Legislature(2009 - 2010)HOUSE FINANCE 519
04/11/2009 09:00 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB175 | |
| HB186 | |
| HB141 | |
| HB44 | |
| HB186 | |
| HB105 | |
| HB212 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 175 | TELECONFERENCED | |
| + | HB 105 | TELECONFERENCED | |
| + | HB 141 | TELECONFERENCED | |
| + | HB 186 | TELECONFERENCED | |
| *+ | HB 212 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 44 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
April 11, 2009
9:09 a.m.
9:09:53 AM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 9:09 a.m.
MEMBERS PRESENT
Representative Mike Hawker, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas Jr., Vice-Chair
Representative Allan Austerman
Representative Harry Crawford
Representative Anna Fairclough
Representative Les Gara
Representative Reggie Joule
Representative Mike Kelly
Representative Woodie Salmon
MEMBERS ABSENT
Representative Richard Foster
ALSO PRESENT
Jennifer Senette, Staff, Representative Kurt Olson; Linda
Hall, Director, Division of Insurance, Department of
Commerce, Community and Economic Development; Derek Miller,
Staff, Representative Mike Kelly, Sponsor; Amanda Mortensen,
Staff, Representative John Coghill, Sponsor; Anthony Newman,
Program Officer, Division of Juvenile Justice, Department of
Health and Social Services; Representative Mike Chenault,
Sponsor; Tom Wright, Staff, Representative Mike Chenault,
Sponsor; Rynnieva Moss, Staff, Representative John Coghill,
Sponsor; David Stone, Deputy Commissioner, Department of
Labor and Workforce Development, Member, Alaska Taskforce
Investment Board, and Co-Chair, STEP Taskforce; Guy Bell,
Assistant Commissioner and Director, Division of
Administrative Services, Department of Labor and Workforce
Development; Don Ethridge, Alaska Works Partnership and
Alaska AFL-CIO.
PRESENT VIA TELECONFERENCE
Carol Brenckle, Chair, Alaska Juvenile Justice Advisory
Committee, Kenai; Doug Ward, Director, Shipyard Development,
Alaska Ship and Drydock, Ketchikan, and Member, Workforce
Investment Board and STEP Taskforce; Linda Hulbert, Member,
Alaska Workforce Board, Fairbanks.
SUMMARY
HB 44 ENERGY BONDS/INVESTMENTS/ANGDA
CS HB 44(FIN) was REPORTED out of Committee with
no recommendation and attached zero note 1 by the
Department of Revenue and two new zero notes by
the Department of Revenue.
HB 105 STEP PROGRAM
CSSS HB 105(L&C) was REPORTED out of Committee
with a "do pass" recommendation and with attached
fiscal note 1 by Department of Labor and Workforce
Development and fiscal note 2 by Department of
Labor and Workforce Development.
HB 141 COMPACT FOR JUVENILES; INTERSTATE COUNCIL
HB 141 was REPORTED out of Committee with a "do
pass" recommendation and attached fiscal note 1 by
Department of Health and Social Services and zero
note 2 by the Department of Corrections.
HB 175 INSURANCE
CS HB 175 (L&C) was REPORTED out of Committee with
a "do pass" recommendation and with attached
fiscal note 1 by the Department of Commerce,
Community and Economic Development.
HB 186 AK FIREARMS EXEMPT FROM FED. REGULATION
CS HB 186(FIN) was REPORTED out of Committee with
no recommendation and attached new indeterminate
fiscal note by the Department of Law.
HB 212 UNEMPLOYMENT AMENDMENTS: FED STIMULUS
HB 212 was HEARD and HELD in Committee for further
consideration.
HOUSE BILL NO. 175
"An Act relating to insurance, including treating as
confidential certain information submitted to the
director of insurance by the National Association of
Insurance Commissioners; clarifying conditions for the
release of insurer deposits; defining travel insurance
that may be sold under a travel insurance limited
producer license; establishing criteria for licensing
of nonresident independent adjusters as resident
adjusters; exempting rewards under a wellness program
from treatment as insurance discrimination or rebating;
making certain insurance required of the Comprehensive
Health Insurance Association permissive rather than
mandatory; providing for the administration of loss
reimbursement policies and payments to guaranty
associations during insolvency proceedings; making
certain provisions relating to statements on
applications and guaranteed renewability for individual
health insurance applicable to hospital and medical
service corporations; making public certain forms and
related documents filed for approval by a hospital or
medical service corporation after the filing becomes
effective; relating to deposits of self-funded multiple
employer welfare arrangements; repealing reasons that
the director of insurance may use to deny or revoke a
license; and providing for an effective date."
9:10:55 AM
JENNIFER SENETTE, STAFF, REPRESENTATIVE KURT OLSON, SPONSOR,
explained that the bill was offered at the request of the
director of the Division of Insurance.
LINDA HALL, DIRECTOR, DIVISION OF INSURANCE, DEPARTMENT OF
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, provided an
overview of the legislation using a sectional analysis (copy
on file). She explained that the changes are needed by the
Department of Commerce, Community and Economic Development
(DCCED) in order to effectively regulate the insurance
industry. The division's overall goals are solvency,
oversight, consumer protection, and making sure there is a
healthy and competitive marketplace.
Ms. Hall pointed out several sections in the bill that
streamline the division's processes:
· Section 10: Allows the division to issue a license to a
non-resident adjuster whose own state does not license
adjusters.
· Section 12: Provides for third-party administrators.
· Section 18: Allows acceptance of another regulator's
evaluation of a nonresident with a felony conviction.
9:14:53 AM
Ms. Hall informed the committee that the division's agent
licensing processing is done electronically, which has
greatly streamlined the process.
Ms. Hall turned to sections with clarifying language:
· Sections 5 and 6: Tighten language and clarify how
deposits of both domestic and other state insurers are
treated and when the deposits are given to guarantee
funds.
· Section 29: Defines "working day" uniformly throughout.
Ms. Hall pointed out sections of the bill that provide
uniformity with national standards. She explained that state
regulators have been concerned with a major push for federal
regulation of insurance; the more uniform state regulations
are, the less likely that is to happen.
· Section 1: Allows for analysis ratios and examinations
submitted to the director from the National Association
of Insurance Commissioners (NAIC) to be confidential.
· Section 8: A uniformity standard saying that a
compliance officer for an insurance agency does not
have to be licensed in all the lines of business that
the agency does.
· Section 9: Updates products that can be sold under a
limited travel licensee.
9:17:15 AM
Ms. Hall approached new issues covered by Section 11. She
believed the section was a policy call the legislature
needed to make. The section permits a director to order a
summary suspension of a producer license if there is a
finding that suspension is necessary for the protection of
the public in an emergency action. She described two
instances of agent behavior that needed to be immediately
stopped. In normal circumstances, the department would issue
a letter of accusation and get a request for a hearing and
begin a process that has taken up to a year and a half. She
reported the worst instance of agent behavior as an
individual who took premium money from 72 victims; the case
is pending with 32 felony counts.
Ms. Hall emphasized the importance of immediate action. In
the example, the adjuster voluntarily surrendered his
license. Had he not, the department would have been forced
to allow him to continue his business practices until the
hearing. The department does not believe that waiting in
certain circumstances would be in the best interest of
consumers.
9:20:07 AM
Ms. Hall described another incident in which premium trust
money had been taken from an employer. The employer brought
the employee to the division offices to surrender the
license. She noted that other states had the provision.
Representative Fairclough stated that she was comfortable
with the first component of page 8, section 11, lines 3
through 17. She was not comfortable with the second
component requiring the appeal to go to the same director.
She had questions about due process. Ms. Hall replied that
other sections provide for due process in hearings. In
addition, anything a director does is subject to overview in
superior court. She emphasized the need to use the authority
in special circumstances, especially urgent ones.
Representative Fairclough commended the department and
acknowledged the difficulty. She stated concerns that a
director could be unduly burdened or could use the measure
to punish individuals.
9:23:27 AM
Ms. Hall thought there were adequate protections built into
the system. She noted that discussion about the process had
taken place in the Labor and Commerce Committee.
Representative Crawford pointed to Section 10 regarding
licensing of out-of-state adjustors and queried the level
and circumstances of need. Ms. Hall opined that there was a
shortage of adjusters. She cited an emergency provision for
disasters and described independent agencies whose trained
adjustors have left Alaska but still work long-distance. The
department wants the adjusters to have a resident license.
Representative Crawford stated concerns about adjustors
moving from Alaska. He thought it was important for them to
stay in the state. Ms. Hall replied that there were a number
of non-resident adjustors and a large number of non-resident
licensees; out of approximately 38,000 insurance adjusters,
34,000 are non-residents.
Ms. Hall agreed with Representative Crawford that the
numbers were overwhelming. She explained that insurance
company call centers license all their people on the off-
chance that they might take a call from an Alaskan consumer.
She did not think there was enough insurance business in the
state to warrant 38,000 licensees.
9:27:57 AM
Ms. Hall turned to Section 17, which would allow an
insurance company to offer an incentive for a wellness
program without considering the incentive a rebate. The
department feels built-in incentives that meet Health
Insurance Portability and Accountability Act (HIPAA)
requirements are a good idea.
Ms. Hall explained Section 23, which changes the definition
of "resident" to mirror the permanent fund eligibility
definition for a high-risk pool.
Ms. Hall continued that Section 28 would add deposit
administration for self-funded healthcare entities, which
are small employer, single-industry groups called multiple
employer welfare arrangements. The division had an entity in
the recent past that was insolvent and worked with them to
make sure claims were paid.
Ms. Hall discussed Section 26, which makes statutes dealing
with hospital medical service corporations have the same
requirements as other companies with regard to applications
and the guaranteed renewability of individual healthcare
plans.
Representative Gara asked whether out-of-state adjusters
were charged a fee so that the state did not lose money. Ms.
Hall responded that out-of-state adjusters were charged
double.
Representative Gara asked if money was lost through the
regulatory process related to out-of-state adjusters. Ms.
Hall did not think there were a significant number of out-
of-state residents; the numbers used previously were not
licensees who adjust claims.
Representative Gara asked for clarification. Ms. Hall
responded that the 38,000 agents sell insurance. She did not
have the number of adjusters.
9:31:36 AM
Representative Fairclough referred to the state's wellness
survey with a $100 incentive. She wondered how the survey
information was kept confidential. Ms. Hall replied that the
state select benefits plan does not come under the oversight
of Title XXI, so the division does not have regulatory
oversight of the plan. She referred to identity theft
legislation. She informed the committee that insurance
entities have very specific confidentiality and personal
information protection provisions in both statute and
regulation; the provisions to not apply to the state benefit
plan.
Representative Fairclough asked whether state was exempt or
if the $100 was considered a rebate. Ms. Hall answered that
the state was exempt.
9:33:32 AM
Representative Kelly referred to a constituent complaint and
asked whether the state had implemented a survey of people
who had complaints. Ms. Hall responded that the survey was
implemented in 2007 and was still being used. The summary
result of the surveys was available.
Co-Chair Stoltze referred to a zero note with a narrative.
Representative Fairclough asked whether "foreign insurer"
was defined in statute. Ms. Hall answered that "foreign
insurer" meant anything in another state, "domestic insurer"
meant domiciled in the state, and "alien insurer" meant
domiciled in another country.
9:36:07 AM
Co-Chair Hawker MOVED to report CS HB 175(L&C) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS HB 175(L&C) was REPORTED out of Committee with a "do
pass" recommendation and with attached fiscal note 1 by the
Department of Commerce, Community and Economic Development.
HOUSE BILL NO. 186
"An Act declaring that certain firearms and accessories
are exempt from federal regulation."
9:37:17 AM
Representative Mike Kelly, Sponsor, described support for
the legislation in Alaska because of concerns about
increased federal regulation of firearms. He explained that
the bill would separate firearms manufactured in Alaska from
federal regulation.
DEREK MILLER, STAFF, REPRESENTATIVE MIKE KELLY, SPONSOR,
provided an overview of the legislation:
· Section 1: Finds the authority of the bill in the
Second Amendment, the right to bear arms; the Ninth
Amendment, guaranteeing rights to people not listed in
the Constitution; and the Tenth Amendment, protecting
states' rights. The section also finds that Congress
has not expressly pre-empted state regulation of
interstate commerce pertaining to the manufacture on an
interstate basis of firearms and accessories.
· Section 2: States that a personal firearm or accessory
manufactured in the state and remaining within the
borders of the state is not subject to federal law or
regulation. The firearm must have "Made in Alaska"
clearly stamped on a central metallic part. The section
also includes definitions of all parts of firearms and
accessories.
· Section 3: Applies the legislation to firearms built
and retained in Alaska after October 1, 2009.
9:41:05 AM
Representative Gara pointed to page 2, line 23, saying that
a firearm manufactured in the state is not subject to
federal regulation. He did not think the state could
determine the reach of federal legislation. He queried the
point of the provision. Representative Kelly replied that
the federal government increasingly impinges on the rights
of individual states. He thought Alaska was particularly
targeted and listed examples.
Representative Kelly understood that the measure would
challenge the federal government. He gave some history of
the evolution of the legislation. He acknowledged that the
citizen manufacturing firearms may be challenged in the
future by the federal government and would not be protected
by the state's attorney general. He did not think the risk
could be avoided.
9:44:13 AM
Representative Gara did not think a state statute could say
federal rules do not apply. The federal rules apply or they
do not in Alaska regardless of what the state may argue. He
questioned the point of the legislation.
Representative Kelly emphasized that the legislation could
send a message that the federal government is overreaching.
He stressed the need to make a strong statement.
Representative Gara understood the argument. The U.S.
Supreme Court says the federal government has a certain
amount of authority to regulate firearms in states; he
thought the issue should be argued in court and not the
legislature. Representative Kelly thought the issue could be
argued in court. He pointed out other areas where Alaska is
"talking back" to the federal government.
Co-Chair Hawker stated his support for the bill. He stated
that he liked the original version and asked whether the
committee should return to it. Representative Kelly
acknowledged concerns about the original version.
9:48:22 AM
Representative Gara clarified that he is not nervous about
standing up to the federal government. He opined that the
language in the bill was meaningless. He thought the
language belonged in a resolution.
Representative Gara asked whether violating federal rules
was a crime. Representative Kelly responded in the
affirmative.
Representative Gara asked what would happen if the state
encouraged individuals to violate federal laws.
Representative Kelly understood that the concern was
constitutional. He acknowledged that an Alaskan could be
sued by the federal government while following Alaskan law.
9:52:00 AM
Co-Chair Hawker pointed to precedent in the state related to
the private use of marijuana.
Representative Gara reiterated his concerns with allowing
Alaskans to violate federal law through state law.
Representative Kelly emphasized how frequently Alaskans came
up against the issue. He acknowledged that the bill is
contentious.
Representative Gara referred to an April 8, 2009 memo from
Legislative Legal Services saying that violating federal law
can lead to prosecution, and that the bill will not change
federal law (copy on file). He emphasized that passage of
the bill would set Alaskans up for prosecution.
Representative Kelly replied that he had studied the memo
and agreed with it: Someone following state law could get in
trouble with the federal government. He stated he is leaning
towards putting the attorney general out there to defend the
rights of Alaskans where the federal government is
infringing.
HB 186 was set aside until later in the meeting.
9:56:27 AM AT EASE
9:57:25 AM RECONVENED
HOUSE BILL NO. 141
"An Act relating to the Interstate Compact for
Juveniles; relating to the State Council for Interstate
Adult and Juvenile Offender Supervision; amending Rules
4 and 24(b), Alaska Rules of Civil Procedure; and
providing for an effective date."
9:57:50 AM
AMANDA MORTENSEN, STAFF, REPRESENTATIVE JOHN COGHILL,
SPONSOR, explained the legislation (Sponsor Statement, copy
on file). The bill would enact the new interstate compact
for juveniles into law and replace the old compact created
in 1955. The compact provides the procedural means to
regulate the movement of juveniles under court supervision
across state lines. The Association of Compact
Administrators estimates that the Interstate Compact on
Juveniles is used in 20,000 to 30,000 transfer and
supervision cases annually.
Ms. Mortensen stressed that the compact improves
communication between states by making language consistent.
The bill also provides for the collection of standardized
information and information-sharing systems. She informed
the committee that 36 states had already passed the compact;
without it, Alaska would have to deal with each state on a
case-by-case basis.
ANTHONY NEWMAN, PROGRAM OFFICER, DIVISION OF JUVENILE
JUSTICE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, spoke in
support of the legislation. The department would be
responsible for administering the interstate compact on
juveniles. He reported that about 160 juveniles enter or
leave Alaska each year and the interstate compact has helped
oversee their travel. The division had agreed that the
compact needed to be updated and that Alaska needed to join
other states that have the compact.
Mr. Newman detailed that the compact changes apply at the
national and state level. Under the new compact, Alaska
would support establishment of an independent and national
operating authority to help administer compact activities.
The authority would establish uniform procedures and
coordinate standardized training. Alaskan representatives
would be appointed by the governor's office and be expected
to serve on a national commission. Alaska would agree to
abide by the rules of the compact, be subject to
interventions to correct non-compliance, and would collect
data as needed. Alaska would agree to pay dues and would be
expected to set up a state council to oversee compact
operations in the state.
10:01:43 AM
CAROL BRENCKLE, CHAIR, ALASKA JUVENILE JUSTICE ADVISORY
COMMITTEE, KENAI (via teleconference) testified in support
of the legislation. She described experience representing
juveniles for 25 years as a criminal defense attorney and
noted that the compact would provide uniform standards. She
stated concerns about expense to the state, especially in
staff time, if the bill is not promptly passed. Her other
concern was that other states were already setting up
regulations and Alaska should be part of the process to best
protect its interests.
10:05:26 AM
Co-Chair Stoltze referred to the $45,000 fiscal note.
Mr. Newman clarified that the department would not create a
new council but would share efforts with an existing state
council that oversees the adult offender compact.
Co-Chair Hawker MOVED to report HB 141 out of Committee with
individual recommendations and the accompanying fiscal
notes. There being NO OBJECTION, it was so ordered.
HB 141 was REPORTED out of Committee with a "do pass"
recommendation and attached fiscal note 1 by Department of
Health and Social Services and zero note 2 by the Department
of Corrections.
10:07:59 AM AT EASE
10:17:16 AM RECONVENED
HOUSE BILL NO. 44
"An Act relating to investments applicable to energy;
authorizing the Alaska Permanent Fund Corporation to
make in-state energy project investments; and
authorizing certain public corporations to issue bonds
for energy projects."
10:17:30 AM
REPRESENTATIVE MIKE CHENAULT, SPONSOR, testified in support
of HB 44.
Co-Chair Stoltze provided some history and called for
amendments.
Representative Gara MOVED Amendment 3:
Page 3, line 9, following "gas shortfalls":
Insert ", the impact on consumers and the economy of
high cost energy,"
Co-Chair Stoltze OBJECTED for DISCUSSION.
Representative Gara explained the amendment. He thought it
was in the state's best interest to move ahead with an in-
state gas pipeline, but was concerned that a company
building a gas pipeline might not prioritize consumer costs.
The amendment would ensure that the Alaska Natural Gas
Development Authority (ANGDA) retains the authority to
evaluate a project to make sure it is in the best interest
of consumers.
Representative Chenault stated that he did not have a
problem with the amendment. His intent was cheap gas.
10:21:13 AM
Co-Chair Stoltze removed his OBJECTION. There being no
further objection, Amendment 3 was ADOPTED.
Co-Chair Stoltze discussed the fiscal notes.
TOM WRIGHT, STAFF, REPRESENTATIVE MIKE CHENAULT, SPONSOR,
noted concerns about ANGDA going out to bond, but assured
the committee that Representative Chenault would keep an eye
on the situation.
Vice-Chair Thomas commented that he wanted an audit of ANGDA
to see what they have done with the money given them in the
past.
Representative Fairclough pointed out the possibility that
the legislation could allow a small number of legislators to
take away or improperly delegate power. She stated that she
wanted a clear record reflecting the desire for a stopgap
measure. She referred to an opinion from Legislative Legal
Services on April 2, 2009.
10:25:03 AM
Mr. Wright noted that HB 152 also gave authority to the
Legislative Budget and Audit Committee to approve projects.
Representative Fairclough stated that she wanted it clear
for the record that a small group of legislators could make
a decision that changes the action of the full body. She
highlighted the issue because of a recent supreme court
ruling against a legislative action related to the
university; the issue of the transfer of legislative powers
on appropriations was challenged and won.
Co-Chair Hawker MOVED to report CS HB 44(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS HB 44(FIN) was REPORTED out of Committee with no
recommendation and attached zero note 1 by the Department of
Revenue and two new zero notes by the Department of Revenue.
10:27:26 AM AT EASE
10:27:56 AM RECONVENED
HOUSE BILL NO. 186
"An Act declaring that certain firearms and accessories
are exempt from federal regulation."
10:28:05 AM
Representative Kelly MOVED to return to the original version
of HB 168, 26-LS0627\R. There being no OBJECTION, it was so
ordered.
Representative Kelly MOVED to ADOPT Amendment 1:
Page 1 line 10:
Delete: "understood"
Insert: "intended"
Page 2 line 2:
Delete: "understood"
Insert: "intended"
Page 2 line 12:
Delete: "understood"
Insert: "intended"
Co-Chair Stoltze OBJECTED for DISCUSSION.
Representative Kelly explained that the Judiciary Committee
(JUD) had one amendment to replace the word "understood"
with "intended" in three places.
Representative Fairclough queried the discussion that had
taken place in JUD regarding the word change. Representative
Kelly replied that he agreed with JUD's statement that
"intended" was a better way to describe what HB 186 is
attempting to do. "Understood" meant that everyone had to be
on the same page.
Co-Chair Stoltze removed his OBJECTION. There being no
further OBJECTION, Amendment 1 was ADOPTED.
10:29:55 AM
Co-Chair Hawker pointed to two provisions on page 3(d). He
liked the first provision saying that the state attorney
general shall defend citizens if they are prosecuted through
acting in compliance with HB 186. He had concerns about the
second provision regarding the attorney general seeking
declaratory judgment from the courts that the section is
consistent with the U.S. Constitution. He requested further
explanation. Representative Kelly responded that the
provision had come from Montana. The sponsors were concerned
that intent did not carry enough weight.
Co-Chair Hawker thought that intent to manufacture a firearm
was a lot different than an accessory. He did not want to
inadvertently trap someone. He asked whether the sponsor
would accept leaving in the first sentence and taking out
the notice and intent sentence.
10:32:47 AM AT EASE
10:37:07 AM RECONVENED
Co-Chair Hawker proposed conceptual Amendment 2:
Page 3, commencing on line 22, remove the sentence
beginning with "On receipt of" and ending with "the
Constitution of the United States."
Representative Gara OBJECTED for discussion. He agreed with
the amendment and guessed it could save the state $200,000
each year. With the sentence, the state would have to pay
costs for anyone wanting to file civil litigation
challenging the federal regulation. He anticipated that lots
of people would want to litigate and the state would have to
respond each time.
Co-Chair Stoltze stated his concerns.
Co-Chair Hawker maintained the amendment.
Representative Gara removed his OBJECTION. There being no
further OBJECTION, conceptual Amendment 2 was ADOPTED.
10:39:27 AM
Co-Chair Hawker clarified for the record that the committee
was moving HB 186 as amended, not the JUD version.
Representative Crawford commented that the bill was about
manufacturing, not just about firearms. He wondered what
would happen to a person who wanted to manufacture something
else, such as a pesticide to use in state that was against
federal law. He thought equal protection issues could be
opened up. Representative Kelly responded that the focus of
the bill is strictly on the Second Amendment. He agreed that
similar arguments could be made for other federally
regulated materials that the state believes it should be
regulating.
Representative Crawford asked if the legislation could then
have far-reaching ramifications. Representative Kelly
thought the concept of arguing state sovereignty could carry
over, but he did not believe the legislation would
necessarily trigger the response.
Representative Crawford reiterated his question regarding
the manufacture of federally regulated goods in the state.
He thought others would want similar protection.
Representative Kelly agreed that other areas could be
discovered where the federal government was overreaching,
but thought the focus of the bill was more on state's
rights.
Representative Crawford returned to the example of the
pesticide. The federal government had strong concerns, but
he could foresee someone in the state wanting to manufacture
the pesticide because it would be profitable. Representative
Kelly agreed, but reiterated his belief that the bill would
not trigger the response.
10:44:30 AM
Representative Fairclough asked whether the "Made in Alaska"
reference was tied to Alaska's procurement code or defined
elsewhere. Representative Kelly replied that the stamp was
simply stating where the product was made. The provision was
not attempting to connect to any other definition.
DEREK MILLER, STAFF, REPRESENTATIVE MIKE KELLY, SPONSOR,
added that the provision was modeled after Montana
legislation. He offered to check the procurement code.
Representative Fairclough pointed out that inserting the
code would strengthen the legislation. She explained anyone
could stamp "Made in Alaska" on a product and trigger the
interstate commerce clause. Specific criteria must be met by
a manufacturer if the defined procurement code is used. Mr.
Miller offered to find the "Made in Alaska" statute.
Representative Gara turned to page 3, lines 15 to 17. He
wondered whether there were rules in Alaska regarding the
proper and safe manufacturing of firearms. Representative
Kelly thought there were rules governing the manufacture of
products, although not specifically firearms.
Representative Gara noted that under federal law there may
be regulations that some view as abusive, but there are also
rules that are good, such as prohibiting the production of
guns that blow up and safety rules that protect hunters. He
cautioned against putting a "Made in Alaska" stamp on a gun
that does not follow those rules.
10:49:12 AM
Co-Chair Hawker requested the citation for the applicable
federal statute. Representative Gara thought it would be
helpful to go through the federal statutes. He believed
certain kind of dangerous firearms were regulated.
Representative Kelly emphasized that HB 186 would trigger
Alaska regulation. He believed the issue would be addressed
through the regulatory process.
Co-Chair Hawker pointed out that the paragraph (c) does not
deal with the manufacturing process but only provides for an
Alaskan identifier. Representative Kelly added that the bill
does not purport to be the only thing governing the
manufacture process.
Representative Gara pointed to page 2, line 23, which says
that a personal firearm manufactured in the state is not
subject to federal law, and maintained that a firearm could
be manufactured in the state without following federal rules
about safety. He cautioned that an unintended consequence
could be advertising to the public the possibility of unsafe
weapons, which could have a damaging effect on the sale of
Alaska products. Co-Chair Hawker did not agree that the
provision was saying that the product was inferior.
10:53:03 AM
Representative Gara suggested protecting Alaska
manufacturers from possible unintended consequences by not
exempting firearms from federal rules related to consumer
safety. He stressed that the law as written would not
require regulation that included safe manufacture.
Representative Kelly stated that the law intended to get
away from federal regulation. He emphasized that it did not
preclude state regulation, particularly related to safety.
He added that general rules regarding safety would apply.
Representative Gara wondered if the sponsors would consider
a provision saying manufacturers are not exempted from the
safety portions of federal law. Representative Kelly replied
that he would object because that would gut the bill. He
thought that federal safety regulations adopted by the state
would then be state regulations.
Representative Gara reiterated concerns: first, the bill
communicates approval of committing a federal crime; second,
the state will pay for legal fees when someone commits the
crime; and three, safety issues.
Representative Kelly thought the safety issues would be
addressed in regulation. Regarding the second concern, he
believed the state had been mistaken in failing to defend
rights to manage fish and game and regulate navigable
waters. He wanted the state to defend individual Alaskans
from the federal government.
10:57:54 AM
Co-Chair Hawker MOVED to report CS HB 186(FIN) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS HB 186(FIN) was REPORTED out of Committee with no
recommendation and attached new indeterminate fiscal note by
the Department of Law.
HOUSE BILL NO. 105
"An Act relating to the state training and employment
program; and providing for an effective date."
10:59:51 AM
RYNNIEVA MOSS, STAFF, REPRESENTATIVE JOHN COGHILL, SPONSOR,
explained that the State Training Employment Program (STEP)
was established in 1989 and had been re-authorized by the
legislature seven times. The seventh time, the legislature
asked the Department of Labor and Workforce Development
(DLWD) to improve the program, especially addressing
concerns about training given to non-residents and a lack of
participation with private enterprise. A task force was
formed to study the program and make recommendations.
Ms. Moss noted that the taskforce recommended taking the
politics out of the program by empowering the Alaska
Workforce Investment Board to become an active partner in
the STEP process, including annual supervision over the
scoring of projects and who would obtain the training
grants, and oversight of regulations adopted by DLWD.
Provisions were also added requiring Alaskan residency to
participate, strengthening partnership with private
business, and limiting how much money could be spent on
administration costs. Finally, the bill requires the
adoption of regulations to implement an appeal process for
applicants who have been denied a grant.
DAVID STONE, DEPUTY COMMISSIONER, DEPARTMENT OF LABOR AND
WORKFORCE DEVELOPMENT, MEMBER, ALASKA WORKFORCE INVESTMENT
BOARD, and CO-CHAIR, STEP TASKFORCE, reported the bill was a
result of recommendations from the STEP taskforce. He
detailed that the taskforce was composed of ten people
representing employers, employees, the U.S. Department of
Labor, the University of Alaska, and Alaska Workforce
Investment Board. Taskforce recommendations include:
· Offering services to an expanded pool of workers who
may be displaced;
· Clarifying the Workforce Investment Board's oversight
and accountability;
· Supporting resident hire through targeted projects and
services;
· Increasing input from local businesses and regional
advisory councils;
· Streamlining the grantee application reporting process;
and
· Making STEP a permanent program.
11:03:58 AM
Mr. Stone added that STEP has been the most successful job-
training program in Alaska. The program is funded by
unemployment insurance (UI) employee contributions at the
rate of 1/10 of 1 percent. The program has worked for
Alaskans seeking training, and unemployed or underemployed
workers; by reducing the amount of time workers are
employed, the program has reduced the amount of UI benefits
paid out.
Vice-Chair Thomas pointed to page 7, line 20 referring to
residency and queried adding language such as being eligible
for the permanent fund dividend. Ms. Moss did not think the
language would be a problem but did not know what the
ramifications would be.
Co-Chair Stoltze cautioned that the criteria for the two
programs are different.
Vice-Chair Thomas noted that people are allowed to vote as
residents of Alaska when living out-of-state or moving back
and forth. He opined that people should receive a permanent
fund check or be eligible for one before spending money on
them through STEP. Ms. Moss suggested conferring with
Legislative Legal Services and offering an amendment on the
floor if applicable.
Representative Joule referred to life-long residents who do
not apply for the permanent fund dividend for various
reasons, but may want to participate in STEP. He stated
concerns about citizens who would be cut off.
11:07:11 AM
Vice-Chair Thomas clarified that he meant the person may
either be eligible or receive the dividend; he did not mean
the person had to receive the dividend.
Representative Kelly queried the balance between union and
non-union and rural and non-rural access to the program as
per earlier concerns. Ms. Moss responded that the sponsor
was confident that the concerns had been addressed.
Representative Gara pointed to page 4, line 12 of the bill,
and wondered if it unintentionally excluded people from
STEP. The provision protects people who have had a job and
who run out of UI benefits or are receiving UI benefits, but
may not allow people without a job history to participate.
Ms. Moss did not think the status would change with the
legislation. Section 4 removes language setting a six-month
limit on employees liable to be displaced under existing
statute; however, because the funds come from UI benefits,
STEP participants must have contributed to UI.
Representative Gara queried expanding the program to people
who were new to the work force. Ms. Moss thought the issue
was a policy question.
11:10:15 AM
GUY BELL, ASSISTANT COMMISSIONER AND DIRECTOR, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF LABOR AND WORKFORCE
DEVELOPMENT, agreed with Ms. Moss's answer.
Representative Gara offered language for a third category of
people: "or are seeking employment." Mr. Bell thought that
would be a policy call for the legislature, since the
funding is derived from employee contributions to UI. He
noted that the policy in the past has been to limit the
program to those who have contributed to UI.
Co-Chair Stoltze pointed out that the legislature has made
policy calls in the past with direction from the department.
He asked if the department had an opinion. Mr. Guy responded
that the department has funds for youth training that are
separate from STEP, providing other options for youth.
Representative Gara asked whether STEP had training not
provided in other programs that would be beneficial to
youth. Mr. Stone replied that STEP is a funding mechanism
for funding training specifically for underemployed or
unemployed workers who have contributed through the UI fund;
there are other funds that can be used for youth.
Representative Gara queried STEP job training services that
would be beneficial to youth. Mr. Bell answered that there
were services, and added that the STEP demographic includes
youth as young Alaskans have contributed to UI.
11:14:08 AM
Representative Gara wondered the downside of allowing youth
without a job history accessing STEP training. Ms. Moss
thought the downside was that STEP is designed for people
who have worked and are about to lose work or are unemployed
or underemployed. She stressed that the program is unique
for an existing workforce; there are many other programs for
youth.
Representative Gara gave the example of another program with
limited funds and spoke of young people who cannot get jobs.
Ms. Moss emphasized that STEP was a limited pool of money
that the sponsors wanted to protect.
Representative Joule reported experience related to youth
vocational education and financial aid through the Bureau of
Indian Affairs. He stated that there are funds for many
rural young people coming out of high school, as well as
local scholarships. He noted that people in rural areas are
supportive of vocational and technical training for youth.
He recalled deciding to use the UI funds for the program and
thought the bill accomplished what it meant to.
11:19:27 AM
DOUG WARD, DIRECTOR, SHIPYARD DEVELOPMENT, ALASKA SHIP AND
DRYDOCK, and MEMBER, WORKFORCE INVESTMENT BOARD and STEP
TASKFORCE, KETCHIKAN (via teleconference), testified in
support of the legislation. He listed membership in several
groups working to employ and train people. He stated that
Alaska Ship and Drydock participates in STEP. He reminded
the committee that in 2007 the commissioner directed the
board to provide for oversight. He reported that the board
has successfully done the job, as has the STEP taskforce. He
urged passage of the legislation.
Mr. Ward spoke to programs for youth. He noted individual
training accounts at job centers that can be accessed by
youth seeking employment.
11:23:14 AM
LINDA HULBERT, MEMBER, ALASKA WORKFORCE BOARD, FAIRBANKS
(via teleconference), testified in support of the
legislation. She listed extensive involvement with
employment and training programs in Alaska. She echoed the
comments of those supporting the provision. She emphasized
that the fund is for a specific group of people not normally
funded by other federal employment training funds. Research
and analysis by DLWD has consistently shown the
effectiveness of the program in getting people back into the
workforce. She noted the importance of Alaskans being able
to control the funds and urged passage of the unique
program.
DON ETHRIDGE, ALASKA WORKS PARTNERSHIP AND ALASKA AFL-CIO,
spoke in support of the bill. He pointed out that rural
areas were targeted by Alaska Works. He addressed youth
training and stated he preferred not to use STEP funds.
Co-Chair Stoltze referred to the fiscal note.
Co-Chair Hawker asked how funding levels shown on the fiscal
note compared with the current funding level for the
program. Mr. Bell responded that the levels were equivalent.
Vice-Chair Thomas asked whether there was a GED or high
school requirement to participate in STEP. Mr. Bell did not
think there was the requirement.
11:28:10 AM
Vice-Chair Thomas noted GED or high school graduation
requirement for the apprenticeship program. Mr. Bell replied
that there were entrance criteria set by various training
programs; the criteria are not set by STEP. He added that
often a training component is added for persons who need to
get to a certificate level.
Vice-Chair Thomas stated concerns that with the high rate of
dropout, there might be more incentive to quit school. He
suggested a side bar requiring a GED or high school
equivalency.
Co-Chair Stoltze read the legislation another way.
Ms. Moss noted that a GED is not required for the program.
She stated concerns that the requirement could be a problem
for someone who has been working for years without a GED.
Vice-Chair Thomas reiterated concerns regarding drop-out
rates. Ms. Moss thought the point should be brought up with
Department of Education and Early Development, as part of
the problem could be youth who do not get vocational
training in high school. She gave an example of a North Pole
school with a program that kept youth from dropping out.
11:31:10 AM
Representative Gara queried DLWD involvement with Education
and Training Voucher (ETV) funds provided to youth at the
Office of Child Services (OCS) and wondered if there was a
way to ensure the funds are not cut off. Mr. Bell promised
to get more information.
Co-Chair Hawker MOVED to report CCSS HB 105(L&C) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSSS HB 105(L&C) was REPORTED out of Committee with a "do
pass" recommendation and with attached fiscal note 1 by
Department of Labor and Workforce Development and fiscal
note 2 by Department of Labor and Workforce Development.
HOUSE BILL NO. 212
"An Act modifying the Alaska unemployment insurance
statutes to comply with the requirements of the federal
economic stimulus bill by redefining the base period
for determining eligibility for unemployment benefits;
and providing for an effective date."
11:33:11 AM
REPRESENTATIVE HARRY CRAWFORD, SPONSOR, explained that the
legislation would allow the state to put $15.6 million
stimulus money into the UI trust fund. He addressed concerns
that the provision would cost Alaskan employers and assured
the committee that the rates employers would have to pay
would be lowered.
Representative Crawford added that the base period would be
calculated differently with the stimulus money, but the
state could return to present operations at a later date.
GUY BELL, ASSISTANT COMMISSIONER AND DIRECTOR, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF LABOR AND WORKFORCE
DEVELOPMENT, referred to past testimony regarding the
alternate base period.
Representative Gara asked whether funds would be left over
that could be used without negatively impacting employers.
Mr. Bell explained that the provision would make the state
eligible to receive the $15.6 million. The amount would be
deposited into Alaska's unemployment insurance (UI) trust,
which would then be available to pay UI benefits. The
legislature would be able to appropriate some or all of the
excess money for other purposes identified in the stimulus
bill for re-employment services or UI administration for
quality enhancements.
11:37:20 AM
Co-Chair Hawker queried the administration's position on the
legislation. Mr. Bell replied that the administration is
neutral.
Representative Crawford MOVED conceptual Amendment 1 to
change the effective date from "immediately" to "January 1,
2010."
Co-Chair Stoltze OBJECTED for DISCUSSION.
Mr. Bell supported the amendment and explained how the
department's program worked using the calendar year in
calculating benefits.
11:40:02 AM
Representative Crawford WITHDREW conceptual Amendment 1. He
MOVED conceptual Amendment 2 to change the effective date to
"the benefit year starting on January 1, 2010."
Co-Chair Hawker OBJECTED for DISCUSSION. He asked that the
bill be held to get the amendment into writing. He also
wanted the second DLWD issue related to tribal language to
be sorted out.
HB 212 was HEARD and HELD in Committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 11:42 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 02 SSHB105 Sponsor Statement.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 105 |
| 01 HB141 Sponsor Statement.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 141 |
| 07 CSHB175_L&C_ Sponsor Statement.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 175 |
| 06 CSHB175_L&C_ Sectional Analysis.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 175 |
| 06 SSHB105 29 USC 50 Apprentice Labor Federal Law.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 105 |
| 05 SSHB105 AK Workforce Investment Board Resolution.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 105 |
| 04 SSHB105 AK Workforce Investment Board Recommendations.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 105 |
| 03 SSHB105 Sectional Analysis.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 105 |
| 03 HB141 Sectional.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 141 |
| 07 HB141 Letters of SupportOpposition.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 141 |
| 05 HB186 Backup.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 186 |
| 03 Sectional for CSHB186 version E.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 186 |
| Amendment 1.doc |
HFIN 4/11/2009 9:00:00 AM |
HB 44 |
| HB 141 backup.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 141 |
| HB 141 backup2.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 141 |
| HB 186 Explanation of Changes.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 186 |
| HB 141 DHSS Response to HJUD.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 141 |
| HB 186 Sponsor Statement.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 186 |
| HB 186--legal memo.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 186 |
| HB 212 sectional.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 212 |
| HB 212 sponsor statement.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 212 |
| NCSL Pending Firearm Legislation April 2009.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 186 |
| HB186CS(JUD)-LAW-CRIM-4-8-09Fical Note New Replace.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 186 |
| HB212-DOLWD-UI-04-10-09.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 212 |
| SB 133 Additional backup.pdf |
HFIN 4/11/2009 9:00:00 AM |
SB 133 |
| SB 57 JSD Letter.pdf |
HFIN 4/11/2009 9:00:00 AM |
SB 57 |
| SB1 133 Q & A Sen. Paskvan.pdf |
HFIN 4/11/2009 9:00:00 AM |
SB 133 |
| SB133_Backup_AK_HISPC_Project_Summary.pdf |
HFIN 4/11/2009 9:00:00 AM |
SB 133 |
| SB133_Backup_Cost_Savings.pdf |
HFIN 4/11/2009 9:00:00 AM |
SB 133 |
| SB133_Backup_Media.pdf |
HFIN 4/11/2009 9:00:00 AM |
SB 133 |
| SB133_Backup_NCSL_HIT_State_Legislation.pdf |
HFIN 4/11/2009 9:00:00 AM |
SB 133 |
| SB133_Letters_of_Support.pdf |
HFIN 4/11/2009 9:00:00 AM |
SB 133 |
| SB133_Presentation_AeHN overview April 2009.ppt |
HFIN 4/11/2009 9:00:00 AM |
SB 133 |
| Tennessee Firearms Freedom Act.pdf |
HFIN 4/11/2009 9:00:00 AM |
HB 186 |
| SB133_Sponsor Statement.pdf |
HFIN 4/11/2009 9:00:00 AM |
SB 133 |