SB 113 PERS FOR COURT SYSTEM ADMIN DIRECTOR                         
                                                                              
  CHRIS CHRISTENSEN , General Counsel to the Judicial Branch, stated           
 the Supreme Court is opposed to passage of SB 113.  It believes the           
 judicial retirement system is an essential tool for attracting and            
 retaining highly qualified personnel to serve as the administrative           
 director.  He pointed out Alaska's placement of the administrative            
 director in the judicial retirement system is not unique; about               
 one-third of the states do so.  The American Bar Association (ABA)            
 adopted standards relating to code organization.  Those standards             
 provide that retirement benefits should not be less than that of a            
 judge at the intermediate court of appeals.  The ABA set their                
 standard because it recognized administrative directors of state              
 court systems require specialized training.  Alaska's standard                
 requires the retirement be tied to that of an appellate judge.  In            
 Alaska this position was created by Article 4, Section 16 of the              
 Constitution.  The Court has adopted Administrative Rule 1 to                 
 implement this constitutional mandate which sets out the duties of            
 the administrative director and contains many specific technical              
 court duties.  The administrative director heads a branch of                  
 government rather than a department and serves the Supreme Court in           
 the same way the chief of staff serves the Governor.  He acts as              
 legal advisor to the Court on non-adjudicatory matters, is                    
 responsible for the massive volume of Court Rules, advises on the             
 procurement and personnel rules, and serves the same role the                 
 attorney general serves to the Executive Branch.  In addition, he             
 supervises the accounting department, which collects and accounts             
 for in excess of $7 million in fines and fees annually; distributes           
 restitution to victims; handles a large number of trust accounts;             
 and performs other duties handled by commissioners in the executive           
 branch.  This position requires a much greater breadth of                     
 experience and a different type of work than what is performed by             
 commissioners in the Executive Branch.  The administrative director           
 is not a political position like a commissioner, and requires a               
 specific education and work history.                                          
  MR. CHRISTENSEN  explained the ten-year vesting period required for          
 an administrative director is twice as long as the vesting period             
 for judges and any other PERS or TERS employees.  The                         
 administrative director must work in that specific position for               
 those ten years to become vested.  The Legislature passed the ten             
 year vesting requirement in 1980 because the Supreme Court saw the            
 need for continuity and did not want to hire administrative                   
 directors who worked for a few years to pad their resumes and then            
 headed to bigger court systems in other states.  Prior to Mr.                 
 Snowden's employment, there was a high turnover in administrative             
 directors that was damaging to the Court System.  Only one                    
 administrative director had served as long as five years.  In the             
 eight years prior to Mr. Snowden's appointment, there were five or            
 six different directors, which created the perception that the job            
 was purely political and filled by people without regard to their             
 qualifications.  A new Chief Justice professionalized the position            
 in 1973.  The Court System is able to plan long term and believes             
 attracting and retaining a competent professional is necessary for            
 the judiciary, and that the judicial retirement system with the ten           
 year vestment requirement is necessary to accomplish that goal.               
                                                                               
 Number 108                                                                    
                                                                               
  CHAIRMAN TAYLOR  asked what happens if an administrative director is         
 fired prior to the ten-year vesting period.   MR. CHRISTENSEN                 
 replied the director could cash in his/her retirement or convert it           
 to the PERS retirement system, but would not be eligible for                  
 judicial retirement.   CHAIRMAN TAYLOR  affirmed unless the director          
 serves the full ten years, his/her retirement will be based on PERS           
 retirement.  He questioned whether the director will "max" out in             
 the retirement system after 15 years, but cannot receive retirement           
 until age 60.   MR. CHRISTENSEN  said that was correct.                       
                                                                               
  CHAIRMAN TAYLOR  announced it was not his intent to move SB 113 at           
 this time.                                                                    
  SENATOR PEARCE  commented this recommendation was made by                    
 Legislative Budget and Audit.   CHAIRMAN TAYLOR  agreed and added the         
 measure would create a $25,000 savings.                                       
                                                                               
  CHAIRMAN TAYLOR  repeated he had reservations about the legislation          
 at this time.  He adjourned the meeting at 3:10 p.m.