SB 114 EMPLOYEES: POLITICAL CONTRIB & ACTIVITIES  SENATOR PEARCE moved to adopt CSSB 114(JUD) (3/24, version E) in lieu of the original bill. SENATOR MILLER explained the committee substitute contains two amendments: the 12 month requirement was changed to one calendar year; and the recordkeeping requirement was changed from three years to four years. Both changes were requested by APOC. CHAIRMAN TAYLOR announced there were no objections to the adoption of CSSB 114(JUD), therefore the motion carried. JOHN CYR , President of NEA-Alaska, described how NEA's political action committee (PAC) functions. When new employees begin work in a school district, they are asked whether they want to join NEA. If they elect to join, they fill out a form that lists the dues amount and contains a section for a $15 annual PAC contribution. The first time payroll contributions are withheld, NEA sends the employees a form asking whether they want their PAC contribution refunded or diverted to another area. NEA uses that format for a specific reason. There are 53 or 54 school districts. Standardizing the dues amount is beneficial to school districts because it minimizes accounting procedures. Of the 10,000 school district employees, about 1,000 request the $15 PAC deduction be reimbursed. NEA reimburses as soon as it has confirmation that those people are employees or members. This system removes any liability from the school districts and allows employees to decide whether to contribute to NEA's PAC in the privacy of their own homes so the school districts do not know who contributes. NEA does not do any political campaining to raise money in schools; the process is done uniformly. NEA maintains the files and believes this system is cleanest. SENATOR PEARCE referred to page 2, lines 7-14, subsection (b), and asked whether NEA members have to notify NEA every year whether or not they want a reimbursement. MR. CYR replied NEA sends a form to every member, every fall, asking whether they want a reimbursement. SENATOR PEARCE asked if those members are also given the opportunity to terminate their memberships. MR. CYR answered yes. Number 382 SENATOR PEARCE commented one member she knows of objects to the fact that every year she has to request the $15 reimbursement and would prefer that NEA automatically refund the money unless she notifies it of a change. MR. CYR said NEA would be willing to use a form that provides for an automatic refund unless it is notified otherwise. CHAIRMAN TAYLOR noted because the membership is continuing, one avoids the obligation by requesting from one's union that he/she be reimbursed for money already withheld. MR. CYR said the money is reimbursed before it is withheld. He explained NEA deducts dues and the PAC contribution monthly and might deduct $30 for dues and $1.50 for the PAC. With the first monthly deduction, the member receives a card asking if he/she wants the $15.00 reimbursement and if so, the money is reimbursed. That bookkeeping system is used because it is easier for both NEA and the school districts. Number 343 SENATOR MILLER stated the members could be automatically reimbursed unless they notify NEA to continue the deduction. He did not have a preference for methods but he felt continuing the reimbursement, once the member has requested it and until the member requests otherwise, should be reviewed further. MR. CYR explained NEA sends the reimbursement forms to every member each year and would continue to do so even if it changed it's approach, so that members could easily notify NEA of any changes they desired. SENATOR PEARCE thought the amended language on page 2, lines 13-14, that states the written notification is valid for only one calendar year, works against an automatic reimbursement or contribution until notified differently. CHAIRMAN TAYLOR clarified the member will have to authorize the deduction before any money is taken from the check. If the member does not file the next year, no money can be deducted. If a member wanted to make an ongoing ten-year contribution to the NEA PAC, he/she would have to fill out ten authorization forms. Number 304 SENATOR PEARCE said the school district will have an increased administrative cost if it can no longer withhold a standard deduction from everyone's check and has to send out forms to each member. She thought there may be a less burdensome way to achieve the goal of ensuring members' money is not automatically deducted for PACs. CHAIRMAN TAYLOR emphasized the school district will only deduct money for the PAC if the member notifies the school district to do so. The person who does not choose to participate does not have to file anything. MR. CYR noted the liability question needs to be addressed. At this point, NEA is totally liable. NEA has an arbitration hearing every year. All records are kept by NEA and are open to any member. If the school districts handle the paperwork, the liability will be placed on them. Not only will the school districts have the expense of processing the paperwork, they may have legal expenses. Number 244 KATHRYN THOMAS , Chair of the Alaska State Chamber of Commerce, testified in support of CSSB 114(JUD) because it fairly provides for the individual rights of employees. The State Chamber does not believe the bookkeeping requirements are burdensome on the employer, however it does believe the activity of dues collection and payment is most appropriately handled directly between unions and its members. CHAIRMAN TAYLOR asked if Ms. Thomas was suggesting the legislation should be expanded to require union members who want to send checks to the union do so independently. MS. THOMAS thought a lot of employers would support that. CHAIRMAN TAYLOR stated committee staff is reviewing the liability issue as well as whether APOC or the Department of Labor is the appropriate agency to be involved. He said his concern is that an agency have proper oversight so that the union member has someone to appeal to. He noted those issues can be discussed as the bill gets closer to the floor. SENATOR MILLER moved CSSB 114(JUD) out of committee with individual recommendations. There being no objection, the motion carried. The meeting was adjourned at 3:20 p.m.