Legislature(1995 - 1996)
02/20/1995 03:05 PM House L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE LABOR & COMMERCE STANDING COMMITTEE
February 20, 1995
3:05 p.m.
MEMBERS PRESENT
Representative Pete Kott, Chairman
Representative Norman Rokeberg, Vice Chairman
Representative Jerry Sanders
Representative Beverly Masek
Representative Kim Elton
Representative Gene Kubina
Representative Brian Porter
MEMBERS ABSENT
All Members Present
COMMITTEE CALENDAR
Confirmation Hearing: William L. Hensley, Department of
Commerce.
Confirmation Hearing: Tom Cashen, Department of Labor.
WITNESS REGISTER
WILLIAM L. HENSLEY, COMMISSIONER-DESIGNEE
Department of Commerce and Economic Development
State Office Building, 9th Floor
P.O. Box 110800
Juneau, AK 99802-0800
Telephone (907) 465-5442
POSITION STATEMENT: Testified regarding his confirmation.
TOM CASHEN, COMMISSIONER-DESIGNEE
Department of Labor
1111 W 8th Street
P.O. Box 21149
Juneau, AK 99802-1149
Telephone (907) 465-2700
POSITION STATEMENT: Testified regarding his confirmation.
REBECCA NANCE, DIRECTOR
Employment Security Division
Department of Labor
1111 W. 8th Street
P.O Box 25509
Juneau, AK 99802-1149
Telephone (907) 465-2711
POSITION STATEMENT: Gave information regarding the Department of
Labor, Empoyment Security Division's
computer system.
ACTION NARRATIVE
TAPE 95-7, SIDE A
Number 000
The House Labor and Commerce Standing Committee was called to
order by Chairman Pete Kott at 3:05 p.m. Members present at the
call to order were Representatives Kott, Rokeberg, Sanders,
Masek, Kubina and Elton. Representative Porter was absent.
CHAIRMAN PETE KOTT stated there was a quorum present. He noted
that on today's agenda were confirmation hearings for
Commissioner Designee William (Willie) Hensley to the Department
of Commerce and Economic Development and Commissioner Designee
Tom Cashen to the Department of Labor. He stated that
Commissioner Hensley was standing by on teleconference from
Anchorage.
Number 022
CHAIRMAN KOTT pointed out that this hearing was going to be much
like a job interview and asked Commissioner Hensley to start off
by telling the committee why he should be confirmed as
Commissioner of the Department of Commerce. He added that the
committee had a copy of his resume.
Number 039
COMMISSIONER-DESIGNEE WILLIE HENSLEY, Department of Commerce and
Economic Development testified via teleconference that he was
invited to be commissioner by the Governor after the election.
He explained that over the past 20 years he had been engaged in
business in one form or another, such as with his former job with
NANA Corporation. He explained one of the reasons he enjoyed
this department was that it covered a wide spectrum of economic
development in tourism, trade, forestry, and in the regulatory
functions of Alaska's commerce. He talked of a sewage treatment
plant project in Prudhoe Bay he was involved in, and he noted
that it was a partnership between the state, the oil industry,
the North Slope Borough, and Nana Corporation. He explained that
later he got involved in tourism with his hotel in Kotzebue, and
in Prudhoe Bay. He discussed providing tours for people coming
up the highway or flying in. He talked of operating three bulk
fuel storage facilities in three of the villages, and the
difficulties of engaging in that type of enterprise with all the
new environmental laws.
COMMISSIONER HENSLEY spoke of his experiences contracting to
service companies along the pipeline in providing food and
janitorial services. He also talked of bidding on some tracts in
the Beaufort Sea some 20 years ago. He discussed the initial
investments to the permitting process in development off shore.
Commissioner Hensley then spoke of the Red Dog Mine project,
which was a ten year effort from idea to completion and
operation. He spoke of the major hurtles with financing, the
environment and local hire issues. Commissioner Hensley
concluded that it was because of these experiences that Governor
Knowles felt he would be the best choice for the job.
Number 133
REPRESENTATIVE GENE KUBINA stated that Alaska is fortunate to
have someone with Commissioner Hensley's experience to work for
the government. He commented on the sacrifices people make, with
respect to family, life and friends, by accepting these
positions. He thanked Commissioner Hensley for accepting the
position and stated that he looks forward to working with him in
the coming years.
Number 148
VICE CHAIRMAN NORMAN ROKEBERG stated that he would support
Commissioner Hensley's confirmation; however, he wanted to
confirm that the Commissioner had no more legal problems relating
to the United Bank of Alaska's failure.
Number 165
COMMISSIONER HENSLEY stated that was entirely behind him. He
stated that he was very proud to have been one of the founder's
of the bank. At that time, he explained, it was very difficult
to get loans outside of the urban areas. Many of the bankers
weren't aware of the potential. Commissioner Hensley stated that
most of the enterprises he has been involved with were
successful. Unfortunately, he stated, that one wasn't.
Number 190
CHAIRMAN KOTT asked Commissioner Hensley to address what he hoped
to accomplish with tourism over the next four years, in promoting
Alaska.
Number 204
COMMISSIONER HENSLEY stated that one of the reasons he was in
Anchorage was to get a better feel for where the departments at.
Tourism, he stated, was an area of great potential. He talked of
how his community is at the tail end of the great tourist
migration into the state, and how it only gets seven to ten
thousand tourists over a season, however, he stated that keeps a
lot of people working. He stated that he would like to see not
only an increase in the number of tourists, but also increases in
the length of the tourist season. He talked of working with
businesses and communities that are off the "main trail" to
create new attractions that will help filter people into those
communities. He also discussed working with the bigger tour
operators, by giving advice on how to feed more tourists into
these communities.
CHAIRMAN KOTT inquired into Commissioner Hensley's relationship
with the Alaska Visitor's Association (AVA), and the Tourism and
Marketing Council, and asked what role he saw himself taking as
Commissioner.
Number 240
COMMISSIONER HENSLEY stated that he saw this as a partnership,
where the Governor actually appoints half the members. He stated
that they were trying to maximize Alaska as a destination. He
spoke of tourism being such an important factor in employment and
economic activity, and that his office would be interacting with
the key players in the tourism business.
Number 225
CHAIRMAN KOTT stated that he was happy to hear this, as he felt
it extremely important to develop a good relationship with those
two entities. Chairman Kott then asked Commissioner Hensley if
he had any suggested changes concerning the marine pilots
situation.
Number 265
COMMISSIONER HENSLEY stated that there were less than one hundred
marine pilots, but as a state, we can't take a laissez faire
attitude. Since there are jobs, lives and property involved in
this industry, whatever system they set up has to be able to
accommodate growth in commerce in the event there are additional
mining activities or the gas line becomes a reality. He also
stated that we need to be assured that the training aspect of
marine piloting is something that we're all comfortable with.
CHAIRMAN KOTT asked Commissioner Hensley if perhaps the state
should place greater emphasis on oversight or more
decentralization.
Number 294
COMMISSIONER HENSLEY responded that the department needed to play
an active role in oversight.
VICE CHAIRMAN ROKEBERG inquired into the taxation of the
insurance industry and further asked what revenue is generated by
such taxes.
COMMISSIONER HENSLEY stated that he didn't have the figures in
front of him, but the state brings in a significant amount of
revenue from the insurance industry.
Number 310
CHAIRMAN KOTT asked Commissioner Hensley about the Department of
Commerce's involvement in the development of the A-J Mine.
COMMISSIONER HENSLEY stated it has the potential for significant
opportunity in employment, not only at the A-J Mine, but also at
the Kensington and (indisc.). He added that, as a regulatory
agency, the state needs to do everything possible to make sure
that companies spending this kind of money to develop have an
opportunity should have a fair hearing on the environmental
impact. He stated that such companies need to know that the
state is there to try to facilitate development because we want
their investments.
Number 346
CHAIRMAN KOTT stated that on behalf of the committee, he wanted
to thank Commissioner Hensley for being available. He further
stated that the Governor made an excellent choice in appointing
Mr. Hensley, based on his background and knowledge.
Number 364
REPRESENTATIVE KUBINA asked Chairman Kott if he was going to
submit a letter of transmittal similar to the one stating they
were before the body or submit something with a recommendation on
whether to confirm or not confirm.
CHAIRMAN KOTT stated that it would be the same format as utilized
earlier with the appointees. He read a disclaimer at the bottom
of the form, stating that this does not reflect the intent of the
members to vote for or against the individual for the purposes of
confirmation.
REPRESENTATIVE KUBINA stated that when he was in the legislature
in years earlier, it was the practice to make a recommendation on
people. He further state that he thought that was why they had
the committee hearings, just like on a bill, to state that the
committee does or does not recommend this person for the
position.
CHAIRMAN KOTT felt that all of the committees were utilizing the
present format, and that this was the way, they dealt with this
in the 18th Legislative Session.
REPRESENTATIVE KIM ELTON stated that the committee process was
very important and that this is the one opportunity for dialogue
with the commissioners. For the record, Representative Elton
indicated his support for this nomination. He then moved that
with the circulation of the letter, this be forwarded to the
body.
Number 405
VICE CHAIRMAN ROKEBERG stated that when this nomination comes to
the floor, he will vote for it.
REPRESENTATIVE BEVERLY MASEK stated that she had no comment at
this time.
Number 410
REPRESENTATIVE JERRY SANDERS stated that he's worked with and
watched Commissioner Hensley for the past 15 years, through NANA
Corporation and United Bank of Alaska. He stated since there was
very little chance that Governor Knowles would submit a
Republican, he felt we couldn't find a more capable or dedicated
man in this state to take this position, and he intends to vote
for Commissioner Hensley.
Number 418
CHAIRMAN KOTT concurred with Representative Sanders that it
wouldn't be likely that the Governor would submit a Republican.
Chairman Kott noted that he'd had brief discussions with
Commissioner Hensley, and having reviewed his resume, he couldn't
find anything negative about this appointment. Chairman Kott
stated that there was a motion to move the letter out of
committee.
Hearing no objection, the letter was moved out of committee.
Number 435
CHAIRMAN KOTT asked Commissioner-Designee Tom Cashen, for the
Department of Labor, to come forward and tell the committee why
they should confirm his nomination.
Number 441
COMMISSIONER-DESIGNEE TOM CASHEN, Department of Labor, stated
that it was always his luck to follow someone like Commissioner
Hensley. He talked of being a fourth generation Alaskan, and he
stated that his ancestors came up in the 1880s for mining. He
joined Local 942, in Fairbanks, in 1953. He added that, with the
exception of a three year hitch in the Marine Corps, he's worked
in Alaska all his life. He stated that he had the experience and
maturity to be a good commissioner of the Department of Labor,
and he was excited about the job.
REPRESENTATIVE KUBINA stated that what they were looking at was a
working man's resume and one of which he should be proud.
Representative Kubina stated that he was just as excited about
Tom Cashen serving as Commissioner as he was about Willie
Hensley.
REPRESENTATIVE ELTON stated that, as a member of the Juneau
community, he knows what a great public servant Commissioner
Cashen has been, while serving as a member of the Juneau Planning
Commission and the Juneau School Board.
Number 502
REPRESENTATIVE ROKEBERG inquired as to the constitutional
problems concerning the local hire issue, and further inquired
whether there was anything the state could legally do to provide
more jobs for Alaskans.
Number 510
COMMISSIONER CASHEN stated that for years, the legislature has
tried to craft local hire legislation that would stand up in
court and the courts always come back saying that you can't
discriminate concerning residency. He stated that job owning
with the industry would be an effective measure. He had some
ideas on having a tax reversal credit, and that other than that,
he didn't know of anything that could be done legislatively.
Number 536
CHAIRMAN KOTT asked Commissioner Cashen what he felt would be the
two biggest areas of concern that the department would face in
the next two to four years.
COMMISSIONER CASHEN stated that the main issues would be the jobs
and local hire issues. He stated that in January, over $3.5
million was paid in out of state unemployment claims.
CHAIRMAN KOTT asked Commissioner Cashen if he or his staff had
any suggested changes that would lower the workman's compensation
rates.
COMMISSIONER CASHEN stated that he had talked with Paul Grossi,
Director, Worker's Compensation, and some of his suggestions were
to lower current deliveries of service, assure compliance with
mandates of applicable statutes, and reestablish ties with the Ad
Hoc Committee. He stated that there have been significant
decreases in compensation since 1988. He stated that it was
something that the workers had to have, and reminded the
committee that to receive workman's compensation, workers give up
the right to sue. Commissioner Cashen stated that, without
workman's compensation, there would be great chaos.
Number 642
CHAIRMAN KOTT asked Commissioner Cashen to comment on the
Department of Labor's difficulty with their new computer system.
Number 648
COMMISSIONER CASHEN noted that a new system was put on line in
July, with some major problems.
TAPE 95-7 SIDE B
Number 000
REBECCA NANCE, DIRECTOR, EMPLOYMENT SECURITY DIVISION, Department
of Labor, stated that she had no knowledge prior to her arrival
on the job, of the critical computer situation taking place at
the Employment Security Division. She stated she is working with
the program managers and Texas Instruments, who is handling the
contract. She said at the current time, they would meet their
contractual obligation on April 12, 1995. The department hopes
to have everything up and running within 30 days of that
deadline.
CHAIRMAN KOTT asked Ms. Nance if the users of the system were
satisfied with the product they currently have, and further
inquired whether they had been involved in the development of
that product.
MS. NANCE stated that up until last month, a limited number of
users had been involved. She said that they have a training
class scheduled, and she related that prior to her arrival, she
didn't feel there was adequate input by the end users.
CHAIRMAN KOTT asked what the cost of the contract was.
MS. NANCE stated that she could get that information to the
committee by tomorrow - February 23, 1995.
Number 078
CHAIRMAN KOTT stated, for the record, that Representative Porter
arrived at 3:50 p.m. He then stated that Commissioner Cashen had
the support of the committee.
REPRESENTATIVE SANDERS was very encouraged that Commissioner
Cashen would do a good job. He stated that he intended to vote
for his confirmation.
CHAIRMAN KOTT commented on Commissioner Cashen's staff.
REPRESENTATIVE ROKEBERG stated, for the record, that he'll be
voting for and supporting his nomination.
REPRESENTATIVE BRIAN PORTER apologized for being late and voiced
his support of Commissioner Cashen.
REPRESENTATIVE ELTON motion to move the letter.
Hearing no objection, the motion to move the letter out of
committee was adopted. He thanked Commissioner Cashen and his
staff for coming before the Committee.
ADJOURNMENT
There being no further business to come before the House Labor
and Commerce Standing Committee, CHAIRMAN KOTT adjourned the
meeting at 3:58 p.m.
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