MINUTES SENATE FINANCE COMMITTEE 12 May 1998 10:30 a.m. TAPES SFC-98 # 169, Side A CALL TO ORDER Senator Drue Pearce, Co-chair, convened the meeting at approximately 10:30 a.m. PRESENT In addition to Co-chair Pearce, Senators Phillips, Donley, Parnell and Adams were present when the meeting was convened. Co-chair Pearce noted Senator Bert Sharp was ill. Also Attending: Scott Kowasaki, staff to Representative Tom Brice; and aides to committee members and other members of the legislature. SUMMARY INFORMATION HOUSE BILL NO. 323 "An Act relating to the calculation of credited service in the public employees' retirement system for noncertificated employees of school districts, regional educational attendance areas, and state boarding schools; and providing for an effective date." CS FOR HOUSE BILL NO. 323(L&C) "An Act relating to the calculation of employee contributions and credited service in the public employees' retirement system for noncertificated employees of school districts, regional educational attendance areas, and state boarding schools; and providing for an effective date." CS FOR HOUSE BILL NO. 323(HES) "An Act relating to the calculation of employee contributions and credited service in the public employees' retirement system for noncertificated employees of school districts, regional educational attendance areas, and state boarding schools; and providing for an effective date." Co-chair Pearce called HB 323, the PERS Credit For Noncertificated Employees. She noted the prime sponsor was Representative Tom Brice, but said neither he nor his staff were present. She recognized Guy Bell and Bill Church from the Department of Administration, Retirement and Benefits and asked if any members had any questions. She also noted the presence of representatives of the NEAA and the Laborers' if there were any questions. Senator Parnell indicated that he would like a short summary of the bill before the committee. Scott Kowasaki, staff to Representative Tom Brice, read a brief sponsor statement into the record. He noted Alaska had many noncertificated employees in the school who worked nine, ten or eleven months out of the year along with their certificated counterparts. The bill would allow noncertificated school employees who work comparable amount of days in the same category as certificated employees to receive the same amount of credit towards retirement. The changes in the PERS system under the bill would be supported by the employees rather than increasing the burden to the school districts. Employees currently active in the system will have one hundred days to opt into the program and new employees will have the option to participate within ninety days of employment. Co-chair Pearce thanked Mr. Kowasaki and asked if there were any questions from the committee. Senator Parnell asked how many noncertificated employees were involved statewide? Mr. Kowasaki said he believed there were approximately sixty-six hundred as indicated on the fiscal note. Co-chair Pearce advised that there was no way now to get to the fiscal note and therefore if the bill passed it would have to be without dollars following it for this fiscal year. With the operating budget being closed out now there was no way to include any fiscal notes. Senator Donley MOVED CSHB 323(FIN) with individual recommendations and accompanying fiscal note. Co-chair Pearce cautioned the committee in moving the bill with the fiscal note because they could no longer get to it. Senator Donley amended his motion to moving CSHB 323(FIN) without accompanying fiscal note. Without objection CSHB 323(FIN) was REPORTED OUT with individual recommendations. ADJOURNMENT There being nothing else to come before the committee Co- chair Pearce recessed to call of the chair at approximately 10:40 a.m. SFC-98 -3- 05/12/98