MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                      FIRST SPECIAL SESSION                                    
                           10 May 1996                                         
                                                                               
  TAPES                                                                        
                                                                               
  FSS-96 #3, Sides 1 and 2                                                     
                                                                               
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator Rick Halford,  co-chairman, convened the  meeting at                 
  approximately 2:20 P.M.                                                      
                                                                               
                                                                               
  PRESENT                                                                      
                                                                               
  In  addition  to  co-chairman  Halford,  co-chairman  Frank,                 
  Senators  Phillips, Sharp,  Rieger and Zharoff  were present                 
  when the meeting  convened.  Senator Donley  arrived shortly                 
  thereafter.                                                                  
                                                                               
  Also  Attending:  Commissioner  Mark  Boyer,  Department  of                 
  Administration;  Chris  Christensen,  Staff Counsel,  Alaska                 
  Court  System;  Wendy  Redmond,   Vice-President  University                 
  Relations,  University  of Alaska;  Don  R. Etheridge,  Jr.,                 
  Alaska  State  District Council  of Laborers;  House Speaker                 
  Gail  Phillips;  Representative  Al   Vezey;  Representative                 
  Beverly Masek; Representative  Jeanette James; Senator Loren                 
  Leman; Senator Lyda Green, Senator Mike Miller; Senator John                 
  Torgerson;  Mike  Greany,   Director,  Legislative   Finance                 
  Division; and aides to committee members.                                    
                                                                               
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
                                                                               
  SB1003 PUBLIC EMPLOYEES & AGENCY PLANS                                       
                                                                               
  Senator Mike  Miller was invited  to join the  committee and                 
  introduced the bill.   He said only minor  technical changes                 
  were made in order to accomplish long term savings.  He said                 
  that  it did not affect SBS and only would affect  new hire.                 
  There were  four amendments  made that  were adopted by  the                 
  Senate as a whole and included in work draft CSSB 1003(FIN).                 
                                                                               
                                                                               
  Commissioner Boyer was  also invited  to join the  committee                 
  and  stated  that the  administration  did not  support this                 
  bill.  He  said the Governor  wanted to see  the big  issues                 
  addressed and to  see a  speedy, smooth end  to the  special                 
  session.  There are a number  of options available and there                 
                                                                               
                                                                               
  should be a healthy discussion thereof.                                      
                                                                               
  Senator Zharoff asked if the bill was technically before the                 
  committee in dealing  with Tier  3 and the  RIP program  and                 
  said  they would  need  time  to  work  these  matters  out.                 
  Senator Sharp commented  on the  matter of "state  resident"                 
  and  co-chairman  Halford said  he  would like  to  see this                 
  tightened up to match BP.  The permanent fund should  not be                 
  used as a  welfare base.   Senator Sharp  further stated  he                 
  would like to see Alaskan hire enforced.                                     
                                                                               
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  Co-chairman Halford recessed  the meeting at 3:23  P.M. to a                 
  call of the chair.