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The 25th Alaska Legislature convenes for its second regular session on Jan. 15, 2008 and will adjourn three months later on April 15. This session is notable for being 30 days shorter than previous regular sessions. The change reflects the passage of Measure No. 1 (05LEGS) in 2006, reducing legislative sessions from 120 days to 90 days.

Legislative Majority and Minority groups in each chamber have not changed since the last regular session. A power sharing arrangement among a majority of senators after the 2006 General Election established the current Senate Bi-partisan Working Group. The State House is still controlled by a Republican Majority, which has been the case since 1992.

ASEA/AFSCME Local 52 will continue its legislative lobbying program to serve the interests of GGU members. Our top priority for the upcoming session will be to ensure that the monetary terms of the recently ratified GGU contract are approved and funded by the legislature.

Other important legislative issues that need attention include reinstating a defined benefit retirement program for public employees in Alaska hired after July 1, 2006, addressing the unfunded liability of the PERS/TRS defined benefit plans, and improving recruitment and retention of public employees.

Many bills of interest to union members are still pending after committee hearings and floor debate during the previous session. Several of these bills are summarized below. If you would like to review the full description and history for each bill tracked by ASEA/AFSCME Local 52, visit the union website http://www.afscmelocal52.org/ and choose ‘ASEA PAC' from the top menu bar.

SB 183 (Repeal Defined Contribution Retirement Plan)

SB 183 repeals the defined contribution plan for new teachers and public employees created by SB 141 in 2005. The bill also provides that employees who entered service after July 1, 2006 may convert from the defined contribution plan to the defined benefit system.

SB 183 was introduced by Sen. Kim Elton (D-Juneau) and co-sponsored by Sen. Lesil McGuire (R-Anchorage). The bill has not yet been heard in its first committee of referral, the Senate Labor and Commerce Committee.

HB 13 (Issue Bonds to Control Unfunded PERS/TRS Liability)

HB 13 creates a mechanism for the issuance of bonds to stabilize the unfunded liability of the state's defined contribution retirement systems. The bill was introduced by Rep. Mike Hawker (R-Anchorage) and is co-sponsored by eight others representatives. CSHB13 (FIN) passed the House floor and was referred last to the Senate Finance Committee.

The first of two fiscal notes attached to the bill reads, "The premis (sic) of undertaking this type of transaction is borrowing at rates that are at least 1.5% lower than the actuarial assumed rate of return on the pension funds (8.25%)."

The resulting capitalization by one or more municipalities through the bonding process would require accounting practices that are not currently understood. From the second fiscal note, "The division [Retirement & Benefits] will work with the Department of Law to develop regulations to govern the accounting for such accounts."

HB 48 (PPT Credits to Offset Unfunded PERS/TRS Liability)

This bill would authorize the Alaska Retirement Management Board (ARM) to purchase transferable tax credit certificates for 92 percent of the face value of the certificates. The ARM board would then sell the certificates to the Department of Revenue for the full face value of the certificates.

The proceeds of these sales would be used by the ARM board to defray the unfunded liability of the state's defined contribution retirement systems.

HB 125 (Long-Range Fiscal Plan)

HB 125 would require the governor to balance the state budget and to submit a long-range fiscal plan supported by analysis of fiscal data for the succeeding 10 years. The bill would effectively prevent the state from allowing operating shortfalls cause the interruption of state services.

The House Ways & Means Committee, chaired by Rep. Mike Hawker, introduced HB 125. The bill passed the House in the form of CSHB 125(FIN) without opposition. The Senate Finance committee is its first (and currently only) committee of referral.

HB 179 (Revisions to Defined Benefit Retirement Plan)

HB 179 revises the new defined benefit plan language to 1) specify a funding source for teachers' disability and death benefits, 2) add annual cost of living increases to catastrophic benefits, 3) limit survivor entitlements while receiving disability or death benefits, and 4) clarify changes to maintain Internal Revenue Code requirements.

HB 179 passed the House State Affairs Committee after the provision increasing employee contributions from 5% to 11.5% of salary was removed on a 6 to 1 vote. The bill was referred to House Finance and has not yet received a hearing.

HJR 25 (Support EFCA)

This resolution would show the Alaska Legislature's support for the Employee Free Choice Act of 2007. This federal legislation would authorize the National Labor Relations Board to certify a union as the bargaining representative when a majority of employees signed voluntarily authorizations designating that union to represent them. The EFCA would provide for a first contract and arbitration, and establish meaningful penalties for violations of a worker's freedom to choose a union.

HJR 25 received a hearing in House State Affairs and was referred last to the House Rules Committee.

SB 28 (Limit Mandatory OT for Registered Nurses)

SB 28 restricts mandatory overtime for nurses except in circumstances of emergency, and provides for penalties and compensation. This bill has received hearings in the Senate Health, Education and Social Services and Senate Labor & Commerce.

SB 125 (PERS/TRS Unfunded Liability Redistribution)

SB 125 redistributes responsibility for the PERS/TERS unfunded liability through a cost share program. Under the bill, non-state employer contributions would be set at 22% (PERS) and 12.56% (TRS). The bill also includes a "hold harmless" provision for employers contributing less that 22% into PERS and substantial state appropriations to stabilize the unfunded liability.

This bill passed both chambers in different versions. An effort at concurrence in the Senate stalled on the final day of the first regular session.

SB 153 (Military Time toward 20-year Retirement)

SB 153 would allow peace officers and firefighters to use up to 5 years of credited military time to qualify for retirement benefits. Sen. Hollis French (D-Anchorage) sponsored the bill and Sen. Lesil McGuire (R-Anchorage) added her name as cosponsor. The bill has not yet been heard after being referred to the Senate Labor & Commerce Committee.

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