ALASKA STATE LEGISLATURE                                                                                  
             HOUSE STATE AFFAIRS STANDING COMMITTEE                                                                           
                        February 6, 2025                                                                                        
                           3:21 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Ashley Carrick, Chair                                                                                            
Representative Andi Story, Vice Chair                                                                                           
Representative Rebecca Himschoot                                                                                                
Representative Ky Holland                                                                                                       
Representative Elexie Moore                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Sarah Vance                                                                                                      
Representative Kevin McCabe                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW: PAYROLL DIVISION                                                                                                      
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 10                                                                                                               
"An Act relating to the Board of Regents of the University of                                                                   
Alaska."                                                                                                                        
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 61                                                                                                               
"An Act relating to employment; relating to voluntary flexible                                                                  
work hour plans; relating to the employment of minors; and                                                                      
relating to hours worked by minors employed in the state."                                                                      
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  10                                                                                                                  
SHORT TITLE: ADD FACULTY MEMBER UNIV BOARD OF REGENTS                                                                           
SPONSOR(s): REPRESENTATIVE(s) CARRICK                                                                                           
                                                                                                                                
01/22/25       (H)       PREFILE RELEASED 1/10/25                                                                               
01/22/25       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/22/25       (H)       STA, FIN                                                                                               
02/06/25       (H)       STA AT 3:15 PM GRUENBERG 120                                                                           
                                                                                                                                
BILL: HB  61                                                                                                                  
SHORT TITLE: EMPLOYMENT OF MINORS                                                                                               
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
01/22/25       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/22/25       (H)       STA, L&C                                                                                               
02/06/25       (H)       STA AT 3:15 PM GRUENBERG 120                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
PAULA VRANA, Commissioner                                                                                                       
Department of Administration                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Co-offered the Department of Administration                                                              
Payroll Division overview.                                                                                                      
                                                                                                                                
ERIC DEMOULIN, Administrative Services Director                                                                                 
Division of Finance                                                                                                             
Department of Administration                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Co-offered the Department of Administration                                                              
Payroll Division overview.                                                                                                      
                                                                                                                                
STUART RELAY, Chief of Staff                                                                                                    
Representative Ashley Carrick                                                                                                   
Alaska State Legislature                                                                                                        
POSITION STATEMENT:  On behalf of Representative Carrick, prime                                                               
sponsor, presented HB 10.                                                                                                       
                                                                                                                                
Cathy Muoz, Commissioner                                                                                                        
Department of Labor and Workforce Development                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  introduced HB 61 on behalf of the bill                                                                   
sponsor, House Rules by request of the governor.                                                                                
                                                                                                                                
Tanya Keith, Director                                                                                                           
Division of Labor Standards and Safety                                                                                          
Department of Labor and Workforce Development                                                                                   
POSITION STATEMENT:  Presented HB 61 on behalf of the bill                                                                    
sponsor, House Rules by request of the governor.                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:21:18 PM                                                                                                                    
                                                                                                                                
CHAIR  ASHLEY CARRICK  called the  House  State Affairs  Standing                                                             
Committee meeting to  order at 3:21 p.m.   Representatives Story,                                                               
Holland, Vance,  McCabe, and  Moore were present  at the  call to                                                               
order.   Representative Himschoot arrived  as the meeting  was in                                                               
progress.                                                                                                                       
                                                                                                                                
^Overview: Payroll Division                                                                                                     
                   Overview: Payroll Division                                                                               
                                                                                                                              
3:22:55 PM                                                                                                                    
                                                                                                                                
CHAIR CARRICK  announced that the  first order of  business would                                                               
be an overview of the Payroll Division.                                                                                         
                                                                                                                                
3:23:40 PM                                                                                                                    
                                                                                                                                
PAULA  VRANA, Commissioner,  Department of  Administration, began                                                               
the Department of Administration  Payroll Division overview.  She                                                               
began by  noting that  Payroll Services  has faced  challenges in                                                               
the past  several years.   This  includes difficulties  with both                                                               
recruitment   and  retention,   and   it   has  exasperated   the                                                               
complexities  of  an  outdated  payroll  system.    She  remarked                                                               
however, that  the division has  made significant  progress since                                                               
the presentation to the committee last year.                                                                                    
                                                                                                                                
COMMISSIONER  VRANA described  some areas  of improvement  within                                                               
the  [Payroll  Services].    First,   it  has  fully  digitalized                                                               
timesheet submission  and processing  and has  begun digitalizing                                                               
past  timesheet   and  payroll   documents.     Several  thousand                                                               
timesheets per pay period are  processed automatically, which she                                                               
noted is a new accomplishment  that will save time and resources.                                                               
Payroll  Services has  also  relocated its  office  to the  State                                                               
Office Building.   She said what really excites her  is what lies                                                               
ahead, and  much work can still  be done to improve  the process.                                                               
She said that this includes remote processing of payrolls.                                                                      
                                                                                                                                
3:27:43 PM                                                                                                                    
                                                                                                                                
ERIC  DEMOULIN,  Administrative  Services Director,  Division  of                                                               
Finance, Department  of Administration, as co-presenter,  began a                                                               
PowerPoint  [hard  copy included  in  the  committee file].    He                                                               
presented  Slide 3  and discussed  portal statistics.   He  noted                                                               
that  the  division changed  the  way  that it  receives  payroll                                                               
inquiries and  notices of pay problems.   He noted that  the data                                                               
is  grouped  into  two  categories; inception  to  date  and  pay                                                               
period.    He remarked  that  average  tickets  per day  and  the                                                               
inception to  date is a way  that the system recognizes  how many                                                               
tickets come to  staff each day.  He noted  that the current time                                                               
to address the backlog, based off  statistics is 308.68 days.  He                                                               
provided  an   elaboration  of  numbers  pertaining   to  tickets                                                               
completed per day and by time period.                                                                                           
                                                                                                                                
3:31:20 PM                                                                                                                    
                                                                                                                                
MR.  DEMOULIN  responded to  a  couple  questions from  committee                                                               
members.    First, he  noted  that  he  would be  addressing  the                                                               
backlog later in  the presentation.  Second, he said  that he can                                                               
provide committee members a different  set of data not pertaining                                                               
to holidays following the committee meeting.                                                                                    
                                                                                                                                
3:32:19 PM                                                                                                                    
                                                                                                                                
MR. DEMOULIN presented the next  few slides and discussed current                                                               
projects associated with Payroll Services.   He elaborated on the                                                               
time and  attendance system.   He  discussed how  many timesheets                                                               
are processed  and how they are  processed.  He remarked  that in                                                               
the  future   the  division  is  looking   at  integrating  those                                                               
processes  and building  efficiencies.    Additionally, he  noted                                                               
that the  division is looking at  improving electronic timesheets                                                               
as  well.   He  said  that having  an  efficient  way to  receive                                                               
timesheets  will  allow  Payroll   Services  to  build  efficient                                                               
processes and the lack of  standardization between submissions is                                                               
an area of  improvement.  He mentioned that  mass approvals apply                                                               
to  about half  of the  current payrolls.   He  discussed payroll                                                               
optimization,  pay   roll  actions,  retroactive   payments,  and                                                               
current processes.  He added  that integration processes that are                                                               
in current  formulation are to  reduce manual labor  and redeploy                                                               
resources.                                                                                                                      
                                                                                                                                
3:37:35 PM                                                                                                                    
                                                                                                                                
MR. DEMOULIN gave an example of  a retro pay adjustment.  He said                                                               
that if  an agency is  behind on evaluation requirements  for pay                                                               
increments, then  the division  needs to  receive and  process it                                                               
with  regards to  backpay.   He  mentioned that  the division  is                                                               
looking   at  implementing   systems  that   can  reduce   manual                                                               
calculations  for staff  and increase  evaluation  turnover.   He                                                               
mentioned the  use of Officers' Activity  Reporting System (OARS)                                                               
interface  and  its  utilization  by  the  Department  of  Public                                                               
Safety.  He  remarked that across the state a  few agencies use a                                                               
time  and  attendance  program that  helps  with  their  business                                                               
needs.  He said that  internal programming allows them to process                                                               
information.   He remarked that  a question amongst  the division                                                               
is how  they can  work with the  pre-existing programs  and focus                                                               
work efforts.                                                                                                                   
                                                                                                                                
3:39:35 PM                                                                                                                    
                                                                                                                                
MR. DEMOULIN  responded to a  couple of questions  from committee                                                               
members.   He said  that OARS is  a proprietary  system developed                                                               
for  specific department  use in  Alaska.   He said  that payroll                                                               
systems on  hold pertain to  funding decisions and a  request for                                                               
proposal (RFP), that would require legislative authority.                                                                       
                                                                                                                                
3:41:19 PM                                                                                                                    
                                                                                                                                
MR. DEMOULIN  remarked that one  of the biggest items  heard from                                                               
agencies is the  need to support 24-hour  facilities and accurate                                                               
reporting  times.   He said  that when  looking at  an RFP  for a                                                               
payroll system it would require  looking at what businesses need.                                                               
On Slide 5, he discussed  reporting projects and current feedback                                                               
from other  stakeholders.  He  then discussed  inefficiencies and                                                               
cited  health trusts  cutting off  insurance as  an example.   He                                                               
noted  that lapses  and delayed  pay are  something the  division                                                               
takes seriously.                                                                                                                
                                                                                                                                
3:43:51 PM                                                                                                                    
                                                                                                                                
MR.  DEMOULIN responded  to Chair  Carrick that  insurance lapses                                                               
can happen  for various  reasons and  provided some  examples and                                                               
elaboration.                                                                                                                    
                                                                                                                                
3:45:11 PM                                                                                                                    
                                                                                                                                
MR. DEMOULIN discussed  Item 2, staff metrics and  reporting.  He                                                               
remarked that reporting can come  a couple of different ways, and                                                               
the division  is trying to  get a  handle on how  many timesheets                                                               
are received, processed and what  the adequate staffing levels to                                                               
meet goals are.  He said  that timekeepers exist across the state                                                               
and  sign off  for staff.    He said  that double  checking is  a                                                               
redundant activity by the time it gets to payroll.                                                                              
                                                                                                                                
3:47:29 PM                                                                                                                    
                                                                                                                                
MR. DEMOULIN  discussed Slide 6  and current  projects pertaining                                                               
to  training  and  communications.   He  discussed  the  cultural                                                               
changes  since  COVID-19 and  readjustments  to  the current  job                                                               
market.  He  noted that the division hopes  to expand recruitment                                                               
pools  by  allowing more  flexibility  regarding  work from  home                                                               
options.      He   then   discussed   timekeeper   training   and                                                               
certification and  how to identify  areas of improvement  to make                                                               
these  timekeepers more  effective.   How  noted that  with a  50                                                               
percent vacancy, timekeeper improvements  have not been given the                                                               
attention they need.  He  then discussed communications, and that                                                               
one area of opportunity is  communication transparency with other                                                               
stakeholders  across the  state.   He  discussed recent  meetings                                                               
with union  members and the  work to allow more  communication on                                                               
what is  currently being worked on.   He noted that  a newsletter                                                               
is currently in formulation to help address this.                                                                               
                                                                                                                                
3:51:16 PM                                                                                                                    
                                                                                                                                
MR.  DEMOULIN   proceeded  to  Slide  7   and  discussed  payroll                                                               
statistics  broken   down  by  pay   period.    He   provided  an                                                               
explanation for  various notes  and numbers  found on  the slide.                                                               
He mentioned that auto approvals  or low-risk items are processed                                                               
with a high degree of  confidence and are given processing rules.                                                               
He provided elaboration  on what constitutes an  employee as low-                                                               
risk  and  how it  relates  to  auto-approvals.   He  provided  a                                                               
description of  payroll runs and  supplemental runs and  how they                                                               
are  part  of  the  business   process.    He  also  provided  an                                                               
explanation  of timesheets  not paid  on  time and  how this  can                                                               
occur.   He  noted  that even  with a  50  percent vacancy,  99.8                                                               
percent of  timesheets are paid  on time.   He remarked  that the                                                               
staff has worked extremely hard to do this.                                                                                     
                                                                                                                                
3:56:48 PM                                                                                                                    
                                                                                                                                
MR. DEMOULIN,  on the next slide  presented data representations.                                                               
He  recognized that  if  the  division is  not  operating at  100                                                               
percent,  then there  is room  for improvement.   The  next slide                                                               
provided  information on  auto approvals  and  provided a  visual                                                               
summary.   He said  that a  division focus  has been  on building                                                               
efficiencies in  other areas in  addition to auto-approvals.   He                                                               
mentioned  that this  includes building  a  portal to  facilitate                                                               
actions.  He  also mentioned that implementing a  module for form                                                               
creation and auto-interfacing for a  system of record will remove                                                               
manual  processes.     On   Slide  10,   he  presented   a  graph                                                               
representation of  auto-approvals and described the  rules system                                                               
that  governs  it.    On  Slide 11,  he  described  vacancies  by                                                               
component,  he mentioned  that the  section of  payroll currently                                                               
had a 32  percent vacancy, and these numbers are  run every week.                                                               
He noted  that currently hiring  incentives are used  for payroll                                                               
services.   He  expressed that  flexible telework  options should                                                               
help thin  applicant pools,  and the  division hopes  to finalize                                                               
these options in the next 30 days.                                                                                              
                                                                                                                                
4:03:06 PM                                                                                                                    
                                                                                                                                
MR.  DEMOULIN  answered  a series  of  questions  from  committee                                                               
members.    He credited  Commissioner  Vrana  for empowering  the                                                               
division to make these changes  and allowing some free reign with                                                               
regards to  improving pre-existing  processes.  He  credited good                                                               
staff and  other affiliated members  who helped these  changes go                                                               
into effect,  including his data  manager Will Muldoon.   He said                                                               
that some work regarding an ROI  strategic plan had been done for                                                               
payroll;  however, publishing  an ROI  number is  difficult until                                                               
other data  points are  met.   He said that  much of  the payroll                                                               
improvement focus has been on  finite tasks but that doesn't mean                                                               
there are  no other tasks  that can be worked  on.  He  said that                                                               
changing processes will create more  opportunities in other areas                                                               
and  that it  is  difficult to  pin  down an  ROI  in a  shifting                                                               
organization.  He remarked that he  does think there are going to                                                               
be more opportunities, but he could  not point to where they are.                                                               
He noted that  business development consultation is  an idea, and                                                               
that group  would have opportunities  to improve operations.   He                                                               
said that there is  a lot of work to do  internally as a starting                                                               
point.  He clarified that the  308.68 days to address the backlog                                                               
is based  off statistics and turnarounds.   He noted that  one of                                                               
the  biggest  retractors  is  data  storage.   He  said  that  an                                                               
internal program was built to help  address this and once it goes                                                               
live, it will  help address this problem.  He  said that he would                                                               
let committee members  know once it launches.   He also clarified                                                               
those timesheets  belonging to  the supplemental  run group.   He                                                               
clarified that  supplemental timesheets are not  more complicated                                                               
but different.   He said  he could communicate with  system staff                                                               
to determine how  long on average the paperwork  is processed and                                                               
follow-up with committee members.                                                                                               
                                                                                                                                
4:20:38 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:20 p.m. to 4:23. p.m.                                                                      
[During  the at-ease,  Chair  Carrick handed  the  gavel to  Vice                                                               
Chair Story.]                                                                                                                   
                                                                                                                                
        HB  10-ADD FACULTY MEMBER UNIV BOARD OF REGENTS                                                                     
                                                                                                                                
4:23:53 PM                                                                                                                    
                                                                                                                                
VICE CHAIR STORY announced that  the next order of business would                                                               
be HOUSE BILL NO. 10 "An Act  relating to the Board of Regents of                                                               
the University of Alaska."                                                                                                      
                                                                                                                                
4:24:13 PM                                                                                                                    
                                                                                                                                
CHAIR CARRICK, as  prime sponsor, introduced HB  10 and described                                                               
some of the bill's details.                                                                                                     
                                                                                                                                
4:24:40 PM                                                                                                                    
                                                                                                                                
STUART  RELAY, Chief  of  Staff,  Representative Ashley  Carrick,                                                               
Alaska State  Legislature, on  behalf of  Representative Carrick,                                                               
prime  sponsor, presented  HB 10.   He  began by  introducing the                                                               
University Board  of Regents and its  role.  He noted  that HB 10                                                               
would add one  faculty member to the Board of  Regents for a two-                                                               
year  term.   He stated  that  six other  states include  faculty                                                               
member(s) on their respective universities  board of regents.  He                                                               
said  that  adding  one  faculty   member  would  provide  better                                                               
representation  and allow  universities to  have the  same parity                                                               
and  respect granted  to  students who  have  an elected  student                                                               
regent.                                                                                                                         
                                                                                                                                
4:26:39 PM                                                                                                                    
                                                                                                                                
MR. RELAY read the sectional analysis  for HB 10 [included in the                                                               
committee  file], which  read  as  follows [original  punctuation                                                               
provided]:                                                                                                                      
     Section  1.  Short  title: "The  University  of  Alaska                                                                    
     Faculty Representation Act."                                                                                               
     Section 2. Amends AS 14.40.120  to increase the size of                                                                    
     the UA Board of Regents from 11 members to 12 members.                                                                     
     Section  3.   Adds  subsection  (f)  to   AS  14.40.130                                                                    
     establishing the requirements for the faculty regent.                                                                      
     • One of  the 12 regents must be  a current, full-time,                                                                    
     tenured faculty member within  the University of Alaska                                                                    
     system.                                                                                                                    
     •  If  the faculty  regent  is  no longer  tenured,  no                                                                    
     longer  employed full-time,  or no  longer employed  in                                                                    
     the UA system during their  term they shall forfeit the                                                                    
     position.                                                                                                                  
     • The Governor is required  to appoint a faculty regent                                                                    
     from  a  list  of  nominees   within  60  days  of  the                                                                    
     forfeiture or vacancy of the seat.                                                                                         
     Section 4.  Amends AS 14.40.140  to establish  the term                                                                    
     length of a faculty regent as two-years.                                                                                   
     Section  5.   Adds  subsection  (c)  to   AS  14.40.150                                                                    
     establishing the appointment process for the faculty                                                                       
     regent.                                                                                                                    
     • Requires at least one  member of the Board of Regents                                                                    
     to be a faculty member.                                                                                                    
     • The faculty regent will  be appointed by the Governor                                                                    
     from a  list of six  nominees within 60 days  after the                                                                    
     list is submitted to the Governor.                                                                                         
     •  The  list  of  nominees consists  of  names  of  two                                                                    
     faculty members  selected by each of  the three faculty                                                                    
     senates of the  UA system after an election  is held by                                                                    
     each faculty senate.                                                                                                       
     • The  elections process  for faculty  regent elections                                                                    
     conducted  by the  faculty senates  shall be  conducted                                                                    
     under rules established by the Governor's office.                                                                          
     • The term length of a  faculty regent is two years and                                                                    
     begins on  June 1 of  the year in which  appointment is                                                                    
     made.                                                                                                                      
     Section 6.  Changes the  quorum requirements  for Board                                                                    
     of Regents Meetings from six to seven members present.                                                                     
     Section 7.  Requires the University  of Alaska  to hold                                                                    
     elections for faculty regent nominees  on or before Feb                                                                    
     1, 2026.                                                                                                                   
                                                                                                                                
4:29:11 PM                                                                                                                    
                                                                                                                                
CHAIR CARRICK  gave a PowerPoint  pertaining to HB 10  [hard copy                                                               
included in the committee packet].   She mentioned that this bill                                                               
and  its  intent have  been  in  consideration  for years.    She                                                               
provided  a background  on the  University of  Alaska's Board  of                                                               
Regents and  its duties.   She  mentioned that  appointed student                                                               
regents  have  full  voting  power  amongst  the  board  and  two                                                               
students from  a campus  can be selected  for nomination  and are                                                               
subject  to  nomination by  the  governor.    She said  that  the                                                               
faculty members at the board can  act as advisors but do not have                                                               
any speaking rights.   When comparing to other  states, there are                                                               
24  state university  systems  that have  student  regents and  6                                                               
university systems  that have a  faculty regent.  She  noted that                                                               
there is not  one way to govern a university  system and provided                                                               
differences amongst various state  university systems.  On Slides                                                               
4 and 5, she provided  an illustration of differences among these                                                               
university systems.                                                                                                             
                                                                                                                                
4:33:06 PM                                                                                                                    
                                                                                                                                
CHAIR CARRICK  outlined how HB  10 would  work in practice.   She                                                               
remarked  that because  the  bill would  increase  the number  of                                                               
regents from  an odd to  an even  number, there is  language that                                                               
specifies  that a  quorum would  be increased  by one  member, as                                                               
would the  number of  votes needed  for a motion  to carry.   She                                                               
noted  that most  votes on  the Board  of Regents  are unanimous.                                                               
The faculty regent,  if appointed, would be selected  from a list                                                               
of  six  names given  by  the  three  faculty senates,  and  this                                                               
includes two nominees per university  system.  The governor would                                                               
select  a   single  appointee,  and   it  would  be   subject  to                                                               
confirmation by the  legislature.  Much like  the student regent,                                                               
she  reiterated, faculty  regents  would have  full board  power.                                                               
She clarified that of the  three main campuses, there are faculty                                                               
members  affiliated with  branch campuses  around the  state, and                                                               
they could be prospective nominees  as well.  She discussed Slide                                                               
8  and  presented  a  chart  that  shows  the  way  that  current                                                               
individuals interact with the Board of Regents.                                                                                 
                                                                                                                                
4:36:28 PM                                                                                                                    
                                                                                                                                
CHAIR CARRICK, in closing, noted  that over many years of working                                                               
on  this bill's  concept,  what  has become  clear  is that  many                                                               
faculty members  feel they don't have  a seat at the  table.  She                                                               
remarked that  most regents  come from  professional backgrounds,                                                               
and this  was a positive  thing.   She explained that  this would                                                               
not create  a majority  dynamic but  provide a  voice that  is in                                                               
parity with the university.                                                                                                     
                                                                                                                                
4:38:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HIMSCHOOT  asked about guarantees with  regards to                                                               
smaller  universities having  the opportunity  to have  candidacy                                                               
for seats on the board.                                                                                                         
                                                                                                                                
REPRESENTATIVE  CARRICK  responded  that   when  looking  at  the                                                               
student regent process, it may  be an appropriate comparison with                                                               
prospective faculty  regents.  She  noted that the  University of                                                               
Alaska  Southeast (UAS)  has had  some years  without submissions                                                               
for student regents.   She noted that past governors  have done a                                                               
decent  job   trying  to  achieve  parity   between  campuses  by                                                               
selecting  student  regents  across the  different  universities.                                                               
She acknowledged  that UAS  hasn't had  parity in  student regent                                                               
representation but expressed optimism that this is changing.                                                                    
                                                                                                                                
4:39:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOLLAND said he was  in support of this effort and                                                               
had  previous experience  working for  universities in  different                                                               
capacities.  He asked if  being tenured faculty was a requirement                                                               
for faculty  regents and  if this  could be  left to  the Faculty                                                               
Senate.  Additionally, he asked  for clarification for a backstop                                                               
if  a nominee  isn't appointed  by the  governor and  whether the                                                               
term length is appropriate.                                                                                                     
                                                                                                                                
CHAIR  CARRICK noted  that previous  discussions with  university                                                               
affiliates  had made  it clear  that  there is  a preference  for                                                               
tenured faculty.   She said  adjunct faculty could  be considered                                                               
with  Faculty  Senate approval  and  this  may serve  the  branch                                                               
universities or UAS.   She said the current bill  is drafted from                                                               
previous feedback  and explained  that the previous  iteration of                                                               
the bill had the University of  Alaska president weighing in as a                                                               
tiebreaker.   She said that previous  discussions with university                                                               
affiliates made  it clear  that the executives  and the  board of                                                               
regents should be separated.  She  said that if a governor failed                                                               
to  appoint  somebody for  the  position,  then it  would  remain                                                               
vacant.   She noted that  faculty time  on the board  was another                                                               
talking point amongst affiliates  and the term seemed appropriate                                                               
and would foster positive turnover.                                                                                             
                                                                                                                                
REPRESENTATIVE  HOLLAND  clarified  that his  inquiry  into  non-                                                               
tenured  faculty was  with specific  consideration to  termed but                                                               
non-tenured faculty.                                                                                                            
                                                                                                                                
4:46:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MOORE  asked for clarification on  the fiscal note                                                               
and if concerns had been addressed.                                                                                             
                                                                                                                                
CHAIR CARRICK responded that  the university administration likes                                                               
the  way  things are,  and  that  the  fiscal  note speaks  to  a                                                               
question  regarding conflict  of interest.    She said  HB 10  is                                                               
trying  to  achieve parity  with  a  student regent  and  support                                                               
faculty.    She noted  that  students  can  be employees  of  the                                                               
university  while serving  as regent  and will  recuse themselves                                                               
from  votes with  conflicts of  interest.   She noted  that these                                                               
same standards can be applied to  faculty regents.  She said that                                                               
she could get back to  Representative Moore regarding fiscal note                                                               
details.                                                                                                                        
                                                                                                                                
REPRESENTATIVE MOORE  asked about faculty members  on each campus                                                               
and  if  discussions  were made  about  rotating  faculty  regent                                                               
appointments amongst the different universities.                                                                                
                                                                                                                                
CHAIR CARRICK  responded that it  has been discussed in  the past                                                               
and she was not opposed to  specifying rotations in statute.  She                                                               
raised concerns that  it could create an inequity  because of the                                                               
higher  proportions of  tenured faculty  at University  of Alaska                                                               
Fairbanks (UAF)  and University of  Alaska Anchorage (UAA).   She                                                               
noted that the  intent is not to have a  single university system                                                               
monopolize this position.                                                                                                       
                                                                                                                                
4:51:21 PM                                                                                                                    
                                                                                                                                
VICE CHAIR  STORY, regarding the twelve-member  proposed under HB                                                               
10,  asked  if  a  thirteen-member  Board  of  Regents  would  be                                                               
considered.                                                                                                                     
                                                                                                                                
CHAIR  CARRICK responded  that she  would  be open  to adding  an                                                               
alumni  member  on  the  board.   She  said  that  bringing  this                                                               
legislation  forward   was  to  see  better   representation  and                                                               
informed  decision making,  and  the bill  seeks  to alleviate  a                                                               
current issue.  She said  alumni associations haven't been asking                                                               
for this representation, but the faculty have been.                                                                             
                                                                                                                                
VICE  CHAIR  STORY asked  about  being  open to  thirteen  regent                                                               
members  regardless of  designation.   She  raised concern  about                                                               
split votes from an even number of board members.                                                                               
                                                                                                                                
CHAIR CARRICK  responded that  a previous  iteration of  the bill                                                               
had an odd  number of regents, and  it was not as  popular as the                                                               
current version.  She noted  that when adding regents beyond what                                                               
is in the  legislation, role clarity is important.   She remarked                                                               
that adding  members could water down  pre-existing board members                                                               
voices and votes.                                                                                                               
                                                                                                                                
VICE  CHAIR STORY  asked about  whether other  university systems                                                               
had been  studied on how  they handle conflicts of  interest with                                                               
board members.                                                                                                                  
                                                                                                                                
CHAIR CARRICK replied  that it has been some time  since she made                                                               
calls regarding  this topic.   She recalled that  some university                                                               
systems  found the  idea of  a faculty  regent as  outlandish but                                                               
those with  faculty members as regents  simply recused themselves                                                               
from  voting.    She  noted  that regents  are  held  to  a  high                                                               
professional  standard.     She  responded  in   short  that  no,                                                               
considerable research hadn't been conducted.                                                                                    
                                                                                                                                
VICE CHAIR  STORY asked about  instances in which  faculty recuse                                                               
themselves from voting.                                                                                                         
                                                                                                                                
CHAIR  CARRICK said  she  could  not speak  to  that since  there                                                               
wasn't a  faculty regent currently  in place, but  Faculty Senate                                                               
members  may have  these experiences  as would  student appointed                                                               
regents.                                                                                                                        
                                                                                                                                
4:57:22 PM                                                                                                                    
                                                                                                                                
VICE CHAIR STORY announced that HB 10 was held over.                                                                            
                                                                                                                                
4:57:23 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:57 p.m. to 4:58 p.m.                                                                       
[During the  at-ease. Vice Chair  Story handed the gavel  back to                                                               
Chair Carrick.]                                                                                                                 
                                                                                                                                
                   HB  61-EMPLOYMENT OF MINORS                                                                              
4:58:36 PM                                                                                                                    
                                                                                                                                
CHAIR CARRICK  announced that the  final order of  business would                                                               
be HOUSE BILL NO. 61 "An  Act relating to employment; relating to                                                               
voluntary flexible  work hour plans;  relating to  the employment                                                               
of minors;  and relating  to hours worked  by minors  employed in                                                               
the state."                                                                                                                     
                                                                                                                                
4:59:25 PM                                                                                                                    
                                                                                                                                
Cathy  Muoz,  Commissioner,  Department  of  Labor and  Workforce                                                               
Development  (DLWD),  introduced HB  61  on  behalf of  the  bill                                                               
sponsor, House Rules  by request of the governor.   She said that                                                               
HB  61  has  two  primary   components.    One  component  is  to                                                               
streamline  the permitting  process  for youth  employment.   She                                                               
explained that  youth aged  fourteen to  sixteen are  required to                                                               
get  a  work permit  for  employment  and the  legislation  would                                                               
remove  this  requirement  for  sixteen-year-olds.    The  second                                                               
component of  the legislation is  to provide  flexible scheduling                                                               
options for Alaska Workers.   She remarked that the bill provides                                                               
an  exemption to  the daily  overtime requirement  for flex  work                                                               
scheduling.  If the bill is  approved, this schedule could not be                                                               
mandated and  would still require  prior employee approval.   She                                                               
said that  in current  law, hospital nurses  are provided  a flex                                                               
schedule  option  but  not  other  workplaces.    She  said  that                                                               
flexible scheduling  is a way  that can help address  labor gaps.                                                               
She stated that  younger workers are very  interested in flexible                                                               
scheduling and  a work life  balance.  She  said that HB  61 also                                                               
provides  provisions   around  youth  employment  and   that  the                                                               
department currently  processes approximately 2,500  work permits                                                               
for sixteen-year-olds  each year and  it is an  unnecessary paper                                                               
push.                                                                                                                           
                                                                                                                                
MS.  Muoz  paraphrased  the sectional  analysis [included  in the                                                               
committee  file]   and  remarked  that  Section   3  extends  the                                                               
exemption  for  youth  workers  in  family-owned  businesses  and                                                               
boats.  The  current law provides an exemption  only for parental                                                               
businesses.    She  noted  that  Section  4  would  change  total                                                               
allowable work  hours for sixteen-year-olds.   Lastly,  Section 5                                                               
would  remove the  requirement for  individual  work permits  and                                                               
gives  employers  the  option to  receive  blanket  approval  for                                                               
hiring multiple youth in the same capacity.                                                                                     
                                                                                                                                
5:04:04 PM                                                                                                                    
                                                                                                                                
TANYA KEITH,  Director, Division  of Labor and  Standards Safety,                                                               
Department of  Labor and Workforce  Development, presented  HB 61                                                               
on behalf  of the  bill sponsor,  House Rules  by request  of the                                                               
governor.   She stated  that the proposed  changes would  make it                                                               
better  for DLWD  to  meet  the needs  of  the  public and  focus                                                               
resources  on  efforts  that  protect   Alaska's  workers.    She                                                               
remarked that the purpose of HB 61  is to allow for work up to 12                                                               
hours a  day under a voluntary  work hour plan for  all employees                                                               
that are  currently capped  at 10  hours a day.   The  bill would                                                               
also  make  changes   to  the  youth  employment   law  to  allow                                                               
businesses  to   employ  fourteen-  and   fifteen-year-olds  with                                                               
written approval  from DLWD  and remove  the need  for individual                                                               
work  permits.     The  bill  would  also   exempt  sixteen-  and                                                               
seventeen-year-olds  in  family-owned   businesses  from  written                                                               
approval  requirements.   She noted  that sixteen-year-olds  have                                                               
the same  restrictions under child labor  laws as seventeen-year-                                                               
olds,  prohibition from  hazardous occupation  jobs.   She stated                                                               
that  the restrictions  for younger  employees are  much stricter                                                               
and only  certain jobs under  the law  are permitted.   She noted                                                               
that it  makes sense  to remove these  requirements and  focus on                                                               
younger age groups with stronger  limitations.  She noted that HB                                                               
61 would also  increase daily allowable work  hours for fourteen-                                                               
and  fifteen-year-olds from  9 to  10 hours;  she clarified  that                                                               
school hours are  counted as work hours.  She  remarked that this                                                               
would allow  work full-time  while school is  not in  session and                                                               
currently labor laws do not allow this.                                                                                         
                                                                                                                                
5:06:47 PM                                                                                                                    
                                                                                                                                
MS. KEITH  stated that  the first change  would be  flexible work                                                               
hours and allowing  employees to work twelve hours a  day under a                                                               
voluntary flexible work  hour plan.  The plan  would require that                                                               
overtime be paid for any work over  eight hours a day that is not                                                               
in the  approved plan.   It would  remain voluntary on  behalf of                                                               
the employer,  who could  not require the  employee to  work this                                                               
plan and not pay overtime.  She  noted that HB 61 would make this                                                               
plan available for all industries across Alaska.                                                                                
                                                                                                                                
MS. KEITH  discussed current  overtime laws.   She  remarked that                                                               
Alaska is a  dual overtime state, which means  that employees are                                                               
owed overtime for anything over eight  hours a day or forty hours                                                               
a week.   The voluntary flexible work hour  plan allows employees                                                               
a  partial exemption  from  daily  overtime when  it  is made  in                                                               
agreement with  the employee.  She  remarked that this must  be a                                                               
voluntary  agreement between  the employee  and the  employer and                                                               
require approval by  DWLD.  She reiterated that  time worked over                                                               
the agreement must be paid.                                                                                                     
                                                                                                                                
MS.  KEITH  discussed  flex  plans and  remarked  that  DLWD  has                                                               
received flex plans from 1,348  employers in the last four years.                                                               
She  said  that  once  received,   the  department  approves  the                                                               
schedule, the  employer gets back  the schedule and  can employee                                                               
as many  on that this plan  as needed.  The  department estimates                                                               
that  there  are between  5,300  and  13,500 employees  that  are                                                               
working alternate  work schedules  on this  plan, and  this could                                                               
even  be a  low  estimate.   She noted  that  the department  has                                                               
received 563 wage  claims, and of these claims, only  one of them                                                               
involved a  flexible work hour plan.   She stated that  it is one                                                               
of the  most successful initiatives  with DLWD and  remarked that                                                               
complaints  and  compliance issues  have  been  minimal, and  the                                                               
department is confident in a change to a twelve-hour plan.                                                                      
                                                                                                                                
5:10:19 PM                                                                                                                    
                                                                                                                                
MS.  KEITH discussed  the benefits  of a  twelve-hour work  plan.                                                               
For   employers,  flexible   staffing   options  and   consistent                                                               
scheduling for  24-hour facilities have  been important.   In the                                                               
healthcare industry,  being able  to offer  the same  salary that                                                               
hospitals  offer  has  helped with  recruitment.    Benefits  for                                                               
employees  include  a  schedule   that  has  a  better  work-life                                                               
balance,  reduced commuting  costs, eliminating  childcare needs,                                                               
and students could also see benefits  while in school.  She noted                                                               
the approximate childcare costs for an average family of three.                                                                 
                                                                                                                                
5:11:29 PM                                                                                                                    
                                                                                                                                
MS.  KEITH  talked  about  changes  in  youth  employment.    She                                                               
remarked  that HB  61 would  exempt sixteen-year-olds  working in                                                               
family-owned  businesses from  the  approval  requirements.   She                                                               
reiterated that  sixteen- and seventeen-year-olds are  subject to                                                               
the same labor  limitations and that the  employment of fourteen-                                                               
year-olds is  much more  restrictive.   She stated  that focusing                                                               
approval processes  on these  younger groups  is warranted.   She                                                               
noted that  the proposed legislation  would move  the requirement                                                               
for  employers  to  send  individual   approval  inquiries  to  a                                                               
registration system  for approval.   It would increase  the total                                                               
number of workable hours and add  an exemption to the weekly work                                                               
limitations to allow full-time work.                                                                                            
                                                                                                                                
5:13:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HIMSCHOOT  asked about Slide  6.  She  asked about                                                               
limitations  regarding  twelve hour  shifts  and  if an  employer                                                               
builds  a schedule  on 12-hour  shifts,  whether applicants  that                                                               
want 8-hour shifts should refrain from applying.                                                                                
                                                                                                                                
MS. KEITH  responded that  12-hour shifts  cannot be  an employer                                                               
requirement.   Any employer that  issues twelve-hour  shifts must                                                               
also offer eight-hour shift arrangements.                                                                                       
                                                                                                                                
REPRESENTATIVE   HIMSCHOOT  asked   about  Slide   7  and   youth                                                               
employment.   She asked  if a student  works two  different part-                                                               
time jobs, who  tracks the total hours and  how accountability is                                                               
held.                                                                                                                           
                                                                                                                                
MS. KEITH  responded that youth are  allowed by law to  work only                                                               
nine hours  between both  school and  work.   She noted  that she                                                               
hasn't heard  of a fourteen-year-old  having more than  one part-                                                               
time job.   She remarked that  nobody would track the  work hours                                                               
in this instance.                                                                                                               
                                                                                                                                
REPRESENTATIVE HIMSCHOOT  asked that  if a  child is  working too                                                               
many  hours, whether  it is  up to  the family  to work  with the                                                               
employer.                                                                                                                       
                                                                                                                                
MS.  KEITH responded  that  this  is a  reason  for the  proposed                                                               
legislation.   She offered  that currently  the parents  sign the                                                               
work  permit, and  it gets  turned in  for processing  and it  is                                                               
taken back  to the employer.   She  remarked that there  is never                                                               
any assertion  of the  requirements outside  of the  work permit.                                                               
Allowing this  new registration process would  ensure parents are                                                               
informed of  work limitations  and other  employment regulations.                                                               
She  stated that  it will  allow  the department  to ensure  that                                                               
employers  can  understand the  regulations  and  allow for  more                                                               
oversight.                                                                                                                      
                                                                                                                                
REPRESENTATIVE HIMSCHOOT asked if this  was not possible to do in                                                               
regulation.                                                                                                                     
                                                                                                                                
MS.  KEITH responded  that the  statute requires  that individual                                                               
work permits be  submitted for every child.  She  stated that the                                                               
amount of work  permits received is overwhelming.   In May, June,                                                               
and  July,  it takes  four  investigators  just to  process  work                                                               
permits.    She  remarked  that  some of  the  oversight  is  not                                                               
happening because  of paperwork  processing.  She  explained that                                                               
the department  wants to eliminate  this backlog and  ensure safe                                                               
working environments for children.                                                                                              
                                                                                                                                
5:17:46 PM                                                                                                                    
                                                                                                                                
CHAIR CARRICK thanked presenters.                                                                                               
                                                                                                                                
5:18:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   STORY  asked   for  clarification   for  written                                                               
permits.   She asked  whether this  is an  online process  and if                                                               
efforts underway to do so.                                                                                                      
                                                                                                                                
MS. KEITH recapped  the process where the employer  must fill out                                                               
the permit, receive  signatures from parents.   She explained the                                                               
change of hands regarding work permits.                                                                                         
                                                                                                                                
REPRESENTATIVE  STORY asked  how  the department  keeps track  of                                                               
permits.                                                                                                                        
                                                                                                                                
MS. KEITH remarked  that it is a process, and  a database is used                                                               
to  store the  permits.   She stated  that some  applications get                                                               
sent  back to  fix errors.    She mentioned  that the  department                                                               
processes over  600 child labor  applications for  McDonalds that                                                               
are  all the  same  type of  employment.   She  stated that  some                                                               
applications received from them are filled out incorrectly.                                                                     
                                                                                                                                
5:20:20 PM                                                                                                                    
                                                                                                                                
CHAIR CARRICK said  that additional questions can be  sent to her                                                               
office.                                                                                                                         
[HB 61 was held over]                                                                                                           
                                                                                                                                
5:21:03 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
State Affairs Standing Committee meeting was adjourned at 5:21.