ALASKA STATE LEGISLATURE  CONFERENCE COMMITTEE ON SB 141  May 8, 2005 1:59 p.m. MEMBERS PRESENT Senator Lyda Green, Chair Senator Ralph Seekins Senator Donny Olson Representative Bruce Weyhrauch Representative Paul Seaton Representative Harry Crawford MEMBERS ABSENT  All members present COMMITTEE CALENDAR CS FOR SENATE BILL NO. 141(FIN) "An Act relating to the teachers' and public employees' retirement systems and creating defined contribution and health reimbursement plans for members of the teachers' retirement system and the public employees' retirement system who are first hired after July 1, 2005; relating to university retirement programs; establishing the Alaska Retirement Management Board to replace the Alaska State Pension Investment Board, the Alaska Teachers' Retirement Board, and the Public Employees' Retirement Board; adding appeals of the decisions of the administrator of the teachers' and public employees' retirement systems to the jurisdiction of the office of administrative hearings; providing for nonvested members of the teachers' retirement system defined benefit plans to transfer into the teachers' retirement system defined contribution plan and for nonvested members of the public employees' retirement system defined benefit plans to transfer into the public employees' retirement system defined contribution plan; providing for political subdivisions and public organizations to request to participate in the public employees' defined contribution retirement plan; and providing for an effective date." HEARD AND HELD HOUSE CS FOR CS FOR SENATE BILL NO. 141(FIN) am H "An Act relating to the teachers' and public employees' retirement systems and creating defined contribution and health reimbursement plans for members of the teachers' retirement system and the public employees' retirement system who are first hired after July 1, 2005; relating to university retirement programs; establishing the Alaska Retirement Management Board to replace the Alaska State Pension Investment Board, the Alaska Teachers' Retirement Board, and the Public Employees' Retirement Board; adding appeals of the decisions of the administrator of the teachers' and public employees' retirement systems to the jurisdiction of the office of administrative hearings; providing for nonvested members of the teachers' retirement system defined benefit plans to transfer into the teachers' retirement system defined contribution plan and for nonvested members of the public employees' retirement system defined benefit plans to transfer into the public employees' retirement system defined contribution plan; providing for political subdivisions and public organizations to request to participate in the public employees' defined contribution retirement plan; and providing for an effective date." HEARD AND HELD THE COMMITTEE SUBMITTED A LETTER TO PRESIDING OFFICERS REQUESTING FREE CONFERENCE COMMITTEE POWERS PREVIOUS COMMITTEE ACTION BILL: SB 141 SHORT TITLE: PUBLIC EMPLOYEE/TEACHER RETIREMENT/BOARDS SPONSOR(s): FINANCE 03/14/05 (S) READ THE FIRST TIME - REFERRALS 03/14/05 (S) FIN 03/16/05 (S) FIN AT 9:00 AM SENATE FINANCE 532 03/16/05 (S) Heard & Held 03/16/05 (S) MINUTE(FIN) 03/17/05 (S) FIN AT 9:00 AM SENATE FINANCE 532 03/17/05 (S) Heard & Held 03/17/05 (S) MINUTE(FIN) 03/21/05 (S) FIN AT 9:00 AM SENATE FINANCE 532 03/21/05 (S) Heard & Held 03/21/05 (S) MINUTE(FIN) 03/22/05 (S) FIN AT 9:00 AM SENATE FINANCE 532 03/22/05 (S) Heard & Held 03/22/05 (S) MINUTE(FIN) 03/23/05 (S) FIN AT 9:00 AM SENATE FINANCE 532 03/23/05 (S) Heard & Held 03/23/05 (S) MINUTE(FIN) 03/29/05 (S) FIN AT 4:30 PM SENATE FINANCE 532 03/29/05 (S) Heard & Held 03/29/05 (S) MINUTE(FIN) 03/30/05 (H) FIN AT 9:00 AM HOUSE FINANCE 519 03/30/05 (S) Heard & Held 03/30/05 (S) MINUTE(FIN) 03/31/05 (H) FIN AT 9:00 AM HOUSE FINANCE 519 03/31/05 (S) Heard & Held 03/31/05 (S) MINUTE(FIN) 04/01/05 (H) FIN AT 9:00 AM HOUSE FINANCE 519 04/01/05 (S) Heard & Held 04/01/05 (S) MINUTE(FIN) 04/02/05 (S) FIN AT 10:00 AM SENATE FINANCE 532 04/02/05 (S) Heard & Held 04/02/05 (S) MINUTE(FIN) 04/03/05 (S) FIN AT 10:00 AM SENATE FINANCE 532 04/03/05 (S) Heard & Held 04/03/05 (S) MINUTE(FIN) 04/04/05 (S) FIN AT 9:00 AM SENATE FINANCE 532 04/04/05 (S) Scheduled But Not Heard 04/05/05 (S) FIN AT 9:00 AM SENATE FINANCE 532 04/05/05 (S) Heard & Held 04/05/05 (S) MINUTE(FIN) 04/06/05 (S) FIN AT 9:00 AM SENATE FINANCE 532 04/06/05 (S) Moved CSSB 141(FIN) Out of Committee 04/06/05 (S) MINUTE(FIN) 04/08/05 (S) FIN RPT CS 5DP 1DNP 1AM NEW TITLE 04/08/05 (S) DP: GREEN, WILKEN, BUNDE, DYSON, STEDMAN 04/08/05 (S) DNP: HOFFMAN 04/08/05 (S) AM: OLSON 04/12/05 (S) ENGROSSED 04/14/05 (S) TRANSMITTED TO (H) 04/14/05 (S) VERSION: CSSB 141(FIN) 04/14/05 (H) READ THE FIRST TIME - REFERRALS 04/14/05 (H) STA, FIN 04/14/05 (H) STA AT 8:00 AM CAPITOL 106 04/14/05 (H) 04/16/05 (H) STA AT 9:30 AM CAPITOL 106 04/16/05 (H) 04/19/05 (H) STA AT 8:00 AM CAPITOL 106 04/19/05 (H) Heard & Held 04/19/05 (H) MINUTE(STA) 04/20/05 (H) STA AT 8:00 AM CAPITOL 106 04/20/05 (H) Moved HCS CSSB 141(STA) Out of Committee 04/20/05 (H) MINUTE(STA) 04/21/05 (H) STA AT 8:00 AM CAPITOL 106 04/21/05 (H) 04/22/05 (H) STA RPT HCS(STA) 1DP 5NR 04/22/05 (H) DP: SEATON; 04/22/05 (H) NR: LYNN, GATTO, GRUENBERG, ELKINS, RAMRAS 04/23/05 (H) FIN AT 10:00 AM HOUSE FINANCE 519 04/23/05 (H) Heard & Held 04/23/05 (H) MINUTE(FIN) 04/28/05 (H) FIN AT 1:30 PM HOUSE FINANCE 519 04/28/05 (H) Heard & Held 04/28/05 (H) MINUTE(FIN) 04/30/05 (H) FIN AT 2:00 PM HOUSE FINANCE 519 04/30/05 (H) Heard & Held 04/30/05 (H) MINUTE(FIN) 05/01/05 (H) FIN AT 1:00 PM HOUSE FINANCE 519 05/01/05 (H) Moved HCS CSSB 141(FIN) Out of Committee 05/01/05 (H) MINUTE(FIN) 05/02/05 (H) FIN RPT HCS(FIN) 2DP 5NR 2AM (FORTHCOMING HCS) 05/02/05 (H) DP: KELLY, FOSTER; 05/02/05 (H) NR: JOULE, STOLTZE, MOSES, MEYER, CHENAULT; 05/02/05 (H) AM: HAWKER, WEYHRAUCH 05/02/05 (H) OBJECTION TO REFERRAL TO RULES 05/02/05 (H) OBJECTION TO REFERRAL TO RULES WITHDRAWN 05/02/05 (H) RETURNED TO FIN COMMITTEE 05/02/05 (H) FIN RPT HCS(FIN) 3DP 4NR 1AM (FORTHCOMING HCS) 05/02/05 (H) DP: FOSTER, KELLY, CHENAULT; 05/02/05 (H) NR: HOLM, STOLTZE, MOSES, MEYER; 05/02/05 (H) AM: HAWKER 05/02/05 (H) OBJECTION TO FISCAL ANALYSIS WITH FINANCE RPT 05/02/05 (H) REPLACE FISCAL ANALYSIS FAILED Y15 N25 05/02/05 (H) FIN AT 1:30 PM HOUSE FINANCE 519 05/02/05 (H) Moved HCS CSSB 141(FIN) Out of Committee 05/02/05 (H) MINUTE(FIN) 05/03/05 (H) HCS(FIN) NT RECEIVED 05/03/05 (H) MOVED TO BOTTOM OF CALENDAR 05/03/05 (H) BEFORE THE HOUSE 05/03/05 (H) MOTION TO DIVIDE AM NO 3 NOT IN ORDER 05/03/05 (H) ADJOURNED TO 5/4 05/05/05 (H) BEFORE THE HOUSE 05/06/05 (H) ENGROSSED 05/07/05 (H) VERSION: HCS CSSB 141(FIN) AM H 05/07/05 (S) CONCURRENCE MESSAGE READ 05/07/05 (S) CONFERENCE COMMITTEE APPOINTED 05/07/05 (S) GREEN (CHAIR), SEEKINS, OLSON 05/07/05 (H) RECEDE MESSAGE 05/07/05 (H) CONFERENCE COMMITTEE APPOINTED 05/07/05 (H) SEATON, WEYHRAUCH, CRAWFORD WITNESS REGISTER    No witnesses ACTION NARRATIVE SB 141-PUBLIC EMPLOYEE/TEACHER RETIREMENT/BOARDS  CHAIR LYDA GREEN called the meeting to order at 1:59:25 PM. All members were present. She announced that members signed the message to the presiding officers informing them that committee members did not come to agreement. The letter also contained the points that members agreed upon. 1:59:56 PM CHAIR GREEN drew members' attention to four items that her staff and Representative Seaton's staff identified as additional items left open for future discussion: Line 14(a), which was accidentally omitted yesterday Line 18 - members' discussion went in two directions yesterday, neither of which was 100 percent factually correct. Line 22 (a) - although members did discuss different links of service of the retirement and benefit board members, the staggered terms were not. Line 39 - the Senate version had funding for the PERS/TRS shortfall for one year for participating employers, which was zeroed out in the House. CHAIR GREEN informed members that a packet of fiscal notes was distributed, which needs to move with the bill. She added, "As we have other things subject to negotiation that affect the fiscal notes, we probably should just leave those open and say they are subject to the final free conference." 2:02:35 PM REPRESENTATIVE WEYHRAUCH asked if members talked about staggered terms - line 22 (a) - but not in the context of a specific line item. CHAIR GREEN said members talked about the different term lengths in the House and Senate versions so line 22(a) is better left open. 2:03:04 PM SENATOR SEEKINS said at yesterday's meeting he was assuming that a staggered term process was in place. REPRESENTATIVE SEATON noted the only difference in the versions is that the terms for the two PERS and TRS members and two financial officers are specified in statute in the House version. 2:03:45 PM SENATOR SEEKINS moved that the conference committee accept the corrected report dated May 8, 2005 prepared by the Senate Finance Committee entitled, SB 141 Differences Between Senate and House as the outline of the specific points of difference between the two bodies. REPRESENTATIVE WEYHRAUCH objected and stated, "One thing I'd like to do is - and I will remove my objection - is since I just got this this morning, between now and next time we meet just look at that and if I see an issue that we didn't take care of, I reserve the right to bring it in if there's something on here. I'm sure the staff did a perfect job but - I'll remove my objection." REPRESENTATIVE SEATON objected and said, " I didn't get a chance to mention that I think - I mean we're talking about fiscal note number 9 at this point. I think we're talking about all of the fiscal notes. I believe your fiscal note number 8 establishes the 69.5 and ours was fiscal note number 9 that zeroed it out but just to note, it would be 8 and 9." SENATOR SEEKINS said he would be more amendable to saying the two bodies disagree on the fiscal notes rather than addressing dollar amounts. REPRESENTATIVE SEATON removed his objection. CHAIR GREEN thanked members for making great headway on the agreed upon items and said it is time to go to the next level. She announced that with no further objection, the motion carried. REPRESENTATIVE SEATON asked that the motion be clarified. SENATOR SEEKINS stated, "[Uniform] Rule 42 provides that we are to notify both of our houses with a report listing the specific points of disagreement. This is the list of the specific points of disagreement." REPRESENTATIVE SEATON asked if submission of the list amounts to a request for limited powers of free conference. CHAIR GREEN said it would imply that committee members have gone as far as they can go. REPRESENTATIVE SEATON asked if, by submitting the letter, committee members were informing both bodies of the list and requesting limited powers. CHAIR GREEN clarified that members are requesting free conference committee powers. The committee took an at-ease. 2:12:16 PM CHAIR GREEN recessed to a call of the chair.