SB 239-STATE EMPLOYEES CALLED TO MILITARY DUTY      JIM DUNCAN, Commissioner of Administration, explained the bill is a result of the September 11 attack and it gives the governor administrative order authority to ensure that state employees who are members of the reserve and auxiliary military units will not be financially penalized when called to active duty. The authority is discretionary, could cover both pay and benefits and would probably be used infrequently. Once an order is issued, the Division of Personnel would issue emergency regulations to implement the provisions of the administrative order. The governor would choose whether salary, health or retirement benefits would be affected. CHAIRMAN THERRIAULT asked whether discretionary applied from emergency to emergency, to category of employee or to individual employees. COMMISSIONER DUNCAN said the real discretion is for emergency to emergency but it could apply to a certain category of employee such as the Alaska National Guard. He added other states have given their governors the authority to make such decisions. 5:00 p.m.  CHAIRMAN THERRIAULT remarked short-term call outs probably don't need the adjustment and individuals in the guard should anticipate some level of callout. He noted the fiscal note indicated costs are covered by additional vacancy factors or use of appropriated funds. However, once payments are made for a period of six months, a temporary employee would probably need to be hired which raises questions about the financial implications. COMMISSIONER DUNCAN said some of the positions could be filled on a temporary basis but the assumption is that the agencies impacted could absorb the increased cost through vacancy factor or other means. For a call out that lasts six months or longer, it might require a request for supplemental appropriation for an agency or department. CHAIRMAN THERRIAULT asked how a National Guardsman employed in the private sector is treated. COMMISSIONER DUNCAN said other states have handled the situation a variety of ways and those comparisons are available. Although they haven't surveyed the private sector, they do have some information on Costco's policy. CHAIRMAN THERRIAULT asked for private sector information. There being no additional questions or testimony, SB 239 was held in committee.