SB 145-LEGISLATOR RETROACTIVE PER DIEM  4:17:56 PM CHAIR SHOWER announced the consideration of SENATE BILL NO. 145 "An Act relating to per diem for legislators; and providing for an effective date." [The bill was previously heard on 2/1/2022.] 4:18:23 PM SENATOR HOLLAND, speaking as sponsor of SB 145, recapped that the current statute regarding per diem for legislators states that legislators are not entitled to daily per diem for the period that a budget is not in place [after the 121st day]. That has somehow been interpreted to mean that legislators are allowed retroactive per diem payments. SB 145 honors the intent of a past ballot initiative and quells the concern that legislators have a monetary incentive to go into special session before passing the operating budget. 4:20:04 PM SENATOR KAWASAKI questioned whether this would give the executive branch an advantage when it negotiates the budget with the legislative branch. He offered his experience that special sessions are often because of the "Third Floor." SENATOR HOLLAND replied he did not believe that separation of powers was involved. The bill simply seeks to clarify what is already in statute. SENATOR COSTELLO asked whether the budget would need to pass both bodies to be considered passed. SENATOR HOLLAND offered his belief that both bodies would need to pass the budget and send it to the governor. CHAIR SHOWER pointed to the last sentence in Section 1, which is in current statute. In this subsection, "passed by the legislature" has the meaning given in AS 01.10.070. SENATOR COSTELLO asked the sponsor if he had contemplated that if the budget is not passed before day 121, there could be an incentive to move the special session to a community where a majority of legislators live and would not collect per diem. SENATOR HOLLAND said he wasn't sure what she was asking. 4:23:15 PM SENATOR COSTELLO said she supports aligning laws with voters' intent when they pass initiatives, but her concern is that some people may not be able to afford to do without per diem and that may have unintended consequences. 4:24:16 PM SENATOR HOLLAND said the concern about creating a legislature of elite incomes would not be a problem if legislators were to prioritize the job of passing the budget in 121 days. He added that he would support leaving the capital in Juneau but moving the legislature to Anchorage. CHAIR SHOWER pointed out that legislatures in some states, Texas for example, meet every other year and get the job done. SENATOR HOLLAND said the legislature does get distracted with issues like the size of the permanent fund dividend (PFD) and that should be fixed so it's automatic. He noted that the Fiscal Plan Working Group pushed for that last year. He offered his view that collecting $300 per day in per diem after day 121 could be a motivation to not pass the budget timely. He disclosed that he did not collect per diem in the first or second special session last year to honor the intent of the voters when they passed the initiative on the topic of per diem. SENATOR REINBOLD commented that leadership will have to lead to ensure that the Senate receives the budget from the House before it's down to the wire. She added that she believes the budget process is backwards and the solution is to place a cap on the budget. She voiced support for the bill and thanked the sponsor for bringing it forward. CHAIR SHOWER commented on the difference between talking about moving the legislature as opposed to moving the capital. 4:29:16 PM SENATOR HOLLAND summarized that SB 145 does not change the law; it reinforces and clarifies the existing statute. CHAIR SHOWER held SB 145 in committee.