Legislature(2019 - 2020)SENATE FINANCE 532

02/10/2020 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 139 AK PERM. FUND CORP. PROCUREMENT EXEMPTION TELECONFERENCED
Heard & Held
-- Public Testimony --
*+ HB 68 LABOR STDRS/SAFETY; WORKER COMPENSATION TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
CS FOR HOUSE BILL NO. 68(FIN)                                                                                                 
                                                                                                                                
     "An  Act relating  to the  division of  labor standards                                                                    
     and  safety;  relating  to  the  division  of  workers'                                                                    
     compensation;  establishing  the division  of  workers'                                                                    
     safety and  compensation; relating  to employment  of a                                                                    
     minor; and providing for an effective date."                                                                               
                                                                                                                                
9:34:51 AM                                                                                                                    
                                                                                                                                
GREY MITCHELL,  DIRECTOR, DIVISION OF  WORKERS' COMPENSATION                                                                    
DIVISION, stated that  the bill proposed the  merging of the                                                                    
Division  of  Worker's  Compensation with  the  Division  of                                                                    
Labor Standards  and Safety. He  remarked that  the Division                                                                    
of  Labor  Standards and  Safety  was  primarily focused  on                                                                    
preventing  workplace accidents  and enforcing  laws related                                                                    
to  workplace  safety  and  wages.  He  explained  that  the                                                                    
Division  of  Workplace  Compensation  was  focused  on  the                                                                    
division  administration of  benefits. The  missions of  the                                                                    
two   missions  complemented   the   other.  The   divisions                                                                    
historically  worked together,  and the  bill would  further                                                                    
the ability to capitalize on efficiencies.                                                                                      
                                                                                                                                
9:45:27 AM                                                                                                                    
                                                                                                                                
Co-Chair  von Imhof  noted the  two parts  of the  bill. She                                                                    
wondered  why  a  bill  was necessary  to  combine  the  two                                                                    
departments when it was already being done successfully.                                                                        
                                                                                                                                
Mr. Mitchell stated  that the majority of  the changes would                                                                    
adjust the director name of the new combined division.                                                                          
                                                                                                                                
Co-Chair Stedman  queried an impact on  the fishing industry                                                                    
with the changes of the  child labor issue. He also wondered                                                                    
what industries were relying on the younger people to work.                                                                     
                                                                                                                                
Mr.  Mitchell responded  that the  changes would  not affect                                                                    
the fishing  industry. He stated  that 14-  and 15-year-olds                                                                    
were currently  prohibited from working on  a fishing vessel                                                                    
unless that  fishing vessel  was owned  by their  parent. He                                                                    
stated  that the  main industry  that employed  14- and  15-                                                                    
year-olds was the retail sector.                                                                                                
                                                                                                                                
Co-Chair Stedman  queried more clarity on  the strictness of                                                                    
the  requirement for  young people  to only  be employed  on                                                                    
their parents' vessels.                                                                                                         
                                                                                                                                
Mr. Mitchell  replied that it  was very strict.  The parents                                                                    
must own and operate the business.                                                                                              
                                                                                                                                
Senator  Olson wondered  whether grandparents  were included                                                                    
in that provision.                                                                                                              
                                                                                                                                
Mr. Mitchell responded that  grandparents were currently not                                                                    
included,   but   under    the   proposed   adjustment   the                                                                    
grandparents would be included in the exemption.                                                                                
                                                                                                                                
9:50:07 AM                                                                                                                    
                                                                                                                                
Senator Olson  surmised that a  grandparent who  hired their                                                                    
grandchild who was  under the age of 16,  would be violating                                                                    
current law.                                                                                                                    
                                                                                                                                
Mr. Mitchell replied in the affirmative.                                                                                        
                                                                                                                                
Co-Chair  von Imhof  stressed that  the bill  addressed that                                                                    
issue.                                                                                                                          
                                                                                                                                
Senator Wielechowski  wondered how  much ownership  a parent                                                                    
or grandparent would need to  have in order to be considered                                                                    
the business owner.                                                                                                             
                                                                                                                                
Mr. Mitchell replied that it was 51 percent or more.                                                                            
                                                                                                                                
Senator Wielechowski queried the definition of "operating."                                                                     
                                                                                                                                
Mr. Mitchell replied that the  parent would be on the vessel                                                                    
controlling the operations of the vessel.                                                                                       
                                                                                                                                
Senator Wielechowski wondered whether  the bill would exempt                                                                    
grandparent  owned business  for  the  protections of  young                                                                    
people against employment in dangerous industries.                                                                              
                                                                                                                                
Mr.  Mitchell  responded  that  the  current  exemption  for                                                                    
parents applied to all child  labor provisions. The proposed                                                                    
exemptions  would exempt  14- and  15-year-olds from  all of                                                                    
the  requirements under  the child  labor provisions  of the                                                                    
business owned and operated by the grandparent.                                                                                 
                                                                                                                                
Senator Wielechowski wondered whether  a child work in adult                                                                    
entertainment  business that  was owned  by their  parent or                                                                    
grandparent.                                                                                                                    
                                                                                                                                
Mr. Mitchell agreed to provide that information.                                                                                
                                                                                                                                
Senator  Wielechowski  looked  at the  workers  compensation                                                                    
provision  and noted  that it  added  to the  powers of  the                                                                    
director of the  division. He wondered whether  it had legal                                                                    
meaning, or whether it codified the current goals.                                                                              
                                                                                                                                
Mr. Mitchell replied that the  provision was currently under                                                                    
the authorities  for the Division of  Worker's Compensation.                                                                    
He stated that it would combine  the first five items of the                                                                    
powers of duties of the other division.                                                                                         
                                                                                                                                
Senator Bishop  wondered whether there would  be a sectional                                                                    
analysis.                                                                                                                       
                                                                                                                                
Co-Chair von  Imhof replied that  the fiscal notes  would be                                                                    
discussed,  and there  could be  a  sectional analysis.  She                                                                    
encouraged the asking of the question.                                                                                          
                                                                                                                                
9:55:13 AM                                                                                                                    
                                                                                                                                
Senator Bishop  queried the occupations  of the bulk  of the                                                                    
permits.                                                                                                                        
                                                                                                                                
Mr.  Mitchell responded  that there  were 8,700  work permit                                                                    
applications in  FY 19. He  stated that  approximately 8,200                                                                    
were approved permits.  He remarked that they were  all in a                                                                    
variety of industries.                                                                                                          
                                                                                                                                
Senator Bishop surmised  that there was no change  in the 23                                                                    
hours a week limit.                                                                                                             
                                                                                                                                
Mr.  Mitchell  replied that  there  were  two standards  for                                                                    
hourly limitations for 14- and  15-year-olds: when school is                                                                    
in session  has a 23 hour  per week limit; and  a limitation                                                                    
that was 40  hours per week in the summer  months. He stated                                                                    
that the standard would still apply in the current bill.                                                                        
                                                                                                                                
Senator Bishop  noted the start  time for in  school workers                                                                    
had been changed to 7am.                                                                                                        
                                                                                                                                
Mr. Mitchell agreed.                                                                                                            
                                                                                                                                
Senator Bishop remarked that it was currently 5am.                                                                              
                                                                                                                                
Mr. Mitchell agreed.                                                                                                            
                                                                                                                                
Co-Chair  von  Imhof surmised  that  there  was not  a  huge                                                                    
change to  the base  labor rules for  young people,  but the                                                                    
hours were  slightly different and adding  grandparents. She                                                                    
remarked that the other part merged the two departments.                                                                        
                                                                                                                                
Mr. Mitchell agreed.                                                                                                            
                                                                                                                                
Co-Chair von  Imhof felt that  examination of  existing laws                                                                    
should be done outside of the meeting.                                                                                          
                                                                                                                                
Senator   Wielechowski   wondered   whether  there   was   a                                                                    
limitation of hours for a  child working for their parent or                                                                    
grandparent.                                                                                                                    
                                                                                                                                
Mr. Mitchell  replied that exemption  applied to  all Alaska                                                                    
law, but did  not apply to federal law. There  was a similar                                                                    
exclusion under  federal law,  but it did  not apply  to the                                                                    
hazardous occupations of a business  owned and operated by a                                                                    
parent.                                                                                                                         
                                                                                                                                
Co-Chair von Imhof wanted to address the fiscal note.                                                                           
                                                                                                                                
Mr. Mitchell discussed the fiscal note.                                                                                         
                                                                                                                                
Co-Chair von  Imhof commended the administration  to examine                                                                    
efficiencies and cost savings.                                                                                                  
                                                                                                                                
10:04:53 AM                                                                                                                   
                                                                                                                                
Senator Bishop  supported the  sunset because  he understood                                                                    
the workload.                                                                                                                   
                                                                                                                                
Senator  Wielechowski remarked  that he  had a  current bill                                                                    
that   would  repeal   the   Workers  Compensation   Appeals                                                                    
Committee  that  would  save additional  money.  He  queried                                                                    
support of an amendment to include that idea in the bill.                                                                       
                                                                                                                                
Mr. Mitchell  replied that he would  consult with department                                                                    
leadership.                                                                                                                     
                                                                                                                                
Co-Chair  Stedman   expressed  concern  about   whether  the                                                                    
legislation  should be  expanded  to  include more  extended                                                                    
family.                                                                                                                         
                                                                                                                                
Senator Olson echoed Co-Chair Stedman's concern.                                                                                
                                                                                                                                
Co-Chair von Imhof discussed the following day's agenda.                                                                        
                                                                                                                                
CSHB 68(FIN)  was HEARD  and HELD  in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
HB139 APFC Statement.pdf SFIN 2/10/2020 9:00:00 AM
HB 139
HB 139 APFC Response 5.11.19.pdf SFIN 2/10/2020 9:00:00 AM
HB 139
HB139 Testimony - Received by 4.25.19.pdf SFIN 2/10/2020 9:00:00 AM
HB 139
HB 139 Sponsor Statement 2.5.2020.pdf SFIN 2/10/2020 9:00:00 AM
HB 139
HB 68 Explanation of Changes v. A to U.pdf SFIN 2/10/2020 9:00:00 AM
HB 68
HB 68 Sectional Analysis v. U 5.7.2019.pdf SFIN 2/10/2020 9:00:00 AM
HB 68
HB 68 Transmittal Letter 2.19.2019.pdf SFIN 2/10/2020 9:00:00 AM
HB 68
HB 68 DOLWD Response 2.11.2020.pdf SFIN 2/10/2020 9:00:00 AM
HB 68
HB 139 APFC Response SFIN 2.13.2020.pdf SFIN 2/10/2020 9:00:00 AM
HB 139