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ASEA/AFSCME Local 52 Legislative Update
April 7, 2008

Quick notes:

1.      This legislative session, the second of the 25^th Legislature, convened January 15, 2008 and will adjourn on April 13, 2008.

2.      There are approximately 7 days left in the session.

3.      Session is scheduled for 90 days, thirty days fewer than usual per Ballot Measure No.1 (05LEGS), passed in 2006.

4.      The operating budget (HB 310) has passed both chambers in different versions. A conference committee will be appointed shortly to reconcile the differences.

5.      A conference committee has been appointed for the operating budget and the legislature is operating under a rule allowing 24-hour minimum notice for all committee hearings. Bills will move quickly though the legislative process under the 24-hour rule.

Bills of Interest:

The following bills have passed:

HB 310-Operating Budget à Passed/Conference Committee (See notes above)
SB 256-Supplemental/Capital Approp. à Passed/Transmitted to Governor
HB 125-Long-Range Fiscal Plan à Passed
HB 13-Issue Bonds to Offset Unfunded PERS/TRS Liability à Passed

The following bills have been heard and await floor action:

            HJR 19-Oppose Federal ‘Real ID' Requirements à Senate Floor

The following bills have received hearings and await further committee action:

HB 48-PPT Credits to Offset Unfunded PERS/TRS Liability à Senate Finance
HB 179-Revisions to Defined Benefit Retirement Plan à House Finance
HB 190-Breaks from Work for Nursing Mothers à House Labor & Commerce
HB 266-Child Care Centers at State Facilities à House Health & Social Services
HB 374-Notice Requirement for Job Relocation à House State Affairs
HJR 25-Support EFCA à Senate State Affairs
SB 28-Limit Mandatory OT for Registered Nurses à House Finance
SB 77-No Unauthorized Shop Fees for Political Purposeà Senate Labor & Commerce
SB 153-Military Time toward 20-year Retirement à Senate State Affairs
SB 183-Repeal Defined Contribution Retirement Plan à Senate Finance
SB 202-Prohibit State Spending on Real ID Implementation à House Finance
SB 221-Budget Approp. (Capital, Supplemental, Other) à House Finance

­­­­­Bill: HB 310-Operating Budget
Status: Passed/Conference Committee
Sponsor: House Rules by Request of the Governor
ASEA Position: SUPPORT
PAC Recommendation: SUPPORT

Bill Summary: HB 310 provides funding for the 2007-2010 GGU contract from July 31, 2008 (FY09). See SB 256 for retroactive funding. (Companion bill: SB 220)

Bill Status: This bill passed both chambers and a conference committee was appointed April 2 to iron out differences between the respective versions. (See notes above)

Action Needed: No action is currently recommended.

Bill: SB 256-Supplemental/Capital Appropriations
Status: Passed/Transmitted to Governor
Sponsor: Senate Rules by Request of the Governor
ASEA Position: SUPPORT
PAC Recommendation: SUPPORT

Bill Summary: SB 256 provides retroactive funding for the 2007-2010 GGU contract from July 2007 (FY08). It also contains retroactive funding for the increased health insurance premium for GGU members. (Companion bill: HB 343)

Bill Status: This bill has passed both chambers and waits for the Governor's signature.

Action Needed: No action is currently recommended.

Bill: HB 125-Long Range Fiscal Plan
Status: Passed
Sponsor: House Ways & Means (Rep. Hawker, chair)
ASEA Position: SUPPORT
PAC Recommendation: SUPPORT

Bill Summary: HB 125 would require the governor to balance the state budget and submit a long-range fiscal plan supported by analysis of fiscal data for the succeeding 10 years. The bill would effectively prevent operating shortfalls from interrupting state services. (Related bill: SB 25)

Bill Status: HB 125 passed the Senate floor April 3 and the House concurred with amendments to the bill on April 5. HB 125 awaits transmittal to the governor for signing.

Action Needed: No action is currently recommended.

Bill: HB 13-Issue Bonds to Offset Unfunded PERS/TRS Liability
Status: Passed
Sponsor: Rep. Mike Hawker (R-Anchorage)
ASEA Position: SUPPORT       
PAC Recommendation: SUPPORT

Bill Summary: HB 13 creates a mechanism for the issuance of bonds to stabilize the unfunded liability of the state's defined benefit retirement systems. 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."

Bill Status: SCS CSHB 13(FIN) passed the Senate floor without opposition on April 3 and the House concurred with amendments the following day. The bill awaits transmittal to the governor for signing.

Action Needed: No action is currently recommended.

Bill: HJR 19-Oppose Federal `Real ID' Requirements
Status: Pending
Sponsor: Rep. John Coghill (R-North Pole)
ASEA Position: SUPPORT
PAC Recommendation: SUPPORT

Bill Summary: The federal `Real ID' mandate imposes prohibitive standards that affect states' budgets, policies and workforces in an effort to combat terrorism. HJR 19 resolves that the Alaska legislature does not believe the benefits of the Real ID Act of 2005 are in proportion to the cost, and it further resolves to support repeal of the act. (Related bill: SB 202)

Bill Status: HJR 19 picked up multiple co-sponsors as it moved to the Senate, passing the House on March 25 with a 33-1 vote. CSSB19(STA) moved out of Senate State Affairs (it's only committee of referral) with unanimous support and is expected to reach the Senate floor shortly.

Action Needed: Contact your senator to encourage support for this resolution.

Bill: HB 48-PPT Credits to Offset Unfunded PERS/TRS Liability
Status: Pending
Sponsor: Reps. Paul Seaton (R-Homer) and Mike Kelly (R-Fairbanks)
ASEA Position: MONITOR
PAC Recommendation: MONITOR

Bill Summary: This bill would authorize the Alaska Retirement Management Board (ARM) to purchase transferable tax credit certificates at 92% of face value. The ARM board would sell the certificates to the Dept. of Revenue for the full face value. The ARM board would use the proceeds of these sales to defray the PERS/TRS unfunded liability.

Bill Status: HB 48 is currently in Senate Finance after passing the House without opposition.

Action Needed: No action is currently recommended.

Bill: HB 179-Revisions to Defined Benefit Retirement Plan
Status: Pending
Sponsor: Rep. Mike Kelly (R-Fairbanks)
ASEA Position: OPPOSE
PAC Recommendation: OPPOSE

Bill Summary: This bill revises SB 141 to specify a funding source for teachers' disability and death benefits; adds annual cost-of-living increases to catastrophic benefits in the new defined contribution retirement plan; limits survivor entitlements while receiving disability or death benefits; clarifies changes to maintain Internal Revenue Code requirements.

Bill Status: HB 179 passed the House State Affairs Committee in 2007 after the provision to increase employee contributions by 5% to 11.5% of salary was removed. House State Affairs removed this provision on a six to one vote. The bill waits for a hearing in House Finance.

Action Needed: Contact members of the House Finance Committee to discourage re-introduction of an employee retirement contribution rate increase.

Bill: HB 190-Breaks from Work for Nursing Mothers
Status: Pending
Sponsor: Rep. Sharon Cissna (D-Anchorage)
ASEA Position: SUPPORT       
PAC Recommendation: SUPPORT

Bill Summary: HB 190 would require employers to provide unpaid break time for mothers who wish to breastfeed or store breast milk. (Companion bill: SB 113)

Bill Status: The bill moved out of House Health & Social Services with unanimous support on March 17 in the form of CSSSHB190(HES) and waits for a hearing in House Labor & Commerce.

The companion bill SB 113 was heard in Senate Labor & Commerce on April 3. The committee accepted two fiscal notes from state departments (Administration and Labor and Workforce Development, respectively) showing negligible cost to the state under the legislation. Interestingly, the Dept. of Labor cited the absence of enforcement provisions in its finding of no impact. The bill has since moved to its next committee of referral, Senate Health, Education & Social Services.

Hearing for SB 113: (S) HES Apr 07 2:15 PM BUTROVICH 205 -- Time Change -- TELECONFERENCE                   

Action Needed: Contact members of the House Labor & Commerce Committee (HB 190) and the Senate Health, Education & Social Services (SB 113) to encourage support for this bill.

Bill: HB 266-Child Care Centers at State Facilities
Status: Pending
Sponsor: Rep. Beth Kerttula (D-Juneau)
ASEA Position: SUPPORT       
PAC Recommendation: SUPPORT

Bill Summary: Establishes child care services to be operated by Dept. of Administration, and places emphasis on providing child care for children (prioritizing children under four) of state workers.

Bill Status: HB 266 was referred to the House State Affairs, Health & Social Services and Finance committees after its introduction in January. The bill received strong support in its first committee of referral and the committee substitute CSHB 266(STA) has been scheduled for hearings in House Health & Social Services.

Action Needed: Contact members of the House Health & Social Services committee to encourage support for this bill.

Bill: HB 374-Notice Requirement for Job Relocation
Status: Pending
Sponsor: Rep. Andrea Doll (D-Juneau)
ASEA Position: SUPPORT       
PAC Recommendation: SUPPORT

Bill Summary: HB 374 would require public notification when state jobs in the classified, partially exempt, or exempt service are transferred from one area of the state to another. (Companion bill: SB 281)

Bill Status: HB 374 has been referred to the House Affairs and House Finance committees. The bill in has been heard in House State Affairs and waits for further action.

Action Needed: Contact members of the House State Affairs committee to encourage support for this bill.

Bill: HJR 25-Support EFCA
Status: Pending
Sponsor: Rep. John Harris (R-Valdez)
ASEA Position: SUPPORT
PAC Recommendation: SUPPORT

Bill Summary: This bill would indicate the legislature's support for the Employee Free Choice Act of 2007, which would authorize the National Labor Relations Board to certify a union as the bargaining representative when a majority of employees voluntarily authorizations designating that union to represent them, provide for first contract and arbitration, and establish meaningful penalties for violations of a worker's freedom to choose a union. (Companion bill: SJR 5)

Bill Status: HJR 25 passed the House in January on a 21-15 vote. The bill gained ten co-sponsors before reaching the Senate. HJR 25 moved out of Senate Labor & Commerce (2DP/2NR) and has been referred to Senate State Affairs.

Action Needed: Contact member of the Senate State Affairs Committee to encourage support for this resolution.

Bill: SB 28-Limit Mandatory OT for Registered Nurses
Status: Pending
Sponsor: Sen. Bettye Davis (D-Anchorage)
ASEA Position: SUPPORT
PAC Recommendation: SUPPORT

Bill Summary: Restricts mandatory overtime for nurses except in circumstances of emergency, and provides for penalties and compensation.

Bill Status: SB 28 passed the Senate floor on March 27 with a 17-3 vote, and again on by 17-3 after notice of reconsideration by Sen. Con Bunde. The bill moved through House Health and Social Services with general support and has reached its last committee of referral, House Finance. The Dept. of Labor and Workforce Development has indicated in a fiscal note that the legislation will cost some $90,000 annually.

Action Needed: Contact members of the House Finance Committee to encourage support for this bill.

Bill: SB 77-No Unauthorized Shop Fees for Political Purpose
Status: Pending
Sponsor: Sen. Con Bunde (R-Anchorage)
ASEA Position: OPPOSE         
PAC Recommendation: OPPOSE

Bill Summary: Prohibits labor organizations and employee associations from making political contributions or expenditures with agency fees from public employees without authorization.

Bill Status: SB 77 moved out of Senate State Affairs with unanimous support and picked up several co-sponsors (Sens. Wagoner, Green, Stevens, Dyson, McGuire, Stedman) after its referral to Senate Labor & Commerce

Action Needed: No action is currently recommended.

Bill: SB 153-Military Time toward 20-year Retirement
Status: Pending
Sponsor: Sen. Hollis French (D-Anchorage)
ASEA Position: SUPPORT
PAC Recommendation: SUPPORT

Bill Summary: This bill would allow peace officers and firefighters to use up to five years of credited military time to apply toward qualifying for retirement benefits.

Bill Status: SB 153 was introduced by Sen. French in 2007 and is co-sponsored by Sens. Davis, McGuire, and Ellis. The bill moved out of Senate Labor & Commerce on March 19 and waits for a hearing in Senate State Affairs and in Senate Finance.

Action Needed: Contact members of the Senate State Affairs Committee to encourage support for this bill.

Bill: SB 183-Repeal Defined Contribution Retirement Plan
Status: Pending
Sponsor: Sen. Kim Elton (D-Juneau)
ASEA Position: SUPPORT       
PAC Recommendation: SUPPORT

Bill Summary: SB 183 repeals the defined contribution plan for new teachers and public employees created by SB 141 in 2005. The bill also allows for a one-time election of employees who entered service under the defined contribution plan to convert to the defined benefit system.

By repealing the defined contribution plan, SB 183 effectively reinstates the defined benefit system for new employees. A defined benefit retirement system avoids many of the deficiencies associated with defined contributions, including 1) the cost of managing thousands of individual accounts; 2) the cost of extra benefit products to supplement an inadequate retirement scheme; 3) the prospects of employees outliving their benefits; 4) the near equivalent costs of the DC and DB (PERS III/TRS II) plans; and 5) the recruitment/retention crisis exacerbated by uncompetitive benefits.

Bill Status: SB 183 enjoys co-sponsorship from Sens. Lesil McGuire, Johnny Ellis and Bill Weilechowski. The bill recently moved out of Senate State Affairs (Sen. McGuire, chair) and Senate Judiciary and waits for action in Senate Finance.

A fiscal note from the Dept. of Administration cites recurring costs of <$300k annually after a one-time $1.3m expenditure to stabilize this essential state program suffering from its own retention and recruitment problems.

The fiscal note goes on to say, "There are currently 6,157 DCR members who are currently (active) employees. Since the inception of the DCR plan, and based on the number of members who converted from the DB plan to the DCR plan during the choice period created when the DCR plan was created (SB 141), the Division estimates that up to 75% of the members would enroll in the DB plan."

Action Needed: Contact members of the Senate Finance Committee to encourage support for this bill.

Bill: SB 202-Prohibit State Spending on `Real ID' Implementation
Status: Pending
Sponsor: Sen. Bill Wielechowski (D-Anchorage)
ASEA Position: SUPPORT       
PAC Recommendation: SUPPORT

Bill Summary: The federal `Real ID' mandate imposes prohibitive standards that affect states' budgets, policies and workforces in an effort to combat terrorism. SB 202 prohibits state spending to implement the requirements of the Real ID Act of 2005. (Related bill: HJR 19)

Bill Status: SB 202 passed the Senate on March 24 with a 14-4 vote. It moved out of the House State Affairs Committee on April 5 and has reached its last committee of referral-House Finance.

Action Needed: Contact members of the House Finance Committee to encourage support for this bill.

Bill: SB 221-Budget Appropriations (Capital, Supplemental, Other)
Status: Pending
Sponsor: Senate Rules by Request of the Governor
ASEA Position: SUPPORT
PAC Recommendation: SUPPORT

Bill Summary: Among many other appropriations, this bill once contained $400,000 to perform a Geographic Differential Study that might alter wage adjustments to state employees in outlying duty stations. The CS from Senate Finance (April 1) removed the study's funding.

Bill Status: SB 221 moved out of Senate Finance on April and reached the Senate floor the following day where it was met with a raft of proposed amendments-most of which failed.  The bill passed 15-5 and passed again by the same margin after reconsideration by Sen. Gene Therriault. SB 221 has been referred to its last committee of referral-House Finance.

Hearing: (H) FIN Apr 08 8:30 AM HOUSE FINANCE 519 TELECONFERENCE

Action Needed: No action is currently recommended.