Legislature(1997 - 1998)

04/04/1997 03:25 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                          
                         April 4, 1997                                         
                           3:25 p.m.                                           
                                                                               
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Representative Norman Rokeberg, Chairman                                      
 Representative John Cowdery                                                   
 Representative Bill Hudson                                                    
 Representative Jerry Sanders                                                  
 Representative Joe Ryan                                                       
 Representative Gene Kubina                                                    
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 Representative Tom Brice                                                      
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 *HOUSE BILL NO. 214                                                           
 "An Act relating to an employer's knowledge of an employee's                  
 physical condition for purposes of the Alaska Workers' Compensation           
 Act; excluding certain participants in the Alaska temporary                   
 assistance program from coverage under the Alaska Workers'                    
 Compensation Act; and providing for an effective date."                       
                                                                               
      - MOVED HB 214 OUT OF COMMITTEE                                          
                                                                               
 *HOUSE BILL NO. 207                                                           
 "An Act relating to employer drug and alcohol testing programs."              
                                                                               
      - HEARD AND HELD                                                         
                                                                               
 *HOUSE BILL NO. 218                                                           
 "An Act relating to regulation and examination of insurers and                
 insurance agents; relating to kinds of insurance; relating to                 
 payment of insurance taxes and to required insurance reserves;                
 relating to insurance policies; relating to regulation of capital,            
 surplus, and investments by insurers; relating to hospital and                
 medical service corporations; and providing for an effective date."           
                                                                               
      -  HEARD AND HELD                                                        
                                                                               
 (* First public hearing)                                                      
                                                                               
 PREVIOUS ACTION                                                               
                                                                               
 BILL:  HB 214                                                               
 SHORT TITLE: WORKERS COMP:TEMP. ASSISTANCE/MED. CONDIT                        
 SPONSOR(S): RULES                                                             
 JRN-DATE      JRN-PG               ACTION                                     
 03/26/97       849    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 03/26/97       850    (H)   LABOR & COMMERCE                                  
 04/04/97              (H)   L&C AT  3:15 PM CAPITOL 17                        
 04/07/97      1010    (H)   L&C RPT  6DP                                      
 04/07/97      1010    (H)   DP: COWDERY, SANDERS, KUBINA, RYAN                
 04/07/97      1010    (H)   HUDSON, ROKEBERG                                  
 04/07/97      1010    (H)   4 ZERO FNS (LAW, DHSS, ADM, LABOR)                
 04/07/97      1010    (H)   REFERRED TO RULES                                 
                                                                               
 BILL:  HB 207                                                               
 SHORT TITLE: EMPLOYER DRUG TESTING PROGRAM                                    
 SPONSOR(S): REPRESENTATIVE(S) GREEN, Rokeberg                                 
                                                                               
 JRN-DATE      JRN-PG               ACTION                                     
 03/21/97       785    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 03/21/97       785    (H)   LABOR & COMMERCE, JUDICIARY                       
 04/04/97              (H)   L&C AT  3:15 PM CAPITOL 17                        
                                                                               
 BILL:  HB 218                                                               
 SHORT TITLE: OMNIBUS INSURANCE REFORM                                         
 SPONSOR(S): LABOR & COMMERCE BY REQUEST                                       
                                                                               
 JRN-DATE      JRN-PG               ACTION                                     
 03/27/97       872    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 03/27/97       872    (H)   LABOR & COMMERCE                                  
 04/04/97              (H)   L&C AT  3:15 PM CAPITOL 17                        
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 GEORGE DOZIER, Legislative Assistant                                          
   to Representative Pete Kott                                                 
 Alaska State Legislature                                                      
 Capitol Building, Room 204                                                    
 Juneau, Alaska 99801                                                          
 Telephone:  (907) 465-6848                                                    
 POSITION STATEMENT:  Sponsor of HB 214.                                       
                                                                               
 PAUL GROSSI, Director                                                         
 Division of Workers' Compensation                                             
 Department of Labor                                                           
 P.O. Box 25512                                                                
 Juneau, Alaska 99802-5512                                                     
 Telephone:  (907) 465-2797                                                    
 POSITION STATEMENT:  Answered questions on HB 214.                            
                                                                               
 JEFF LOGAN, Legislative Assistant                                             
   to Representative Joe Green                                                 
 Alaska State Legislature                                                      
 Capitol Building, Room 118                                                    
 Juneau, Alaska 99801                                                          
 Telephone:  (907) 465-4931                                                    
 POSITION STATEMENT:  Presented HB 207.                                        
                                                                               
 REPRESENTATIVE JOE GREEN                                                      
 Alaska State Legislature                                                      
 Capitol Building, Room 118                                                    
 Juneau, Alaska 99801                                                          
 Telephone:  (907) 465-4931                                                    
 POSITION STATEMENT:  Sponsor of HB 207.                                       
                                                                               
 JOHN WHEATLEY, Vice President                                                 
 Policy                                                                        
 Support Industry Alliance                                                     
 4201 "B" Street                                                               
 Anchorage, Alaska 99516                                                       
 Telephone:  (907) 563-2226                                                    
 POSITION STATEMENT:  Testified in support of HB 207.                          
                                                                               
 RONALD JORDAN, Owner                                                          
 Medical Specimen Services, Incorporated                                       
 4141 "B" Street, suite 206                                                    
 Anchorage, Alaska 99503                                                       
 Telephone:  (907) 563-8656                                                    
 POSITION STATEMENT:  Testified in support of HB 207.                          
                                                                               
 RANDY RUEDRICH, Chairman                                                      
 Independent Association of Drilling Contractors                               
 101 West Benson, Suite 503-AA                                                 
 Telephone:  (907) 563-5530                                                    
 POSITION STATEMENT:  Testified in support of HB 207.                          
                                                                               
 MATTHEW FAGNANI, President                                                    
 Allvest Laboratories, a subsidiary of                                         
   NANA Development Corporation                                                
 341 West Tudor Road, Suite 106                                                
 Anchorage, Alaska 99501                                                       
 Telephone:  (907) 563-8378                                                    
 POSITION STATEMENT:  Testified in support of HB 207.                          
                                                                               
 BARBARA HUFF-TUCKNESS, Director                                               
 Legislative and Government Affairs                                            
 Teamsters Local 959                                                           
 4300 Boniface Parkway                                                         
 Anchorage, Alaska                                                             
 Telephone:  (907) 269-236                                                     
 POSITION STATEMENT:  Testified on HB 207.                                     
                                                                               
 PAM La BOLLE, President                                                       
 Alaska State Chamber of Commerce                                              
 217 Second Street, Suite 201                                                  
 Juneau, Alaska 99701                                                          
 Telephone:  (907) 586-2323                                                    
 POSITION STATEMENT:  Testified on HB 207.                                     
 MARIANNE BURKE, Director                                                      
 Division of Insurance                                                         
 Department of Commerce                                                        
   and Economic Development                                                    
 P.O. Box 110805                                                               
 Juneau, Alaska 99811-0805                                                     
 Telephone:  (907) 465-2515                                                    
 POSITION STATEMENT:  Testified on HB 218.                                     
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 97-33, SIDE A                                                            
 Number 001                                                                    
                                                                               
 CHAIRMAN NORMAN ROKEBERG called the House Labor and Commerce                  
 Standing Committee to order at 3:25 p.m.  Members present at the              
 call to order were Representatives Rokeberg, Cowdery, Sanders,                
 Hudson and Kubina.  Representative Ryan arrived at 3:50 p.m.                  
                                                                               
 HB 214 - WORKERS COMP:TEMP. ASSISTANCE/MED. CONDIT                          
                                                                               
 Number 105                                                                    
                                                                               
 CHAIRMAN ROKEBERG announced the committee would hear HB 214, "An              
 Act relating to an employer's knowledge of an employee's physical             
 condition for purposes of the Alaska Workers' Compensation Act;               
 excluding certain participants in the Alaska temporary assistance             
 program from coverage under the Alaska Workers' Compensation Act;             
 and providing for an effective date," sponsored by Representative             
 Pete Kott.                                                                    
                                                                               
 Number 137                                                                    
                                                                               
 GEORGE DOZIER, Legislative Assistant to Representative Pete Kott,             
 Alaska State Legislature, came before the committee to present the            
 sponsor statement.  He informed the committee that HB 214 does two            
 things.  It clears up an inconsistency that currently exists                  
 between the Americans with Disabilities Act (ADA) and the Alaska              
 workers' compensation laws.  He said when an employer is covered by           
 the ADA, it is illegal for the employer to inquire into the                   
 prospective employee's disabilities prior to making a hiring                  
 decision or a conditional offer of employment.  After a conditional           
 offer of employment has been made then the employee can be required           
 to fill out a medical questionnaire asking him to reveal his/her              
 disabilities and prior injuries, but until that point it's illegal.           
 Mr. Dozier informed the committee that under current Alaska law,              
 employees are denied workers' compensation if they lie about their            
 physical condition in an application for employment or in a pre-              
 employment questionnaire.  Obviously, they can't be asked this                
 question under the ADA.  So consequently there is an inconsistency            
 here.  Under the Supremacy Clause of the United States Constitution           
 this could be deemed to be unconstitutional.  Section 1 of HB 214             
 corrects this problem and makes Alaska statute consistent with the            
 requirements of the ADA.                                                      
                                                                               
 Number 245                                                                    
                                                                               
 MR. DOZIER informed the committee that under current Alaska law,              
 employers are accorded relief from the second injury fund if they             
 hire or retain an employee after learning of a initial injury.                
 That also suggests an inconsistency between Alaska law and the ADA            
 in that it seems to require the employer to know of the initial               
 injury prior to the hiring decision.  Section 2 corrects this                 
 problem by removing the "hired or" language and simply requires               
 that the employee was retained in employment after the employer               
 acquired the knowledge of the initial injury.                                 
                                                                               
 MR. DOZIER referred to Sections 3 and 4 and said they clear up a              
 question that has been presented since the recent enactment of                
 welfare reform by the legislature.  He explained under welfare                
 reform, recipients of welfare or temporary assistance may be                  
 required to engage in work-like activities.  This has presented a             
 question as to whether those individuals who are engaged in these             
 activities must be covered under workers' compensation.  Mr. Dozier           
 said HB 214 settles that issue and says that if the individual is             
 not receiving compensation for his/her activities, then that                  
 individual is not covered by workers' compensation.  He said he               
 would be happy to answer questions.                                           
                                                                               
 Number 464                                                                    
                                                                               
 CHAIRMAN ROKEBERG asked, "When you invoke the Supremacy Clause of             
 the U.S. Constitution, were you talking about the concept of                  
 primacy or what?"                                                             
                                                                               
 MR. DOZIER indicated the answer is yes.                                       
                                                                               
 Number 502                                                                    
                                                                               
 PAUL GROSSI, Director, Division of Workers' Compensation,                     
 Department of Labor, came before the committee to testify on HB
 214.  He said the department supports the bill which basically                
 includes technical amendments to clarify some potential                       
 discrepancies and coverage.  Mr. Grossi said the first two sections           
 of the bill deal with the potential preemption.  They allow the               
 employer to obtain necessary information about an employee's                  
 physical condition, but also allows the employee to maintain his or           
 her rights under the ADA.  The employer can obtain the information            
 that they need to have the potential coverage that Section 2 talks            
 about, which is coverage under the second injury fund.  Mr. Grossi            
 informed the committee that the second injury fund is a dedicated             
 fund that preexisted statehood.  The purpose of it was to allow               
 employers to pool money.  If they hire or retain an employee who              
 has a permanent physical disability and is later on involved in a             
 second injury, after a certain amount of compensation is paid,                
 they're reimbursed for those compensation benefits.  This bill                
 allows that to be maintained.                                                 
                                                                               
 MR. GROSSI said Section 3 clarifies who is covered and who isn't              
 covered under the welfare reform changes.  He said there are people           
 who are involved in the public assistance program who would be                
 covered, but there are traditional workers who are involved in an             
 employee/employer relationship where they get paid by the employer            
 to perform the job.  All others who are involved in activities that           
 are required so that they can maintain their public assistance or             
 Alaska temporary assistance benefits are not covered under the act.           
 The reason this is necessary is because these things could be                 
 involved in litigation.                                                       
                                                                               
 Number 733                                                                    
                                                                               
 REPRESENTATIVE JOHN COWDERY said, "This just excludes part of the             
 ATAPP people or not all of them?"                                             
                                                                               
 MR. GROSSI responded all of them who are receiving just their                 
 benefits under that program.  There are those who are eligible for            
 coverage under workers' compensation, but they're traditional                 
 employees.  There are those who went out and got a job, or what               
 they call it in the law, "unsubsidized work," which is really a job           
 or subsidized work on the job training.  "Subsidized" is a job that           
 the employer may have received some grants to help pay wages.  It             
 basically covers those who were traditionally covered under the               
 Workers' Compensation Act and excludes those who aren't really                
 employees under the act.                                                      
                                                                               
 CHAIRMAN ROKEBERG asked if there are any other definitions in                 
 Alaska Statutes of "on the job training."                                     
                                                                               
 MR. GROSSI indicated there aren't.  He noted AS 23.30.265 relates             
 to definitions.                                                               
                                                                               
 Number 869                                                                    
                                                                               
 CHAIRMAN ROKEBERG asked if the above mentioned definitions are                
 exclusions in AS 23.30.230, which is the workers' comp title.                 
                                                                               
 MR. GROSSI said that is true.                                                 
                                                                               
 Number 938                                                                    
                                                                               
 REPRESENTATIVE BILL HUDSON asked Mr. Grossi if he has heard from              
 anyone who against the bill.                                                  
                                                                               
 MR. GROSSI said he doesn't know of anybody against the bill.                  
                                                                               
 REPRESENTATIVE HUDSON said, "If we didn't pass this, should we                
 expect an awful lot of people who are going through this temporary            
 assistance program, in may cases unpaid, would have -- and then               
 probably exercise some sort of a claim.  Don't you have to have               
 some sort of an income in order to base a claim?"                             
                                                                               
 MR. GROSSI responded they do have an income in the sense that                 
 they're receiving their public assistance.  It's questionable                 
 whether they would win, but they would still have the right to file           
 a claim and litigate.                                                         
                                                                               
 REPRESENTATIVE HUDSON said if they're working on this transitionary           
 type of a program and they're injured, why wouldn't we want to                
 provide them with an opportunity for workers' compensation.                   
                                                                               
 MR. GROSSI explained workers' compensation was designed to take               
 care of a loss of income and medical costs.  They wouldn't lose               
 those; they would receive their temporary assistance of benefits              
 regardless of whether they're able to work or not.  He noted they             
 would also be entitled to medical benefits.                                   
                                                                               
 REPRESENTATIVE HUDSON pointed out that he wasn't in the legislature           
 when the temporary assistance program was enacted.                            
                                                                               
 CHAIRMAN ROKEBERG said it is a new program resulting from the                 
 Welfare Reform Act.  It becomes effective July 1, which is why                
 there is a need for the enactment of the legislation.                         
                                                                               
 Number 1211                                                                   
                                                                               
 REPRESENTATIVE JERRY SANDERS asked if this would apply only to                
 someone who lied on an application.                                           
                                                                               
 MR. GROSSI said the first section applies to making sure that                 
 employees give employers correct and accurate information so the              
 employer knows about the physical condition of the employee for               
 several reasons, obviously safety would be one of them.                       
                                                                               
 REPRESENTATIVE SANDERS said if they lie, they're not covered.                 
                                                                               
 MR. GROSSI said is correct.                                                   
                                                                               
 REPRESENTATIVE SANDERS asked why anyone would lie.  He asked what             
 would be gained.                                                              
                                                                               
 MR. GROSSI said he doesn't know why they would lie.  He said they             
 might feel that they would gain some employment that they might not           
 gain if they hadn't lied.                                                     
                                                                               
 REPRESENTATIVE SANDERS said, "If someone gets a job and they're on            
 some kind of assistance that's paying for it for a period of time,            
 then that goes away later doesn't it?"                                        
 MR. GROSSI said Sections 1 and 2 are not really connected to                  
 Section 3, only in the sense of a general way that they would be              
 connected to all employment.  Section 3 relates to welfare reform             
 and Sections 1 and 2 have to do with potential preemption as a                
 result of the ADA.                                                            
                                                                               
 REPRESENTATIVE KUBINA said Section 1 speaks to someone who has a              
 preexisting condition and lies on his employment application.  They           
 would not be eligible for workmens' compensation because they lied.           
 They might already have a back problem before they go to work and             
 then claim they got just got it.  That has nothing to do with                 
 anybody being on assistance.  For the people on assistance, Section           
 3 defines who is covered on assistance.  Some people don't need to            
 be covered because they're already receiving a benefit through the            
 other programs.  So they don't need workmens' compensation and                
 there is no sense for an employer to be charged with it.                      
                                                                               
 REPRESENTATIVE SANDERS said the object of them going to work is to            
 get them off of the other program.                                            
                                                                               
 MR. GROSSI said Section 3 just deals with those participants in the           
 temporary assistance program.  Once they enter the actual work                
 force, they're covered as any other employee is.  If they're in the           
 program and they're involved in an actual job, they're covered.               
                                                                               
 REPRESENTATIVE KUBINA said the bill makes it clear that people who            
 are on the job training are covered.                                          
                                                                               
 Number 1518                                                                   
                                                                               
 REPRESENTATIVE HUDSON said, "This is conjuring up an awful lot of             
 memories of similar discussions on this workers' compensation from            
 the past and the false statement by the employee.  By beefing this            
 up here I think you may be hopefully reaching into an awful lot of            
 employees, for example, in the timber industry.  I remember some              
 years back when folks would tell me that there is an awful lot of             
 what they called `gypo timber operators' that would come up from              
 the Lower 48 and get involved in the trees, hire up a bunch of                
 people, destroy their back and their lungs and God knows everything           
 else, and then those people would leave there, knowing that they're           
 just about ready for workers' compensation, switch to another                 
 employer and would go right on it.  So what you've done here is, at           
 any rate, it looks like to me you've beefed up that provision.  It            
 should make it tougher for employees, at any rate, to move knowing            
 that they've got this injury than they have in the past.  So                  
 somebody may have some additional costs because they're is going to           
 be some additional medical examinations and there is going to have            
 to be somebody that is going to be monitoring or investigating                
 these kinds of things, but apparently not."                                   
                                                                               
 MR. GROSSI explained it would give the employer the right to get              
 that information.  Now whether they use it or not, that's up to               
 them.  He noted that particular section of statute has been in                
 existence since 1988.  It would conform with provisions in the ADA.           
                                                                               
 Number 1625                                                                   
                                                                               
 REPRESENTATIVE COWDERY made a motion to move HB 214 out of                    
 committee with the accompanying zero fiscal note and individual               
 recommendations.                                                              
                                                                               
 CHAIRMAN ROKEBERG asked if there was an objection.  Hearing none,             
 HB 214 moved out of the House Labor and Commerce Standing                     
 Committee.                                                                    
                                                                               
 CHAIRMAN ROKEBERG called for an at-ease at 3:50 p.m.  He called the           
 meeting back to order at 3:55 p.m.                                            
                                                                               
 HB 207 - EMPLOYER DRUG TESTING PROGRAM                                      
                                                                               
 Number 1765                                                                   
                                                                               
 CHAIRMAN ROKEBERG announced the next item on the agenda would be HB
 207, "An Act relating to employer drug and alcohol testing                    
 programs," sponsored by Representative Green.                                 
                                                                               
 Number 1781                                                                   
                                                                               
 JEFF LOGAN, Legislative Assistant to Representative Joe Green,                
 Alaska State Legislature, came before the committee.  He said                 
 Ronald Jordan, a businessman in the drug testing industry, had                
 contacted a number of legislators with copies of model legislation            
 other states have adopted.  Representative Green discovered that HB
 522, Representative Kott's bill from last session, dealt with this            
 same issue.  Representative Kott chose not to pursue this type of             
 legislation, so Representative Green sponsored HB 207.                        
                                                                               
 MR. LOGAN commented that 100 companies in Alaska support this bill            
 as well as the Alaska State Chamber of Commerce, representing 7,000           
 companies, the Alliance, representing about 400 companies, and the            
 Alaska Trucking Association.                                                  
                                                                               
 MR. LOGAN explained that this legislation offers a carrot, but also           
 holds a stick.  The bill offers indemnity to employers against                
 certain types of legal action if they will institute a drug policy.           
 This type of legislation has been introduced in several states.  On           
 March 25, the Governor signed this same bill into law.  Utah and              
 Arizona have this law.  States are adopting this type of                      
 legislation because of federal requirements for drug testing.  This           
 bill establishes a state policy on drug testing.                              
                                                                               
 Number 1964                                                                   
                                                                               
 MR. LOGAN stated that Section 1 prohibits an employee from suing an           
 employer as long as the employer's action is based on a good faith,           
 positive drug or alcohol impairment test.  Employers are required             
 to institute a drug and alcohol abuse policy in order to receive              
 this indemnity.  Page 3, under employer policy, it lists those                
 things that an employer must do in order to be granted this                   
 indemnity.  He said one thing that is included as one of the                  
 requirements for employers is not only that they have a written               
 policy, but that they follow procedures that are of the highest               
 standard in the industry.  Page 4 states how the samples must be              
 collected, treated and tested.  In the middle of page 5, testing              
 procedures are listed and what has to happen.  At the bottom of               
 page 5, it states, "For employees, drug testing must include                  
 confirmation of a positive drug test result."                                 
                                                                               
 Number 2041                                                                   
                                                                               
 MR. LOGAN said one of the questions that often comes up is, "What             
 happens with a false positive?"  If a positive test occurs that               
 test has to be confirmed by a different process other than the test           
 that was initially used.  The top of page 6, disciplinary                     
 procedures, describes the rights of the employer and employee.  If            
 a positive test occurs, the employer is allowed to take adverse               
 employment action, including termination of that employment.  Under           
 confidentiality of results, the bill talks about how these results            
 have to be kept confidential.  The top of page 7 deals with the               
 possibility of a collective bargaining agreement.  It states that             
 if there is a component to a collective bargaining agreement that             
 is not part of HB 207, then the employer still gets the full                  
 benefits of this bill.  The rest of the bill deals with                       
 definitions.                                                                  
                                                                               
 Number 2128                                                                   
                                                                               
 MR. LOGAN commented that in discussions with industry and people              
 from labor organizations, the sponsor has agreed to make number of            
 small but important changes.  He said Amendment 1, on page 3, line            
 23, following "used", insert ", including an employee's right to a            
 confirmatory drug test to be reviewed by a licensed physician or              
 doctor of osteopathy after an initial positive drug test result in            
 accordance with AS 23.10.640(d)".  On page 6, line 2, following               
 ".", insert "An employer may not rely on a positive drug test                 
 unless the confirmatory drug test results have been reviewed by a             
 licensed physician or doctor of osteopathy.  The physician or                 
 osteopath shall (1) contact the employee, within 48 hours, and                
 offer an opportunity to discuss the confirming test result; (2)               
 interpret and evaluate the positive drug test results for legal               
 use; (3) report test results that have been caused by prescription            
 medication as negative."  There are two sections being addressed in           
 Amendment 1, the first is the written policy of the employer and              
 the second is in the testing procedures.                                      
                                                                               
 Number 2214                                                                   
                                                                               
 MR. LOGAN stated that the new language says that in order to                  
 prevent an adverse employer action against an employee, if there is           
 a positive test result, the test has to be proven to be correct and           
 that there is not a good reason why the test is positive.  A                  
 medical review officer, a licensed physician or doctor of                     
 osteopathy, would contact the employee to discuss the confirming              
 test result which would provide an opportunity for the employee to            
 explain the result.  The doctor must interpret and evaluate the               
 drug test results for legal use.  If the doctor feels it was a                
 false positive test then they will report it as a negative result             
 to the employer.                                                              
                                                                               
 Number 2341                                                                   
                                                                               
 CHAIRMAN ROKEBERG said he feels that Amendment 1 does not provide             
 a procedural step other than the assumption that a physician would            
 review the test.                                                              
                                                                               
 Number 2360                                                                   
                                                                               
 MR. LOGAN responded that the sponsor is satisfied with the                    
 implication of the amendment language.                                        
                                                                               
 Number 2381                                                                   
                                                                               
 CHAIRMAN ROKEBERG asked if this doctor was hired by the testing               
 service or the employer.                                                      
                                                                               
 Number 2397                                                                   
                                                                               
 MR. LOGAN answered that it could be a doctor on staff or a                    
 contracted doctor.  He said the sponsor did not want to specify who           
 the doctor had to be only that it had to happen.                              
                                                                               
 Number 2397                                                                   
                                                                               
 REPRESENTATIVE COWDERY made a motion to adopt Amendment 1.                    
                                                                               
 CHAIRMAN ROKEBERG objected for purposes of discussion.                        
                                                                               
 MR. LOGAN stated that someone from the testing industry was in                
 attendance and they could give the committee a clearer idea of the            
 chain of events.                                                              
                                                                               
 Number 2420                                                                   
                                                                               
 CHAIRMAN ROKEBERG withdrew his objection to the adoption of                   
 Amendment 1.  He asked if there was a further objection to the                
 adoption of Amendment 1.  Hearing none, Amendment 1 was adopted.              
                                                                               
 Number 2429                                                                   
                                                                               
 MR. LOGAN referred to Amendment 2, on page 4, line 24, following              
 ".", insert "An employer may not initiate a testing program under             
 AS 23.10.600 - 23.10.699 until at least 30 days after the employer            
 notifies employees of the employer's intent to implement the                  
 program and makes written copies of the policy available as                   
 required by (a) of this section."                                             
                                                                               
 Number 2434                                                                   
                                                                               
 REPRESENTATIVE HUDSON made a motion to adopt Amendment 2, for the             
 purpose of discussion.                                                        
                                                                               
 Number 2452                                                                   
                                                                               
 MR. LOGAN explained that Amendment 2 is in response to an Alaska              
 Supreme Court decision, Ludke v. Neighbors Drilling.  The case              
 involved an Alaskan company who initiated a drug policy, but did              
 not give fair warning to the employees that the policy had been               
 instituted.  Amendment 2 gives the employee plenty of time to                 
 understand the new drug and alcohol policy.                                   
                                                                               
 Number 2482                                                                   
                                                                               
 REPRESENTATIVE HUDSON again moved for the adoption of Amendment 2.            
 Hearing no objection, Amendment 2 was adopted.                                
                                                                               
 TAPE 97-33, SIDE B                                                            
 Number 000                                                                    
                                                                               
 MR. LOGAN said Amendment 3, page 3, line 28, following "results",             
 insert ", and the obligation of the employer to provide written               
 test results to the employees within five working days of a written           
 request to do so, provided the written request is made within six             
 months of the date of the test".  He said the current language of             
 the bill allows room for an employer to delay giving the results of           
 the testing.                                                                  
                                                                               
 Number 046                                                                    
                                                                               
 REPRESENTATIVE HUDSON made a motion to move Amendment 3 for the               
 purpose of discussion.  Hearing no objection, Amendment 3 was                 
 before the committee.                                                         
                                                                               
 Number 052                                                                    
                                                                               
 CHAIRMAN ROKEBERG questioned the six month language.                          
                                                                               
 Number 056                                                                    
                                                                               
 MR. LOGAN stated that in discussions with companies, six months was           
 determined to be the time frame in which employers would have                 
 something like this easily retrievable.  After six months this                
 information goes into a box and into storage.                                 
                                                                               
 Number 089                                                                    
                                                                               
 REPRESENTATIVE HUDSON suggested that this information could be in             
 a secondary office of a company.                                              
                                                                               
 Number 094                                                                    
                                                                               
 CHAIRMAN ROKEBERG asked if there would be an objection to inserting           
 language for a shorter period of time.                                        
                                                                               
 Number 107                                                                    
                                                                               
 MR. LOGAN explained that they had conceived of a situation where an           
 employee tests positive and goes into treatment.                              
                                                                               
 Number 117                                                                    
                                                                               
 REPRESENTATIVE JOE GREEN explained that the six month provision was           
 included for the benefit of the employee.  He said for a six month            
 period after the five days that an employee has been notified, the            
 employee would have six months to come back and make another                  
 request.                                                                      
                                                                               
 Number 152                                                                    
                                                                               
 REPRESENTATIVE RYAN asked if it was possible for the employee to be           
 retested in this six month period, in the possibility that a                  
 positive result occurred.                                                     
                                                                               
 Number 165                                                                    
                                                                               
 MR. LOGAN referred to the bottom of page 5, line 30, where it                 
 states, "the drug test must include a confirmation of a positive              
 drug test result, and the confirmation must be done by a different            
 process."                                                                     
                                                                               
 Number 178                                                                    
                                                                               
 CHAIRMAN ROKEBERG asked if there was an objection to the adoption             
 of Amendment 3.  Hearing none, Amendment 3 was adopted.                       
                                                                               
 Number 185                                                                    
                                                                               
 REPRESENTATIVE COWDERY made a motion to adopt Amendment 4 for the             
 purpose of discussion.                                                        
                                                                               
 Number 187                                                                    
                                                                               
 MR. LOGAN referred to Amendment 4, page 3, line 30, following ";",            
 insert ", if the employee requests an opportunity to explain the              
 positive test result within ten working days after the employee is            
 notified of the test result, the employer must provide an                     
 opportunity, in a confidential setting, within 72 hours of                    
 receiving written notice, or prior to taking adverse employment               
 action."  This amendment gives the employee the opportunity, after            
 a second test is done and after the doctor has verified the test as           
 positive, to explain why the test was positive to the employer.  He           
 said the employer must provide that opportunity in a confidential             
 setting.  They have to go into an office where other employees                
 can't hear what's going on.  Mr. Logan stated it has to happen                
 within 72 hours or prior to taking adverse employment action.                 
 Before an employee can be terminated, if they ask for a chance to             
 talk to their boss, they get it and it has to part of the written             
 policy.                                                                       
                                                                               
 Number 252                                                                    
                                                                               
 CHAIRMAN ROKEBERG asked who was giving the written notice.                    
                                                                               
 Number 258                                                                    
                                                                               
 MR. LOGAN answered that the employee would be giving the written              
 notice.                                                                       
                                                                               
 CHAIRMAN ROKEBERG asked if this needs to be clarified.                        
                                                                               
 REPRESENTATIVE GREEN answered that it is specified on line 20.                
                                                                               
 Number 272                                                                    
                                                                               
 REPRESENTATIVE HUDSON said as he read the bill, the employer                  
 provides the notice within five days after notification providing             
 the minimum time of delay has passed.  Once the employee has this             
 notice, he has ten working days to have an opportunity to explain             
 why the positive test results occurred.  This is done in a                    
 confidential setting.                                                         
                                                                               
 Number 314                                                                    
                                                                               
 REPRESENTATIVE GREEN said this employee would have gone through all           
 the tests and talked to the doctor.  The employee then has ten days           
 to request a discussion with the employer.  The employer must                 
 provide that in a confidential setting within three days, 72 hours.           
                                                                               
 Number 338                                                                    
                                                                               
 REPRESENTATIVE SANDERS suggested having the employee put this                 
 request in writing.  It could come out to be the employee's word              
 against the employer's word.                                                  
                                                                               
 Number 361                                                                    
                                                                               
 REPRESENTATIVE GREEN said that is reasonable and language could be            
 inserted on line 29, "on the employee's written request".                     
                                                                               
 Number 370                                                                    
                                                                               
 REPRESENTATIVE HUDSON suggested a friendly amendment, "the employer           
 requests, in writing, an opportunity to explain the positive test             
 results in ten working days."                                                 
                                                                               
 REPRESENTATIVE GREEN said this was the same thing, either way is              
 fine.                                                                         
                                                                               
 REPRESENTATIVE HUDSON moved the amendment to the amendment, after             
 the word "requests", add "in writing".                                        
                                                                               
 CHAIRMAN ROKEBERG referred to line 6 of the amendment, and                    
 suggested a friendly amendment after, "receiving", add                        
 "employee's".                                                                 
                                                                               
 CHAIRMAN ROKEBERG asked if there was further discussion to                    
 Amendment 4 and the modifications.  Hearing none, Amendment 4, as             
 amended, was adopted.                                                         
                                                                               
 Number 428                                                                    
                                                                               
 REPRESENTATIVE COWDERY made a motion to adopt Amendment 5 for the             
 purpose of discussion.                                                        
                                                                               
 Number 435                                                                    
                                                                               
 MR. LOGAN referred to Amendment 5, page 5, line 10 and said it                
 should state "page 5, line 11."  So on page 5, line 11, following             
 "employees", insert "and prospective employees".  On page 5, line             
 13, delete the sentence beginning with "An employer is not..."  On            
 page 5, line 28, following "by the", delete "United States                    
 Department of Health and Human Services", insert "Substance Abuse             
 and Mental Health Services Administration (SAMHSA).  On page 5,               
 line 29, following "American Pathologists", insert ", American                
 Association of Clinical Chemists".  On page 5, line 31, following             
 "use of different", delete "chemical", insert "analytical",  On               
 page 6, line 2, before "chromatography mass spectrometry.", insert            
 "gas".                                                                        
                                                                               
 MR. LOGAN said that employers also pay for pre-employment testing.            
 He said he contacted the National Institute of Drug Free Work                 
 Places and discovered that this is a common policy.  In many states           
 the employer pays for pre-employment testing.  There is now                   
 language where the employer pays for employee testing.  What                  
 Amendment 5 does is adds prospective employees.                               
                                                                               
 REPRESENTATIVE RYAN said he felt this bill interfered with the                
 constitutional provision of not incriminating oneself and illegal             
 search and seizure.                                                           
                                                                               
 MR. LOGAN said this amendment would not require the employee to pay           
 for the testing.  He said line 28 refers to the labs which are                
 doing the actual testing.  The highest level is a SAMHSA certified            
 laboratory.  He clarified that SAMHSA is located within the United            
 States Department of Health and Human Services, but it was                    
 suggested that leaving in the name of the federal department in               
 this language would be confusing.                                             
                                                                               
 Number 672                                                                    
                                                                               
 CHAIRMAN ROKEBERG expressed concern about putting an acronym in               
 statute.  He offered a amendment to the amendment to delete,                  
 "SAMHSA" from Amendment 5 on line 10.                                         
                                                                               
 Number 718                                                                    
                                                                               
 REPRESENTATIVE RYAN commented that the federal government has been            
 known to change these things around and perhaps something could be            
 added to indicate what the intent is so that it would not have to             
 be revised.                                                                   
                                                                               
 Number 734                                                                    
                                                                               
 MR. LOGAN stated that SAMHSA is a fairly new name of an older                 
 organization.  The bill drafter's has explained that these name               
 changes are dealt with in what is known as a "revisor's bill."                
 This is legislation coming from the revisor of statutes when there            
 are federal name changes.  A revisor's bill goes through the                  
 legislature to clean up these kinds of things.  In order to make              
 sure that the laboratory testing the employee's sample is of the              
 highest certification, he feels it would be good to keep this                 
 language.                                                                     
                                                                               
 MR. LOGAN referred to page 5, line 29, and said there are a number            
 of groups within the College of American Pathologists.  The group             
 that is the most qualified to do drug and alcohol testing is the              
 American Association of Clinical Chemists.                                    
                                                                               
 Number 832                                                                    
                                                                               
 MR. LOGAN referred to line 31 and said after there has been a                 
 positive drug test that test has to be confirmed.  The confirmation           
 must be by use of a different process.  The bill currently says,              
 "chemical process."  He said he would like to change that to                  
 "analytical process."  The reason is that the first test was a                
 chemical test.  There is some fear that if the second test is also            
 a chemical test, you could get the same result.  The next amendment           
 actually goes to the top of page 6, where it says, "The second or             
 confirmatory drug test shall be a chromatography mass                         
 spectrometry."  That should be changed to read "gas                           
 chromatography," which is not a chemical process at all, but a                
 process where there is a molecular breakdown.                                 
                                                                               
 Number 900                                                                    
                                                                               
 REPRESENTATIVE HUDSON made a motion to adopt Amendment 5.                     
                                                                               
 Number 917                                                                    
                                                                               
 REPRESENTATIVE SANDERS objected for a question.  On page 5, line              
 13, the deletion of the sentence "An employer is not required to              
 pay the cost of drug testing for prospective employees."  He said             
 he had thought that if a prospective employee tested negative, then           
 the employer might be willing to pay for the test.  Over the last             
 year, there have been several times where employees have quit their           
 jobs because they feel it is an infringement on their rights to               
 have this type of testing.  He said he doesn't think he would pay             
 to prove to a prospective employer that he doesn't take drugs.                
                                                                               
 Number 994                                                                    
                                                                               
 CHAIRMAN ROKEBERG asked the sponsor's opinion on his suggestion of            
 not deleting the sentence starting on page 5, line 13, but deleting           
 the word, "not".                                                              
                                                                               
 Number 1037                                                                   
                                                                               
 REPRESENTATIVE GREEN explained that taking out the "not" would                
 require employers to pay for the tests.                                       
                                                                               
 Number 1064                                                                   
                                                                               
 CHAIRMAN ROKEBERG stated that if the employer is going to mandate             
 a drug test then he should pay for it.                                        
                                                                               
 Number 1112                                                                   
                                                                               
 REPRESENTATIVE GREEN indicated he agrees to this change.                      
                                                                               
 REPRESENTATIVE RYAN said he agrees with the chair.                            
                                                                               
 Number 1134                                                                   
                                                                               
 CHAIRMAN ROKEBERG referred to line 11 and said the mandate is there           
 that they would pay for the tests.                                            
                                                                               
 Number 1151                                                                   
                                                                               
 REPRESENTATIVE HUDSON said eliminating "not" essentially commits              
 the small businesses, if they want to have a drug free employee to            
 pay for the test.                                                             
                                                                               
 REPRESENTATIVE RYAN said the bill will give businesses a release of           
 liability which defers the disadvantage of paying for the testing.            
                                                                               
 Number 1265                                                                   
                                                                               
 CHAIRMAN ROKEBERG said, "There is a motion on the table to move               
 Amendment 5."                                                                 
                                                                               
 REPRESENTATIVE SANDERS questioned if it is as amended.                        
                                                                               
 CHAIRMAN ROKEBERG responded, "It's amended as to the acronym only,            
 deletion.  Oh, and line 11, yeah.  Now I'll leave that alone right            
 now."                                                                         
                                                                               
 REPRESENTATIVE SANDERS said, "(Indisc.) the whole sentence."                  
                                                                               
 CHAIRMAN ROKEBERG said, "Because the perspective employee is above            
 it, Representative Sanders, includes that.  I mean that's what it             
 does, it's already included.  We're not changing the meaning there.           
 We're just changing the drafting (indisc.).  By putting the                   
 sentence back and taking that out, it would just change the                   
 drafting, it wouldn't change the meaning.  Are you with me?"                  
                                                                               
 REPRESENTATIVE SANDERS said, "So if you pass the amendment you are            
 putting the sentence back - taking the `not' out.  Is that what               
 you're saying?"                                                               
                                                                               
 CHAIRMAN ROKEBERG said, "We're taking the whole sentence out, but             
 it has the same effect because a perspective employer is above the            
 -- requires the employer shall pay for the entire actual cost of              
 that.  On line 2 of the amendment, by inserting prospective                   
 employers after - on line 11."                                                
                                                                               
 REPRESENTATIVE SANDERS questioned by putting that in there it                 
 covers it.                                                                    
                                                                               
 CHAIRMAN ROKEBERG said that is correct.                                       
                                                                               
 REPRESENTATIVE HUDSON clarified that they are removing the very               
 last sentence, "An employer is not required to pay the costs of               
 drug testing of prospective employees."                                       
                                                                               
 CHAIRMAN ROKEBERG stated that hearing no further objections,                  
 Amendment 5, as amended, was adopted.                                         
                                                                               
 Number 1322                                                                   
                                                                               
 REPRESENTATIVE COWDERY made a motion to adopt Amendment 6 for the             
 purposes of discussion.                                                       
                                                                               
 Number 1330                                                                   
                                                                               
 MR. LOGAN said Amendment 6, page 3, line 2, following "...is                  
 voluntary.", delete "A person may..." to "...23.10.699."  He said             
 the program is a voluntary program.  The bill does not mandate drug           
 and alcohol testing.  He referred to page 3 and said upon reading             
 the bill, it occurred to the sponsor that it frees any employer               
 from liability, whether or not they have a drug and alcohol testing           
 policy.                                                                       
                                                                               
 CHAIRMAN ROKEBERG stated that he had this same concern.  He said              
 for clarity purposes, the deletion starts on line 2 of page 3 and             
 goes through line 5.  The entire sentence is deleted.                         
                                                                               
 Number 1441                                                                   
                                                                               
 REPRESENTATIVE HUDSON reiterated the motion to adopt Amendment 6.             
 Hearing no objection, Amendment 6 was adopted.                                
                                                                               
 Number 1462                                                                   
                                                                               
 REPRESENTATIVE RYAN stated a potential conflict.  He informed the             
 committee he and his wife are major shareholders in a corporation             
 that owns a medical practice where class 3 and class 4 controlled             
 substances are dispensed as well as constituting a family practice            
 where drug testing is done.                                                   
                                                                               
 Number 1542                                                                   
                                                                               
 JOHN WHEATLEY, Vice President of Policy, Support Industry Alliance,           
 testified next via teleconference from Anchorage.  The Alliance has           
 over 300 member companies and individuals participating in                    
 petroleum mining and resource development in the state of Alaska.             
 He was in support of HB 207.  The Support Industry Alliance                   
 believes that the legislation will greatly reduce an employer's               
 liabilities from drug and alcohol testing resulting from a positive           
 test result.  This legislation will help protect the employee by              
 establishing a company policy and standardized procedures for                 
 testing.  This bill is not a mandatory statute, but if an employer            
 wants the protection of the statute then they may implement the               
 policy.  The Support Industry Alliance supports HB 207; they                  
 believe it is a positive step towards improving the business                  
 environment in the state of Alaska.                                           
                                                                               
 Number 1696                                                                   
                                                                               
 RONALD JORDAN, Owner, Medical Specimen Services, Incorporated, was            
 next to testify via teleconference from Anchorage.  He said his               
 business provides services everything from the oil industry, the              
 aviation industry to pawn shops and check cashing places.  He                 
 stated he is in support of HB 207.  He said he likes the amendments           
 that have included.  A uniform drug testing policy in the various             
 industries will allow the employee to rely on confidentiality and             
 professionalism all through the industry.  The use of a medical               
 review officer is important to maintain confidentiality.  Drug                
 testing will create more drug free work places in Alaska.  This               
 bill creates some guidelines for implementing a policy.  Alaska has           
 a higher positive rate for illegal use of drugs and a rather high             
 accident rate.  He said he feels that if employers had some true              
 guidelines with which to work, they would be able to have a drug              
 free workplace.  He said he supports the amendment and the bill.              
                                                                               
 Number 1918                                                                   
                                                                               
 CHAIRMAN ROKEBERG asked Mr. Jordan if he has had a chance to speak            
 to Mr. Logan or see the amendment that was offered in response to             
 his letter.                                                                   
                                                                               
 MR. JORDAN indicated he spoke to Mr. Logan.                                   
                                                                               
 CHAIRMAN ROKEBERG asked Mr. Jordan if the requirement to have a               
 secondary confirmation test using a gas chromatography mass                   
 spectrometer would  create a burden on his business.                          
                                                                               
 MR. JORDAN answered that this test is used with all of their                  
 clients.  It is called non-regulated drug testing under the non-              
 (Indisc.).  They use the gas chromatography mass spectrometry                 
 method because it provides absolute answers.  Using this test and             
 a medical review officer benefits both the employer and employee.             
                                                                               
 Number 1918                                                                   
                                                                               
 CHAIRMAN ROKEBERG asked if the requirements for laboratory approval           
 or certification is a burden or if it is an adequate inclusion.               
                                                                               
 Number 1935                                                                   
                                                                               
 MR. JORDAN stated that the provisions are adequate.  The federal              
 government is looking at non-regulated laboratory certification.              
                                                                               
 CHAIRMAN ROKEBERG asked if his laboratory is approved.                        
                                                                               
 MR. JORDAN said that his business does not have a laboratory, they            
 act as a collection site.  The laboratories used are SAMHSA                   
 certified or (Indisc.) by the United States Department of Health              
 and Human Services.                                                           
                                                                               
 CHAIRMAN ROKEBERG asked how many of those laboratories are in                 
 Alaska.                                                                       
                                                                               
 Number 1983                                                                   
                                                                               
 MR. JORDAN answered that there are no SAMHSA certified laboratories           
 in the state of Alaska.                                                       
 Number 1992                                                                   
                                                                               
 CHAIRMAN ROKEBERG commented that the identification and                       
 transportation of these samples are a very important process.                 
                                                                               
 MR. JORDAN stated this his business works with laboratories from              
 Seattle to North Carolina.  They use express airborne or postal               
 carriers.  There is a chain in custody that follows each and every            
 specimen.  His business works with people on an individual basis.             
                                                                               
 Number 2077                                                                   
                                                                               
 RANDY RUEDRICH, Chairman, Independent Association of Drilling                 
 Contractors, was next to come before the committee.  He stated that           
 his association has approximately 700 employees in the state.  The            
 association has used a pre-employment and random drug testing                 
 system since the late 1970s.  In the mid 1970s, a typical loss time           
 accident frequency in their industry was 25 people per 100 people             
 who had to leave the job site because of an injury.  By the early             
 1980s, that number had been reduced to 18 and in 1988, it went                
 below ten people.  Today that accident frequency is 1.6 people.               
 One of the substantial things the association did was implemented             
 a drug testing policy which looks after the individual employee,              
 his fellow employees and the equipment with which they work.  These           
 actions make the business more efficient and improves performance.            
 The association pays for the drug testing and it produces huge                
 benefits.  The bill, as drafted and amended, is good and will                 
 encourage other employers in the state to do the same thing for               
 their work place and for their employees.                                     
                                                                               
 Number 2208                                                                   
                                                                               
 REPRESENTATIVE COWDERY asked if people receiving a certified                  
 driving or professional driving license are required to take a drug           
 and alcohol test.                                                             
                                                                               
 Number 2230                                                                   
                                                                               
 MR. RUEDRICH said that requirement would be outside the realm of              
 his association's employees.                                                  
                                                                               
 Number 2256                                                                   
                                                                               
 REPRESENTATIVE RYAN asked if people who operate heavy equipment,              
 such as crane operators, are required to have physical examinations           
 and/or drug testing.                                                          
                                                                               
 MR. RUEDRICH answered yes, to the extent that some of the companies           
 which assist his business in moving equipment and rig moving do               
 have the same type of requirements.  Essentially, everyone on the             
 job site has been subject to two, relatively rigorous, random                 
 tests.                                                                        
 Number 2316                                                                   
                                                                               
 CHAIRMAN ROKEBERG stated that CSHB 207(L&C) provides for both                 
 adverse employer action and counseling\rehabilitation for                     
 employees.  He asked what his association did when someone was                
 found to have a problem.                                                      
                                                                               
 Number 2353                                                                   
                                                                               
 MR. RUEDRICH explained that if it is a first time event, after they           
 are discharged from employment, the former employee is allowed to             
 participate on a partially funded rehabilitation program and are              
 eligible for rehire after their termination time has ended.  The              
 length of termination depends on the severity of their                        
 rehabilitation requirements.  He said there is a zero tolerance on            
 employment but there is an opportunity to rehabilitate and return.            
                                                                               
 CHAIRMAN ROKEBERG asked how successful this program is.                       
                                                                               
 MR. RUEDRICH could not speak on behalf of the whole association.              
 He said a number of employees have come back and have done quite              
 well.  The association views it as a positive expenditure of funds            
 to include this in their medical insurance program.                           
                                                                               
 CHAIRMAN ROKEBERG asked if this includes alcohol testing.                     
                                                                               
 MR. RUEDRICH stated that any alcohol impairment on the job takes an           
 employee off the payroll for a minimum of six months.                         
                                                                               
 CHAIRMAN ROKEBERG asked about hangovers.                                      
                                                                               
 MR. RUEDRICH answered that, if it was noticeable, they could not go           
 to work.  On the North Slope, the employees live in camps where               
 alcohol is not allowed.                                                       
                                                                               
 TAPE 97-34, SIDE A                                                            
 Number 0000                                                                   
                                                                               
 MATTHEW FAGNANI, President of Allvest Laboratories, a subsidiary of           
 NANA Development Corporation, came before the committee.  He said             
 drug testing began as a result of an train crash in 1987.                     
 Following that accident, the Conrail brakeman and engineer both               
 tested positive for marijuana use.  A coalition was formed, due to            
 public demand, which led to Senator Holling and Senator Danforth              
 submitting a bill.  This bill mandated drug testing of all                    
 Department of Transportation industry employees in safety sensitive           
 positions.  Pre-employment testing, post accident testing,                    
 reasonable cause testing, random, follow-up and return to duty                
 testing are required for the trucking, pipelines, airlines,                   
 railroads, marine and nuclear industries.                                     
                                                                               
 MR. FAGNANI stated that the next major change to occur to this bill           
 came in 1991, when Congress approved the Omnibus Employee Testing             
 Act.  This act required the Department of Transportation to propose           
 additional regulations, including the testing of alcohol and who              
 would be tested under this regulation.  This act resulted in an               
 additional 7 million transportation workers nationwide being                  
 included in the mandatory drug testing.                                       
                                                                               
 MR. FAGNANI said the omnibus act mandated the inclusion of                    
 intrastate commercial driver's license operators, school bus                  
 drivers, state and municipal commercial driver's license holders,             
 which include truck drivers and grader crews, and community                   
 activity bus drivers.  According to the Alaska Department of Labor,           
 as of July of 1993, Alaska had 599,200 residents.  Out of that                
 total, 277,991 were currently employed and over 53,000 Alaskans are           
 mandated to test through the federal requirements.  He stated that            
 19 percent of our employed population is in mandatory drug and                
 alcohol testing programs by the federal government, or 8.8 percent            
 of the total state population.  This information does not include             
 all of the non-regulated industries which have chosen to test such            
 as hotels, ski resorts, pawn shops and gas stations.  Many Alaskan            
 companies have realized the benefits of drug testing.  Drug testing           
 will help safety, employee productivity and job efficiency.                   
                                                                               
 MR. FAGNANI stated that according to the national institute on drug           
 abuse, 10 percent or 23 million Americans are abusing drugs, 6                
 million use cocaine, 10 percent to 15 percent of all highway                  
 fatalities involve drug use and an employee who uses drugs is 3.6             
 times more likely to be involved in a near miss or accident while             
 on the job.  The most recent U.S. household survey, conducted by              
 the Clinton Administration, showed that teen marijuana use was on             
 the rise.  Alcohol and drug testing in the work place is here to              
 stay.  As testing becomes more prevalent in the work place, it is             
 very important that companies do it right.                                    
                                                                               
 MR. FAGNANI said he supports the legislation.  He said the testing            
 criteria has come so far that we don't have to be afraid of false             
 positive tests.  The laboratory that Allvest uses has conducted 2.5           
 million tests since 1995, and has not had a false positive test.              
 He said the screening is done by an antibody, antigen reaction and            
 then there is the gas chromatography mass spectrometer which is a             
 physical principle test - a molecular test, which gives a                     
 fingerprint of the drug that tests positive.  The use of the                  
 physician helps insulate any possible problems.  The technology is            
 there to assure employers and employees that the testing is done              
 right.                                                                        
                                                                               
 MR. FAGNANI stated that this bill sets out policy.  He said he                
 knows of several customers who have been sued by their employees.             
 The cases rarely, if ever, get to court.  Yet an employee can                 
 pursue this case to the Alaska Supreme Court and then the companies           
 are forced to pursue it as well while expending a large amount of             
 resources.  This bill sets up a policy which employers can follow             
 and protects the employee by: using a SAMHSA certified laboratory,            
 having collection procedures which are spelled out and understood,            
 using a medical review officer to review results and then advising            
 the employee of the policy.                                                   
                                                                               
 Number 0599                                                                   
                                                                               
 REPRESENTATIVE RYAN asked if litigation has been raised concerning            
 the constitutionality of drug testing policies.                               
                                                                               
 Number 0624                                                                   
                                                                               
 MR. FAGNANI answered that this issue has been addressed at the                
 federal level.  In each and every case, drug testing has withheld             
 the court's scrutiny.  In Alaska, there have been two decisions,              
 Ludke v. Neighbors Drilling and the ERA case.  In Alaska, private           
 employers are allowed to test based on a safety sensitive need.               
 The public employees have a different requirement.  He said there             
 are several providers of this type of testing and two are in                  
 Fairbanks, four or five are in Anchorage and countless national               
 labs competing for the marketplace.                                           
                                                                               
 Number 0718                                                                   
                                                                               
 CHAIRMAN ROKEBERG asked if this bill is a substantial improvement             
 over the previous bill, HB 522.                                               
                                                                               
 MR. FAGNANI stated that it is an improved version.  He noted the              
 inclusion of collective bargaining.                                           
                                                                               
 Number 0787                                                                   
                                                                               
 BARBARA HUFF-TUCKNESS, Director of Legislative and Government                 
 Affairs, Teamsters Local 959, stated that her union represents                
 about 6,000 members.  They have existing collective bargaining                
 agreements throughout the state with various employers with                   
 attached drug and alcohol testing policies.  She stated that every            
 truck driver has been tested.  This bill grants limited immunity              
 and her union is concerned, from a legal perspective, that the                
 employee would still have the right to sue if they believed that              
 there were violated provisions.  She questioned who would make the            
 decision whether or not the employer followed a provision in the              
 collective bargaining agreement.  She said, as a collective                   
 bargaining participant, there is an ability to file a grievance and           
 go through an arbitration process.  A neutral third party reviews             
 the information and makes a decision based on information brought             
 from both sides.  She questioned who made the determination that              
 the employer could not be sued.                                               
                                                                               
 Number 0979                                                                   
                                                                               
 MS. HUFF-TUCKNESS said she wasn't in attendance to argue against              
 drug testing because her industry is heavily regulated.  They                 
 represent truck drivers, hospital workers and members of the                  
 airline industry.  She said her union has a lot of unanswered                 
 questions.  She referred to Sections 23.10.600 and 23.10,610, which           
 covers the limited immunity provisions for an employer who decides            
 to participate or implements a drug and alcohol testing program.              
 A list of concerns and issues should be addressed in an employer's            
 drug testing policy.  Under a collective bargaining agreement,                
 months are spent negotiating what those provisions are.                       
                                                                               
 MS. HUFF-TUCKNESS said she has heard that this is an attempt to               
 legislate the policies and procedures that employers are going to             
 implement so that everybody is testing in the same or in a similar            
 manner.  She stated there are drug testing policies that are                  
 applicable to each one of the employers and the particular industry           
 with which they are dealing.  Some are on a random testing basis              
 and are private employer representatives, this is completely                  
 different from the public sector.  This bill seems to cover both              
 the public and private sector employers.  There are certain                   
 constitutional rights, from a public employee perspective, which              
 need to be addressed as the bill goes through the process.  She               
 stated that her union also represents employees in the public                 
 sector where there is drug and alcohol testing provisions in those            
 labor agreements.                                                             
                                                                               
 Number 1166                                                                   
                                                                               
 MS. HUFF-TUCKNESS asked why the legislature didn't include a                  
 provision in the tort reform bill which would state that employers            
 can't be sued by employees because they enact a drug or alcohol               
 testing program if they think an employer should be immune from a             
 libel suit if they have done everything that they are alleged to do           
 under that policy.  The issues around drug testing are going to               
 involve the drug testing company themselves.  Theoretically, this             
 bill could be separated.  Under 23.10.600 (d) and 23.10.610, if               
 there was non-conformance with the particular requirements, then it           
 would allow the employee to sue.  A higher court could rule that              
 this particular law was not violated and, therefore, there was not            
 standing to the employee's lawsuit.                                           
                                                                               
 MS. HUFF-TUCKNESS said to craft a bill under the guise that the               
 employer is going to be immune from those lawsuits creates concern.           
 She questioned what would happen if there was no collective                   
 bargaining agreement in place.  The employer could negotiate to               
 impasse the collective bargaining agreement with the exception of             
 this particular drug and alcohol testing program.  The employer               
 then implements its own particular program to garner this                     
 particular immunity.  She questioned whether taking out this                  
 impasse provision dissolves this particular legal state requirement           
 to craft drug and alcohol testing language.  If the legislature or            
 state government is going to start drafting drug testing policies,            
 then isn't it the responsibility of the employers, as well as those           
 who participate in a collective bargaining agreement, to implement            
 this type of policy.                                                          
                                                                               
 Number 1435                                                                   
                                                                               
 CHAIRMAN ROKEBERG referred to the provision on page 7, 23.10.670,             
 which says that even if the collective bargaining agreement is not            
 consistent with CSHB 207(L&C) as the employer would still get the             
 full benefits of the bill.                                                    
                                                                               
 Number 1481                                                                   
                                                                               
 MS. HUFF-TUCKNESS stated that this area of concern has been raised            
 by her attorney.  The attorney received a faxed copy of the bill              
 and has not had the opportunity to ascertain the impact of the drug           
 and alcohol testing program on those existing collective bargaining           
 agreements.  The language of the section, referred to by the chair,           
 does not have language to gain that benefit.                                  
                                                                               
 Number 1522                                                                   
                                                                               
 MS. HUFF-TUCKNESS said a reference should be made to employee                 
 notification of what they are being tested for when they take the             
 test if the drug and alcohol testing program reference is going to            
 remain in the bill.  She said the levels are set by federal                   
 regulations.  The lack of reference to the testing level could                
 result in a zero tolerance.  She said she is happy with the                   
 inclusion of a medical review officer who would interpret those               
 results and would be in a position to prevent any potential                   
 violations of confidential information.  The information would be             
 limited to those individuals with a need to know.  The bill also              
 addresses reasonable suspicion, but does not define what                      
 constitutes reasonable suspicion.  The bill does not address the              
 training under the federal rules or regulations.  A supervisor is             
 required to be trained to detect or to recognize reasonable                   
 suspicion or situations on the job which might cause an employee to           
 be tested.                                                                    
                                                                               
 MS. HUFF-TUCKNESS concluded that the union is a strong supporter of           
 a drug and alcohol free workplace.  This testing has had a positive           
 impact on those work situations.  She said drug testing is not new            
 and she wants to assure the committee that they are not opposed.              
 Ms. Huff-Tuckness said they felt serious consideration should be              
 given to the true intent of this bill and the impact that it will             
 have on every public and private sector employer in Alaska.                   
                                                                               
 Number 1740                                                                   
                                                                               
 REPRESENTATIVE RYAN asked if someone, from her perspective, would             
 be coming forward with specific recommendations.                              
                                                                               
 Number 1765                                                                   
 MS. HUFF-TUCKNESS informed the committee she has discussed some of            
 these issues with Mr. Logan.  The direction of the bill is a                  
 concern from a legal perspective.  She said her attorney has raised           
 some concerns regarding the impact on the public and private sector           
 employees due to the constitutional differences.  She requested               
 that more time be spent on this in light of some of the substantial           
 changes which have been made from the previous bill, HB 522.                  
                                                                               
 Number 1814                                                                   
                                                                               
 REPRESENTATIVE RYAN asked if she understood the employer concern              
 over arbitrary lawsuits.  He discussed the hardship on businesses.            
 He said he feels that something needs to be put in place which                
 shows that if a business presented a good faith effort, then they             
 should have a limited sense of liability.                                     
                                                                               
 Number 1881                                                                   
                                                                               
 MS. HUFF-TUCKNESS said she feels there had been an effort to limit            
 these lawsuits.  She said if this immunity is the intent of CSHB
 207(L&C), then some focus should be put on that.  The attorney is             
 concerned that the employer might not be completely protected.  If            
 questions come up regarding the drug and alcohol testing then it is           
 addressed in the collective bargaining agreement.  Only five or six           
 cases have been raised regarding this particular area.                        
                                                                               
 Number 1954                                                                   
                                                                               
 PAM La BOLLE, President, Alaska State Chamber of Commerce, stated             
 that her organization is in support of this bill and the amendments           
 which have been adopted.  She noted they have submitted a letter              
 located in the committee files.                                               
                                                                               
 Number 1996                                                                   
                                                                               
 REPRESENTATIVE SANDERS expressed a desire to hold the bill over.              
 He said he is not opposed to the bill or its intent.  He said he              
 wants to hold it over in order to ascertain if this bill does what            
 it proposes to do in the sponsor statement.                                   
                                                                               
 CHAIRMAN ROKEBERG asked Mr. Fagnani why they didn't test blood.               
                                                                               
 MR. FAGNANI said the urine test is much more sensitive and less               
 intrusive.                                                                    
                                                                               
 CHAIRMAN ROKEBERG stated that CSHB 207(L&C) would be held over.               
                                                                               
 HB 218 - OMNIBUS INSURANCE REFORM                                           
                                                                               
 Number 2086                                                                   
                                                                               
 CHAIRMAN ROKEBERG announced the committee would address HB 218,               
 "An Act relating to regulation and examination of insurers and                
 insurance agents; relating to kinds of insurance; relating to                 
 payment of insurance taxes and to required insurance reserves;                
 relating to insurance policies; relating to regulation of capital,            
 surplus, and investments by insurers; relating to hospital and                
 medical service corporations; and providing for an effective date."           
                                                                               
 Number 2093                                                                   
                                                                               
 REPRESENTATIVE COWDERY made a motion to adopt the proposed                    
 committee substitute, dated 4/3/97, Version E, for the purpose of             
 discussion.                                                                   
                                                                               
 Number 2116                                                                   
                                                                               
 MARIANNE BURKE, Director, Division of Insurance, Department of                
 Commerce and Economic Development, came before the committee.  She            
 said the purpose of CSHB 218 is to bring some modernization to some           
 of the provisions, to clarify existing sections and to remove some            
 barriers that had been inadvertently included in Title 21 over the            
 years.  This would even the playing field for the people doing                
 business in the state.  She said the most significant issue has               
 resulted in a positive fiscal note of $485,000 per year.  Ms. Burke           
 said, "This is the result of asking for legislation that would                
 allow us to collect the premium tax on insurance premiums on a                
 quarterly basis rather than on a yearly basis.  We have received no           
 objection from anyone on this matter and, in fact, we've been told            
 it was inevitable and they were just waiting to when Alaska would             
 switch to quarterly basis.  I'd be happy to go into any detail if             
 this committee would like at this time or..."                                 
                                                                               
 Number 2173                                                                   
                                                                               
 CHAIRMAN ROKEBERG asked Ms. Burke to point out anything that might            
 generate any controversy.                                                     
                                                                               
 MS. BURKE said "We have received comments from the representative             
 agency for 60 percent of the health and life insurers and they are            
 in support of this and in fact the committee substitute is to                 
 recognize their minor points.  I am not aware of any controversial            
 sections at this time -- potentially controversial sections of                
 collection premium tax which we have canvased our jurors and they             
 are reluctant to give up their money or leave, but they recognized            
 it's necessary."                                                              
                                                                               
 CHAIRMAN ROKEBERG asked Ms. Burke if he is correct in saying the              
 department probably won't be bringing up another omnibus bill next            
 session.                                                                      
                                                                               
 MS. BURKE said that is a fair statement.                                      
                                                                               
 Number 2248                                                                   
                                                                               
 CHAIRMAN ROKEBERG called for an at-ease at 5:44 p.m.  He called the           
 meeting back to order at 5:47 p.m.                                            
                                                                               
 CHAIRMAN ROKEBERG indicated to Ms. Burke that the committee has not           
 received any letters of support or opposition to the bill at this             
 time.                                                                         
                                                                               
 Number 2266                                                                   
                                                                               
 MS. BURKE said, "To the best of my knowledge, the only letter that            
 has been received was received on the Senate side from the                    
 organization that I referred to that represents 60 percent of the             
 life and health writers.  And it states, and I will provide this              
 committee a copy of that letter, that if the minor tweaks are                 
 incorporated here and we're made, that they support this bill."               
                                                                               
 CHAIRMAN ROKEBERG stated CSHB 218(L&C) would be held.                         
 ADJOURNMENT                                                                   
                                                                               
 Number 2296                                                                   
                                                                               
 CHAIRMAN ROKEBERG adjourned the House Labor and Commerce Committee            
 meeting at 5:43 p.m.                                                          
                                                                               

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