BELYEA, classified employees at the University of Alaska-Southeast, requested that HB 148 be removed from the table until a formally approved alternate grievance policy is in place, which it is not at this point in time, from the employee perspective. Number 317 SENATOR SALO said she shared their concern, and she asked how long they thought it would take to get an alternative plan in place. SUSAN WARNER responded that most of the employees have great confidence that the administration and the employees can work it out in a timely manner. She also pointed out that the university employees do not have a bargaining unit to represent them, and it is her understanding that the typical kinds of grievance procedures that are relevant to employees are generally evolved through negotiations between the administration and the bargaining unit representation. She said anything that can be done to stop the passage of this particular legislation until there is that agreement between the university administration and the university governance structure would be greatly appreciated. Number 352 WENDY REDMAN, Vice President, University of Alaska, said she understands the concerns voiced by Ms. Warner, but she thinks there are some misunderstandings. Ms. Redman said the university had in place a grievance procedure before the APA process was laid on it. It wasn't a perfect process, but the employee governance group worked for over a year and developed a new grievance procedure which was just about ready to be put in place, but was held in abeyance until they got a court ruling. Ms. Redman said if HB 148 passes, it would be their intention would be to take that last grievance policy and put that into place on an interim basis until the June board meeting. She added that the president of the university would be more than willing to commit to the employees the exact policy that will be put in place, pending final approval by the governance groups once the APA is passed, so that the employees know exactly what is going to be there and there is not a gap in coverage. Ms. Redman urged the passage of HB 148. Number 395 SENATOR SALO asked how many different grievance procedures would replace the Administrative Procedures Act. WENDY REDMAN answered that there is one grievance procedure, but there are different aspects to it. Number 430 SENATOR ELLIS asked if the Chair would entertain a motion that there be a letter of intent drafted to accompany the bill stating that it's the legislature's intent that there not be a gap time between when the bill passes and when an interim grievance procedure is put in place. CHAIRMAN RIEGER agreed and stated the bill would be set aside until later in the meeting so that a letter of intent could be drafted. CHAIRMAN MILLER brought HB 148 (EXEMPT U OF AK FROM APA PROCEDURES) back before the committee. SENATOR ELLIS read the following proposed intent language into the record: "It is the intent of the legislature that upon passage of HB 148 the university put into place the draft grievance procedure distributed to employees for review on March 22, 1993. It is the understanding of the legislature that this policy will be used as an interim procedure only until the University of Alaska general assembly and the Board of Regents formally and jointly agree to a successor grievance policy. It is further the intent of the legislature that the University of Alaska assembly and Board of Regents reach final approval of a successor grievance policy by June 15, 1993. SENATOR ELLIS moved adoption of the intent language to HB 148. SENATOR LEMAN objected and then withdrew his objection. There being no further objection, the Chair stated the Letter of Intent was adopted. SENATOR MILLER moved HB 148, along with the Letter of Intent, out of committee with individual recommendations. Hearing no objection, it was so ordered.