Legislature(2011 - 2012)BELTZ 105 (TSBldg)

02/23/2012 01:30 PM LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Bills Previously Heard/Scheduled
+= SB 25 AIDEA SUSTAINABLE ENERGY PROGRAM TELECONFERENCED
Moved CSSB 25(L&C) Out of Committee
+= SB 175 PRACTICE OF NATUROPATHY TELECONFERENCED
Moved CSSB 175(L&C) Out of Committee
+= SB 122 REAL ESTATE TRANSFER FEES/TITLE PLANTS TELECONFERENCED
Moved CSSB 122(L&C) Out of Committee
+= SB 174 OIL AND GAS INDUSTRY JOB NOTIFICATIONS TELECONFERENCED
Heard & Held
+= SB 116 WORKERS' COMP.: COLL BARGAINING/MEDIATION TELECONFERENCED
Scheduled But Not Heard
*+ SB 190 BIG GAME COMMERCIAL SERVICES BOARD TELECONFERENCED
<Bill Hearing Postponed>
+ HB 168 INJUNCTION SECURITY: INDUSTRIAL OPERATION TELECONFERENCED
<Bill Hearing Postponed>
+= SB 138 THIRD-PARTY CHARGES ON TELEPHONE BILLS TELECONFERENCED
<Bill Hearing Postponed>
+= SB 157 CANCEL INSUR. ON CERTAIN VACANT PROPERTY TELECONFERENCED
<Bill Hearing Postponed>
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                       February 23, 2012                                                                                        
                           1:32 p.m.                                                                                            
                                                                                                                              
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Dennis Egan, Chair                                                                                                      
Senator Joe Paskvan, Vice Chair                                                                                                 
Senator Linda Menard                                                                                                            
Senator Bettye Davis                                                                                                            
Senator Cathy Giessel                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 175                                                                                                             
"An Act  relating to the  practice of naturopathy;  and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
     - MOVED CSSB 175(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 122                                                                                                             
"An Act relating to real  estate transfer fees and increasing the                                                               
length  of time  title  records  must be  maintained  by a  title                                                               
plant."                                                                                                                         
                                                                                                                                
     - MOVED CSSB 122(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 25                                                                                                              
"An  Act  relating  to participation  by  the  Alaska  Industrial                                                               
Development and Export Authority in energy projects."                                                                           
                                                                                                                                
     - MOVED CSSB  25(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 174                                                                                                             
"An Act requiring certain employers  in the oil or gas production                                                               
industries to report certain job  opportunities to the Department                                                               
of  Labor and  Workforce  Development as  public information  and                                                               
requiring  that information  to be  posted on  the Alaska  Online                                                               
Public  Notice System;  and adding  to the  duties of  the Alaska                                                               
Workforce Investment Board."                                                                                                    
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 116                                                                                                             
"An  Act offering  mediation  of  disputed workers'  compensation                                                               
claims by a  hearing officer or other classified  employee of the                                                               
division  of   workers'  compensation  and   allowing  collective                                                               
bargaining  agreements to  supersede  certain  provisions of  the                                                               
Alaska Workers' Compensation Act;  and providing for an effective                                                               
date."                                                                                                                          
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
SENATE BILL NO. 190                                                                                                             
"An  Act   relating  to  activities,  including   violations  and                                                               
penalties,  under  the supervision  of  the  Big Game  Commercial                                                               
Services  Board;  and creating  a  retired  status master  guide-                                                               
outfitter license."                                                                                                             
                                                                                                                                
     - BILL HEARING POSTPONED                                                                                                   
                                                                                                                                
CS FOR HOUSE BILL NO. 168(JUD)                                                                                                  
"An Act  requiring the amount  of the  security given by  a party                                                               
seeking an injunction or order  vacating or staying the operation                                                               
of  a permit  affecting  an industrial  operation  to include  an                                                               
amount for  the payment of  wages and benefits for  employees and                                                               
payments to  contractors and subcontractors  that may be  lost if                                                               
the industrial operation is wrongfully enjoined."                                                                               
                                                                                                                                
     - BILL HEARING POSTPONED                                                                                                   
                                                                                                                                
SENATE BILL NO. 138                                                                                                             
"An Act relating  to the inclusion of the charges  of a vendor of                                                               
goods  or services  on the  bills  of certain  telecommunications                                                               
carriers; and adding  an unlawful act to the  Alaska Unfair Trade                                                               
Practices and Consumer Protection Act."                                                                                         
                                                                                                                                
     - BILL HEARING POSTPONED                                                                                                   
                                                                                                                                
SENATE BILL NO. 157                                                                                                             
"An  Act allowing  an insurer  to cancel  an insurance  policy if                                                               
property becomes unoccupied and  the vacancy increases the hazard                                                               
insured against."                                                                                                               
                                                                                                                                
     - BILL HEARING POSTPONED                                                                                                   
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 175                                                                                                                  
SHORT TITLE: PRACTICE OF NATUROPATHY                                                                                            
SPONSOR(s): SENATOR(s) MCGUIRE                                                                                                  
                                                                                                                                
01/25/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/25/12       (S)       L&C                                                                                                    
02/07/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/07/12       (S)       Heard & Held                                                                                           
02/07/12       (S)       MINUTE(L&C)                                                                                            
02/09/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/09/12       (S)       Heard & Held                                                                                           
02/09/12       (S)       MINUTE(L&C)                                                                                            
02/16/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/16/12       (S)       Heard & Held                                                                                           
02/16/12       (S)       MINUTE(L&C)                                                                                            
02/21/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/21/12       (S)       -- MEETING CANCELED --                                                                                 
02/23/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 122                                                                                                                  
SHORT TITLE: REAL ESTATE TRANSFER FEES/TITLE PLANTS                                                                             
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
04/08/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/08/11       (S)       CRA, L&C                                                                                               
01/24/12       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
01/24/12       (S)       Heard & Held                                                                                           
01/24/12       (S)       MINUTE(CRA)                                                                                            
01/31/12       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
01/31/12       (S)       Moved CSSB 122(CRA) Out of Committee                                                                   
01/31/12       (S)       MINUTE(CRA)                                                                                            
02/01/12       (S)       CRA RPT CS  4DP      NEW TITLE                                                                         
02/01/12       (S)       DP: OLSON, KOOKESH, MENARD, WAGONER                                                                    
02/02/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/02/12       (S)       Heard & Held                                                                                           
02/02/12       (S)       MINUTE(L&C)                                                                                            
02/21/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/21/12       (S)       -- MEETING CANCELED --                                                                                 
02/23/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB  25                                                                                                                  
SHORT TITLE: AIDEA SUSTAINABLE ENERGY PROGRAM                                                                                   
SPONSOR(s): MCGUIRE                                                                                                             
                                                                                                                                
01/19/11       (S)       PREFILE RELEASED 1/7/11                                                                                
01/19/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/19/11       (S)       L&C, FIN                                                                                               
02/08/12       (S)       SPONSOR SUBSTITUTE INTRODUCED-REFERRALS                                                                
02/08/12       (S)       L&C, FIN                                                                                               
02/16/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/16/12       (S)       Heard & Held                                                                                           
02/16/12       (S)       MINUTE(L&C)                                                                                            
02/21/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/21/12       (S)       -- MEETING CANCELED --                                                                                 
02/23/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 174                                                                                                                  
SHORT TITLE: OIL AND GAS INDUSTRY JOB NOTIFICATIONS                                                                             
SPONSOR(s): FRENCH                                                                                                              
                                                                                                                                
01/25/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/25/12       (S)       L&C, FIN                                                                                               
02/16/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/16/12       (S)       Scheduled But Not Heard                                                                                
02/21/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/21/12       (S)       -- MEETING CANCELED --                                                                                 
02/23/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DON HABEGAR, Director                                                                                                           
Division of Corporations, Business and Professional Licensing                                                                   
Department of Commerce, Community and Economic Development                                                                      
(DCCED)                                                                                                                         
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Clarified department history of prescriptive                                                              
authority issue in SB 175.                                                                                                      
                                                                                                                                
DR. WARD HURLBURT, Director and Chief Medical Officer                                                                           
Division of Public Health                                                                                                       
Department of Health and Social Services (DHSS)                                                                                 
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Explained department perspective on SB 175                                                                
and the fiscal note.                                                                                                            
                                                                                                                                
JON SHERWOOD, Medicaid Special Projects                                                                                         
Medicaid and Health Care Policy                                                                                                 
Department of Health and Social Services (DHSS)                                                                                 
POSITION STATEMENT: Explained the fiscal impacts of SB 175 on                                                                 
the Medicaid program.                                                                                                           
                                                                                                                                
DANA OWEN, Staff                                                                                                                
Senate Labor and Commerce Committee                                                                                             
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Explained Amendment 1 to CSSB 122(CRA).                                                                   
                                                                                                                                
MIKE PRICE, owner                                                                                                               
Fidelity Title Insurance in Anchorage and Mat-Su Title Insurance                                                                
President, Alaska Land Title Association                                                                                        
Wasilla, AK                                                                                                                     
POSITION STATEMENT: Said CSSB 122(CRA) was acceptable to all                                                                  
members of the industry.                                                                                                        
                                                                                                                                
LINDA HALL, Director                                                                                                            
Division of Insurance                                                                                                           
Department of Commerce, Community and Economic Development                                                                      
(DCCED)                                                                                                                         
Juneau, AK                                                                                                                      
POSITION STATEMENT: Supported CSSB 122(CRA).                                                                                  
                                                                                                                                
MIKE PAWLOWSKI, Staff                                                                                                           
Senator Lesil McGuire                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Explained CSSSSB SB 25(L&C) for the sponsor.                                                              
                                                                                                                                
MARK DAVIS, Director                                                                                                            
Alaska Industrial Development and Export Authority (AIDEA)                                                                      
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Supported CSSSSB 174(L&C).                                                                                
                                                                                                                                
SENATOR HOLLIS FRENCH                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Sponsor of SB 174                                                                                         
                                                                                                                                
SHARON LONG, Staff                                                                                                              
Senator Cathy Giessel                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Explained Senator Giessel's amendment to SB                                                               
174.                                                                                                                            
                                                                                                                                
DENNIS BAILEY, Attorney                                                                                                         
Legislative Legal Division                                                                                                      
Legislative Affairs Agency                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Was available to answer questions on SB 174.                                                              
                                                                                                                                
PAULA SCAVERA, Legislative Liaison                                                                                              
Department of Labor and Workforce Development (DOLWD)                                                                           
Juneau, AK                                                                                                                      
POSITION STATEMENT:  Explained the impacts  of SB 174  on DOLWD's                                                             
online job notification systems.                                                                                                
                                                                                                                                
PAUL DICK, Director                                                                                                             
Employment Security Division                                                                                                    
Department of Labor and Workforce Development (DOLWD)                                                                           
Juneau, AK                                                                                                                      
POSITION STATEMENT:  Answered questions on  the kind of  data the                                                             
DOLWD's ALEXsys provides on employment in the state.                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:32:24 PM                                                                                                                  
CHAIR DENNIS EGAN  called the Senate Labor  and Commerce Standing                                                             
Committee meeting  to order at 1:32  p.m. Present at the  call to                                                               
order were Senators Paskvan, Giessel, Davis, and Chair Egan.                                                                    
                                                                                                                                
                 SB 175-PRACTICE OF NATUROPATHY                                                                             
                                                                                                                                
1:34:24 PM                                                                                                                    
CHAIR EGAN announced  consideration of SB 175 and  said that some                                                               
committee  members had  questions.  [CSSB 175(L&C),  27-LS1230\B,                                                               
was before the committee.]                                                                                                      
                                                                                                                                
DON  HABEGAR, Director,  Division of  Corporations, Business  and                                                               
Professional Licensing, in the  Department of Commerce, Community                                                               
and Economic Development (DCCED), introduced himself.                                                                           
                                                                                                                                
SENATOR  PASKVAN asked  Mr. Habegar  to  review the  department's                                                               
position on the recent restrictions  put upon naturopaths that no                                                               
one  could identify  the origin  of and  explain why  nothing had                                                               
been done.                                                                                                                      
                                                                                                                                
MR. HABEGAR replied  that he had done a lot  of digging in trying                                                               
find the  mileposts on this  issue and found that  the department                                                               
has  had   a  consistent  interpretation  of   the  statutes  and                                                               
regulations  about  it:  one  was  that  naturopaths  don't  have                                                               
prescriptive authority.                                                                                                         
                                                                                                                                
He found several  complaints over the last 18  years during which                                                               
naturopaths  have  been  practicing.   The  first  was  dismissed                                                               
because of lack of evidence. The  second one brought the issue to                                                               
the  forefront  and  ended  up  with  a  consent  agreement.  The                                                               
division has maintained that  naturopaths don't have prescriptive                                                               
authority, and that was the issue  in this particular case. As it                                                               
unfolded,  pharmacies started  asking the  department about  what                                                               
prescriptive  authority means  and  said  they weren't  supplying                                                               
legend drugs to  naturopaths. That is what led  to the discussion                                                               
before them today and the question  of what the division is going                                                               
to do.                                                                                                                          
                                                                                                                                
If legislation  is not passed  to correct the situation,  he said                                                               
the  division is  in a  position to  go out  with regulations  to                                                               
clear up  what is  confusing language  to all.  Those regulations                                                               
won't  go out  until after  going through  the process.  How they                                                               
proceed past that is yet undetermined.                                                                                          
                                                                                                                                
SENATOR   PASKVAN  asked   him  to   precisely  state,   assuming                                                               
legislation didn't pass, whether  the regulations will be drafted                                                               
allowing the practice that has existed  over the last 18 years or                                                               
not.                                                                                                                            
                                                                                                                                
MR.  HABEGAR replied  that because  the division  has interpreted                                                               
statute to mean  that no prescriptive authority  has been granted                                                               
by the legislature,  regulations will be developed  to comport to                                                               
that.                                                                                                                           
                                                                                                                                
SENATOR  PASKVAN said  he understood  that anecdotal  issues have                                                               
arisen -  one a consent decree  and the other dismissed  - but it                                                               
begs the  issue that directors have  let a practice exist  for 18                                                               
years without doing anything. He was  troubled about why all of a                                                               
sudden  they decided  to do  a 180  degree turn  in terms  of its                                                               
application, whatever the interpretation is.                                                                                    
                                                                                                                                
1:40:24 PM                                                                                                                    
MR.  HABEGAR said  he recognized  that there  have been  numerous                                                               
interpretations  and that  some  pharmacists  have prescribed  in                                                               
response  to written  prescriptions,  and if  legislation is  not                                                               
passed,  they  would give  the  issue  careful consideration.  He                                                               
believes it is  important for regulations to  support statute and                                                               
not confuse licensees.                                                                                                          
                                                                                                                                
SENATOR  PASKVAN  asked if  he  is  supporting the  legislation's                                                               
passage to remove any uncertainty about interpretation.                                                                         
                                                                                                                                
MR.  HABEGAR replied  yes, but  SB  175 needs  more clarity.  For                                                               
instance, hydro-therapy means  the use of water in  all forms. Is                                                               
that the  physical state of water  that is deemed a  liquid or is                                                               
it  hydrotherapy with  all its  various  components, i.e.  saline                                                               
solution? And  clarifying this language  would help  the division                                                               
immensely.                                                                                                                      
                                                                                                                                
1:43:07 PM                                                                                                                    
CHAIR EGAN said  this is the fourth meeting on  this bill and the                                                               
department should have offered an  amendment a couple of meetings                                                               
ago  if  it had  issues.  Testimony  the committee  has  received                                                               
indicates that this legislation clarifies  what has been done for                                                               
18 years; it isn't changing anything.                                                                                           
                                                                                                                                
MR. HABEGAR  responded that he had  a fiscal note and  part of it                                                               
was  about getting  a group  of professionals  together and  help                                                               
them to hammer  out the details. The mix  of professionals wasn't                                                               
specified, but  certainly MDs should  be part of the  process and                                                               
someone from the Board of Pharmacy.                                                                                             
                                                                                                                                
SENATOR DAVIS  asked if  he truly understands  what SB  175 does.                                                               
For  18   years  naturopaths  had  the   authority  to  prescribe                                                               
medicines from pharmacies and all  of a sudden something happened                                                               
to take that  authority away and the director just  told them the                                                               
division plans to  write regulations in support of  that. So this                                                               
legislation won't do anything.                                                                                                  
                                                                                                                                
MR.  HABEGAR responded  that he  thinks SB  175 takes  regulation                                                               
that was  supporting their interpretation  of statute,  which was                                                               
no prescriptive authority, and  adds that prescriptive authority.                                                               
There is  room for clarification  through the  regulatory process                                                               
and he would do that with the help of experts.                                                                                  
                                                                                                                                
1:46:13 PM                                                                                                                    
SENATOR MENARD joined the committee.                                                                                            
                                                                                                                                
SENATOR DAVIS  asked if he  had shared  his idea of  clarity with                                                               
anyone, because  they had been  working on  this bill for  a long                                                               
time;  he had  even  testified on  it. Now  today  when they  are                                                               
getting  ready   to  move  it,   he  is  saying  it   needs  more                                                               
clarification and doesn't have anything to suggest.                                                                             
                                                                                                                                
MR.  HABEGAR  apologized  for  being  remiss  in  addressing  the                                                               
committee's concerns, but it is an ongoing process.                                                                             
                                                                                                                                
1:47:28 PM                                                                                                                    
SENATOR  GIESSEL  said  her  concern   and  the  concern  of  her                                                               
colleagues is  that a professional license  with its accompanying                                                               
scope of  practice is  a property  right and  it sounds  like the                                                               
division  has plans  to arbitrarily  change it.  Even if  they do                                                               
pass this bill some tweaking will be done to it.                                                                                
                                                                                                                                
Another of her  concerns was the $127,000 fiscal  note for travel                                                               
expenses  for   two  naturopath  prescription  drug   task  force                                                               
meetings that she  didn't think would be  needed. Another concern                                                               
she had was  the task force consists of  naturopaths, the medical                                                               
board, the  pharmacy board and  the division personnel,  but this                                                               
scope of practice applies to  naturopaths only, not the other two                                                               
professions.  She was  also concerned  about  the $36,000  fiscal                                                               
note  each  month for  filling  100  Medicaid prescriptions.  She                                                               
didn't think this bill needed a fiscal note.                                                                                    
                                                                                                                                
MR.  HABEGAR  replied  that  the   fiscal  note  isn't  from  his                                                               
department;  it came  from HSS.  The $16,000  fiscal note  was in                                                               
response to the  original bill, and if it needs  to be changed as                                                               
results of changes to the bill he would withdraw it.                                                                            
                                                                                                                                
CHAIR EGAN  thanked him  and announced other  people on  line who                                                               
could also answer fiscal note questions.                                                                                        
                                                                                                                                
1:50:43 PM                                                                                                                    
DR. WARD  HURLBURT, Director  of the  Division of  Public Health,                                                               
and  Chief  Medical Officer  for  the  Department of  Health  and                                                               
Social  Services (DHSS),  Anchorage, Alaska,  said he  understood                                                               
that clarification  was needed and  the language in  this version                                                               
of SB  175 would  expand the naturopathic  scope of  practice and                                                               
the fiscal note  was based on the cost  associated with expanding                                                               
that  prescriptive practice.  For instance,  the manufacturer  of                                                               
capsicum, a tincture of cayenne  pepper that is used medicinally,                                                               
made it a  prescription item. In allopathic medicine,  if you ask                                                               
someone to take ibuprofen or  Advil, the over-the-counter form is                                                               
200 milligrams and very few  insurance policies would cover that.                                                               
Whereas a physician  could prescribe an 800  milligram tablet and                                                               
it would likely be covered.                                                                                                     
                                                                                                                                
The bill's language notes that  the prescriptive authority is for                                                               
drugs that  are derived  from natural  substances and  his recent                                                               
research  and   experience  indicated   that  25-50   percent  of                                                               
pharmaceutical agents  requiring a prescription are  derived from                                                               
natural substances.  That is the  reason for the concern  that it                                                               
would expand  the scope and  therefore expand the cost  of health                                                               
care for items that are not now covered by insurance.                                                                           
                                                                                                                                
1:53:14 PM                                                                                                                    
SENATOR GIESSEL asked what the  prescriptive cost to Medicaid has                                                               
been under existing regulations for the last 18 years.                                                                          
                                                                                                                                
DR. HURLBURT said he didn't  have that information, but would get                                                               
it.                                                                                                                             
                                                                                                                                
SENATOR GIESSEL said she was  not interested in speculating about                                                               
expansion, but  was only asking  about practices for the  past 18                                                               
years.                                                                                                                          
                                                                                                                                
1:54:10 PM                                                                                                                    
SENATOR PASKVAN asked  if he ever protested  what the naturopaths                                                               
were doing in the last 18  years - even one time, because someone                                                               
is protesting now, and he was wondering what it was about.                                                                      
                                                                                                                                
DR. HURLBURT  said he had  been in  his current position  for 2.5                                                               
years and during that time  he hadn't protested what naturopathic                                                               
doctors had been doing.                                                                                                         
                                                                                                                                
1:55:08 PM                                                                                                                    
CHAIR  EGAN  asked  Dr.  Hurlburt  if  any  other  chief  medical                                                               
officers  had protested  naturopathic  practices in  the last  18                                                               
years.                                                                                                                          
                                                                                                                                
DR. HURLBURT replied that he didn't know but would find out.                                                                    
                                                                                                                                
1:55:46 PM                                                                                                                    
JON  SHERWOOD, Medicaid  Special  Projects,  Medicaid and  Health                                                               
Care  Policy, Department  of Health  and Social  Services (DHSS),                                                               
said  Medicaid has  two  fiscal  notes and  that  this issue  has                                                               
stayed  beneath their  radar. He  understood that  naturopaths do                                                               
not have prescriptive authority and  they are not included in the                                                               
Medicaid program,  and since he  doesn't pay them, they  have not                                                               
had to enroll in the  Medicaid program. Changes to Medicaid under                                                               
the  Affordable  Care  Act  require   that  any  prescriber  that                                                               
Medicaid  is paying  for a  prescription needs  to enroll  in the                                                               
program so  that their  provider number can  be captured.  A one-                                                               
time cost  for creating a way  for them to enroll  in the program                                                               
and  $36,000  a   year  for  100  prescriptions   per  month  was                                                               
estimated. But he  emphasized that was only an  estimate and that                                                               
a wide variety of medicines are  prescribed, and it would help to                                                               
have a  clearer understanding  of what  substances they  would be                                                               
talking about.                                                                                                                  
                                                                                                                                
SENATOR DAVIS asked him to explain the two fiscal notes.                                                                        
                                                                                                                                
MR.   SHERWOOD    explained   that   the    Medicaid   Assistance                                                               
Administration has a  one-time cost of $75,000,  $18,800 of which                                                               
would come from general funds; the  other one is $36,000 per year                                                               
for  health  care  Medicaid  services  and  that  is  50  percent                                                               
federal, 50 percent state general  funds. The $16,000 fiscal note                                                               
is  from  the  Department  of Commerce,  Community  and  Economic                                                               
Development (DCCED).                                                                                                            
                                                                                                                                
2:00:02 PM                                                                                                                    
SENATOR  GIESSEL asked  Dr. Jasper  if naturopaths  have national                                                               
provider identifier (NPI) numbers.                                                                                              
                                                                                                                                
DR. JASPER answered yes.                                                                                                        
                                                                                                                                
SENATOR  GIESSEL  asked  if  they  are  reimbursed  by  insurance                                                               
companies.                                                                                                                      
                                                                                                                                
DR.  JASPER  answered  yes;  Alaska  statute  provides  for  that                                                               
coverage in its group health policies.                                                                                          
                                                                                                                                
SENATOR GIESSEL asked if any  Alaska naturopaths have enrolled in                                                               
Medicaid or are Medicare providers.                                                                                             
                                                                                                                                
DR. JASPER replied  that naturopaths are not  eligible to enroll.                                                               
Eligibility for Medicare  is determined by federal  laws, and the                                                               
eligibility for Medicaid is determined  by state law; neither has                                                               
authorized  naturopathic doctors  to participate  in Medicare  or                                                               
Medicaid.                                                                                                                       
                                                                                                                                
2:01:29 PM                                                                                                                    
DR. JASPER  also added  that hydrotherapy  is the  application of                                                               
hot and cold water packs to  the body and shouldn't result in any                                                               
prescription expenses;  it's not  IV water or  saline injections.                                                               
Maybe it would help Mr. Habegar to have that clarified.                                                                         
                                                                                                                                
2:02:32 PM                                                                                                                    
SENATOR PASKVAN  moved to report  CSSB 175(L&C), version  B, from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s)  although he  hoped  the fiscal  note  would be  removed.                                                               
There were no objections, and it was so ordered.                                                                                
                                                                                                                                
2:02:57 PM                                                                                                                    
At ease from 2:02 to 2:04 p.m.                                                                                                  
                                                                                                                                
         SB 122-REAL ESTATE TRANSFER FEES/TITLE PLANTS                                                                      
                                                                                                                                
2:04:56 PM                                                                                                                    
CHAIR EGAN announced consideration of SB 122.                                                                                   
                                                                                                                                
DANA  OWEN, staff  to the  Senate Labor  and Commerce  Committee,                                                               
said  at  the  last  hearing  on  this  bill  they  discussed  an                                                               
amendment that  would be forthcoming  and it would  answer issues                                                               
that had been raised amongst title insurers.                                                                                    
                                                                                                                                
SENATOR  PASKVAN moved  to adopt  Amendment 1  to CSSB  122(CRA),                                                               
version 27-LS0789\B.                                                                                                            
                                                                                                                                
CHAIR EGAN objected for discussion.                                                                                             
                                                                                                                                
MR.  OWEN explained  that the  one goal  of the  amendment is  to                                                               
anchor title searches to the  State of Alaska. Concerns have been                                                               
expressed  to  their  office  that   because  there  is  so  much                                                               
offshoring of  this kind of  "back office"  sort of work  that we                                                               
would lose our  ability to have title insurance  searches done by                                                               
somebody who has  an actual connection to Alaska  and whose local                                                               
knowledge may  prove instrumental in  making sure that  the title                                                               
searches  are defensible.  In order  to do  that, this  amendment                                                               
adds  a requirement  that  a title  insurance  contract can't  be                                                               
issued until  an examination  has been done  by a  licensed title                                                               
insurance limited  producer. Among  the requirements to  become a                                                               
licensed title insurance limited producer  is one that you have a                                                               
locus (physical presence) of business  in the state. This doesn't                                                               
guarantee that  with online technology  people outside  the state                                                               
couldn't do the research, but it  would at least mandate that one                                                               
person or  a business located  in Alaska has the  final authority                                                               
to approve it.                                                                                                                  
                                                                                                                                
The second  section of the  bill requires that a  title insurance                                                               
limited producer  must be a  resident of  the State of  Alaska. A                                                               
memo in  their packets argues  that this  may be in  violation of                                                               
the privileges  and immunities clause  of the  U.S. Constitution.                                                               
Anytime  Alaska  residency is  required,  this  issue is  raised.                                                               
Bills in the past have passed  with these kinds of provisions and                                                               
the committee  could decide  to embrace  that. This  language has                                                               
been  vetted  between  two  contending   factions  in  the  title                                                               
industry, both of which are okay with this now.                                                                                 
                                                                                                                                
2:08:56 PM                                                                                                                    
SENATOR  MENARD  said  she  wanted   to  hear  from  MatSu  Title                                                               
Insurance.                                                                                                                      
                                                                                                                                
2:10:22 PM                                                                                                                    
MIKE  PRICE, owner,  Fidelity Title  Insurance  in Anchorage  and                                                               
Mat-Su Title Insurance in Wasilla  said he is currently president                                                               
of  the  Alaska  Land  Title  Association  and  that  the  CS  is                                                               
acceptable to  all members of  the industry and they  support its                                                               
passage.  He  said  about  13  states  had  passed  very  similar                                                               
legislation  in  the  last  three  or  four  years  that  specify                                                               
residents of  their states  will be  the only  licensed examiners                                                               
within  those  states.  Since the  last  committee  meeting,  he,                                                               
personally, had  been solicited three  times from India  and that                                                               
is the kind of thing they are trying to prohibit.                                                                               
                                                                                                                                
SENATOR  MENARD  said   it's  comforting  to  hear   that  he  is                                                               
satisfied.                                                                                                                      
                                                                                                                                
CHAIR  EGAN  asked  Ms.  Hall  what she  thought  of  the  latest                                                               
version.                                                                                                                        
                                                                                                                                
2:12:35 PM                                                                                                                    
LINDA  HALL,  Director,  Division  of  Insurance,  Department  of                                                               
Commerce, Community  and Economic  Development (DCCED),  said she                                                               
was pleased to  hear Mr. Price testify that  industry agrees with                                                               
this  version, and  she is  especially supportive  of Section  1,                                                               
because  it  clarifies  there  has  to be  at  least  a  physical                                                               
location from  which to  do the title  examination search  in the                                                               
state.  Language in  Section 2  about off  shore outsourcing  was                                                               
strictly  a  legislative  call,  she  said,  and  she  understood                                                               
industry's concerns about it.                                                                                                   
                                                                                                                                
2:13:49 PM                                                                                                                    
SENATOR  PASKVAN moved  to report  CSSB 122(L&C),  as amended  by                                                               
amendment  B.2, from  committee  with individual  recommendations                                                               
and attached zero  fiscal note. There were no  objections, and it                                                               
was so ordered.                                                                                                                 
                                                                                                                                
2:14:13 PM                                                                                                                    
At ease from 2:14 to 2:15 p.m.                                                                                                  
                                                                                                                                
            SB  25-AIDEA SUSTAINABLE ENERGY PROGRAM                                                                         
                                                                                                                                
2:15:50 PM                                                                                                                    
CHAIR EGAN announced consideration of SB 25.                                                                                    
                                                                                                                                
2:16:02 PM                                                                                                                    
SENATOR  PASKVAN  moved  to  bring  CSSSSB  25(  ),  version  27-                                                               
LS0290\E, before the committee for  purposes of discussion. There                                                               
were no objections and it was so ordered.                                                                                       
                                                                                                                                
MIKE  PAWLOWSKI, staff  to  Senator McGuire,  sponsor  of SB  25,                                                               
explained the  committee substitute (CS).  He said that  the bill                                                               
is about  empowering and  creating a new  fund within  the Alaska                                                               
Industrial and  Development and Export Authority  (AIDEA) to take                                                               
a  portion of  Alaska's savings  and put  it to  work within  the                                                               
state,  financing  the  construction and  development  of  energy                                                               
projects.                                                                                                                       
                                                                                                                                
In the  previous committee hearing,  he said that Mr.  Davis from                                                               
AIDEA  testified that  some technical  amendments were  needed to                                                               
ensure  the ability  to bond  and  to clarify  the definition  of                                                               
energy in the interest rate provisions.                                                                                         
                                                                                                                                
MR. PAWLOWSKI reviewed  the CS starting with Section 8  on page 6                                                               
where language in  section 10 amended AS 44.88.159  that sets the                                                               
interest rates for AIDEA. He  noted multiple different sources of                                                               
revenue that finance  projects were also within  that statute. So                                                               
AIDEA suggested clarifying that the  new interest rate is applied                                                               
only to the new fund being created.  So, sections 8, 9, 11 and 12                                                               
all amend different  portions of AS 44.88.159 to  ensure that the                                                               
interest  rates   are  consistent  with  current   practice.  The                                                               
important thing about  that is to ensure that  AIDEA isn't giving                                                               
away  money,  but rather  collecting  an  interest rate,  earning                                                               
money  on the  investment  that it  makes. This  is  not a  grant                                                               
program and is not designed to  be one. Further, it also conforms                                                               
with  the  private  sector  so  it  doesn't  crowd  out  Alaska's                                                               
financial  institutions  from  the  work  they  do  in  providing                                                               
capital.                                                                                                                        
                                                                                                                                
2:18:42 PM                                                                                                                    
The next  substantive change was  on page 10,  line 14, in  a new                                                               
subsection  within the  powers and  duties of  the Authority.  He                                                               
explained  that AS  44.88.090  allows AIDEA  to  issue bonds  and                                                               
borrow  against  the  proceeds  from the  projects  that  it  has                                                               
invested  in.  This  section  applies to  that  chapter.  It  was                                                               
originally the sponsor's thought that  since this new section was                                                               
within the chapter,  that power would apply to  AIDEA in carrying                                                               
out  the duties  of this  fund. AIDEA  believed that  making that                                                               
explicit  strengthened  the  bill.  So a  new  section  makes  it                                                               
extremely  clear that  AIDEA does  have the  ability to  leverage                                                               
capital markets against the assets that it has loaned.                                                                          
                                                                                                                                
MR.  PAWLOWSKI said  the other  material change  was on  page 10,                                                               
line 4. In  the previous version, language was left  in that said                                                               
"subject  to lender  approval defer  principal payments"  in that                                                               
AIDEA  under  this program  is  the  lender. This  was  redundant                                                               
language that legal said could be taken out.                                                                                    
                                                                                                                                
The final  change was on  page 11, line  4, in the  definition of                                                               
"energy  project." In  the  previous  version the  "transmission,                                                               
generation,  storage  or  distribution of  electricity"  was  the                                                               
description.  And in  working with  more energy  groups over  the                                                               
Interim  since  the previous  hearing,  it  was brought  up  that                                                               
several energy  projects might not actually  generate electricity                                                               
but could be  used for heat, biomass being the  most important of                                                               
those, and the  goal was not to preclude AIDEA  from helping that                                                               
type of energy project.                                                                                                         
                                                                                                                                
2:20:38 PM                                                                                                                    
SENATOR   MENARD  said   she  appreciated   the  format   of  his                                                               
presentation.                                                                                                                   
                                                                                                                                
MR. PAWLOWSKI  then pointed out a  mistake on page 1,  section 5,                                                               
and  said this  bill in  no way  deals with  sport fishing  guide                                                               
licenses and that would get fixed.                                                                                              
                                                                                                                                
2:21:29 PM                                                                                                                    
SENATOR  PASKVAN   asked  the  AIDEA  director   to  explain  the                                                               
leveraging component on page 10, line 14.                                                                                       
                                                                                                                                
MARK DAVIS,  Director, Alaska  Industrial Development  and Export                                                               
Authority (AIDEA),  responded that one  of the concerns  they had                                                               
with the original  bill was that although the  chapter says AIDEA                                                               
could  issue   bonds  and  borrow  money,   the  language  didn't                                                               
explicitly apply to the new fund.  Bankers and lawyers tend to be                                                               
very careful, and  in looking for a guarantee  of leveraging they                                                               
want explicit statutory authority. The  way it would work is that                                                               
now  AIDEA could  issue a  bond  to raise  money for  a loan  or,                                                               
assuming there is  some appropriation with this  bill which there                                                               
is not,  it could use those  monies, or it could  use its current                                                               
reserves. So,  it gives  AIDEA the flexibility  to pick  the best                                                               
pot of  money to get  the project  going with the  least possible                                                               
cost. This  bill suggests that AIDEA  put no more than  one third                                                               
into a loan, which is already internal policy.                                                                                  
                                                                                                                                
SENATOR PASKVAN asked if AIDEA  would fund a $250 million project                                                               
with $80 million as the first step.                                                                                             
                                                                                                                                
MR. DAVIS replied yes.                                                                                                          
                                                                                                                                
SENATOR PASKVAN  asked if there  is more leveraging once  the $80                                                               
million is locked in.                                                                                                           
                                                                                                                                
MR. DAVIS replied that depends on  how the deal is structured and                                                               
every transaction is different.                                                                                                 
                                                                                                                                
SENATOR PASKVAN asked at what  point further legislative approval                                                               
enters into the process.                                                                                                        
                                                                                                                                
MR. DAVIS  replied at the  appropriation level, but  even without                                                               
an  appropriation, should  this bill  pass, AIDEA  could issue  a                                                               
bond to raise money for an energy loan.                                                                                         
                                                                                                                                
SENATOR  MENARD  asked  if  there  is  a  good  reason  the  word                                                               
"leverage" is not part of the language.                                                                                         
                                                                                                                                
MR. DAVIS  replied that "leverage" is  a term of art  for putting                                                               
together financial packages, but it's  not language that would be                                                               
put into a statute.                                                                                                             
                                                                                                                                
2:25:49 PM                                                                                                                    
MR. PAWLOWSKI  pointed out  language on page  8, line  28 through                                                               
page  10, line  22,  requires legislative  approval for  projects                                                               
over $20 million.                                                                                                               
                                                                                                                                
2:27:10 PM                                                                                                                    
SENATOR  PASKVAN moved  to report  CSSSSB 25(L&C)  from committee                                                               
with individual  recommendations and attached fiscal  note. There                                                               
were no objections and it was so ordered.                                                                                       
                                                                                                                                
2:27:32 PM                                                                                                                    
At ease from 2:27 to 2:30 p.m.                                                                                                  
                                                                                                                                
                 SB 175-PRACTICE OF NATUROPATHY                                                                             
                                                                                                                                
2:30:35 PM                                                                                                                    
CHAIR EGAN  reconvened the meeting  and returned attention  to SB                                                               
175.                                                                                                                            
                                                                                                                                
SENATOR PASKVAN moved to rescind  the committee's previous action                                                               
to report  SB 175  out of  committee and  restated the  motion as                                                               
follows: to report CSSB 175(L&C),  version \B from committee with                                                               
a  restated  Labor   and  Commerce  fiscal  note   of  zero  with                                                               
individual recommendations.  There were no objections  and it was                                                               
so ordered.                                                                                                                     
                                                                                                                                
2:31:43 PM                                                                                                                    
At ease from 2:30 to 2:31 p.m.                                                                                                  
                                                                                                                                
         SB 174-OIL AND GAS INDUSTRY JOB NOTIFICATIONS                                                                      
                                                                                                                                
2:32:29 PM                                                                                                                    
CHAIR EGAN announced SB 174 to be up for consideration.                                                                         
                                                                                                                                
SENATOR HOLLIS FRENCH, sponsor of SB  174, said this bill had its                                                               
genesis  from the  work this  committee did  with respect  to oil                                                               
industry hiring practices. Early  results from the McDowell Group                                                               
report indicated  large numbers  of out-of-state  residents being                                                               
hired on  the North  Slope, and  he puzzled  about what  could be                                                               
done to  tip the balance  in favor of Alaska  residents. In-state                                                               
hire  cannot be  mandated, but  maybe Alaskans  can be  made more                                                               
aware  of  these  fantastic  job opportunities,  and  SB  174  is                                                               
designed to  do just  that. Senator French  said he  worked eight                                                               
years on the North Slope and they are great jobs.                                                                               
                                                                                                                                
SENATOR FRENCH  said when  big companies on  the North  Slope are                                                               
hiring,  they   tell  the  Department  of   Labor  and  Workforce                                                               
Development (DOLWD) and the department  puts it on their website.                                                               
He was  open to any  reasonable suggestion,  but the idea  was to                                                               
just get the notification out there.                                                                                            
                                                                                                                                
CHAIR EGAN remarked that the  department was working hard to make                                                               
ALEXsys more user friendly.                                                                                                     
                                                                                                                                
2:35:04 PM                                                                                                                    
SENATOR  GIESSEL said  she appreciated  the  intent and  possible                                                               
outcome  of  this  bill  and remarked  that  information  in  the                                                               
supporting  documents  also  indicated  that 75  percent  of  the                                                               
workforce in the seafood industry  is non-resident. She said more                                                               
than one-third  of Alaska's  employers are  in the  food services                                                               
industry  and employs  lots  of non-residents  as  well. So,  she                                                               
wanted to offer an amendment that  would broaden the scope of the                                                               
bill to  include any non-profit  that is licensed to  do business                                                               
in the state with more than 100 employees.                                                                                      
                                                                                                                                
2:36:35 PM                                                                                                                    
SENATOR GIESSEL moved conceptual Amendment  1 and asked her staff                                                               
to explain it.                                                                                                                  
                                                 27-LS0967\M.1                                                                  
                                                 Bailey/Wayne                                                                   
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
     OFFERED IN THE SENATE                                                                                                      
     TO: SB 174                              BY SENATOR GIESSEL                                                                 
                                                                                                                                
     Page 1, line 1:                                                                                                            
          Delete "in the oil and gas production industries"                                                                   
                                                                                                                                
     Page 1, line 3:                                                                                                            
          Delete "that"                                                                                                       
          Insert "job opportunity"                                                                                            
                                                                                                                                
     Page 1, line 8:                                                                                                            
          Delete "by oil and gas producer"                                                                                    
                                                                                                                                
     Page 1, line 9:                                                                                                            
          Delete "an oil or gas producer"                                                                                       
          Insert "a for-profit business licensed to do                                                                          
     business in the state"                                                                                                     
                                                                                                                                
     Page 1, line 10:                                                                                                           
          Delete "producer"                                                                                                     
          Insert "for-profit business"                                                                                          
     Page 2, lines 12 - 13:                                                                                                     
          Delete "and notifies job service organizations as                                                                     
     required under AS 43.82.230(b); or"                                                                                        
          Insert "in newspapers in the location where the                                                                       
       work is to be performed and in other publications                                                                        
      distributed throughout the state, including in rural                                                                      
     areas;                                                                                                                     
               (2)  the employer uses Alaska job service                                                                        
     organizations  located  throughout  the state  and  not                                                                    
     just in the location where  the work is to be performed                                                                    
     in  order to  notify  Alaskans  of work  opportunities;                                                                    
     and"                                                                                                                       
                                                                                                                                
     Renumber the following paragraph accordingly.                                                                              
                                                                                                                                
     Page 2, line 17:                                                                                                           
          Delete all material.                                                                                                  
                                                                                                                                
     Page 2, line 18:                                                                                                           
          Delete "(2)"                                                                                                          
                                                                                                                                
     Page 2, line 20:                                                                                                           
          Delete ";"                                                                                                            
          Insert "."                                                                                                            
                                                                                                                                
     Page 2, lines 21 - 24:                                                                                                     
          Delete all material.                                                                                                  
                                                                                                                                
     Page 3, line 6:                                                                                                            
          Delete "with oil or gas producers"                                                                                
                                                                                                                                
     Page 4, line 4:                                                                                                            
          Delete "and"                                                                                                      
                                                                                                                                
     Page 4, line 6, following "AS 23.05.095":                                                                              
          Insert "; and                                                                                                     
          (13)  a statement of state and municipal job                                                                      
     opportunities"                                                                                                         
                                                                                                                                
2:37:19 PM                                                                                                                    
SHARON  LONG,  staff  to Senator  Giessel,  explained  that  this                                                               
amendment  broadens the  bill to  cover  any for-profit  business                                                               
doing business in  Alaska. It would make any  available jobs open                                                               
to Alaskans. Language on page 1,  line 1, deletes "in the oil and                                                               
gas production industries",  on line 3 it  adds "job opportunity"                                                               
after "requiring", on  line 8 it deletes "oil or gas producer".                                                                 
                                                                                                                                
The fourth  change was on  page 1, line  9, that deletes  "an oil                                                               
and gas  producer" and inserts  "for-profit business  licensed to                                                               
do business  in the state".  Page 1, line 10,  deletes "producer"                                                               
and  inserts "for-profit  business".  Page 2,  lines  12 and  13,                                                               
deletes "and notifies job service  organization as required under                                                               
AS 43.82.230(b) and inserts:                                                                                                    
                                                                                                                                
     1. In newspapers in the location where the work is to                                                                      
       be performed and in other publications distributed                                                                       
     throughout the state including rural areas.                                                                                
     2. The  employer uses Alaska job  service organizations                                                                    
     located  throughout  the  state  and not  just  in  the                                                                    
     location where the work is  to be performed in order to                                                                    
     notify Alaskans of work opportunities.                                                                                     
                                                                                                                                
Change 7  deletes language  on page  2, line  17, deletes  "2" on                                                               
page 2,  line 18, and  on line 20  inserts a period.  Language is                                                               
deleted on page 2, lines 21-24.                                                                                                 
                                                                                                                                
On page 3,  line 6, "with oil or gas  producers" is deleted which                                                               
again broadens the application outside  the oil and gas industry.                                                               
On  page  4, line  4,  "and"  is deleted;  on  line  6 "and  (13)                                                               
statement of  state and municipal job  opportunities" is inserted                                                               
after "AS 23.05.095."                                                                                                           
                                                                                                                                
SENATOR DAVIS asked what the sponsor thought of the amendment.                                                                  
                                                                                                                                
SENATOR FRENCH said  he appreciated the sentiment  behind it, but                                                               
was  concerned  about  the  reporting burden  it  puts  on  other                                                               
companies. The reason he focused on  the oil and gas industry was                                                               
because  of  the information  in  "The  Non-Residents Working  in                                                               
Alaska Handbook" for  2010. This book indicates that  the oil and                                                               
gas industry employs less than  5 percent of all Alaskan workers.                                                               
But it has a substantial impact  on Alaska's economy; oil and gas                                                               
industry  earnings  are  2.7 times  higher  than  average  annual                                                               
earnings  for  all  other  industries  combined!  The  same  book                                                               
indicates that the percentage of  non-resident workers in the oil                                                               
and gas industry has historically  been higher than the statewide                                                               
average for  all industries. So,  he is  aiming at the  center of                                                               
the target  - at  the problem with  the biggest  economic impact,                                                               
out-of-state workers taking high paying oil jobs.                                                                               
                                                                                                                                
SENATOR FRENCH said he thought  Senator Giessel's idea to broaden                                                               
it was a good  one, but that maybe it should  be in a stand-alone                                                               
bill and  he wanted to  hear from  the Department of  Labor about                                                               
what sorts  of work would  go into  putting this into  effect. If                                                               
they say it's no problem whatsoever  and has no fiscal impact, he                                                               
would be fine with it.                                                                                                          
                                                                                                                                
He also  pointed out  that it's  easier to get  a tour  guide job                                                               
with  Gastineau   Channel  Guiding,  because  they   are  already                                                               
advertising on the  radio and if you want to  work in the seafood                                                               
industry, just  show up.  But if  you want to  work on  the North                                                               
Slope  "that's tougher,"  because of  the high  pay and  the high                                                               
number  of  people coming  up  from  out-of-state claiming  those                                                               
jobs.                                                                                                                           
                                                                                                                                
2:44:41 PM                                                                                                                    
SENATOR  GIESSEL agreed  with  him but  said  that still  doesn't                                                               
address the  fact that 75  percent of  the employees in  the fish                                                               
processing  industry are  non-residents. In  fact a  high percent                                                               
are  not  even  Americans.  The  same  is  true  in  the  tourism                                                               
industry.                                                                                                                       
                                                                                                                                
SENATOR  PASKVAN  said  he  understood  precisely  what  she  was                                                               
saying, but this  bill has a zero fiscal note  and he didn't know                                                               
what  the  notification  requirements  in  newspapers  and  other                                                               
publications  distributed throughout  the  state  would mean.  It                                                               
could cause significant problems.                                                                                               
                                                                                                                                
CHAIR EGAN said  the amendment was offered and it  was his intent                                                               
to take it up again at the next meeting.                                                                                        
                                                                                                                                
SENATOR MENARD asked  if it applied only  to for-profits licensed                                                               
to  do  business  in  Alaska  as  long  as  they  have  over  100                                                               
employees.                                                                                                                      
                                                                                                                                
SENATOR GIESSEL  said that was  correct and it would  not include                                                               
the film  industry which is  not required  to be licensed  in the                                                               
state.                                                                                                                          
                                                                                                                                
2:47:58 PM                                                                                                                    
DENNIS BAILEY, Attorney,  Legislative Legal Services, Legislative                                                               
Affairs  Agency, Alaska  State Legislature,  said he  didn't have                                                               
any comments but would answer questions.                                                                                        
                                                                                                                                
SENATOR PASKVAN  asked if he  thought the zero fiscal  note would                                                               
be changed with adoption of the amendment.                                                                                      
                                                                                                                                
MR. BAILEY replied  that his department doesn't  deal with fiscal                                                               
notes.                                                                                                                          
                                                                                                                                
SENATOR DAVIS  said she wanted  to know how this  amendment would                                                               
affect the bill when it comes up for a hearing again.                                                                           
                                                                                                                                
2:49:52 PM                                                                                                                    
PAULA  SCAVERA,  Legislative  Liaison, Department  of  Labor  and                                                               
Workforce Development (DOLWD), pointed  out that the notification                                                               
in  the current  version  of SB  174 goes  to  the online  public                                                               
notice  system,  which  is an  inter-departmental  public  system                                                               
where regulations  and meetings  are posted;  it is  not ALEXsys,                                                               
the jobs network system for  which she prepared an explanation on                                                               
some  handouts.  She  emphasized  again that  the  online  public                                                               
notice system was what was in the bill.                                                                                         
                                                                                                                                
CHAIR EGAN  said that  could be  easily amended  to make  it also                                                               
accessible to ALEXsys.                                                                                                          
                                                                                                                                
MS.  SCAVERA  said  the  system is  currently  available  to  all                                                               
businesses in  Alaska. Just  this morning she  looked at  all oil                                                               
and  gas jobs  on the  ALEXsys system  and found  12 oil  and gas                                                               
producing companies that had 112 jobs posted.                                                                                   
                                                                                                                                
SENATOR GIESSEL  asked about  companies in  the medical  field or                                                               
construction jobs.                                                                                                              
                                                                                                                                
MS.  SCAVERA  answered  that they  have  construction,  drafting,                                                               
waitressing  and administrative  assistant  jobs  posted and  she                                                               
would be happy to show committee members the online system.                                                                     
                                                                                                                                
2:52:45 PM                                                                                                                    
SENATOR GIESSEL  asked if the  oil and gas companies  are already                                                               
doing this as are multiple other industries in the state.                                                                       
                                                                                                                                
MS. SCAVERA replied yes.                                                                                                        
                                                                                                                                
SENATOR PASKVAN said  they know what they post, but  how does one                                                               
know what they haven't posted.                                                                                                  
                                                                                                                                
MS. SCAVERA acknowledged that.                                                                                                  
                                                                                                                                
SENATOR PASKVAN  said it's  more accurate to  say they  know what                                                               
their practice is, but they don't know if it is all-inclusive.                                                                  
                                                                                                                                
MS. SCAVARA said  that was correct. They don't know  if there are                                                               
10,000 jobs  out there and only  112 of them were  getting posted                                                               
as of  this morning.  She personally didn't  know if  three weeks                                                               
ago 400 jobs  were posted and then filled. They  do know how many                                                               
jobs have posted through the  ALEXsys system to gain employees in                                                               
Alaska.                                                                                                                         
                                                                                                                                
SENATOR GIESSEL  asked when someone applies  for unemployment and                                                               
is required to continue seeking work  if this would be one of the                                                               
places they would be expected to search.                                                                                        
                                                                                                                                
MS. SCAVARA answered yes.                                                                                                       
                                                                                                                                
SENATOR  MENARD  said she  was  interested  in getting  a  better                                                               
understanding of  how many hits  the job  site gets and  asked if                                                               
they have that data.                                                                                                            
                                                                                                                                
2:55:16 PM                                                                                                                    
PAUL DICK, Director, Employment  Security Division, Department of                                                               
Labor and  Workforce Development (DOLWD), replied  yes; last year                                                               
ALEXsys posted 35,000 jobs and had 300,000 visits.                                                                              
                                                                                                                                
SENATOR MENARD asked what industry the 35,000 jobs went to.                                                                     
                                                                                                                                
MR. DICK  replied that they  can look at  the types of  jobs that                                                               
are  posted,  but  they  don't  have the  results  of  whether  a                                                               
particular person got employed or not.                                                                                          
                                                                                                                                
SENATOR MENARD said  they should be able to  get that information                                                               
as they advance to find out if a job was actually secured.                                                                      
                                                                                                                                
MR. DICK answered that their records track re-employment rates.                                                                 
                                                                                                                                
2:57:32 PM                                                                                                                    
SENATOR  PASKVAN said  requiring notification  through newspapers                                                               
in  the  location  where  the  work is  performed  and  in  other                                                               
publications  distributed throughout  the  state including  rural                                                               
areas  would  seem to  impose  a  criterion  for entry  into  the                                                               
system.                                                                                                                         
                                                                                                                                
MS. SCAVERA  responded that right  now the department is  kind of                                                               
involved in  the bill, but  their system is  not in the  bill and                                                               
didn't know what the fiscal implications would be.                                                                              
                                                                                                                                
SENATOR  PASKVAN  said currently  an  employer  can access  their                                                               
system at no charge.                                                                                                            
                                                                                                                                
MS. SCAVERA answered yes.                                                                                                       
                                                                                                                                
CHAIR EGAN  added that  since it's  maintained by  the department                                                               
there wouldn't be any increased costs for posting on ALEXsys.                                                                   
                                                                                                                                
MS.  SCAVERA  replied   the  fiscal  note  would   be  about  the                                                               
departmental  notification to  the other  entities that  the bill                                                               
requires. Right  now there is  no cost for  a business to  post a                                                               
job because the HR person for  any business in the state can post                                                               
one.                                                                                                                            
                                                                                                                                
CHAIR EGAN  said it seems  like a  clever IT person  could figure                                                               
out how it could be done.                                                                                                       
                                                                                                                                
MS. SCAVERA said the problem also  is that not every community in                                                               
Alaska  has   broadband  Internet.  For  instance,   during  this                                                               
winter's  storms, St.  George, St.  Michael and  St. Paul  didn't                                                               
have Internet  service for over a  month. You have to  be careful                                                               
what you mandate when it's for municipalities and communities.                                                                  
                                                                                                                                
CHAIR EGAN  remarked that problem  exists now, but  be understood                                                               
what  she  was saying.  He  held  the  amendment  and SB  174  in                                                               
committee.                                                                                                                      
                                                                                                                                
3:02:46 PM                                                                                                                    
Finding no further  business to come before  the committee, Chair                                                               
Egan adjourned  the Senate Labor and  Commerce Standing Committee                                                               
meeting at 3:02 p.m.                                                                                                            

Document Name Date/Time Subjects
SB 125 lttr supporting, AADA.pdf SL&C 2/23/2012 1:30:00 PM
SB 125
SB 125 Purpose of bill.PDF SL&C 2/23/2012 1:30:00 PM
SB 125
SB 125 Sectional Analysis - 2-3-12.pdf SL&C 2/23/2012 1:30:00 PM
SB 125
SB 125 Sponsor Statement.PDF SL&C 2/23/2012 1:30:00 PM
SB 125
SB 25 lttr supporting, AGC.pdf SL&C 2/23/2012 1:30:00 PM
SB 25
SB 25 lttr supporting, ARCTEC 021512.pdf SL&C 2/23/2012 1:30:00 PM
SB 25
SB 25 lttr supporting, MEA 021512.pdf SL&C 2/23/2012 1:30:00 PM
SB 25
SB 25 lttr supporting, RDC corrected 021712.pdf SL&C 2/23/2012 1:30:00 PM
SB 25
SB025-DCCED-AIDEA-02-10-12 (A).pdf SL&C 2/23/2012 1:30:00 PM
SB 25
SB025-DCCED-AIDEA-02-10-12 (B).pdf SL&C 2/23/2012 1:30:00 PM
SB 25
SB 25 ASSETS version E.PDF SL&C 2/23/2012 1:30:00 PM
SB 25
SB 25 lttr supporting, AIPPA 021612.pdf SL&C 2/23/2012 1:30:00 PM
SB 25
SB 175 CS L&C v B DRAFT.PDF SL&C 2/23/2012 1:30:00 PM
SB 175
SB 116 lttr opposing, ANC Muni Risk Mgt..pdf SL&C 2/23/2012 1:30:00 PM
SB 116
SB 116 lttr opposing, ABC 022212.PDF SL&C 2/23/2012 1:30:00 PM
SB 116