HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES STANDING COMMITTEE April 18, 1994 3:00 p.m. MEMBERS PRESENT Rep. Cynthia Toohey, Co-Chair Rep. Con Bunde, Co-Chair Rep. Gary Davis, Vice Chair Rep. Al Vezey Rep. Pete Kott Rep. Harley Olberg Rep. Irene Nicholia Rep. Tom Brice MEMBERS ABSENT Rep. Bettye Davis OTHER LEGISLATORS PRESENT Rep. Bill Hudson COMMITTEE CALENDAR *HB 522: "An Act relating to unemployment compensation for persons employed by educational institutions in other than educational, research, or principal administrative capacities." HEARD AND HELD CONFIRMATION HEARINGS: Board of Barbers and Hairdressers State Medical Board Board of Nursing Board of Pharmacy (* First public hearing.) WITNESS REGISTER JOAN WILKERSON, Southeast Regional Manager Alaska Public Employees Association American Federation of Teachers 211 N. Fourth St., Ste. 306 Juneau, Alaska 99801 Phone: (907) 586-2334 Position Statement: Testified in support of HB 522 PAULA CLAYTON, Employee Mount Edgecumbe High School 102 Sharon Dr. Sitka, Alaska 99835 Phone: (907) 747-8236 Position Statement: Testified in support of HB 522 (spoke via teleconference) DUANE GUILEY, Director Division of Education Finance and Support Services Department of Education 801 W. 10th St., Suite 200 Juneau, Alaska 99801-1894 Phone: (907) 465-2891 Position statement: Answered questions on HB 522 VERNON MARSHALL, Executive Director National Education Association/Alaska 114 Second St. Juneau, Alaska 99801 Phone: (907) 586-3090 Position Statement: Testified in support of HB 522 ROSE SMITH, Member Mat-Su PTA 1150 Gail Dr. Wasilla, Alaska 99654 Phone: (907) 376-2517 Position Statement: Testified in support of HB 522 (spoke via teleconference) BILL MONROE 2950 Mariann's Way Wasilla, Alaska 99654 Phone: (907) 376-4269 Position Statement: Testified in support of HB 522 (spoke via teleconference) LEN MURRAY P.O. Box 870523 Wasilla, Alaska 99654 Phone: (907) 376-5063 Position Statement: Testified in support of HB 522 (spoke via teleconference) ED FLANAGAN, Southeast Representative Alaska State District Council of Laborers 710 W. Ninth St. Juneau, Alaska 99801 Phone: (907) 586-2860 Position Statement: Testified in support of HB 522 NIKKI PEARSON 190 Trumpeter Soldotna, Alaska 99669 Phone: (907) 262-9214 Position Statement: Testified in support of HB 522 (spoke via teleconference) CARL ROSE, Executive Director Association of Alaska School Board 316 W. 11th Juneau, Alaska 99801 Phone: (907) 586-1083 Position Statement: Testified in opposition to HB 522 SCOTT BIDWELL 2118 S. Cushman Fairbanks, Alaska 99709 Phone: (907) 452-2123 Position Statement: Testified in support of HB 522 (spoke via teleconference) JACKIE NELSON-LAZARDI, Teacher's Aide Special Education Department Fort Greeley Elementary School HC 60 Box 4180 Delta Junction, Alaska 99737 Phone: (907) 895-4217 Position Statement: Testified in support of HB 522 (spoke via teleconference) SANDY PEVAN, Teacher's Aide Special Education Department Mat-Su School District P.O. Box 871256 Wasilla, Alaska 99654 Phone: (907) 373-6198 Position Statement: Testified in support of HB 522 (spoke via teleconference) MARK BROWN P.O. Box 520783 Wasilla, Alaska 99654 Phone: (907) 892-6010 Position Statement: Testified in support of HB 522 (spoke via teleconference) PAM CONRAD, President Mat-Su Education Association P.O. Box 2776 Palmer, Alaska 99645 Phone: (907) 745-2015 Position Statement: Testified in support of HB 522 (spoke via teleconference) PREVIOUS ACTION BILL: HB 522 SHORT TITLE: UNEMPL'T COMP: NONCERTIFICATED SCH. EMPS. SPONSOR(S): LABOR & COMMERCE JRN-DATE JRN-PG ACTION 03/09/94 2683 (H) READ THE FIRST TIME/REFERRAL(S) 03/09/94 2683 (H) HES, STATE AFFAIRS, FINANCE 04/18/94 (H) HES AT 03:00 PM CAPITOL 106 ACTION NARRATIVE TAPE 94-67, SIDE A Number 000 CHAIR BUNDE called the meeting to order at 3:05 p.m., noted members present and announced the calendar. He brought HB 522 to the table. HB 522 - UNEMPLOYMENT COMPENSATION: NONCERTIFICATED SCHOOL EMPLOYEES Number 031 REP. BILL HUDSON addressed HB 522. He stated that he introduced the legislation upon the request of the noncertified school district employees. He indicated that he was unaware that this was one category of state employees that works nine months of the year and are precluded by law from drawing unemployment insurance. He explained that these individuals are not organized, therefore they have no job protection, and it is difficult for them to find employment for 10 weeks of the year. He asserted that the legislation would modify the existing laws and allow those seasonal workers to receive unemployment benefits. REP. HUDSON further indicated that there is a "hefty" fiscal note and the cost would be incurred by the school districts. He urged the committee that to support the legislation is the right thing to do. He stated that the legislation would provide equity for those employees who currently are not eligible for unemployment benefits. Number 126 (Chair Bunde indicated that Rep. Olberg arrived at 3:07 p.m.) CHAIR BUNDE acknowledged the sizable fiscal note and indicated that it was not his intention to pass the bill out. REP. VEZEY asked if he was missing a fiscal note and pointed out that his bill packet had two zero fiscal notes attached. REP. HUDSON explained that the zero fiscal notes reflect that there is no cost to the Department of Labor (DOL). He said there would be a shared cost between the employee and employer when the employees are placed in the unemployment system. He indicated that the school districts would incur the additional costs. Number 163 REP. OLBERG indicated that page 2 of the Department of Labor fiscal note reflects very large sums of money. CHAIR BUNDE asserted that the figures are in the $3 million to $5 million range. REP. VEZEY added that page 2 of the Department of Education (DOE) also has very large figures. REP. HUDSON indicated that the fiscal notes "are one in the same, or should be." He reiterated that the cost falls on the school districts, not the DOE or the DOL. REP. G. DAVIS clarified by saying that the workers are not currently eligible for unemployment insurance and are not paying for it now, and neither is the employer paying for it. REP. HUDSON said the employees are ineligible to receive unemployment. He reiterated that the legislation would make these particular seasonal workers eligible for unemployment benefits. Number 202 CHAIR BUNDE stated that testimony would be heard via teleconference from Sitka, Mat-Su, Fairbanks, Kenai, and Soldotna. He asked for testimony in Juneau. Number 205 JOAN WILKERSON, Southeast Regional Manager, Alaska Public Employees Association, American Federation of Teachers, testified in Juneau in support of HB 522. She stated that she represents a broad spectrum of public employees including over 230 classified school district employees in Juneau. She said over half are employed for nine to ten months of the year and would be directly affected by the bill. She explained that the employees are non-teachers who work with or around students; i.e., teacher's aides, secretaries, nurses, and custodians. She stated that most of the employees earn $11.00 to $15.00 per hour for only 10 months of the year. In the summer they receive no insurance, no retirement benefits, and are presently ineligible for unemployment insurance. She asserted that the issue is one of fairness. MS. WILKERSON asserted that federal law permits states to award unemployment insurance to these individuals. She maintained that there is no fiscal note attached to the bill. She further argued that the proposal would better the working conditions for the lowest paid segment of public employees who devote their working lives to working with and around Alaska school children. She urged the committee to support HB 522. Number 275 CHAIR BUNDE mentioned that he had a 23 year teaching career and worked 22 summers. He acknowledged that seasonal work does involve multiple jobs. REP. G. DAVIS referred to the zero fiscal note and asked if the current unemployment system is paying for itself. He asked if revenues are covering expenses. He said if the current system is paying for itself and the legislation is taken on as an additional program, he would agree that the legislation is cost neutral. But if the current system is not paying for itself, an additional program would "make us go further in the red." MS. WILKERSON asked if Rep. G. Davis was asking if the current system was paying for itself. REP. G. DAVIS said yes. MS. WILKERSON stated that she did not have the answer to that question. Number 324 REP. BRICE said he believed the current unemployment insurance system does pay for itself, for the STEP program, and for various other employment programs. (Chair Bunde indicated that Rep. Toohey arrived at 3:11 p.m.) CHAIR BUNDE asked for testimony from Sitka. Number 330 PAULA CLAYTON, Employee, Mount Edgecumbe High School, testified via teleconference in support of HB 522. She stated that she is a seasonal worker and does not receive benefits and is unable to collect unemployment. She asserted that yearly seasonal employees must reevaluate whether or not they should keep their job, as it is difficult to find a summer job for such a short period of time. She urged the committee to support the legislation. CHAIR BUNDE indicated that there would be a decrease in wages to support contributions to unemployment insurance. MS. CLAYTON said to her knowledge she has been paying into unemployment through her paycheck. She said she was unsure as to whether the school pays into unemployment for her. CHAIR BUNDE said he would research the issue as that was not his understanding. CHAIR BUNDE asked Duane Guiley to address the issue. Number 400 DUANE GUILEY, Director, Division of Education Finance and Support Services, Department of Education, testified in Juneau on HB 522. He stated that there are two choices for unemployment compensation coverage that each employer in the public school districts has. One choice is called the reimbursable method where the district pays each dollar of unemployment claims that are filed on behalf of the districts by their prior employees. The second choice is the percentage of payroll method where the district pays a fixed percentage of their payroll based upon their claims history. He said school district employees are not paying for unemployment compensation coverage out of their paychecks. He indicated that the coverage was being paid for directly by their employer. Number 437 CHAIR BUNDE asked if the employer was paying for unemployment insurance currently. MR. GUILEY specified that it was currently being paid by the reimbursable method by most employers in the school districts. He explained that for the employees that file claims, the district is billed quarterly by the Unemployment Division and then they cut a check and pay back the claims. He reiterated that the employees do not pay for the coverage out of their paychecks. CHAIR BUNDE asked, if the legislation passed, would the seasonal employees be required to pay for coverage out of their paychecks. MR. GUILEY answered no. He said the employer would pay the total price tag out of their "existing foundation dollars." CHAIR BUNDE asked if the state charge for unemployment compensation would increase if the seasonal employees were allowed to be compensated. MR. GUILEY said yes. CHAIR BUNDE observed that there would be less money going to salaries. MR. GUILEY agreed. Number 477 REP. BRICE asked if the school districts are currently paying for unemployment coverage. MR. GUILEY indicated that districts pay actual claims under the reimbursable method, but there may still be some districts that use the percentage of payroll method, in which case the DOL would determine an experience rating and would adjust the premium for the percentage of total payroll based on the actual number of claims filed. The districts would only pay for the claims being made by their prior employees. CHAIR BUNDE added that if the bill passes, the claims would go up significantly. Number 516 REP. NICHOLIA asked if under the percentage of payroll method, would the employees be paying for unemployment coverage from their paycheck. MR. GUILEY explained that under the percentage of payroll method, employees are not paying a specific share. The employer is paying a specific share based on their experience. He said then the employer must balance their total resources between all their expenditures, which are salaries and benefits. REP. NICHOLIA referred to Ms. Clayton's testimony and asked if she and others were paying for unemployment insurance. MR. GUILEY said it was not his understanding that those employees were paying for unemployment out of their paychecks. Number 539 VERNON MARSHALL, Executive Director, National Education Association/Alaska (NEA-AK), testified in Juneau in support of HB 522. He stated that the legislation corrects an inequity. He indicated that the problem started in the early 1970's when educational support or seasonal employees qualified for unemployment during the summer months. He said that policy changed in the 1970's as a disqualifier was provided for where an individual would not qualify to file if there was a break in service or a period of time between two successive academic years. He stated that in 1991, President Bush signed the Emergency Employment Compensation Act that lifted the prohibition and provided opportunity for states to further explore the issue again. MR. MARSHALL further stated that there have been exemptions made for noncertificated employees, which are listed in the position statement that the NEA-AK provided to the committee in their bill packets. For example, those who taught indigenous languages were given an opportunity to qualify for unemployment benefits if they were employed by a school district. MR. MARSHALL indicated that noncertificated employees do not accrue retirement credit or compensation from the school district during the summer. He explained that it is difficult for a cafeteria worker, secretary, teacher's aide, custodian, or a mechanic to secure limited one to three month employment opportunities in the private or public sectors. He explained that the reality of the situation is that these individuals must stretch personal and family budgets in order to pay for twelve months of family expenses. He felt that noncertificated school employees are permanent Alaska residents. Benefits provided them would be spent in local economies. MR. MARSHALL stated that the book "Unemployment Insurance Actuarial Study and Finance" published in 1992 indicated that Alaska provided interstate unemployment benefits. He said approximately $25.5 million in benefits went out of Alaska to virtually every state in the country and Canada. He asserted that it is unfair to provide benefits in that manner while noncertificated school employees are being denied unemployment benefits. He further explained that the book indicates that the maximum salary that benefits are calculated on is $22,000 and above. That would be $212.00 per week plus $24.00 for dependents, providing for up to three dependents. He felt that the money would provide for basic family necessities. He also felt that the level of benefits would not cause a person to choose unemployment over the opportunity to work. MR. MARSHALL said that it is difficult to estimate the direct financial cost to the school districts. Since some employees will likely not apply for benefits for numerous reasons and other employees will not be available for work during the summer, it's difficult to calculate use. MR. MARSHALL further stated that these individuals are forced to rely on another working spouse or another short term job during the summer months. The extension of benefits would simply protect those who are unable to find work and want to work. He also indicated that if a noncertificated employee is fired, they would qualify for unemployment benefits. Number 808 REP. TOOHEY indicated that a mother of two children whose salary is $17,000 per year would qualify for welfare benefits while she's working. MR. MARSHALL said that there are many noncertificated school employees that qualify for food stamps and welfare. He indicated that many of those people want to work and do not ask for public assistance. CHAIR BUNDE clarified that teachers do not collect unemployment because of the reasonable expectation of unemployment. MR. MARSHALL concurred. CHAIR BUNDE said, "I also hear you saying that because of the financial difference, teachers make more money, so they shouldn't qualify. But, these people make less than they should." MR. MARSHALL explained that there are many variables. He said many teachers continue to go to school to improve their credentials. CHAIR BUNDE observed that there is a reasonable expectation for reemployment for school secretaries, as some have been working for the school district for 20 years. MR. MARSHALL asserted that currently a person can work for nine months on the North Slope and then collect a $212.00 weekly benefit in Arkansas for a couple of months and return when the opportunity arises. He felt the same opportunity should be offered to noncertificated school employees. Number 891 CHAIR BUNDE referred to the problems facing the state budget and school funding. He asked if Mr. Marshall knew that school funding would not increase next year and that any money for the program would be taken out of other school programs, would he still support the legislation. Number 900 MR. MARSHALL maintained that the issue is one that he would like to take back to his membership and let them debate the issue. CHAIR BUNDE asked for further questions. Number 905 REP. VEZEY asked what the dollar amount was for unemployment benefits that are paid to people out-of-state. MR. MARSHALL said the figure is $25.4 million. Number 917 ROSE SMITH, Member, Mat-Su PTA, testified via teleconference in support of HB 522. She stated that she is a nine month employee with the Mat-Su School District. She stated that she does have the option of continuing her health coverage over the summer for one-half the cost to herself. She said if she does not have a job, she cannot cover that cost. She explained that summer jobs are difficult to come by as employers are reluctant to hire a person for such a short period of time. She indicated that she does plan to return to her job in September. Number 944 BILL MONROE, concerned citizen, testified via teleconference in support of HB 522. He stated that fire fighters and other state seasonal workers are entitled to unemployment insurance. He regarded the bill as an equity issue for school district employees who are paid much less than most seasonal workers. He further indicated that fire fighters and various other seasonal workers have the opportunity to work overtime and noncertificated school employees do not. He encouraged the committee to address the equity issue. MR. MONROE also indicated that teachers receive retirement credit for twelve months, whereas seasonal school employees only receive them for the number of months worked. He explained that an attempt was made to rectify that matter with SB 187. He said that he and co-workers feel that if they cannot have equity regarding retirement, then they should have equity regarding unemployment insurance. He further indicated that the Supplemental Interim Benefits (SIB) program was available when "times were better." He felt that if times do get better in the near future, that program could be utilized. He acknowledged the economic problems facing the state, but urged the committee to support HB 522. Number 990 CHAIR BUNDE asked if Mr. Monroe was referring to wild fire fire fighters in his testimony. MR. MONROE said, "If they're state workers, they're eligible for unemployment insurance. That's all I know. So, to answer your question, yes." CHAIR BUNDE added that those fire fighters are the ones that are hired in the summer and are laid off in the winter. MR. MONROE said yes. CHAIR BUNDE asserted that this issue may be part of the problem. He asked for further testimony. Number 995 LEN MURRAY, concerned citizen, testified via teleconference in support of HB 522. He stated that many of the noncertificated school employees work for wages that only support their housing, food, and small bills throughout the nine or ten month period. He said their wages do not allow for them to save money that would cover their expenses during the summer. He explained that many of the workers must find jobs at minimum wage, but that amount does not cover their expenses. He indicated that this year the unemployment rate was between eight and nine percent. He asked how many of these people will be able to find jobs for the summer. Number 026 CHAIR BUNDE asked for further testimony. Number 027 ED FLANAGAN, Southeast Representative, Alaska State District Council of Laborers, testified in Juneau in support of HB 522. He stated that he represents Public Employees Local 71. He explained that Local 71 represents 300 maintenance employees in the Anchorage school district, primarily janitorial and light maintenance building officers. He indicate that when the supplemental benefits were terminated it had a devastating effect on many people. He asserted that those employees work in the summer when they can, but he questioned what their fate will be when they are unable to find work. MR. FLANAGAN indicated that teacher's salaries are annualized. He explained that many of the noncertificated employees used to be 12 month employees but have been cut back. He said, "I think the department's fiscal note, there's no explanation of how they arrived at the 65% figure. But, $3.9 million is nearly twice what the cost was when the state was reimbursing under general funds for this, when they stopped doing it in approximately 1985, and unemployment insurance has only gone up between six and twelve percent in that time. So, I think this is a high number. I think the folks, when they can, work or go on unemployment, they have to, if they can find work. It's not only that they have to be available, they have to be out and seek employment. And, our folks will do that because the wages they make are just not enough to sustain them on a year when they're only working nine months a year." He acknowledged that correcting inequities costs money, but the cost would be spread amongst the districts. Number 075 CHAIR BUNDE asked for further testimony. Number 076 NIKKI PEARSON, Kenai Peninsula Education Support Association (KPESA), testified via teleconference in support of HB 522. She stated that she has been a member of the Kenai Peninsula School District for 15 years, and at one time she worked 12 months of the year. She indicated that she was cut back to nine months, which is the equivalent of 320 hours lost annually. She said the decrease brought her down close to the poverty level. She asserted that during summer months bills still have to be paid and she knows many people who have taken out loans because they were unable to find summer work. She expressed how serious a problem the issue is and urged the committee to pass HB 522. Number 116 CHAIR BUNDE asked what Ms. Pearson's position was in the school district. MS. PEARSON said she is the head custodian for an elementary school, which is a ten month position. CHAIR BUNDE asked for further testimony. TAPE 94-67, SIDE B Number 000 CARL ROSE, Executive Director, Association of Alaska School Board (AASB), testified in Juneau in opposition to HB 522. He stated that it is very difficult to estimate what the cost of the legislation would be. He observed that school district budgets are currently inadequate to perform under status quo. He referred to the passage of HB 505 and thanked the committee members for their consideration. He explained that currently many school districts choose the reimbursement method of unemployment. He said if the bill were to pass they would have to reconsider which method to use. MR. ROSE said that the legislation includes additional costs that cannot be covered. He asserted that the districts cannot keep pace with inflation. He said it would cost a considerable amount to address the fairness issue and that if the state would be willing to help, "we would appreciate the help." He stated that as things stand now, he opposes the legislation. Number 055 REP. VEZEY indicated that unemployment benefits were set up as insurance for those people who could not predict when they would lose their jobs. He explained that individuals would pay into a pool that would pay a stipend to them while they were temporarily unemployed. He asserted that this issue is very predictable. He said there would be no difference in writing a law requiring school districts to give their employees a pay raise. He said there would be no difference in paying the individuals for the 12 weeks that they are unemployed and paying them 25% more wages during the time that they are employed. He maintained that the legislature is being asked to grant a pay raise through statute, not to insure those who unexpectedly lose their jobs. MR. ROSE asserted that if the bill passed, it would increase costs without any additional revenue. He stated that if there were mandates from the state, districts would expect financial assistance. He felt the legislation is a good idea, but under status quo it is not economically feasible, as there would be no additional revenue to cover the expense. CHAIR BUNDE suggested that another option would be to increase local contribution. MR. ROSE chose not to address that issue but indicated that it is another area of concern for the AASB. CHAIR BUNDE asked for further testimony. Number 139 SCOTT BIDWELL, concerned citizen, testified via teleconference in support of HB 522. He stated that noncertified school employees have incurred numerous cuts in hours and pay. He explained that many individuals in Fairbanks now work for 82% of what they made six years ago as they were cut back from 12 to nine or ten months. He explained that those workers have tried to obtain a 12 month pay option, which means that a person is paid over a 12 month period for nine or ten months of work. He maintained that there has been no cooperation from the district in that regard. He further explained that there are approximately 380 nine or ten month employees and most have not chosen to work that length of time as they used to be 12 month employees. Number 191 CHAIR BUNDE observed that districts often allow teachers the option of taking their salary over a 12 month period. He asked if Mr. Bidwell's district allows seasonal employees to take their salaries over a 12 month period. MR. BIDWELL said no. He indicated that the district said that method would be more costly. CHAIR BUNDE suggested that if Mr. Bidwell needed legislative support for that issue, he would volunteer Rep. Brice to address the problem. He asked for further testimony. Number 219 JACKIE NELSON-LAZARDI, Teacher's Aide, Special Education Department, Fort Greeley Elementary School, testified via teleconference in support of HB 522. She stated that noncertificated employees are selected first when there are budget crunches in school districts. She said there is a history of discrimination against seasonal employees in the areas of benefits, retirement credit, job security, contracting out, the right to bargain, and unemployment compensation. She asserted that noncertificated employees have no employment or unemployment compensation for up to one-fourth of each year. MS. NELSON-LAZARDI stated that even the most aggressive job seekers among them cannot find an employer who wishes to hire an employee for a period of only two or three months. She indicated that any employment that is found is traditionally filled by students. She further explained that she is a single mother with two children and has been forced to take such positions and has then had to pay a babysitter 60% or more of her wages. Although she does qualify for public assistance during those times, her pride does not allow her to take advantage of the benefits. Instead, she has opted to take the first three to four months of each school year to try and "catch up" and repeat the same scenario year after year. She felt the legislation would help to enhance her family's quality of life through an "earned" benefit and not a "hand-out." She strongly urged the passage of HB 522. Number 303 CHAIR BUNDE asked Ms. Nelson-Lazardi what her job position is. MS. NELSON-LAZARDI stated that she has been a Teacher's Aide in the Special Education Department for the past 15 years. CHAIR BUNDE asked for further testimony. Number 310 SANDY PEVAN, Teacher's Aide, Special Education Department, Mat-Su School District, testified via teleconference in support of HB 522. She stated that she has been working in the Mat-Su district for approximately 17 years. She indicated that she has 9.1 years accrued in her retirement plan. She stressed that the issue is one of equity. She said if she cannot receive an equitable share of retirement, she should at least be able to make her house payment during the summer. Number 347 CHAIR BUNDE asked for testimony from Mark Brown. Number 348 MARK BROWN, concerned citizen, testified via teleconference in support of HB 522. He stated that many seasonal employees seek jobs elsewhere and some do stay at home during the summer. He indicated that the money that would be paid during the summer months if the bill is passed would be spent in local economies. Number 355 PAM CONRAD, President, Mat-Su Education Association, testified via teleconference in support of HB 522. She stated that the teachers of the Mat-Su School District support the legislation. She asserted that noncertificated employees are living at the poverty level and that they are friends and co-workers. She described the anxiety and pain that families go through when they anticipate and go through the financially difficult summer. She said that many of her friends are forced to consider going on welfare, of which they "have way to much pride to accept." She said some parents leave the town and their children to find jobs elsewhere for the summer. She asserted that the situation is inequitable. She stated that the Mat-Su Education Association urges the committee to pass HB 522. Number 412 CHAIR BUNDE asked for further testimony. There being none, he closed public testimony. He acknowledged that the issue was one of equity, but indicated that because of the challenges facing this year's school budget, there was no possibility that the committee would move HB 522 forward. He stated that hopefully next year's budget could facilitate the change. He then brought the confirmation hearings to the table. CONFIRMATION HEARINGS CHAIR BUNDE observed that all members had the opportunity to study the qualifications of the appointees. He said he would read the names of the nominees into the record. He told the committee to feel free to stop him if there were any comments or questions. If there were no objections, he said the committee would then transmit the appointees' names to the Speaker of the House with individual recommendations. BOARD OF BARBERS AND HAIRDRESSERS Lawrence R. Krupa - North Pole STATE MEDICAL BOARD Edward D. Spencer, M.D. _ Palmer BOARD OF NURSING Patricia "Gail" Kelley - Kodiak BOARD OF PHARMACY Kendal L. Kaihoi, R.Ph. - Fairbanks Number 461 REP. OLBERG indicated that he was personally acquainted with Lawrence Krupa and said he is a "fine, upstanding" person. CHAIR BUNDE asked the pleasure of the committee. REP. TOOHEY made a motion to adopt the nominations and pass them out of committee. CHAIR BUNDE suggested that they be passed out with individual recommendations. REP. TOOHEY disagreed. CHAIR BUNDE indicated that prior confirmations that were passed out had the option of do confirm, do not confirm, or no recommendation. He asked for any objections. There being none, the appointees were passed out of committee. Seeing no further business before the committee, CHAIR BUNDE adjourned the meeting at 4:00 p.m.