Legislature(2003 - 2004)
05/05/2004 04:22 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
May 05, 2004
4:22 P.M.
TAPE HFC 04 - 106, Side A
TAPE HFC 04 - 106, Side B
TAPE HFC 04 - 107, Side A
CALL TO ORDER
Co-Chair Williams called the House Finance Committee meeting
to order at 4:22 P.M.
MEMBERS PRESENT
Representative John Harris, Co-Chair
Representative Bill Williams, Co-Chair
Representative Kevin Meyer, Vice-Chair
Representative Mike Chenault
Representative Eric Croft
Representative Hugh Fate
Representative Richard Foster
Representative Mike Hawker
Representative Reggie Joule
Representative Carl Moses
Representative Bill Stoltze
MEMBERS ABSENT
None
ALSO PRESENT
Susan Parkes, Deputy Attorney General, Criminal Division,
Department of Law; Senator Fred Dyson; Linda Hall, Division
of Insurance, Department of Community & Economic
Development; Jane Alberts, Staff to Senator Bunde; Rick
Urion, Director, Division of Occupational Licensing,
Department of Community & Economic Development; Senator Lyda
Green; Senator Fred Dyson; Barbara Huft-Tucknes, Director of
Legislative Affairs, Teamsters Local 959; Laura Young
Campbell, Speech Language Pathologist, Mat-Su School
District
PRESENT VIA TELECONFERENCE
Brook Miles, Director, Public Offices Commission, Department
of Administration; Mark Davis, Director, Division of Banking
and Securities, Department of Revenue, Anchorage; Karen
Vosburg, Alaska Right to Life, Wasilla; Vicki Halcro,
Director, Planned Parenthood of Alaska, Anchorage; Roger
DuBrock, Chief Executive Officer, Aleut Corporation
SUMMARY
HB 255
An Act amending the Alaska Wage and Hour Act as it
relates to flexible work hour plans, the provision of
training wages, and the definitions of certain terms;
and repealing the exemption in the Act from the payment
of minimum wages for learners.
CSHB 255(FIN) was REPORTED out of Committee with
individual recommendations and one zero fiscal impact
note.
HCS FOR CSSB 30(JUD)
An Act relating to information and services available
to pregnant women and other persons; ensuring informed
consent before an abortion may be performed; and
providing exceptions to informed consent in certain
cases.
SB 30 was HELD in Committee for further consideration.
CSSB 170(JUD)
An Act relating to murder in the second degree, the
justification of defense of self or others, immunity
from prosecution, sentencing, probation, discretionary
parole, and the right to representation in certain
criminal proceedings; relating to violation of a
custodian's duty; relating to sexual abuse of a minor;
relating to release of information concerning certain
cases involving a minor; relating to local options
regarding alcoholic beverages, the offense of
furnishing or delivery of alcoholic beverages to a
person under 21 years of age, and forfeiture of
property used in, and money or other items of value
used in financial transactions derived from, violation
of certain laws relating to alcoholic beverages;
relating to assault by means of a dangerous instrument;
relating to operating or driving a motor vehicle,
aircraft, or watercraft while under the influence of an
alcoholic beverage, inhalant, or controlled substance,
to the refusal to submit to a chemical test, and to the
presumptions concerning the chemical analysis of breath
or blood; and providing for an effective date.
HCS CSSB 170(FIN) was REPORTED out of Committee with
individual recommendations and three fiscal impact
notes.
HCS FOR CSSB 276(JUD)
An Act relating to the Alaska Insurance Guaranty
Association; relating to the powers of the Alaska
Industrial Development and Export Authority concerning
the association; and providing for an effective date.
HCS SB 276(JUD) was REPORTED out of Committee with
individual recommendations and five previously
published fiscal impact notes.
HOUSE CS FOR CS FOR SENATE BILL NO. 351(STA)
An Act requiring the Alaska Public Offices Commission
to accept documents by nonelectronic means, and
specifying the manner of preparing the forms that are
provided by the commission.
HCS CSSB 351(STA) was REPORTED out of Committee with a
"do pass" recommendation and one previously published
fiscal impact note.
CSSB 357(FIN)
An Act relating to the regulation of insurance,
insurance licenses, qualifications of insurance
producers, surplus lines, fraud investigations,
electronic transactions, and compliance with federal
law and national standards; and providing for an
effective date.
SB 357 was POSTPONED.
CS SB 365(FIN)
An Act relating to the regulation of speech-language
pathologist assistants; and providing for an effective
date.
HCS CSSB 365(FIN) was REPORTED out of Committee with a
"do pass" recommendation and with one previously
published fiscal impact note.
SENATE BILL NO. 389
An Act relating to the conversion of certain
corporations to limited liability companies; and
providing for an effective date.
SB 389 was REPORTED out of Committee with individual
recommendations and two previously published fiscal
impact notes.
CS FOR SENATE BILL NO. 170(JUD)
An Act relating to murder in the second degree, the
justification of defense of self or others, immunity
from prosecution, sentencing, probation, discretionary
parole, and the right to representation in certain
criminal proceedings; relating to violation of a
custodian's duty; relating to sexual abuse of a minor;
relating to release of information concerning certain
cases involving a minor; relating to local options
regarding alcoholic beverages, the offense of
furnishing or delivery of alcoholic beverages to a
person under 21 years of age, and forfeiture of
property used in, and money or other items of value
used in financial transactions derived from, violation
of certain laws relating to alcoholic beverages;
relating to assault by means of a dangerous instrument;
relating to operating or driving a motor vehicle,
aircraft, or watercraft while under the influence of an
alcoholic beverage, inhalant, or controlled substance,
to the refusal to submit to a chemical test, and to the
presumptions concerning the chemical analysis of breath
or blood; and providing for an effective date.
CO-CHAIR HARRIS MOVED TO ADOPT Work Draft 23-GS1024, Version
S, Luckhaupt, dated 5-5-04, as the version of legislation
before the Committee. There being NO OBJECTION, it was so
ordered.
SUSAN PARKES, DEPUTY ATTORNEY GENERAL, CRIMINAL DIVISION,
DEPARTMENT OF LAW (DOL), explained that the seven amendments
from the Department of Law propose to move language from the
House version into the Senate version, and one amendment
from Co-Chair Williams proposes to delete a provision. With
the exception of Amendment #1 relating to self-defense, all
of the amendments and the revised Amendment #2, relating to
immunity and formerly Amendment #5, have been moved into the
Senate bill. She noted that Ms. Linda Wilson of the Public
Defender Agency had testified in support of those
amendments.
Ms. Parkes explained that the first change is found in
Section 7, raising provision of alcohol to a minor from an A
misdemeanor to a C felony. It allows a local option
community to opt out of making that change. The second
change is in Section 13, creating a new offense of assault
in the third degree, with criminal negligence causing
serious physical injury by means of a dangerous instrument.
Two definitions of "serious physical injury" appear in
subsections (a) and (b). The House limited the offense to
only the definition in subsection (b).
In response to a question by Representative Joule, Ms.
Parkes read from the definition of "dangerous instrument,"
and said that it is any deadly weapon, including knives,
guns, vehicles, bricks or bats.
Ms. Parkes explained that the next change appears in
subsection 27. The Senate version provided that once
convicted of a felony DUI, every subsequent DUI would also
be a felony. The House Judiciary Committee wanted to limit
subsequent felony DUIs to twenty years. This change has been
incorporated for both felony DUI and felony refusal.
Representative Stoltze asked how it meshes with the recently
passed HB 342. Ms. Parkes replied that HB 342 was a "look
back" and this is a "look forward." The Department believes
that the bills mesh without conflict.
Representative Chenault asked if HB 342 was a 15-year look
back. Ms. Parkes thought that it was a 15-year look back,
and then 15 years later, a DUI would be considered a first
offense.
Representative Chenault asked if the Department would prefer
a 20-year look back. Ms. Parkes clarified that this is a
20-year look forward that only applies to felonies. She
explained the triggers. Once someone commits a felony
offense, the sentencing moves into Title 12.
Backtracking, Ms. Parkes explained Amendment #2 regarding
third party custodians ordered by the judge as part of the
bail condition. The judge must make written or oral findings
describing the reason for the order. This change is now
incorporated into the Senate version, due to a Judicial
Council study showing that the third party custodian
requirement was holding people in jail for a longer period
of time.
The Amendment #8 proposed by Co-Chair Williams removed the
felony murder provision from the bill. Representative Joule
asked if Amendment #8 appears in Section 13, and Ms. Parkes
thought so [Amendment #8 deletes Section 13, which would
expand the felony murder rule to include the death of a
participant in the crime].
Ms. Parkes urged that Amendments #1 and #2 made by the House
Judiciary Committee and deleted by the Senate Judiciary
Committee be adopted into the Finance Committee Substitute.
Representative Stoltze asked if she had discussed the change
in immunity. Ms. Parkes clarified that it is the revised
Amendment #2, but there is a provision in the Work Draft
Version S that simply codifies current law.
Representative Joule asked if the House Judiciary provision
on rights to contact attorneys by friends or family does not
appear in this version. Ms. Parkes affirmed that it's not in
the Senate version and the DOL does not propose to adopt it.
Representative Fate referred to Section 17 and asked for a
description of non-deadly force. Ms. Parkes explained that
it includes pushing, hitting, or shoving without the intent
to kill; in other words, force without a deadly weapon. A
discussion ensued with Representative Fate.
Co-Chair Harris MOVED to ADOPT Amendment #1. Co-Chair
Williams OBJECTED.
Amendment #1 reads:
Page 11, following line 5:
Insert a new bill section to read:
"*Sec.19. AS 11.81 is amended by adding a new section to
read:
Sec.11.81.345. Defense of self and others. A court may
instruct the jury about justification described in AS
11.81.330-11.81.340 if the court, sitting without a jury,
finds that there is some plausible evidence to warrant a
reasonable jury to find elements of the justification."
Renumber the following bill sections accordingly.
Ms. Parkes noted that the Public Defender does not support
Amendment #1, which changes the level of evidence necessary
for the judge to instruct on self-defense. Currently under
case law, if there is some, even implausible evidence, the
judge instructs on self-defense. This proposes "some
plausible evidence," and it doesn't change the burden of
proof. Judges make these decisions all the time, and the
Department feels that it is an appropriate job for the
judge. With only implausible evidence of self-defense for a
jury to rely on, Ms. Parkes said that it might lead to
jurors making decisions based on speculation or conjecture.
Representative Croft commented that the amendment takes away
the self-defense from the jury and gives it to the judge.
He felt that the right to defend oneself before a jury is
very important. The Senate removed this after hearing it.
Representative Joule asked if it applies to both the grand
and petit jury systems. Ms. Parkes explained that the grand
jury is ex parte, or just the prosecutor with the jurors.
The grand jury does not receive jury instructions although
the prosecutor will instruct on self-defense if needed.
Co-Chair Williams upheld his objection to Amendment #1.
A roll call vote was taken on the motion to adopt Amendment
#1.
IN FAVOR: Hawker
OPPOSED: Stoltze, Chenault, Croft, Fate, Foster, Joule,
Meyer, Williams, Harris
Representative Moses was absent.
The MOTION FAILED (1-9). Amendment #1 was not adopted.
Co-Chair Harris MOVED to ADOPT Amendment #2. Co-Chair
Williams OBJECTED.
Amendment #2 reads:
Page 11, following line 20:
Insert the following:
"(1) "higher-level felony" means an unclassified
or class A felony;
(2) "lower-level felony" means a class B or class
C felony;"
Renumber the following paragraphs accordingly.
Page 12, lines 17 and 18:
Delete all material and insert:
"(i) If the court finds that the witness has a valid
claim of privilege, it shall advise an attorney designated
by the attorney general of that finding and inform the
attorney of the category or categories of offense to which
the privilege applies: a higher-level felony, a lower-level
felony, or a misdemeanor. If the designated attorney
decides that granting immunity to the witness is
appropriate, the designated attorney shall inform the
prosecution of that decision, and shall deliver or cause to
be delivered a letter to the witness, or an attorney for the
witness, granting immunity to the witness. The designated
attorney may not disclose the category of offense to
anyone."
Ms. Parkes explained that the Senate Judiciary Committee did
not consider Amendment #2. A prior immunity provision was
deleted and Representative Gruenberg proposed this
compromise. Currently when someone claims a right against
self-incrimination to testify, a judge conducts a hearing,
appoints an attorney, listens to his or her offer of proof,
and decides whether they have a valid right to immunity. The
judge informs the prosecutor that the person has a valid
Fifth Amendment privilege and, based on no information
whatsoever, the prosecutor must decide whether to give the
person immunity. The Gonzales Case interprets the
Constitution in the manner that Alaska must give
transactional immunity so that any crimes the person
discusses on the stand cannot be prosecuted.
Ms. Parkes explained that Amendment #2 proposes a
constitutional means for prosecutors to gain information to
make an informed decision about whether to offer immunity.
The risks are extremely high. She said that if immunity were
given to the wrong individuals, they would take the stand
and talk about serious crimes for which they can't be
prosecuted. However, if immunity is not given in very
serious cases, crucial evidence may not be offered to
prosecute a serious crime.
Ms. Parkes continued, this proposes that the judge not
inform the prosecutor of any information but instead,
appoint someone within the Criminal Division to grant
immunity. The judge would determine the Fifth Amendment
privilege of the witness for a higher-level felony, a lower-
level felony or a misdemeanor. The prosecutor would only be
informed of the granting of immunity, not the category of
offense to which it applies.
Ms. Parkes concluded that the DOL believes that the
amendment would safeguard a witness's Fifth Amendment
privilege. She noted that the House Judiciary Committee
discussed it at length, and the Public Defender believes it
will violate the Gonzales Case but the Department of Law
does not. The Department feels it's good public policy for
public defenders to make informed decisions on whether to
grant immunity. She said that the issue would be appealed to
the Supreme Court. She urged adoption of the amendment.
In response to a question by Representative Croft, Ms.
Parkes said that the State would want to weigh the risk in
granting immunity depending on the seriousness of the crime,
ranging from shoplifting to felony. She commented that few
states require transactional immunity but Alaska's
constitution is unique in requiring a greater level of
immunity.
Representative Croft indicated that he had no objection to
the amendment.
Co-Chair Williams WITHDREW his OBJECTION. Amendment #2 was
adopted.
Representative Chenault brought up Section 26 relating to
DUI and asked if AS 04 appears somewhere else in law. Ms.
Parkes affirmed that this deals with the DUI statute, and AS
04 relates to minor and commercial DUI. Section 26 relates
to the "big gulp" defense.
MOVED to report HCS CSSB 170(FIN) out of Committee with
individual recommendations and the accompanying fiscal note.
There being NO OBJECTION, it was so ordered.
HCS CSSB 170(FIN) was REPORTED out of Committee with
individual recommendations and three fiscal impact notes.
CS FOR SENATE BILL NO. 365(FIN)
An Act relating to the regulation of speech-language
pathologist assistants; and providing for an effective
date.
JANE ALBERTS, STAFF TO SENATOR BUNDE, introduced the bill.
LAURA YOUNG CAMPBELL, SPEECH-LANGUAGE PATHOLOGIST, MAT-SU
SCHOOL DISTRICT, explained that the bill establishes the
regulation of speech-language pathologist assistants. The
speech-language assistants would enroll in a two-year
program at Prince William Sound Community College, a
distance-learning program taught by licensed speech-language
pathologists. The students would also gain one hundred
clinically supervised hours, to emerge from the program with
an assistant's degree. This would affect assistants in all
job settings, not just the schools. She explained that in
the remote rural regions of the State, a speech pathologist
is sometimes only available a few days a month, while having
a properly trained assistant would allow the consumer on-
going treatment. An assistant in the schools would handle
clerical, non-student activities to allow the speech
pathologist more time to work with students in smaller
groups. Outside of the schools, the assistant would benefit
the treatment of all ages of people with communication
disorders.
Co-Chair Harris asked if she supported Amendment #1. Ms.
Young Campbell affirmed that the Alaska Speech Language
Hearing Association supports it.
Representative Chenault asked her level of education and if
other degree programs would be available for an assistant to
advance and replace her when she retires. Ms. Young Campbell
explained that a Masters degree, national board
certification, and an internship are required. Following the
two-year program, a person could work toward a Bachelors or
a Masters degree. Currently Alaska doesn't have a Bachelor's
program, but a distance delivery Master's program is
starting up.
Co-Chair Harris MOVED to ADOPT Amendment #1. Co-Chair
Williams OBJECTED for purposes of discussion.
Amendment #1 reads:
Delete all language on page 4, lines 25-27
[" (3) appears to the department to suffer from no mental
illness or chemical or alcohol dependency that would
interfere with the applicant's ability to perform safely as
a speech-language pathologist assistant."]
RICK URION, DIRECTOR, DIVISION OF OCCUPATIONAL LICENSING,
DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT stated that
the bill relates to a good program, but the Department found
a problem area on page 4, lines 25-27. He felt that none of
his dedicated employees is qualified to determine if someone
is mentally ill or chemically dependent.
Co-Chair Williams WITHDREW his OBJECTION. Amendment #1 was
adopted.
Representative Foster MOVED to report HCS CSSB 365(FIN) out
of Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
HCS CSSB 365(FIN) was REPORTED out of Committee with a "do
pass" recommendation and one previously published fiscal
impact note.
HOUSE CS FOR CS FOR SENATE BILL NO. 351(STA)
An Act requiring the Alaska Public Offices Commission
to accept documents by nonelectronic means, and
specifying the manner of preparing the forms that are
provided by the commission.
SENATOR LYDA GREEN, SPONSOR, explained that recently passed
legislation regarding the Alaska Public Offices Commission
(APOC) inadvertently included the words, "upon request of
the Commission" which gave the APOC authority to require
electronic filing of election campaign records. She felt
that this should be changed. Although all candidates would
eventually turn to electronic equipment, the program would
not be ready for at least two years. The bill has been
narrowed to candidates for election and provides that the
information may be printed legibly in dark ink on forms
approved and filed by the Commission. She expressed a
concern that forms be filed timely and be made ready for
public review. She disagreed with the current emphasis that
the information be immediately available to the public over
the Internet.
Senator Green pointed out the language that was changed on
page 1, line 6, "The commission may request," and offered it
for the Committee's consideration.
Representative Joule asked if faxes would be an acceptable
means of filing. Senator Green explained that filing may be
by fax, mail or electronically.
Vice-Chair Meyer voiced support for the bill because he had
experienced software glitches in filing electronically
during the past ten years.
Representative Chenault asked if a candidate could still fax
the reports under the proposed changes. Senator Green
replied that under the current statute, if APOC requested
it, a candidate could only transmit the information
electronically. She felt that the APOC should waive the
requirement for Representative Joule's district if a
candidate didn't own a computer. She believed that
candidates should be able to file in their accustomed
manner.
BROOK MILES, EXECUTIVE DIRECTOR, ALASKA PUBLIC OFFICES
COMMISSION (APOC), DEPARTMENT OF ADMINISTRATION, stated that
the APOC does not support the bill. The Commission views
this reversal of the ability to request electronic filing as
a serious impediment.
TAPE HFC 04 - 106, Side B
Ms. Miles continued, stating that when the Legislature
agreed to give the APOC electronic filing, it also reduced
the Commission's budget by $100 thousand, which has resulted
in a 20% reduction to its workforce. She pointed out that
there is fewer staff to do a lot more work, and having
electronic filing would change APOC's ability to conduct
business, as well as inform the public of changes in the
law. The fiscal note is Indeterminate because APOC does not
know how many people will choose to file paper documents and
how many will file electronically. Ms. Miles said that
historically, never higher than 15% of all candidates have
filed electronically. She said that without additional
funding, the APOC would be unable to meet its mission. There
would be significant delays in getting the information to
the public in the 2004 State election, and the problem would
be magnified in the 2006 gubernatorial election.
Vice-Chair Meyer asked if the APOC could scan or otherwise
avoid retyping the information filed on paper. Ms. Miles
affirmed that it would be possible to scan forms, but a
relational database would not be possible if a picture is
scanned in.
Vice-Chair Meyer thought that candidates with multiple terms
would prefer electronic filing because it is easier. Ms.
Miles said the current program requires that the candidate
fill out the campaign disclosure form electronically, but
the new program is more interactive and "user friendly."
Representative Fate asked if the program is operational, and
commented that there were a lot of glitches in the upgraded
filing software that led to him filing a couple of typed
pages. Ms. Miles replied that the APOC will use a [indisc]
by next summer, or at least in next year's municipal races.
She said that it would be tested beforehand.
Representative Foster MOVED to report HCS CSSB 351(STA) out
of Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
HCS CSSB 351(STA) was REPORTED out of Committee with a "do
pass" recommendation and one previously published fiscal
impact note.
HOUSE BILL NO. 255
An Act amending the Alaska Wage and Hour Act as it
relates to flexible work hour plans, the provision of
training wages, and the definitions of certain terms;
and repealing the exemption in the Act from the payment
of minimum wages for learners.
Co-Chair Harris MOVED to ADOPT the blank Work Draft as the
version of legislation before the Committee. Representative
Croft objected and then withdrew his objection.
The work draft amends Section 1 of HB 255 as follows:
*Section 1. AS 23.10.085(b) is amended to read:
(b) The regulations may, without limiting the
generality of (a) of this section, define terms used in AS
23.10.050-23.10.150, and restrict or prohibit industrial
homework or other acts or practices that the director finds
appropriate to carry out the purpose of AS 23.10.050-
23.10.150, or to prevent the circumvention or evasion of AS
23.10.050-23.10.150. If the regulations defining an
individual employed in a bona fide executive,
administrative, or professional capacity for purposes of AS
23.10.055 require that the individual receive a minimum
salary, the required minimum salary must be two times the
state minimum wage for the first forty hours of employment
each week.
BARBARA HUFT-TUCKNES, DIRECTOR OF LEGISLATIVE AFFAIRS,
TEAMSTERS LOCAL 959, spoke to the change.
Representative Foster MOVED to report CSHB 255(FIN) out of
Committee with the accompanying fiscal note. There being NO
OBJECTION, it was so ordered.
CSHB 255(FIN) was REPORTED out of Committee with individual
recommendations and one zero fiscal impact note.
HOUSE CS FOR CS FOR SENATE BILL NO. 276(JUD)
An Act relating to the Alaska Insurance Guaranty
Association; relating to the powers of the Alaska
Industrial Development and Export Authority concerning
the association; and providing for an effective date.
LINDA HALL, DIVISION OF INSURANCE, DEPARTMENT OF COMMUNITY &
ECONOMIC DEVELOPMENT, explained that there is a serious
financial loss because of the insolvency of the insurer,
Alaska Insurance Guaranty Association. The statute allows
prorating of claimants but this is an unacceptable solution
because the medical bills of claimants are not paid.
Currently, Alaska has 579 open claims with injured workers.
Employers satisfy the obligation but when the insurer is
insolvent, the claim is transferred and will revert to the
employer. The goal is to protect policyholders, and SB 276
proposes to change the way the Division of Insurance does
assessments. The legislation authorizes the Alaska
Industrial Development and Export Authority (AIDEA) to
guarantee loans to the Alaska Insurance Guaranty Association
(AIGA) needed to make the association financially able to
meet cash flow needs.
[Due to the malfunction of Tape 106 Side B, the following
minutes are a reconstruction of discussion during the
meeting.]
Ms. Hall continued her testimony. She referred to the chart
titled, "Alaska Insurance Guaranty Association"(copy on
file.) and discussed the first line. Ms. Hall stated that
this is a painful and expensive bill, with employers unable
to handle the claims of 579 injured employees.
Co-Chair Harris discussed the line item, Fund Source,
reflecting $8,890,000 on Fiscal Note #6 with Ms. Hall.
Vice-Chair Meyer asked if businesses or the Chamber of
Commerce have been involved. Ms. Hall affirmed. In response
to a question by Vice-Chair Meyer, Ms. Hall explained that
businesses handle the situation according to their profit
margins.
Vice-Chair Meyer asked if Providence or Carrs are the
largest employers. Ms. Hall affirmed, and noted that these
businesses are self-insured.
Representative Chenault commented that as an employer, he is
hit hard by Workers' Compensation Insurance increases that
will continue to rise.
Representative Fate asked the effect on workers'
compensation as employers go to self-insurance. Ms. Hall
said that as more companies seek other types of insurance, a
smaller market is created that is less attractive with less
competition, which has led to increases in premiums. In
Alaskan companies, the average worker's compensation claim
is $19 thousand.
Representative Hawker asked if the Division of Insurance is
responsible for monitoring firms. Ms. Hall affirmed that it
has the responsibility to oversee insolvency.
Representative Hawker discussed the Fremont suspension with
Ms. Hall. He asked if any options are remotely viable to
settle this assessment. Ms. Hall replied that the Division
had looked at a variety of options and worked with the
AIDEA. The Senate rejected using Permanent Fund earnings.
Representative Hawker commented that this is less than
popular with the people who would have to pay it. Ms. Hall
pointed out that the State Chamber is on record in support
of the bill, and it has broad support because of recognition
of the current crisis. Representative Hawker thought that
the acceptance would be reluctant and Ms. Hall agreed.
In response to a question by Representative Chenault, Ms.
Hall said that in Alaska the frequency of accidents has
declined but the cost of claims has risen. Medical care
comprises 55% of the claims. She commented on Alaska's aging
population and the variety of factors that impact Workers'
Compensation.
Co-Chair Harris MOVED to report SB 276 out of Committee with
individual recommendations and the accompanying fiscal
notes. There being NO OBJECTION, it was so ordered.
HCS SB 276(JUD) was REPORTED out of Committee with
individual recommendations and five previously published
fiscal impact notes.
SENATE BILL NO. 389
An Act relating to the conversion of certain
corporations to limited liability companies; and
providing for an effective date.
JANE ALBERTS, STAFF TO SENATOR BUNDE, introduced the bill.
MARK HICKEY, ALEUT CORPORATION, explained that SB 389 is a
straightforward bill. Section 2 on page 1 allows entities,
including subsidiary corporations and certain domestic and
foreign corporations, to convert to the status of a limited
liability company. He pointed out that the fiscal notes are
zero. The Native regional corporations are interested in
this legislation because they own subsidiaries and this
would allow the transfer of assets. The conversion would
bring operating flexibility and tax benefits. Mr. Hickey
discussed the Doyon and Koniag Corporations.
Co-Chair Harris asked if Co-Chair Williams' Native regional
corporation would be involved. Mr. Hickey affirmed.
Representative Hawker asked the definition of subsidiary
corporation on page 2, line 2. Mr. Hickey was unsure if it
is defined in statute.
ROGER DUBROCK, CHIEF EXECUTIVE OFFICER, ALEUT CORPORATION,
VIA TELECONFERENCE, stated that a "subsidiary corporation"
is implicitly defined in the language on page 2, lines 2-3,
as "owned directly or indirectly by one or more parent
corporations." A subsidiary corporation has no individual
shareholders.
Representative Hawker asked if the bill's intent is revenue
neutrality and facilitation of the conversion of the for-
profit entities. Mr. DuBrock affirmed.
Representative Chenault and Mr. DuBrock discussed the non-
qualification of a subsidiary corporation and whether it
could have its earnings sheltered. Mr. DuBrock noted that if
two corporations owned the subsidiary equally, half of the
earnings would flow to each parent corporation. He discussed
losses of the subsidiary.
Representative Chenault asked the ownership requirement to
file a consolidated tax return. Mr. DuBrock replied that it
must be 80%.
Mr. Hickey commented that the key is the language defining
the subsidiary corporation as owned directly or indirectly
by one or more parent corporations. This bill would
facilitate the exercise of dissolving the subsidiary.
Representative Foster MOVED to report SB 389 out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SB 389 was REPORTED out of Committee with individual
recommendations and two previously published fiscal impact
notes.
HOUSE CS FOR CS FOR SENATE BILL NO. 30(JUD)
An Act relating to information and services available
to pregnant women and other persons; ensuring informed
consent before an abortion may be performed; and
providing exceptions to informed consent in certain
cases.
SENATOR FRED DYSON, SPONSOR, explained that the Department
of Health & Social Services requested that all reproductive
information including abortion services be provided online.
The first change made by the House Judiciary Committee
required that information reviewed by obstetricians also be
reviewed by the state medical board, which, Senator Dyson
said, it would prefer not to do. He explained the other
amendments made by House Judiciary Committee, and noted that
the major change eliminated the 24-hour waiting period.
Senator Dyson felt that the 24-hour waiting period would not
pose a barrier to receiving the service.
In response to a question by Representative Croft, Co-Chair
Williams clarified that Version G is the House Judiciary
Committee Substitute and Version Y is the blank Finance CS.
MYRNA GARDNER, JUNEAU, spoke from written testimony (copy on
file.) She felt that the underlying intentions of the bill
are anti-abortion, and that it implies that women do not
have a right to privacy even though Alaska's history on
privacy is very clear. She asked that female constituents be
considered intelligent enough to make this decision
themselves without State invasion into their privacy. She
asked the Committee not to vote for the bill.
TAPE HFC 04 - 107, Side A
At Ease: 3:25 PM
Reconvene: 3:30 PM
VICKI HALCRO, DIRECTOR, PUBLIC AFFAIRS AND MARKETING,
PLANNED PARENTHOOD OF ALASKA, ANCHORAGE, VIA TELECONFERENCE,
voiced opposition to SB 30. She commented that it is
redundant and discriminatory. Under the Alaska Constitution,
the right to choose is a fundamental right of women. The
bill assumes that physicians are being negligent in not
giving women the information needed for informed consent.
She added that the House Judiciary Committee had removed the
24-hour waiting period, and she stated that this [waiting
period] would add an undue burden on women in rural Alaska.
She felt that the bill has serious constitutional issues.
KAREN VOSBURG, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, ALASKA RIGHT TO LIFE, ANCHORAGE, voiced support
for the legislation. She spoke to the description of the
unborn baby and argued that women need to know "what is
being removed during an abortion." She asserted that nearly
80% of women surveyed by the Elliott Institute believe that
they were denied information or actively misinformed by
their counselors prior to their abortion. She continued,
stating that women were not given a full explanation of the
possible risks or complications. Abortion counseling is an
opportunity to discuss birth control, and she spoke to
censoring information. Ms. Vosburg urged that the
legislation be passed from Committee.
Co-Chair Williams requested that the Department of Law be
present to discuss these issues.
SB 30 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting was adjourned at 6:25 P.M.
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