Legislature(2011 - 2012)BELTZ 105 (TSBldg)

02/28/2012 01:30 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Heard & Held
Bills Previously Heard/Scheduled
Moved CSSB 138(L&C) Out of Committee
Moved CSSB 157(L&C) Out of Committee
Scheduled But Not Heard
Moved CSSB 174(L&C) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                       February 28, 2012                                                                                        
                           1:34 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. 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."                                                                                         
     - MOVED CSSB 138(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."                                                                                                    
     - MOVED CSSB 174(L&C) OUT OF COMMITTEE                                                                                     
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."                                                                                                             
     - HEARD & HELD                                                                                                             
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."                                                                                                               
     - MOVED CSSB 157(L&C) OUT OF COMMITTEE                                                                                     
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                                                               
     - SCHEDULED BUT NOT HEARD                                                                                                  
PREVIOUS COMMITTEE ACTION                                                                                                     
BILL: SB 190                                                                                                                  
SHORT TITLE: BIG GAME COMMERCIAL SERVICES BOARD                                                                                 
SPONSOR(s): SENATOR(s) MENARD                                                                                                   
02/08/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/08/12       (S)       L&C, JUD                                                                                               
02/23/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/23/12       (S)       <Bill Hearing Postponed>                                                                               
02/28/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
BILL: SB 138                                                                                                                  
SHORT TITLE: THIRD-PARTY CHARGES ON TELEPHONE BILLS                                                                             
SPONSOR(s): SENATOR(s) WIELECHOWSKI, DAVIS, EGAN                                                                                
01/17/12       (S)       PREFILE RELEASED 1/6/12                                                                                
01/17/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/17/12       (S)       L&C, JUD                                                                                               
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)                                                                                            
02/23/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/23/12       (S)       <Bill Hearing Postponed>                                                                               
02/28/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
BILL: SB 157                                                                                                                  
SHORT TITLE: CANCEL INSUR. ON CERTAIN VACANT PROPERTY                                                                           
SPONSOR(s): LABOR & COMMERCE                                                                                                    
01/17/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/17/12       (S)       L&C, CRA                                                                                               
01/26/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
01/26/12       (S)       Heard & Held                                                                                           
01/26/12       (S)       MINUTE(L&C)                                                                                            
02/23/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/23/12       (S)       <Bill Hearing Postponed>                                                                               
02/28/12       (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)                                                                      
02/23/12       (S)       Heard & Held                                                                                           
02/23/12       (S)       MINUTE(L&C)                                                                                            
02/28/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
WITNESS REGISTER                                                                                                              
SENATOR BILL WIELECHOWSKI                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Sponsor of SB 138.                                                                                        
THOMAS PRESLEY, Intern                                                                                                          
Senator Bill Wielechowski                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Explained CSSB 138( ), version R, on behalf                                                               
of the sponsor.                                                                                                                 
SENATOR HOLLIS FRENCH                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Sponsor of SB 174.                                                                                        
PAULA SCAVARA, Special Assistant                                                                                                
Department of Labor and Workforce Development (DOLWD)                                                                           
Juneau, AK                                                                                                                      
POSITION STATEMENT: Did not support SB 174.                                                                                   
MICHAEL ROVITO                                                                                                                  
Chief of staff to Senator Menard                                                                                                
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Explained the CS for SB 190.                                                                              
THOR STACEY                                                                                                                     
Alaska Professional Hunters' Association                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Supported the CS for SB 190.                                                                              
LIEUTENANT BERNARD CHASTAIN                                                                                                     
Alaska Wildlife Troopers                                                                                                        
Department of Public Safety                                                                                                     
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Was available to answer questions on SB 190.                                                              
JOE KLUTSCH                                                                                                                     
Master guide representing himself                                                                                               
King Salmon, AK                                                                                                                 
POSITION STATEMENT: Stated support for SB 190.                                                                                
LOREN KARRO                                                                                                                     
Registered guide representing herself                                                                                           
Palmer, AK                                                                                                                      
POSITION STATEMENT: Stated support for the SB 190.                                                                            
DAN MONTGOMERY                                                                                                                  
Master guide representing himself                                                                                               
Wasilla, AK                                                                                                                     
POSITION STATEMENT: Stated strong support for SB 190.                                                                         
WAYNE KUBAT                                                                                                                     
Master guide representing himself                                                                                               
Wasilla, AK                                                                                                                     
POSITION STATEMENT: Stated support for SB 190.                                                                                
DICK ROHRER                                                                                                                     
Master guide representing himself                                                                                               
Kodiak, AK                                                                                                                      
POSITION STATEMENT: Supported the CS for SB 190.                                                                              
VIRGIL UMPHENOUR                                                                                                                
Master guide representing himself                                                                                               
Fairbanks, AK                                                                                                                   
POSITION STATEMENT: Commented on SB 190.                                                                                      
DANA OWEN, Staff                                                                                                                
Senator Dennis Egan and aide                                                                                                    
Senate Labor and Commerce Standing Committee                                                                                    
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION  STATEMENT: Explained  the  provisions in  CSSB 157(  ),                                                             
version E.                                                                                                                      
SHELDON WINTERS                                                                                                                 
State Farm Insurance                                                                                                            
Juneau, AK                                                                                                                      
POSITION STATEMENT: Commented on the CS to SB 157.                                                                            
LINDA HALL, Director                                                                                                            
Division of Insurance                                                                                                           
Department  of  Commerce,   Community  and  Economic  Development                                                               
POSITION STATEMENT: Supported CSSB 157( ), version E.                                                                         
ACTION NARRATIVE                                                                                                              
1:34:31 PM                                                                                                                  
CHAIR DENNIS EGAN  called the Senate Labor  and Commerce Standing                                                             
Committee meeting  to order at 1:34  p.m. Present at the  call to                                                               
order  were Senators  Giessel, Paskvan,  Menard, Davis  and Chair                                                               
         SB 138-THIRD-PARTY CHARGES ON TELEPHONE BILLS                                                                      
1:35:55 PM                                                                                                                    
CHAIR EGAN announced the consideration of SB 138.                                                                               
SENATOR BILL WIELECHOWSKI,  sponsor of SB 138, noted  that he had                                                               
worked on  a committee substitute  (CS) with the  billing service                                                               
group and the  Department of Law and Thomas  Presley, his intern,                                                               
would explain the changes.                                                                                                      
1:36:37 PM                                                                                                                    
SENATOR PASKVAN moved to bring  CSSB 138( ), version 27-LS1002\R,                                                               
before  the  committee for  discussion  purposes.  There were  no                                                               
objections, and it was so ordered.                                                                                              
THOMAS PRESLEY,  Intern for Senator Wielechowski,  said version R                                                               
reflects  input from  the  last  hearing on  SB  138.  It has  an                                                               
updated  zero  fiscal  note from  the  Regulatory  Commission  of                                                               
Alaska (RCA).                                                                                                                   
The changes in version R are as follows:                                                                                        
Section  1: the  definition  for  telecommunications carrier  was                                                               
limited to  a single definition. Previously  this definition read                                                               
"those  who  are  eligible for  universal  service  funds."  This                                                               
change  was  made  because previous  language  captured  wireless                                                               
carriers, which is not the intent of SB 138.                                                                                    
Section 3:  (d), which  gave regulation  making authority  to the                                                               
RCA,  was  removed and  placed  into  Section  1. This  was  done                                                               
because  the  RCA's  jurisdiction  is defined  by  AS  42.05  and                                                               
sections 2 -  4 of the bill are written  into consumer protection                                                               
Section 3: (c)  the exceptions language was cleaned  up on advice                                                               
from the RCA attorney, Stuart Goering, because it was redundant.                                                                
Section  3: subsection  (c)(4)(A)  incorporates suggestions  from                                                               
the  billing  services group  in  order  to clarify  how  express                                                               
authorization is obtained and verified.                                                                                         
Section 3: (d) defines billing agent and express authorization.                                                                 
Section 3:  (d) (3) makes  the definition  of "telecommunications                                                               
carrier" inclusive of land line  telephone bills only. Previously                                                               
the definitions unintentionally captured wireless carriers.                                                                     
1:39:45 PM                                                                                                                    
SENATOR GIESSEL  asked if  the concept of  cramming is  a problem                                                               
with cell phones.                                                                                                               
MR. PRESLEY  replied that evidence  presented in the  U.S. Senate                                                               
Committee  report shows  that  there is  a  growing concern  that                                                               
wireless  telephone bills  may also  be  subject to  unauthorized                                                               
charges,  but  the  Federal Communication  Commission  (FCC)  and                                                               
draft legislation  in other states  is only focused on  land line                                                               
telephone bills. Cell phone bills  have different regulations and                                                               
wireless  carriers are  regulated  by  different entities;  their                                                               
third-party billing platforms work differently, as well.                                                                        
SENATOR GIESSEL asked  if the Federal Trade  Commission (FTC) was                                                               
addressing this issue, too.                                                                                                     
MR.  PRESLEY replied  that  was  correct. The  FCC  has the  open                                                               
docket related to  land line telephone bills.  They took comments                                                               
on wireless carriers  in their notice of  proposed rulemaking and                                                               
that's  when it  became an  issue. The  docket, itself,  does not                                                               
address policies to eliminate wireless cramming.                                                                                
SENATOR GIESSEL asked about the Federal Trade Commission (FTC).                                                                 
MR. PRESLEY replied  that the FTC has only  pursued cases against                                                               
land  line telephone  billers that  have been  accused and  found                                                               
guilty of third-party telephone cramming for land line carriers.                                                                
CHAIR  EGAN commented  that he  appreciated the  changes made  to                                                               
this bill, but  he thought another committee  substitute would be                                                               
needed in a couple of years  to address cell phones because their                                                               
use is expanding so rapidly.                                                                                                    
SENATOR WIELECHOWSKI  said his understanding  of the law  is that                                                               
the  state can  only capture  cell  phones for  certain parts  of                                                               
Alaska for all telecommunication carriers.                                                                                      
MR. PRESLEY said  those wireless carriers are  called carriers of                                                               
last  resort in  case  Bush  Alaska does  not  have  a land  line                                                               
telephone  carrier that  can reach  them. In  that case,  the RCA                                                               
would have  jurisdiction over wireless  telephones that  would be                                                               
CHAIR EGAN  asked if  that meant  they were  their only  means of                                                               
MR. PRESLEY answered, "correct."                                                                                                
1:42:40 PM                                                                                                                    
SENATOR PASKVAN  moved to report  CSSB 138(L&C), version  R, from                                                               
committee  with  individual  recommendations  and  newly  revised                                                               
fiscal note. There being no objection, the motion carried.                                                                      
1:43:08 PM                                                                                                                    
At ease from 1:43 to 1:44 p.m.                                                                                                  
         SB 174-OIL AND GAS INDUSTRY JOB NOTIFICATIONS                                                                      
1:44:33 PM                                                                                                                    
CHAIR EGAN announced consideration of SB 174.                                                                                   
1:44:58 PM                                                                                                                    
SENATOR GIESSEL  said she  had submitted an  amendment to  SB 174                                                               
[February 23,  2012 Senate Labor and  Commerce Committee meeting]                                                               
that  included posting  job opportunities  for all  industries in                                                               
Alaska. Its  purpose was  to promote resident  hire on  a broader                                                               
scale to all industries and to  include those who live off of the                                                               
broadband network. Just  posting on the Internet  could exclude a                                                               
lot of people.                                                                                                                  
She  also said  that  while they  are focused  on  the hiring  of                                                               
Alaska  residents,  a  report for  the  Alaska  Training  Program                                                               
called  "Performance   2010"  indicated   that  Kotzebue   has  a                                                               
technical training  center for  these types of  jobs and  only 87                                                               
percent  of  those  students  are  Alaska  residents  (using  the                                                               
Department  of Labor  and Workforce  Development's definition  of                                                               
receiving  a Permanent  Fund Dividend).  The Alaska  Institute of                                                               
Technology's  students  are  80   percent  residents  and  Galena                                                               
Learning Academy  is 50 percent.  It really highlights  what they                                                               
know from being lifelong Alaskans -  that Alaskans are made up of                                                               
both residents  and nonresidents, and many  of those nonresidents                                                               
become residents.                                                                                                               
SENATOR GIESSEL  said the other  interesting thing  that happened                                                               
since  the last  committee meeting  was  that she  listened to  a                                                               
radio interview  of former Representative  Harry Crawford  who is                                                               
from the  State of  Louisiana. In his  interview he  talked about                                                               
coming to  Alaska in 1975  and how  Alaska was a  refuge, because                                                               
when he came, no one asked him where  he was from or who he knew.                                                               
What they asked was "what can  you do." He rapidly received a job                                                               
and  has  been here  ever  since.  That  is  the purpose  of  her                                                               
amendment - to post all  job opportunities regardless of how high                                                               
paying they  are or where they  are offered or what  the industry                                                               
is. She repeated her motion to adopt Amendment 1.                                                                               
                          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                                                                      
               (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;                                                                    
     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                                                                      
1:48:20 PM                                                                                                                    
SENATOR  PASKVAN objected  because  he thought  it  would put  an                                                               
added  burden on  newspapers and  other publications  distributed                                                               
throughout the state.                                                                                                           
1:49:13 PM                                                                                                                    
SENATOR GIESSEL asked for a roll call vote.                                                                                     
SENATOR DAVIS  said she wanted  to hear the sponsor's  opinion on                                                               
the amendment.                                                                                                                  
1:49:35 PM                                                                                                                    
SENATOR HOLLIS  FRENCH, sponsor of  SB 174, said  Senator Paskvan                                                               
stated his objection, which was the expanding cost.                                                                             
A roll  call vote was  taken. Senator  Giessel voted in  favor of                                                               
Amendment 1  and Senators Menard,  Davis, Paskvan and  Egan voted                                                               
against it. Therefore, Amendment 1 failed by a 1:4 vote.                                                                        
1:50:25 PM                                                                                                                    
SENATOR  PASKVAN  moved to  bring  CS  for  SB 174,  labeled  27-                                                               
LS0967\I, back before the committee for purposes of discussion.                                                                 
CHAIR EGAN objected for discussion purposes.                                                                                    
1:50:36 PM                                                                                                                    
SENATOR FRENCH said  language on page 2, lines 4-5  of version I,                                                               
deleted reference to  the Alaska online public  notice system and                                                               
replaced it  with "Internet-based labor exchange  system operated                                                               
by the department."  It's called ALEXsys and  they were concerned                                                               
that it  could change in the  future. They wanted a  generic name                                                               
so there  wouldn't be a  conflict. Also  on page 2,  lines 16-19,                                                               
the  provisions  of  Alaska  Stranded  Gas  Development  Act  (in                                                               
(d)(2))  were expanded  to include  AS 43.90.130  (15), the  AGIA                                                               
provision.   The AGIA provision  was missed in the  first version                                                               
of  the  bill.   Both  are  local  hire   and  local  publication                                                               
provisions within the two acts.  No changes were made to sections                                                               
2 and  3 and  the online  public notice system  in version  M was                                                               
deleted. The title was amended to  conform to the changes made in                                                               
section 1.                                                                                                                      
CHAIR  EGAN noted  that  Paula  Scavara and  Paul  Dick from  the                                                               
Department of  Labor and Workforce Development  were available to                                                               
answer questions.                                                                                                               
SENATOR MENARD asked if the department liked the bill.                                                                          
1:53:15 PM                                                                                                                    
PAULA  SCAVARA,  Special  Assistant,   Department  of  Labor  and                                                               
Workforce Development  (DOLWD), said the department  believes the                                                               
bill  is redundant,  because any  business can  post jobs  on its                                                               
system  now for  free and  it can  do it  without contacting  the                                                               
SENATOR MENARD commented  that redundancy isn't ever  a good idea                                                               
in government.                                                                                                                  
MS.  SCAVARA said  this  bill mandates  that  the information  go                                                               
through  the  commissioner's  office,  which  then  ensures  it's                                                               
posted - plus  other entities have to be notified.  It makes more                                                               
work out of something that is already being done.                                                                               
SENATOR MENARD  asked why the sponsor  is zeroing in on  just one                                                               
industry  and  duplicating  what  is  already  available  to  all                                                               
MS.  SCAVARA added  that not  only does  the department  take job                                                               
postings, they  hold many  job fairs  for other  industries, like                                                               
prior to the  commercial crab season in Unalaska  and the tourism                                                               
1:57:09 PM                                                                                                                    
SENATOR PASKVAN asked if this would change the zero fiscal note.                                                                
MS.  SCAVARA said  that fiscal  note  was for  the online  public                                                               
notice system, which is run  by the Lieutenant Governor's Office,                                                               
and the DOLWD  would have to review the CS  if it passes, because                                                               
it would put them in charge of the notifications.                                                                               
SENATOR  PASKVAN said  his understanding  is that  employers with                                                               
more than 100 employees have the  discretion to use the system or                                                               
MS. SCAVARA replied that is correct.                                                                                            
SENATOR PASKVAN  said the bill  would just say uniformly  that if                                                               
there  is a  job,  they  have to  at  least  follow this  minimal                                                               
process at no cost to them.                                                                                                     
MS.  SCAVARA responded  that oil  and gas  producers with  100 or                                                               
more employees would  have to notify the Department  of Labor and                                                               
Workforce  Development, and  then  the department  would have  to                                                               
make the other notifications along with the online posting.                                                                     
SENATOR PASKVAN said that posting  now is at no additional charge                                                               
to the employer.                                                                                                                
MS. SCAVARA replied she couldn't answer that.                                                                                   
SENATOR PASKVAN  said assuming they  use the system  now, posting                                                               
is a voluntary burden.                                                                                                          
MS.  SCAVARA  answered  under  the bill,  they'll  have  to  take                                                               
another step to notify the commissioner's office.                                                                               
2:00:27 PM                                                                                                                    
SENATOR GIESSEL asked if she had today's number of job postings.                                                                
MS. SCAVARA replied  no, but she would get the  number; she added                                                               
that it varies each day.                                                                                                        
SENATOR  GIESSEL  asked  if  she  was  looking  only  at  readily                                                               
identifiable oil  and gas companies  or at support  industries as                                                               
MS. SCAVARA  replied that they  looked at  certain classification                                                               
codes  of  jobs  that  include  more  than  just  the  major  oil                                                               
companies, but subcontractors as well.                                                                                          
CHAIR  EGAN  said  because   the  notification  requirement  just                                                               
changes departments, he  thought the fiscal note  should still be                                                               
zero under the CS.                                                                                                              
MS. SCAVARA responded  that she doesn't work with  the data bases                                                               
on a day-to-day  basis. She questioned if the jobs  come in every                                                               
day if they would have to  do the notifications every day or once                                                               
a week. It might require extra staff.                                                                                           
SENATOR GIESSEL opined  that Ms. Scavara was referring  to page 2                                                               
of  the  bill  that  says   the  "commissioner  shall  cause  the                                                               
notification,"  not  that  the companies  would  themselves  post                                                               
these things on the automated system.                                                                                           
CHAIR EGAN agreed  with her and said the  commissioner is causing                                                               
that through ALEXsys now.                                                                                                       
MS. SCAVARA  responded that no  one in the  commissioner's office                                                               
deals  with ALEXsys,  but that  the Employment  Security Division                                                               
works with  that. Right now  a company  enters its own  data, but                                                               
the  way  this   bill  is  written  a  company   would  give  its                                                               
information to the commissioner's office  and they would get that                                                               
data entered somehow.                                                                                                           
2:04:14 PM                                                                                                                    
SENATOR  FRENCH  said he  disagreed  with  her  use of  the  word                                                               
redundant,  because it's  clear that  all the  jobs on  the North                                                               
Slope aren't  getting posted  on ALEXsys now.  The listing  as of                                                               
February   23   showed   25  jobs   offered   through   BP,   but                                                               
ConocoPhillips had  only 3. These  two companies are  roughly the                                                               
same size  and employ roughly the  same number of people,  and it                                                               
stands  to  reason   that  there  are  some   job  openings  that                                                               
ConocoPhillips is  not posting.  Just getting the  word out  is a                                                               
minimal burden on  industry and on the  administration; this bill                                                               
is not meant to create a huge new burden.                                                                                       
SENATOR  PASKVAN  commented  that  assuming  they  are  currently                                                               
posting, this bill would pose zero extra burden.                                                                                
SENATOR FRENCH agreed  if it's already being done,  then there is                                                               
no additional burden.                                                                                                           
2:06:07 PM                                                                                                                    
SENATOR PASKVAN  moved to report  CSSB 174(L&C), version  I, from                                                               
committee  with  individual  recommendations  and  attached  zero                                                               
fiscal note. There being no objection, the motion carried.                                                                      
2:06:37 PM                                                                                                                    
At ease from 2:06 to 2:08 p.m..                                                                                                 
           SB 190-BIG GAME COMMERCIAL SERVICES BOARD                                                                        
2:08:01 PM                                                                                                                    
CHAIR EGAN announced the consideration of SB 190.                                                                               
2:08:24 PM                                                                                                                    
SENATOR PASKVAN moved to bring CS  for SB 190, version \M, before                                                               
the committee for discussion purposes.                                                                                          
CHAIR EGAN objected, for discussion purposes.                                                                                   
SENATOR LINDA  MENARD, sponsor of  SB 190, thanked the  chair and                                                               
committee for allowing  the bill to be heard and  then turned the                                                               
presentation over to her staff.                                                                                                 
MICHAEL ROVITO, Chief of Staff to  Senator Menard, said SB 190 is                                                               
about  licensing  and  disciplinary   issues  for  the  Big  Game                                                               
Commercial  Services  Board.  The  board  spent  about  one  year                                                               
working on these changes that  they think are beneficial to their                                                               
First,  he said,  the bill  will create  a retired  status master                                                               
guide outfitter  license; an individual holding  this license may                                                               
not guide or  outfit in the state, but the  license will serve as                                                               
a symbolic  recognition of their  achievement in  the profession.                                                               
The medical field has five such retired status licenses.                                                                        
He said the  bill also simplifies and  clarifies the relationship                                                               
between a registered guide working  for another registered guide.                                                               
It also  eliminates the  requirement that  a registered  guide be                                                               
present in the  field during a hunt if a  Class A assistant guide                                                               
or another registered guide working  for the contracting guide is                                                               
handling the  hunt. Currently, the  contracting guide  would have                                                               
to fly out  to the site of  the hunt, even if it's  just to shake                                                               
the person's  hand that is  going on the  hunt. Not having  to do                                                               
that would  save money  and resources,  because another  guide is                                                               
actually conducting the hunt.                                                                                                   
MR.  ROVITO explained  that  the CS  gives  the board  additional                                                               
authority to suspend or permanently  revoke a transporter license                                                               
or any class of guide license  if it finds, after a hearing, that                                                               
the  licensee  engaged  in conduct  involving  unprofessionalism,                                                               
moral  turpitude  or gross  immorality.  Further,  the bill  will                                                               
slightly change the  penalties for certain violations  to allow a                                                               
court  to  order  the  board  to suspend  a  license  instead  of                                                               
requiring  the  court to  order  the  board  to suspend  it.  The                                                               
concern  here was  that a  minor  violation might  fall into  the                                                               
category where  the court has to  order the board to  suspend the                                                               
license;  this would  give  the  court a  little  more leeway  to                                                               
determine the severity of the  offense before ordering revocation                                                               
of a license.  The last section simply directs  the department to                                                               
set a fee for that retired status license.                                                                                      
MR.  ROVITO said  Version M  gives the  board authority  to adopt                                                               
other regulations  that it considers appropriate.  Another change                                                               
in section 4  gives the board the ability to  make regulations to                                                               
change the requirement  that the contracting guide  be present in                                                               
the field, and that can be  done through the course of the normal                                                               
board deliberations  (as opposed  to through statute).  The third                                                               
change  makes the  section 4  effective  date July  1, 2013,  the                                                               
reason  being that  the board  meets in  March and  December, and                                                               
it's  unlikely   that  this  legislation  will   be  through  the                                                               
legislature by  the time their  March meeting occurs.  This would                                                               
give  them time  to address  the contracting  guide in  the field                                                               
issue at their next board meeting  so it could go into effect the                                                               
next year.                                                                                                                      
The  final change  was  that  the original  bill  didn't have  an                                                               
effective date;  that was cleared up  by adding that the  rest of                                                               
the bill goes into effect immediately.                                                                                          
2:13:38 PM                                                                                                                    
SENATOR GIESSEL asked  what five medical licenses  have a retired                                                               
MR.  ROVITO answered  chiropractic,  medical doctor,  physician's                                                               
assistant, podiatrist and optometrist.                                                                                          
CHAIR EGAN opened public testimony.                                                                                             
2:14:35 PM                                                                                                                    
THOR  STACEY, Alaska  Professional  Hunters' Association,  stated                                                               
support for the  CS for SB 190. It is  an extensive collaborative                                                               
effort through the  board process to make the  statutes more user                                                               
friendly, and it has been well vetted by all parties.                                                                           
He said section  4 addresses supervision requirements;  this is a                                                               
big  issue for  both the  guide industry  and members  conducting                                                               
hunts and  running businesses.  It's what  the public  wants from                                                               
licensed professionals  hunting big  game animals in  Alaska. The                                                               
intent of these changes is  to maintain a supervision requirement                                                               
in statute that is permissive enough  to allow the board to adopt                                                               
meaningful regulations  that fulfill  the supervision  intent. An                                                               
example is the question of  whether a registered guide could take                                                               
meat out of  the field. The requirement to  be physically present                                                               
in the field with the client  at least once during the contracted                                                               
hunt was  not meaningful; the  hinge point was the  definition of                                                               
"field."  Operators   that  were  not  supervising   their  hunts                                                               
correctly  were able  to circumvent  the  requirement by  shaking                                                               
hands with a client and signing  a contract on state land outside                                                               
of an area with permanent  dwellings. Removing that provision and                                                               
giving   the  board   the   regulatory   authority  to   approach                                                               
supervision  in a  meaningful way  will make  it work  better. He                                                               
clarified that this bill does not address licensing standards.                                                                  
2:19:50 PM                                                                                                                    
SENATOR PASKVAN thanked him for a thorough explanation.                                                                         
2:20:28 PM                                                                                                                    
LIEUTENANT   BERNARD   CHASTAIN,    Alaska   Wildlife   Troopers,                                                               
Department of Public Safety, Anchorage,  said he was available to                                                               
answer questions.                                                                                                               
SENATOR PASKVAN asked if they support SB 190.                                                                                   
LIEUTENANT CHASTAIN answered that they  are fine with the changes                                                               
in SB 190. Currently, the court  is bound to a mandatory one-year                                                               
suspension for a  conviction, but the language  change allows the                                                               
court to decide if a suspension is warranted or not.                                                                            
SENATOR  PASKVAN asked  if  the  CS is  an  improvement that  the                                                               
troopers added to.                                                                                                              
LIEUTENANT CHASTAIN  said he'd been involved  throughout and that                                                               
yes it was.                                                                                                                     
2:22:39 PM                                                                                                                    
JOE  KLUTSCH, master  guide  representing  himself, King  Salmon,                                                               
stated support for  SB 190 and that the CS  refines the points in                                                               
the current  legislation. Statutes are sometimes  restrictive and                                                               
this  gives the  board the  authority to  respond to  federal and                                                               
state  agencies, industry  concerns, public  safety and  wildlife                                                               
enforcement agencies.                                                                                                           
2:25:11 PM                                                                                                                    
LOREN  KARRO,  registered  guide  representing  herself,  Palmer,                                                               
stated support  for the SB 190,  although she said both  items in                                                               
section  4  were  already  addressed  by 12  AAC  75.240  and  AS                                                               
8.54.620  when they  discuss the  duties of  a Class  A assistant                                                               
guide. She  stressed that section 4  in no way allows  a guide to                                                               
sit  in a  Florida or  California  condo and  conduct their  hunt                                                               
through somebody else.                                                                                                          
2:27:22 PM                                                                                                                    
DAN  MONTGOMERY,  master  guide  representing  himself,  Wasilla,                                                               
stated strong  support for SB 190.  It will be very  good for the                                                               
2:28:28 PM                                                                                                                    
WAYNE KUBAT,  master guide representing himself,  Wasilla, stated                                                               
support for  SB 190,  but said  he agreed  with the  previous two                                                               
presenters  that the  in-field issue  was already  addressed. "In                                                               
the field" means  the same or neighboring guide use  area. If you                                                               
have a  hunting lodge there, it's  easy to comply with,  but that                                                               
is  not the  case for  him where  the nearest  place is  70 miles                                                               
away, and he can't buy gas  for his airplane there. That has been                                                               
the problem with the in the field participation.                                                                                
He also didn't understand the  changes why the effective date for                                                               
section  4  was delayed  for  a  year  (so  the board  can  adopt                                                               
regulations  formalizing   a  Class  A   guide  to  work   for  a                                                               
contracting  registered  guide),  because   it's  already  in  AS                                                               
08.54.620 and regulation 75 AAC 240(a).  Why wait a year to adopt                                                               
regulations that are already covered?                                                                                           
2:30:58 PM                                                                                                                    
DICK ROHRER, master guide representing  himself, Kodiak, said Mr.                                                               
Stacey covered the issues very  well. He heard Mr. Rovito mention                                                               
not requiring the  contracting guide to be  physically present in                                                               
the field and that statement could  be a bit misleading, not that                                                               
that was his intent. He explained  that he is a contracting guide                                                               
who is  always in the field;  he doesn't fly an  airplane, but he                                                               
has other  guides guiding clients,  as well. His  ongoing problem                                                               
is that he  is in a place  where he has to have  a certain height                                                               
and stage of tide  access for a boat; then the  boat goes dry for                                                               
as much as  a week and he  can't physically get back  to his base                                                               
camp in case  a client finished a hunt early  and wants to leave.                                                               
So,  this  language helps  contracting  guides  who are  actively                                                               
involved in  the business to  not get  caught in a  problem area;                                                               
it's not designed  for him to not be there  and still oversee the                                                               
hunt. He said it was not necessary to delay implementation.                                                                     
2:33:30 PM                                                                                                                    
VIRGIL UMPHENOUR,  master guide representing  himself, Fairbanks,                                                               
said Big  Game Guides is  the only  occupation he knows  of where                                                               
the 14th Amendment  of the Constitution of the  United States has                                                               
been violated  by statute if you  fill out a form  wrong. He fits                                                               
in the  same category as Mr.  Rohrer except that he  hunts inland                                                               
and some of his camps may be  120 to 150 miles apart and accessed                                                               
by  boat. Boat  gas at  Huslia,  where he  bases his  operations,                                                               
costs $7/gallon; and if the  wind starts blowing, it's impossible                                                               
to leave.  If a client  wants to  leave early he  will definitely                                                               
leave,  and  then  you  can't   comply  with  the  communications                                                               
requirement. These changes make the law better.                                                                                 
CHAIR  EGAN  thanked  everyone   for  testifying  and  said  that                                                               
completed public  testimony. He  announced the  he would  hold SB                                                               
190 in committee and bring it up again soon.                                                                                    
        SB 157-CANCEL INSUR. ON CERTAIN VACANT PROPERTY                                                                     
2:36:39 PM                                                                                                                    
CHAIR EGAN announced the consideration of SB 157.                                                                               
SENATOR PASKVAN moved  to bring CSSB 157(  ), 27-LS0928\E, before                                                               
the committee.                                                                                                                  
CHAIR EGAN objected for discussion purposes.                                                                                    
2:37:12 PM                                                                                                                    
DANA OWEN,  staff to Senator  Egan and  aide to the  Senate Labor                                                               
and Commerce Standing  Committee, said the last  time they talked                                                               
about  this bill  the committee  found a  problem because  of the                                                               
concept  that  insurance  companies   could  cancel  policies  on                                                               
property  that  appeared  to  be  unoccupied.  Committee  members                                                               
expressed  a   great  deal  of  reluctance   to  grant  insurance                                                               
companies  the ability  to do  that,  because Alaskans  typically                                                               
have  homes which  they  leave  for long  periods  of time,  even                                                               
though they certainly intend to  come back and reoccupy them. So,                                                               
language common to case law was  suggested by industry on page 2,                                                               
lines  6-7  removing  "Un-occupancy  or vacancy  of  the  insured                                                               
property that increases a hazard." and replacing it with:                                                                       
     vacancy  of  the  insured  property  that  increases  a                                                                    
     hazard  insured  against  in this  paragraph.  In  this                                                                    
     paragraph  vacancy  means  entire  abandonment  of  the                                                                    
     property  by  the insured  and  the  property does  not                                                                    
     contain contents with substantial utility.                                                                                 
MR. OWEN said  this goes back to the idea  of vacancy, which from                                                               
testimony  seemed was  something people  understood and  could be                                                               
defined  in  the statute.  The  idea  of unoccupied  homes  being                                                               
available for insurance cancelation was removed.                                                                                
2:41:38 PM                                                                                                                    
SENATOR  MENARD  asked  him  to  flesh  out  what  was  meant  by                                                               
MR.  OWEN  said  Sheldon  Winters   could  explain  it  from  the                                                               
insurance  company's  point  of  view, but  this  terminology  is                                                               
commonly  used  in  the  industry,  so  people  recognize  vacant                                                               
property as  being property that  doesn't have  any substantially                                                               
valuable material left behind.                                                                                                  
CHAIR  EGAN  said there  were  concerns  that the  definition  of                                                               
"vacancy" wasn't in statute. Now it is.                                                                                         
SENATOR GIESSEL asked where it says "primary residence."                                                                        
MR. OWEN  said he understood  that it  didn't apply to  a primary                                                               
SENATOR MENARD said she wrote it in her notes.                                                                                  
MR. OWEN said  it's his understanding that it would  apply to any                                                               
2:44:49 PM                                                                                                                    
SHELDON WINTERS, State Farm Insurance,  Juneau, said the industry                                                               
took the  committee's concerns to  heart; thus the CS.  They took                                                               
out  the  un-occupancy  piece  and looked  for  a  definition  of                                                               
"vacancy" which  was problematic, because no  other state defines                                                               
it. However they found case law  that talked about it and tied it                                                               
into abandonment, which was one  of Senator Paskvan's ideas. Now,                                                               
if  enacted,  the property  must  be  entirely abandoned  by  the                                                               
insured,  devoid of  contents of  substantial utility;  and those                                                               
two things must increase the hazard that was insured against.                                                                   
He  reminded  the  committee that  insurance  companies  want  to                                                               
insure property, and  in all cases they either issue  a brand new                                                               
policy  or renew  a policy  within  12 months.  Remember, if  the                                                               
property  is determined  to be  "vacant"  the owner  must send  a                                                               
cancelation notice  to the insured,  but if the insured  is going                                                               
to  get their  mail and  did not  abandon the  property and  does                                                               
intend to insure  it, he would bring the letter  to his insurance                                                               
agent and  work out the solution.  Finally, he said, this  is all                                                               
subject to the oversight of the Division of Insurance.                                                                          
MR.  SHELDON  said  the  statute  does  not  distinguish  between                                                               
primary residences  and it all  goes back  to the amount  of risk                                                               
insured  against.  A  cabin  would   have  a  different  kind  of                                                               
insurance, but it would still have  to be abandoned and devoid of                                                               
property. His reading of case  law is that "devoid of substantial                                                               
utility"  is designed  to address  a situation  in which  someone                                                               
leaves something like  a chair or a microwave. You  don't want to                                                               
be really specific.                                                                                                             
2:49:20 PM                                                                                                                    
SENATOR  PASKVAN said  these  are  significant improvements.  His                                                               
concern was  if a homeowner  takes a  job in Texas,  for example,                                                               
and  they put  their home  on the  market and  take all  of their                                                               
furniture out,  but they  are still paying  the mortgage  and the                                                               
electric  and fuel  bills. Now  he understands  that the  vacancy                                                               
endorsement for $30 would fix that.                                                                                             
MR. WINTERS agreed that the definition  is so limited now that it                                                               
would be difficult to ever cancel a policy.                                                                                     
2:50:55 PM                                                                                                                    
LINDA HALL,  Director, Division of  Insurance, said she  was fine                                                               
with the changes to SB 157.  She contended that there was another                                                               
step; if  you have a  consumer who  feels that his  insurance has                                                               
been wrongly canceled,  they are welcome to come  to her division                                                               
and  the  Consumer  Protection  Division  would  investigate  the                                                               
circumstances. Seeing how these statutes  are applied in the real                                                               
world is part of their  general oversight authority. The division                                                               
determines whether there is a violation.                                                                                        
2:52:36 PM                                                                                                                    
SENATOR  PASKVAN moved  to report  CSSB 157(  ), version  E, from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note. There being no objection, the motion carried.                                                                             
2:52:55 PM                                                                                                                    
At ease from 2:52 to 2:54 p.m.                                                                                                  
2:54:21 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Egan adjourned the meeting at 2:54 p.m.                                                                                   

Document Name Date/Time Subjects
SB 190 lttr supporting, APHA.pdf SL&C 2/28/2012 1:30:00 PM
SB 190
SB 190 Sponsor Statement.pdf SL&C 2/28/2012 1:30:00 PM
SB 190
SB 190 lttr supporting, Big Game Commercial Services Board.pdf SL&C 2/28/2012 1:30:00 PM
SB 190
SB 190 Sectional Analysis.pdf SL&C 2/28/2012 1:30:00 PM
SB 190
SB0190A.pdf SL&C 2/28/2012 1:30:00 PM
SB 190
CSSB 190 blank v M.PDF SL&C 2/28/2012 1:30:00 PM
SB 190
SB 190 BGCS Fact Sheet.pdf SL&C 2/28/2012 1:30:00 PM
SB 190
SB 190 BGCS Roster.pdf SL&C 2/28/2012 1:30:00 PM
SB 190
SB 190 Explanation of Changes.pdf SL&C 2/28/2012 1:30:00 PM
SB 190
SB 122 emails supporting L&C CS.PDF SL&C 2/28/2012 1:30:00 PM
SB 122
SB138-DCCED-RCA-2-24-12.PDF SL&C 2/28/2012 1:30:00 PM
SB 138
SB 138 Ver.R.PDF SL&C 2/28/2012 1:30:00 PM
SB 138
SB 157 DRAFT CS v D.PDF SL&C 2/28/2012 1:30:00 PM
SB 157
CSSB 174 BLANK v I 022412.PDF SL&C 2/28/2012 1:30:00 PM
SB 174
SB 174 Amendment M.1, Sen. Giessel.PDF SL&C 2/28/2012 1:30:00 PM
SB 174