SB 48-PERS CONTRIBUTIONS BY MUNICIPALITIES                                                                       
                                                                                                                                
5:54:46 PM                                                                                                                    
CHAIR DYSON  announced that the  next order of business  would be                                                               
SB 48. He  reported that he has had  extensive conversations with                                                               
Mr. Barnhill and agrees with his  analysis of the bill. He stated                                                               
that the proposed committee substitute  (CS) mirrors the language                                                               
of the House bill.                                                                                                              
                                                                                                                                
SENATOR  COGHILL moved  to adopt  the work  draft CS  for SB  48,                                                               
version  28-LS0444\U, as  the working  document.  There being  no                                                               
objection, version U was before the committee.                                                                                  
                                                                                                                                
5:56:11 PM                                                                                                                    
DAVID  SCOTT,  Staff,  Senator  Donny  Olson,  sponsor,  provided                                                               
information  on   SB  48.  He   explained  that  the   2008  PERS                                                               
contribution floor does  not apply to those  communities who have                                                               
lost 25 percent of their population.                                                                                            
                                                                                                                                
SENATOR  DYSON  asked  if  that   mirrors  the  language  in  the                                                               
companion House bill.                                                                                                           
                                                                                                                                
MR. SCOTT said that is his understanding.                                                                                       
                                                                                                                                
SENATOR WIELECHOWSKI  asked how many municipalities  this applies                                                               
to.                                                                                                                             
                                                                                                                                
MR. SCOTT  said it applies  to three.  There are more  than three                                                               
communities that  have lost 25  percent of their  population, but                                                               
they do not have any PERS employees.                                                                                            
                                                                                                                                
SENATOR WIELECHOWSKI  asked if  SB 48 has  the impact  of waiving                                                               
fees and expenses.                                                                                                              
                                                                                                                                
MR. SCOTT  said no.  He said  it was  his understanding  that the                                                               
municipalities still must pay their bill to the PERS system.                                                                    
                                                                                                                                
5:57:44 PM                                                                                                                    
MIKE    BARNHILL,    Deputy     Commissioner,    Department    of                                                               
Administration,  answered   questions  related   to  SB   48.  He                                                               
explained that  there is  a retroactive  date in  the bill  and a                                                               
reduction in  the rate of  interest to the federal  reserve rate,                                                               
plus 3 percent.                                                                                                                 
                                                                                                                                
SENATOR  WIELECHOWSKI   inquired  which  three   communities  are                                                               
affected by the bill.                                                                                                           
                                                                                                                                
MR. BARNHILL said Galena, Pelican, and Atka.                                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI asked how much they owe.                                                                                   
                                                                                                                                
MR.  SCOTT  answered that  Galena  owes  about $500,000,  and  he                                                               
didn't know about the other two.                                                                                                
                                                                                                                                
SENATOR WIELECHOWSKI asked how much debt was rolled back.                                                                       
                                                                                                                                
MR. BARNHILL  said he hadn't  run the  numbers, but it  might get                                                               
rid of it entirely.                                                                                                             
                                                                                                                                
SENATOR COGHILL said  it sounds like these  communities are under                                                               
duress.                                                                                                                         
                                                                                                                                
5:59:27 PM                                                                                                                    
GREG MOYER, Galena City Manager, testified in support of SB 48.                                                                 
                                                                                                                                
SENATOR DYSON inquired how much it would save Galena.                                                                           
                                                                                                                                
MR. MOYER answered  said if it is retroactive it  may take it out                                                               
completely.                                                                                                                     
                                                                                                                                
SENATOR DYSON  asked for a report,  after the first of  the year,                                                               
on how it worked out.                                                                                                           
                                                                                                                                
6:01:05 PM                                                                                                                    
SENATOR COGHILL moved to report  SB 48, version U, from committee                                                               
with individual  recommendations and attached fiscal  note. There                                                               
being no  objection, CSSB  48(STA) was  reported from  the Senate                                                               
State Affairs Standing Committee.