Legislature(1997 - 1998)

03/11/1998 03:20 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                                
                   March 11, 1998                                              
                     3:20 p.m.                                                 
                                                                               
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Representative Norman Rokeberg, Chairman                                       
Representative Bill Hudson                                                     
Representative Jerry Sanders                                                   
Representative Joe Ryan                                                        
Representative Tom Brice                                                       
Representative Gene Kubina                                                     
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
Representative John Cowdery, Vice Chairman                                     
                                                                               
OTHER HOUSE MEMBERS PRESENT                                                    
                                                                               
Representative Kim Elton                                                       
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
HOUSE BILL NO. 304                                                             
"An Act relating to the location of the convening of the                       
legislature in regular session; repealing provisions relating to               
student guests of the legislature; and providing for an effective              
date."                                                                         
                                                                               
     - HEARD AND HELD; ASSIGNED TO SUBCOMMITTEE                                
                                                                               
* HOUSE BILL NO. 411                                                           
"An Act relating to issuance of a winery license in a local option             
area."                                                                         
                                                                               
     - MOVED HB 411 OUT OF COMMITTEE                                           
                                                                               
* HOUSE BILL NO. 451                                                           
"An Act relating to assistive technology devices and mobility aids             
for physically disabled persons."                                              
                                                                               
     - HEARD AND HELD                                                          
                                                                               
(* First public hearing)                                                       
                                                                               
PREVIOUS ACTION                                                                
                                                                               
BILL: HB 304                                                                   
SHORT TITLE: MOVE LEGISLATURE TO ANCHORAGE                                     
SPONSOR(S): REPRESENTATIVES(S) GREEN, ROKEBERG, Ryan, Cowdery,                 
Hodgins                                                                        
                                                                               
Jrn-Date    Jrn-Page           Action                                          
01/12/98      2024     (H)  PREFILE RELEASED  1/2/98                           

01/12/98 2024 (H) READ THE FIRST TIME - REFERRAL(S)

01/12/98 2024 (H) STA, L&C, FINANCE

01/15/98 2056 (H) COSPONSOR(S): RYAN

01/27/98 (H) STA AT 8:00 AM CAPITOL 102

01/27/98 (H) MINUTE(STA)

01/28/98 2167 (H) COSPONSOR(S): COWDERY

01/30/98 2189 (H) COSPONSOR(S): HODGINS 02/11/98 2277 (H) STA RPT 2DP 2DNP 3NR 02/11/98 2278 (H) DP: DYSON, HODGINS; DNP: ELTON, VEZEY 02/11/98 2278 (H) NR: JAMES, BERKOWITZ, IVAN 02/11/98 2278 (H) FISCAL NOTE (GOV/ALL DEPTS) 02/20/98 (H) L&C AT 3:15 PM CAPITOL 17 02/20/98 (H) MINUTE(L&C) 02/27/98 (H) L&C AT 3:15 PM CAPITOL 17 02/27/98 (H) MINUTE(L&C) 03/11/98 (H) L&C AT 3:15 PM CAPITOL 17 BILL: HB 411 SHORT TITLE: LOCAL OPTION FOR WINERY LICENSE SPONSOR(S): REPRESENTATIVES(S) AUSTERMAN Jrn-Date Jrn-Page Action 02/16/98 2331 (H) READ THE FIRST TIME - REFERRAL(S) 02/16/98 2331 (H) L&C, FINANCE 03/11/98 (H) L&C AT 3:15 PM CAPITOL 17 BILL: HB 451 SHORT TITLE: ASSISTIVE TECHNOLOGY & MOBILITY AIDS SPONSOR(S): REPRESENTATIVES(S) GREEN, Davies, Berkowitz Jrn-Date Jrn-Page Action 02/18/98 2361 (H) READ THE FIRST TIME - REFERRAL(S) 02/18/98 2361 (H) L&C, JUDICIARY 03/06/98 2552 (H) FIRST COSPONSOR: DAVIES 03/11/98 (H) L&C AT 3:15 PM CAPITOL 17 WITNESS REGISTER JEFF LOGAN, Legislative Assistant to Representative Joseph Green Alaska State Legislature Capitol Building, Room 118 Juneau, Alaska 99801 Telephone: (907) 465-6841 POSITION STATEMENT: Testified as co-prime sponsor's representative on HB 304; presented HB 451. MAYOR DENNIS EAGAN City and Borough of Juneau 155 South Seward Street Juneau, Alaska 99801 Telephone: (907) 586-5257 POSITION STATEMENT: Testified against HB 304. ERROL CHAMPION Capital City Republicans P.O. Box 33066 Juneau, Alaska 99803 Telephone: (907) 789-9033 POSITION STATEMENT: Testified against HB 304. DON ABEL 9999 Glacier Avenue Juneau, Alaska 99801 Telephone: (907) 789-7639 POSITION STATEMENT: Testified against HB 304. RICK URION 118 Fifth Street Douglas, Alaska Telephone: (907) 364-2315 POSITION STATEMENT: Testified against HB 304. REPRESENTATIVE ALAN AUSTERMAN Alaska State Legislature Capitol Building, Room 434 Juneau, Alaska 99801 Telephone: (907) 465-2487 POSITION STATEMENT: Sponsor of HB 411. WILLIAM ROCHE, Enforcement Supervisor Alcoholic Beverage Control Board 550 West Seventh Avenue, Suite 350 Anchorage, Alaska 99501 Telephone: (907) 277-8678 POSITION STATEMENT: Testified on HB 411. DERRILL L. JOHNSON, Administrator and Community Services Coordinator Developmental Disabilities Program Division of Mental Health and Developmental Disabilities Department of Health and Social Services P.O. Box 110620 Juneau, Alaska 99811-0620 Telephone: (907) 465-3370 POSITION STATEMENT: Testified in support of HB 451's intent. MILLIE RYAN, Health Planner Governor's Council on Disabilities and Special Education Department of Health and Social Services P.O. Box 240240 Anchorage, Alaska 99524-0240 Telephone: (907) 269-8992 POSITION STATEMENT: Testified in support of HB 451. KEN DEAN, Independent Living Specialist Southeast Assisted Independent Living Incorporated P.O. Box 35097 Juneau, Alaska 99803-5097 Telephone: (907) 789-9665 POSITION STATEMENT: Testified in support of HB 451. SHELLEY GREENE, Direct Service Supervisor Access Alaska Fairbanks 3550 Airport Way Fairbanks, Alaska 99709 Telephone: (907) 479-7940 POSITION STATEMENT: Testified in support of HB 451. PATRICK REINHART, Executive Director Statewide Independent Living Council Department of Education 1016 West Sixth Avenue, Suite 205 Anchorage, Alaska 99501 Telephone: (907) 269-3571 POSITION STATEMENT: Testified in support of HB 451. ACTION NARRATIVE TAPE 98-29, SIDE A Number 0001 CHAIRMAN NORMAN ROKEBERG called the House Labor and Commerce Standing Committee meeting to order at 3:20 p.m. Members present at the call to order were Representatives Rokeberg, Hudson, Sanders and Brice. Representatives Kubina and Ryan arrived at 3:24 p.m. and 3:56 p.m., respectively. HB 304 - MOVE LEGISLATURE TO ANCHORAGE Number 0062 CHAIRMAN ROKEBERG announced the committee's first order of business was HB 304, "An Act relating to the location of the convening of the legislature in regular session; repealing provisions relating to student guests of the legislature; and providing for an effective date." Chairman Rokeberg presented HB 304, noting he and Representative Joseph Green were co-prime sponsors of this legislation. He said he wished to bring a few items to the committee's attention and there would be limited testimony. Chairman Rokeberg commented that Jeff Logan, Legislative Assistant to Representative Green, had a map exhibit for the committee. Number 0158 CHAIRMAN ROKEBERG stated HB 304 was brought forward with the initial intention of relocating the legislature to Anchorage, however he referred to testimony he gave before the House State Affairs Standing Committee, to local Juneau radio, the press, et cetera, whereas he believes it is very important the legislature be near the people and that access be available. He said a major reason he became involved in the legislation is concern he has about the Capitol Building itself, stating he wanted to briefly focus on this that day. He referred to a March 1998 letter he wrote which was published in an Anchorage neighborhood newspaper, Westside Pulse, noting there were copies in the committee members' packets. Chairman Rokeberg emphasized he wanted to take up the different alternatives needed to generate greater access for the people of Alaska to their Capitol. Number 0258 CHAIRMAN ROKEBERG listed choices to be examined: 1) Remodeling the existing Capitol Building structure. 2) Moving to a leased premises in the Anchorage area. 3) Building a 75,000 square foot addition to the Bank of America building [550 West Seventh Avenue in Anchorage, to be renamed the Robert B. Atwood Building]; Chairman Rokeberg noted expansion had been considered in the building's initial architectural design. He said he had stated before the legislature the previous year that housing the legislature was not the reason for the building's purchase, and he reiterated the building had not been purchased to be a defacto Capitol building. 4) Drafting a Request for Proposal (RFP) from any community in the state that wished to respond for the need for a new Capitol building, including Juneau. Chairman Rokeberg said he calls this his "field of dreams alternative; build it and they will come," which he will address further. 5) Bringing back the Willow capital move initiative with what he calls the truthful cost (indisc.) analysis. 6) Rotating legislative sessions between the cities or having committee meetings in various communities throughout the state for certain time periods during the session. 7) What he terms, "Anybody else got an idea?" He asked for ideas as to how they can enhance access for the people of Alaska to their legislators, making this branch of government more responsive and sensitive to people's needs. Number 0387 CHAIRMAN ROKEBERG referred to State of Alaska Invitation to Bid Number 5401, for 7,100 square feet in downtown Anchorage for an adult public assistance office. He pointed out "A" under "paragraph" 3 on page 13 of the bid, the second page of the copy distributed to the committee. He noted this is the current minimum standard regarding building type for any state lease. It read: 3. Type of Building: A. The space offered shall be in a building of sound and substantial construction, and shall meet all applicable building codes, life safety codes, regulations and standard building practices of the City, Borough and State in which located. The building shall be protected against fire and other hazards and shall be provided with ventilation. The building shall also conform to applicable thermo and energy standards, and shall comply with OSHA [Occupational Safety and Health Administration] safety codes. The building and the area in which it is located shall be clean and free from objectionable tenancy, odors, vermin, rodents, or other conditions which, in the opinion of the State, will be detrimental to agency operation. Number 0523 CHAIRMAN ROKEBERG stated this was boilerplate language in the state lease document, and he submitted to the committee that the current Capitol Building would not qualify for a bid for state occupancy. He noted this was particularly relating to the life safety code provisions, other applicable building codes, et cetera. Chairman Rokeberg stated that there is a clear need for new premises for the legislature. He referred to a vote brought before the people to move the capital, noting he thinks that vote failed because of the legislature's lack of commitment, as he said before the House State Affairs Standing Committee. He commented the City and Borough of Juneau (CBJ) and its people have tried to face up to this issue in the past; he doesn't think the people of Juneau should commit themselves to a very large financial expenditure without a commitment. Drawing on his 25-year experience as a commercial real estate specialist in building development, he noted the statement, "If you don't have a deal you can't make a move," is fundamental logic. Number 0618 CHAIRMAN ROKEBERG said he has not intended to bring any hardship or ill feelings to the community of Juneau with his position on this legislation. He thinks Juneau is a wonderful and delightful community, but he truly believes Alaska's Capitol needs to be accessible to the people and also be a functional building the people of the state can take pride in as representing their government. He said that currently expending any money on this project would not be wise, given the clear economic problems the state is presently facing. On the other hand, he thinks it is not an issue that they can avoid for too much longer, given the Capitol Building's current condition. He stated, "I think the sufferance of the particular peculiar building codes here and the ability to continue occupying is something that needs to be really finally recognized." Chairman Rokeberg said the building's staff does an excellent job of doing what they can. He indicated the financial ability to make capital appropriations to the Capitol Building through legislative carry-forward funds and other means no longer exists, commenting that there have been substantial improvements to the structure. He said this has been particularly in the areas of compliance with Americans with Disabilities Act (ADA) accessibility requirements and other obvious needs. However, he noted this only goes so far with a building which he believes was designed and built in 1931 and he said is basically structurally obsolete. Chairman Rokeberg stated the committee would take limited testimony and HB 304 would be held for further consideration. Number 0785 JEFF LOGAN, Legislative Assistant to Representative Joseph Green, came forward to testify. He stated Representative Green, the co- prime sponsor of HB 304, was conducting a House Judiciary Standing Committee hearing on subsistence legislation and apologized for his absence which in no way indicated any waning of his support for HB 304. Mr Logan said he would bring two issues to the committee's attention: 1) the Capitol Building's condition, 2) the Capitol Building's location. Addressing the second point he referred to the previously mentioned map which had been distributed to the committee. [The map Mr. Logan referred to showed the outline of the state of Alaska with approximately 43 communities labeled. Anchorage was shown at the center of three concentric circles and Juneau at the center of two concentric circles. The circle closest to the two cities was colored green and represented a straight-line distance of 100 miles out from the cities. The second concentric circles around both cities was colored blue and represented a straight-line distance of 200 miles out from the cities. The third concentric circle around Anchorage was colored red and represented a straight- line distance of 300 miles from Anchorage. There was no third concentric circle for Juneau. The map legend indicated the first concentric circle around Juneau at 100 miles contains a population of 50,000; the second circle at 200 miles contains an additional 24,000; for a total population of 74,000 within a 200-mile radius of Juneau. The population within a 100-miles radius of Anchorage is 361,000, according to the map legend; the additional population at the 200-mile radius is 7,100; and the additional population at the 300-mile radius is 115,000; for a total population of 483,100 within a 300-mile radius of Anchorage.] MR. LOGAN said there are 483,000 people 300 miles out of Anchorage and 74,000 people 300 miles out of Juneau, noting this graphically illustrates why the other prime sponsors believe the legislature should be located in Anchorage [Note: the map does not show a population figure for a 300-mile distance from Juneau]. Number 0875 MR. LOGAN referred to the condition of the Capitol Building and the chairman's previous remarks. Mr. Logan said that for many years the Capitol Building has been maintained with the legislative carry-forward; he said this was the portion of the budget unspent in the previous year which went into somewhat of a "slush" fund. He stated a few years ago the legislature had decided to do away with that account under Republican leadership and be on budget, noting the governor is still allowed to have such a fund but the legislature has taken its own away. Mr. Logan said these types of expenditures for repairing and restoring the Capitol will now have to be stated on the capital budget, and will become much more apparent as the need for these types expenditures escalates. He commented that Chairman Rokeberg had stated some of the alternatives, noting they look enthusiastically at the process the chairman has set out to examine what some of the other municipalities might be able to provide in the way of a suitable Capitol. In his final statement, Mr. Logan asked the committee to look around the room with the next bill to be heard. He said it would be good illustration of how inadequate the building was to meet the legislature's current needs. He stated there were going to be people in the room in wheelchairs and the only exit from this room, other than the crowded entryway, was up a set of stairs. Mr. Logan said that is not right and it should be fixed, stating, "We hope to continue with this effort to the extent we can to make sure that everybody has equal access to the Capitol from other cities, and in and out of the Capitol while/if it remains here." Number 0998 CHAIRMAN ROKEBERG stated that they were currently in an illegal fire configuration because they were at the end of, basically, a 20-foot dead-end corridor and, under the Uniform Building Code and "all the fire permutations thereto," the exit stairwell could not be exited through a meeting room. Chairman Rokeberg indicated this particular code violation occurs throughout the Capitol Building, including the House and Senate chambers, and he noted this was just a "drop in the bucket" of all the other violations. Number 1038 REPRESENTATIVE JERRY SANDERS said the testimony indicated HB 304 would not be moving out of committee at this meeting, and he asked Mr. Logan if it was Representative Green's intention in sponsoring HB 304 that the bill would move or that it would just be used as a conversation piece and then dropped. Number 1058 MR. LOGAN replied it was the sponsor's intent to move all legislation he introduced. Mr. Logan stated, "If, in the chairman's wisdom, this piece of legislation needs more review by the Labor and Commerce Committee, we're willing to sit down and work on it and make it a better bill, and hopefully see it move at a later date intact." Number 1082 CHAIRMAN ROKEBERG stated the committee would take testimony from Mayor Eagan, asking all witnesses to limit their testimony to three minutes. Number 1110 MAYOR DENNIS EAGAN, City and Borough of Juneau, came forward to testify. He noted he appreciated the chairman's remarks and offer to (indisc.) legislative approval for construction of a new state Capitol building in Juneau. Upon the chairman's lobbying and working with the community, Mayor Eagan stated he would be more than happy to give Chairman Rokeberg the plans they tried put forth the last time and appreciated the chairman's efforts to assist them. Mayor Eagan said there had not been enough copies of the map, but to him it is a matter of semantics; he can draw the same thing on Washington, D.C. Mayor Eagan said he had just returned from that city, noting it is a 4,000 mile journey to the nation's capital. He spoke from a prepared statement: On behalf ... of the assembly and the citizens of this community, I'd like to thank you for allowing me to testify this afternoon. And I hope that you'll appreciate the advances that Alaska's capital city has made in providing opportunities to residents of Alaska. Since statehood in 1959, just 37 short years ago, we've been in the unique position of trying to focus not only on the critical elements of sustainability: economic vitality, social equity and environmental health, but the single issue few other communities in the nation, or for that matter, the world face, and that's the issue of being the ultimate destruction of our city through the ballot process by way of a vote of the statewide electorate. Eight times since statehood, Juneau has faced economic and social upheavals that normal communities would not face. With dedication and diligence, we have confronted this issue, with absolutely no idea what the outcome will be regarding our basic economic and social vitality. The issue here is moving the seat of state government to an area outside of Juneau to where some say is a location closer to the people. While we have ultimately won all those battles, the most recent in 1994, these votes take a tremendous toll on the citizens of our community who have lived here for any length of time. I was born here. When we should be attending to making Juneau a model for sustainable development, we have had to spend untold resources on fighting efforts to change the seat of government in the state of Alaska. In just the past two elections, 1982 and 1994, and associated ballot initiatives since statehood, it has cost this city of 32,000 residents over $7 million in taxpayer and community-donated funds to fight these battles. So when folks in the rest of the United States talk about sustainability, we call it survivability. To sustain Juneau as the capital of Alaska, we're accomplishing many things to make our city more accessible to the rest of Alaska and the world. You see, I believe access comes in many other ways than an interstate highway. We were one of the first communities on the west coast of the United States to recognize the importance of the Internet. We established a home page on the World Wide Web, affording access not only to Alaskans to their capital city, but to anyone in the world that has an inquiry about Juneau. We've been instrumental in providing electronic access through video teleconferencing through a major investment in telecommunications technology. Juneau is the major investor in C-Span type programming called Gavel-to-Gavel coverage, that allows over 450,000 Alaskans, that's about 85 percent of the adult population, to view uninterrupted coverage of the daily deliberations of the Alaska State Legislature during its 120-day sessions. The CBJ, Federal Aviation Administration, the National Center for Atmospheric Research and Alaska Airlines are in the final stages of a multi-million dollar research project that is going to ultimately change the way airline travel is accomplished throughout the world, and Juneau is at the forefront of development and implementation of that technology in which aircraft will not travel routes as you know them, but on courses dictate by global positioning satellites. We're doing many other things to make Juneau a better capital, from increasing affordable housing, increasing our housing vacancy rate, getting a handle on managing our burgeoning tourism industry, working with mining concerns to bring about projects on line, and initiating plans for a vision for our capital city. While these are just a few of the major projects that we're undertaking, and issues we're confronting, I believe we're making great strides in making Juneau a better capital city for all Alaskans. We're proud of the men and women in the legislature and staff who work tirelessly to make our state a model for the rest of the nation. ... Thank you for your hard work. Pro or con, the citizens of this community appreciate your efforts. Again, thank you Mr. Chair and members of the committee for this opportunity to testify. Number 1411 CHAIRMAN ROKEBERG thanked the mayor, noting this hearing had been scheduled so the mayor would be able to attend. Number 1433 ERROL CHAMPION, Capital City Republicans, came forward to testify next. He spoke from a prepared statement: I have been in Alaska for over 35 years and I've lived in Juneau for the past 21. As I was thinking about what points to cover this afternoon, I found it very difficult to write down anything that hasn't already been stated over and over during the last 40 years of debate on this issue. I recall the argument in 1961 while I was living with my aunt and uncle in Anchorage. Even though this was shortly after statehood, the discussion of where to locate the capital was an issue for a few, and, unfortunately, it's still with a few of us today. The lack of support for a capital move in those days was based on the fact we had to be frugal. Alaska had limited funds as Prudhoe Bay had yet to be discovered. Elected leaders had to make very prudent decisions on where to spend those limited funds to do the most good for Alaska. The issue of moving the capital was not high on the priority list then, and after 37 years which has seen numerous statewide votes, initiatives and the expenditure of millions on studies, moving the legislature and the capital is not a topic with the majority of Alaskans. It continues to remain at the bottom of the list on priority of needs. I'm co-chair of the Capital City Republicans which also includes a position on the state central committee of the Republican Party. In all of my work with statewide party leaders, the topic of moving the legislature and ultimately the capital is not in our platform. In fact, it's never even been on the agenda for discussion. We Republicans are focused on shrinking the size of state government, doing more with less, and returning the delivery system of public services back to the local communities. Our party is committed to electing Alaskans who share and support this philosophy. The location of where "downsizing" state government takes place is not an issue for the RPA [Republican Party of Alaska]. I ask that you think very carefully about what are the real preferences of Alaskans. I believe it's our public education system, crime, making needed repairs to our transportation systems, fixing up our public facilities and, most of all, creating a healthy economic climate that will stimulate the growth of private enterprise to provide jobs and opportunities for generations to come. After all these years, isn't it time to get on with solving the real priority issues for Alaskans? The philosophy of the Republican Party must remain the focus of our collective efforts while we have the opportunity to make things happen. Let's not spend any more time on issues such as moving the legislature which is tantamount to a capital move. And I thank this committee and you, Mr. Chairman, for allowing me to testify. Number 1579 DON ABEL came forward to testify next. He stated he was a lifelong Alaskan, had been in Juneau for 61 years, and was a candidate for the state Senate seat from that area. Mr. Abel testified regarding the effects on the private sector, stating, "Just to give you an idea of what it's like to be in the private sector and have this kind of hammer hanging over our head. ... It's a ripple effect." He said, "I'm in the building supply business, we have been since 1936 here. And when ... these come forward like this what happens is, we see the long-term projects start to come off the table. Who's gonna still go into a 10 or a 20-year financing program to put up apartments or condos or whatever they're gonna build ... when they don't know if the job base is gonna be around." He said this has happened over and over again, and some of the problems the legislature has experienced in trying to find decent or affordable housing in Juneau has been exacerbated by this over the years. He commented, "We saw it again this year, we're seeing it now. And ... it's very prevalent. We eventually overcome it, things settle down, we gain a little bit, then somebody wants an issue and back it comes again. And so it's a ripple effect throughout the whole - whole economy here, and I think it's very serious for us." Mr. Abel related that he had recently spoken with a former Anchorage legislator, stating, "And I did not ask ... whether he would give his permission to give his name, but I think he would if I asked him, but he says, 'Don, this is ... very wrong. I served down there for many sessions. The idea is to go down, to go to Juneau, get the work done, focus on it. ... That's what you do, get ... the state's business done and then go home. ... The idea of bringing it into the Anchorage arena, ... gosh knows what you're gonna wind up with and how long it'll take to get it done, whether they'll even show up most of the time. ... It'll won't be the same way at all, ... your sessions could run extremely long and be very unproductive. ... I think it's a very, very bad idea.'" Mr. Abel indicated that completed his testimony. Number 1699 RICK URION came forward to testify next. He indicated he was a former member of the Alaska State Legislature House of Representatives and said he was testifying on his own behalf. He stated, "In 1972 I was elected to this body from Anchorage. In 1972 the capital move was a big issue. We had a newspaper in town that every other day was an article about the capital move, and all of us supported the capital move. When I first came here I supported the capital move because I thought that was the right thing to do. ... I don't remember the time frame, but it wasn't very long when I was here that I realized what a terrible issue this was, and ... the issue wasn't what ... it looked like. It was a real estate transaction, it had nothing to do with government. It was an issue of greed and selfishness. It makes no difference where the capital is. Would the Dallas Cowboys have won the Super Bowl in January ... if they were based in Denver? The answer is no. It's not ... where you base the team, it's the members of the team. And you have a good team, and you can perform here in Juneau as well or if not better than anywhere else. I think it's long past time that this issue needs to be put to rest. If this building is bad, fix it. I'll dare say that this building's gonna be in service long after everybody in this room is dead. If you want a new building, appropriate some money and build it, but don't blame it on Juneau, don't blame it on the location. The communication system, everything, is much better than it was. (Indisc.) the last 25 years have made tremendous improvements in communications. Here is an issue that's the heart and blood of this community, right in this community. Is the room full of Juneauites? Are they packing the halls? No, they're not. Would they in Anchorage? ... People (indisc.) want access to government but they really elect you to do the job, and they really don't want to worry about government. And they're not worried government, they put it in your hands. Let's put this issue of the capital move to rest. Fix the building if you need to fix it, or build the building, but don't move the legislature or the capital from Juneau. That's stupid. That's all I have to say." Number 1804 CHAIRMAN ROKEBERG asked if there was anyone else who wished to testify on HB 304. Hearing none, he stated the public testimony was closed. Number 1816 REPRESENTATIVE BILL HUDSON thanked the chairman for hearing this bill and indicated he wished to testify himself on HB 304, having talked with Chairman Rokeberg and the other prime sponsor. Representative Hudson stated he thought he understood some of the concerns expressed, noting he recognized the difficult exit situation from the committee chambers. He said he thinks it is a reasonable thing to examine how they might be able to improve the current space or move into another space. He said he has suggested taking a hard look at even moving the legislature over to one of the top floors of the State Office Building and perhaps housing some of the state employees somewhere else on a regular basis. However, Representative Hudson said, "Those are the kind of things that we can look at if we have the cooperation of people like yourself from outside of the town here," and he indicated Juneau could not build a new Capitol building unless there was some sort of an agreement with the legislature to lease the building back over a period of time to amortize it. Representative Hudson noted the chairman's real estate background. He said he looked forward to working with the chairman, hopefully on an interim committee basis to examine this situation. Representative Hudson stated, "We're looking at a road, Mr. Chairman, trying to improve the access ... from the rest of the state of Alaska into the capital. We're also, I think, the possibility of looking at reduced legislative sessions. ... We're up to 120 days every session that we're down here, and that's exactly what we do. We might want to take a look at [the] possibility ... of developing a reduced legislative session period of time, perhaps a 90 to 120, or 90 to 100 days." Number 1897 REPRESENTATIVE HUDSON continued, "The two-year capital budget process would reduce, I think, the second year of the legislative session as well. So, I think that ... there's ways to do that. I notice in one state, they've actually moved to amend their constitution to allow their members, under certain circumstances literally to vote from home. And here we are, in the state of Alaska, where nobody is connected by roads except literally from that distance around the Anchorage area .... All the rest of us are somewhere up in the villages or down in Southeast Alaska or somewhere else out on an island somewhere ...." Representative Hudson indicated they might want to take a look at the possibility of establishing some parameters within Alaska's rules and, if necessary, in Alaska's constitution allowing members of the legislature to literally be able to vote on floor sessions from the nearest Legislative Information Office (LIO) or from home, giving emergency medical, transportation, and inability to get in as possible reasons. Representative Hudson stated, "Those are, in my opinion, some constructive ways in which we could expand our opportunity to interact with the legislature, ... and at the same time, to expand the amount of time that we're closer to the constituents that we serve. We already have eight months out of the year where we are directly related to our constituency and these may be some suggestions on how we could expand that opportunity. ... I just wanted to put that on the record, Mr. Chairman, I think those are constructive comments that I'm looking forward to working with you on ...." Number 1970 CHAIRMAN ROKEBERG asked if there were any further comments from the committee. There being none, Chairman Rokeberg said he would respond to Representative Hudson by noting that HCR 9, legislation the chairman had introduced the previous year, would allow committee interim activity; but also on Representative Hudson's point, most importantly, it would allow a teleconference or electronic vote from a committee member not physically present. Chairman Rokeberg said while committee members can participate in discussion via teleconference, they are not allowed to formally vote unless physically present, under rules of this body. He noted that perhaps Mayor Eagan could get behind a resolution supporting the chairman's resolution which he said was presently in the House Finance Standing Committee and which he would like to move this year. Also, Chairman Rokeberg pointed out that both he and Representative Sanders are prime sponsors of a bill shortening the legislative session to 90 days. He indicated that bill was also concerned with term limits and other legislative reform. Number 2038 CHAIRMAN ROKEBERG stated the committee would suspend the proceedings on HB 304. He said it was his desire to further investigate the condition of the current Capitol Building and look at potential drafting of alternate methodologies for developing a plan for a new Capitol building, wherever it may be. Chairman Rokeberg said because of that, and the information he has received from Mr. Logan, the chairman will be sending HB 304 to a subcommittee as he said he has indicated. He stated he wishes the subcommittee to take up the bill this session to review the information the bill sponsors will be providing and to invite the mayor and "the folks here from Juneau" to participate. Chairman Rokeberg said he would particularly like to look at the plans developed previously for Telegraph Hill [in downtown Juneau near the State Office Building]. The chairman stated, "We can do that quietly and amiably, and without ruffling too many feathers, but maybe we can get some work done for the good of the people of the state." With that, he assigned HB 304 to a subcommittee chaired by Representative Hudson, with Representative Rokeberg and Representative Kubina as the other subcommittee members. The legislation was held. Number 2141 CHAIRMAN ROKEBERG called a very brief at ease at 3:57 p.m. The committee came back to order at 3:57 p.m. HB 411 - LOCAL OPTION FOR WINERY LICENSE Number 2142 CHAIRMAN ROKEBERG announced the committee's next order of business was HB 411, "An Act relating to issuance of a winery license in a local option area." He noted the presence on teleconference of Mr. Roche, Alcoholic Beverage Control (ABC) Board, to answer questions. Number 2160 REPRESENTATIVE ALAN AUSTERMAN, the bill sponsor, came forward to present HB 411, noting it came from a request by one of his constituents in the village of Port Lions on Kodiak Island. He said this person would like establish a winery on Kodiak Island, making wine from the natural salmonberries and then selling it wholesale. Representative Austerman indicated that, in order to do this, apparently this person would end up having a liquor license and the potential to sell alcohol across the counter. This was something neither the person nor the village wanted to do. Representative Austerman indicated he and his staff had come up with a very small change to the laws, adding a winery license exemption to AS 04.11.491. He referred to the sponsor statement, noting that once this language was added, a local-option election could be sought in the City of Port Lions, or any other city or village in Alaska. He indicated that after the local-option election was held, the individual would apply for a winery license and agree to have the ABC Board ban retail sales, noting the board has the authority to impose such limitations. The sponsor statement read: This legislation adds a winery licensee under AS 04.11.491(a)(2) and (b)(2). By adding this language, an individual could seek a local-option election in any city to ban liquor licenses except a winery, as would be allowed under this amended statute. When the statute is amended and a local-option election held, the individual would then apply for their winery license and agree to have the Alaska Alcoholic Beverage Control Board (ABC Board) ban retail sales under the license in that particular city. The ABC Board has the authority to impose limitations on licenses as per AS 04.11.395. The individual would then have the privilege of selling to persons/entities holding a valid Alaska liquor license. This small change will created many business opportunities, while preserving the integrity of alcohol control. Continued economic development is essential in our village communities if they are to further their goals of self-sufficiency. The State of Alaska needs to persist in expanding opportunities for the establishment of production and marketing cooperatives. Number 2230 CHAIRMAN ROKEBERG asked Representative Austerman if he had tasted this person's salmonberry wine. REPRESENTATIVE AUSTERMAN responded he had not. CHAIRMAN ROKEBERG asked if he had tried someone else's. REPRESENTATIVE AUSTERMAN answered in the affirmative, noting it was excellent. Number 2243 CHAIRMAN ROKEBERG said, then, that there was the potential for a small, successful cottage industry in the village. Chairman Rokeberg asked Mr. Roche if the ABC Board and the Administration had any objections to HB 411. Number 2250 WILLIAM ROCHE, Enforcement Supervisor, Alcoholic Beverage Control Board, testified via teleconference from Anchorage. He stated the board took a neutral position on HB 411, seeing it as a local- option issue. Mr. Roche indicated the reason for the omission of this option was not known, whether it had been intentional or simply an oversight, but he stated that basically adding it would not have any adverse effect. Number 2289 CHAIRMAN ROKEBERG asked if there were further questions or further witnesses. There being none, he stated the public hearing on HB 411 was closed. Number 2297 REPRESENTATIVE HUDSON made a motion to move HB 411 out of the House Labor and Commerce Standing Committee with individual recommendations and the attached zero fiscal note, asking unanimous consent. There being no objections, HB 411 was moved out of the House Labor and Standing Committee. AN UNIDENTIFIED COMMITTEE MEMBER asked if it was the chairman's intention to move any further bills at this meeting. CHAIRMAN ROKEBERG replied it was not his intention. He stated the next bill would be held over because of technical problems. There was a brief discussion regarding committee attendance. Number 2367 CHAIRMAN ROKEBERG stated the committee would take a brief at ease at 4:03 p.m. The committee came back to order at 4:07 p.m. HB 451 - ASSISTIVE TECHNOLOGY & MOBILITY AIDS TAPE 98-29, SIDE B Number 0001 CHAIRMAN ROKEBERG announced the committee's next item of business would be HB 451, "An Act relating to assistive technology devices and mobility aids for physically disabled persons." Number 0020 JEFF LOGAN, Legislative Assistant to Representative Joseph Green, came forward to present HB 451. He summarized the sponsor statement which read: HB 451 establishes an express warranty for technology designed to assist physically disabled persons. Under the terms of the bill, if a consumer reports a nonconformity to a manufacture within a year of delivery, the manufacture must repair or replace the equipment, or offer a refund of the purchase price. Assistive technology and mobility aids for the physically disabled are not covered by "lemon laws" and consumer protection statutes in Title 45. The automobile lemon law in chapter 45 makes no mention of wheel chairs. Similarly, the Unfair Trade Practices and Consumer Protection Act, found in chapter 50, makes no mention of assistive equipment. Yet, 11 states have passed such laws, and others are considering doing so. Non-working assistive equipment can be not only inconvenient, but dangerous. Many of us have experienced the frustration of dealing with a non-responsive salesperson far from Alaska; imagine doing so without the benefit of the equipment you depend on to communicate, or get around. When people lose their mobility, or ability to communicate, they may not be aware of, or may not be able to remove themselves from, dangerous situations. Assistive technology allows the physically disabled to operate in a manner most of us take for granted. I ask for your support in enacting a law that affords basic protection to a group of consumers who already face obstacles unimagined by most of us. Number 0113 MR. LOGAN said the legislature is looking at this type of legislation because the number of people using this kind of equipment is growing, indicating this is due to the aging of the "baby boom" generation. He said it is estimated 1 in 7 Alaskans, approximately 80,000, are somehow disabled. He indicated there is currently no protection in law for these people regarding this equipment and he explained HB 451. Section 600 establishes an express warranty. Manufacturers who sell assistive technology or mobility aids directly or through a dealer must furnish a warranty for the equipment they sell, and if they do not, the equipment will be considered to have such a warranty by the state. He said warranties are often taken for granted but these consumers do not enjoy that benefit. Section 610 states if a consumer reports a nonconformity to the manufacturer within one year after first delivery, the nonconformity shall be repaired. Referring to his extensive research, Mr. Logan said there is still a great deal he does not know. He suggested the committee members ask the witnesses questions about the use and cost of this equipment, indicating one witness's assistive equipment cost over $25,000. Mr. Logan also indicated he thought the committee would find most of the consumers of this equipment treat their equipment very well because it is almost necessary to maintain their standard of living. In Section 620 of the bill, if the consumer makes a reasonable effort to get the nonconformity repaired but fails, the manufacturer must accept return of the equipment and replace it with comparable new equipment, or refund the full purchase price including finance charges, to the consumer. Mr. Logan said Section 630 states some of the return and refund procedures for this type of equipment. Number 0415 CHAIRMAN ROKEBERG commented that he had a concern about the meaning of the term "collateral costs" in Section 620. MR. LOGAN replied that could involve finance charges and other costs to the consumer, possibly concerning the manufacturer. CHAIRMAN ROKEBERG indicated the bill contains a definition of collateral costs which is too broad to be useful, and this is a concern ["Section 690. Definitions. ... (3) "collateral costs" means expenses incurred by a consumer in connection with the repair of a nonconformity including the costs of obtaining an alternative assistive technology device or mobility aid;"]. Number 0462 MR. LOGAN stated this language has been successful in other states but it would be acceptable if the committee wanted to "tighten it up." Continuing with his explanation, he said Section 650 states if a consumer leases assistive equipment and the equipment is returned for a refund, that equipment cannot be leased or sold to another consumer without full disclosure of the reasons for return. Section 640 states the lease can not be enforced if a piece of equipment is returned for a nonconformity. Section 660 states consumers cannot waive the rights granted to them under legislation, even if a manufacturer offers a discount on malfunctioning equipment in return for a statement that the consumer understands this and won't return the equipment when it turns out to be nonusable. Section 670 states that nothing in the bill limits the rights or remedies available to consumers under other laws. Section 680 states that a consumer may bring a legal action to recover damages resulting from a violation of the provisions of the bill; the court shall award twice the amount of any pecuniary loss together with cost disbursements, reasonable attorney fees, and any equitable relief the court determines is appropriate to a consumer who prevails in an action. Mr. Logan said the remainder of the bill is definitions, noting some may need further refinement, as the chairman indicated. Number 0637 CHAIRMAN ROKEBERG asked why there were 3 1/2 pages of definitions and 3 1/2 pages of bill. MR. LOGAN said it was their intent to be specific. CHAIRMAN ROKEBERG asked if any of the laws in the 11 other states were shorter. Number 0662 MR. LOGAN relied this bill is very similar to most of the other laws. The definitions section was modeled after Rhode Island's legislation, and appears very similarly in Colorado's and Wisconsin's. He noted these two states recently enacted this legislation. Mr. Logan said there is definitely a concern about loopholes as these types of statutes are considered by legislatures. He indicated the practice has been to attempt to be as specific as possible to avoid such loopholes. Number 0697 CHAIRMAN ROKEBERG asked Mr. Logan to provide the committee with copies of legislation from other states. MR. LOGAN agreed to do so. Number 0706 REPRESENTATIVE HUDSON mentioned his familiarity with this issue through a neighbor's experiences. He asked how enforceable this would be on manufacturers located outside Alaska, indicating it is particularly difficult to take action when this equipment comes from out-of-state. Number 0731 MR. LOGAN said they understand it is enforceable, noting there are small East Coast states without manufacturers that have been able to enforce this. He said he can obtain more information on enforceability for the committee. REPRESENTATIVE HUDSON said he would appreciate that. Number 0770 DERRILL L. JOHNSON, Administrator and Community Services Coordinator, Developmental Disabilities Program, Division of Mental Health and Developmental Disabilities (DMHDD), Department of Health and Social Services (H&SS), came forward to testify next. He stated the department is in support HB 451's intent. The department also believes the bill is rather detailed and lengthy, but considers this to probably be the best of the three versions out. Mr. Johnson indicated any changes making the bill easier to understand would be acceptable. He said his division buys a lot of medical equipment, and he noted he deals with many of these issues helping families get problems resolved when equipment malfunctions or does not meet advertised claims. Number 0825 REPRESENTATIVE TOM BRICE referred to the definition of collateral costs. He asked Mr. Johnson how may people in rural Alaska, for example, are using assistive technology devices, from his experience at DMHDD. MR. JOHNSON replied he couldn't estimate off the top of his head but indicated it is a substantial number. He said they provide services to about 2,300 families statewide and estimated that well over 30 percent of those families use some type of assistive technology. Number 0890 REPRESENTATIVE HUDSON questioned whether this kind of legislation would actually improve the access for Medicaid approval and the acquisition of many of these assistive technology devices. Number 0920 MR. JOHNSON was not sure he could address that question properly but said it would seem reasonable that the department would be more inclined to "broaden the scope of equipment" if it had better assurances about the equipment it was purchasing. He indicated the department, when purchasing equipment for individual families, tries to steer families toward those types of vendors the department has had good past experiences with and who stand behind the equipment they sell. Number 0959 REPRESENTATIVE BRICE asked who paid to fix or replace a piece of assistive equipment purchased by the department for an individual if that equipment malfunctions. He gave the example of a wheelchair. MR. JOHNSON replied that generally, if it was a consumer they were working with, they would assist the family in working through that process with the manufacturer. He said it would probably save state dollars, staff time and department dollars if they had better access for equipment repair. He also indicated this would save the individual consumers the frustration of being without their means of communication or movement. Number 1044 MILLIE RYAN, Health Planner, Governor's Council on Disabilities and Special Education, Department of Health and Social Services, came forward to testify next. She stated the council recently completed a three-year process developing a state plan. During that planning process they talked to a lot of different people in a variety of communities statewide; she said this issue came up frequently and stated the council is very supportive of a bill like this. Number 1094 REPRESENTATIVE BRICE stated a conflict, noting he is a member of the council. Number 1125 KEN DEAN, Independent Living Specialist, Southeast Assisted Independent Living Incorporated (SAIL Inc.), came forward to testify next. He noted he is also the director of the multiple sclerosis (MS) society and the MS Douglas Lions loan closet, which he said loans out a lot of equipment. He said freight to return equipment to the manufacture was one of the collateral costs mentioned earlier, relating a situation which he said began in 1990. He received the wheelchair in question in January of 1991 and said it had broken down by that March. He noted that wheelchair sits to this day in his living room and offered to give it to any of the committee members who wanted to make a planter out of it, stating, "It's an $8,500 wheelchair that is absolutely dangerous." He said the wheelchair pulls to the right and once dumped him off the curb into the street. An attorney he was working with wrote a "letter of demand" to Redman Wheelchairs; Mr. Dean said the attorney was told by Redman Wheelchairs' attorney, "'You don't have a lemon law in your state; try to enforce it.'" Mr. Dean referred to his current wheelchair which cost $27,500, noting the only differences between it and most other electric wheelchairs are that the feet can be raised independently and the back can be reclined independently. He said it is exactly like the one Duane French [Director, Division of Vocational Rehabilitation, Department of Education] uses except for those features. Mr. Dean said the manufacturer of his current chair, Everest and Jennings, stands behind its products but the reclining back and the leg lift parts were built by Faulken Enterprises (ph) of Colorado which does not honor its warranties. He indicated the footrests had malfunctioned at one point and Everest and Jennings had paid another contractor to fix them because Faulken Enterprises (ph) said the wheelchair was too far away from Colorado and the company just couldn't deal with it. Number 1286 CHAIRMAN ROKEBERG asked how long he had had this chair. MR. DEAN said since 1993. CHAIRMAN ROKEBERG noted the wheelchair was about five years old, and he asked what a wheelchair's normal expected life was. MR. DEAN said Medicare says wheelchairs should be replaced every seven years, but doesn't cover replacement at seven-year periods; it generally allows one wheelchair per lifetime. He indicated the aging process of a wheelchair is noticeable and that some of these things can be dangerous for the person using the equipment, noting he thought that was the point Mr. Choate, the attorney he had worked with, was trying to make to Redman Wheelchairs. He referred to written materials he provided the committee. Number 1356 REPRESENTATIVE BRICE asked Mr. Dean how he gained access to his current wheelchair. MR. DEAN replied he went to a dealer in Juneau. REPRESENTATIVE BRICE asked how many dealers there were in Juneau. MR. DEAN replied there was currently one, the other one had passed away. Number 1385 REPRESENTATIVE BRICE asked if Mr. Dean had a broad understanding about access to dealers across the state, asking how many dealers he knew of in Alaska who might be able to provide this type of equipment. MR. DEAN said he knew of one other, Geneva Woods (ph) in Anchorage. From his time with the MS society, he said he knows there are a lot of people with MS outside of Anchorage, Fairbanks and Juneau who use wheelchairs that are breaking down all the time. He said these people literally just stay in their houses until another wheelchair is flown out to them from the Lions' loan closet. REPRESENTATIVE BRICE confirmed, then, that there isn't a great deal competition within that market to provide greater access. Number 1441 CHAIRMAN ROKEBERG mentioned the collateral cost issue, noting he has some concerns about it, and said he understands the freight and mailing costs could be very high. MR. DEAN stated it cost $481 dollars each way to ship his previous wheelchair to Tucson, Arizona, and back to Juneau. It had to be shipped back to Tucson a second time for the same cost; he noted Redman Wheelchairs paid for the shipping back to Juneau that time. Number 1475 CHAIRMAN ROKEBERG indicated there was a problem with the term collateral costs because was so broad and he asked Mr. Dean what else he felt needed to be included in that category for recovery. Number 1489 MR. DEAN confirmed that telephone calls and "all of that stuff" should be included, noting it was itemized out in the materials he was providing to the committee. He indicated it was important to provide for replacement rental. He said he also had to convince Redman Wheelchairs all the problems stemmed from the wheelchair, not his weight, although that is what the company told him. Mr. Dean related his father went down to purchase the wheelchair, specifically asking if it could carry someone weighing over 200 pounds but less than 250. His father was shown one wheelchair by the salesman and assured this was true, but Mr. Dean said a different wheelchair was shipped and it had been an ongoing argument for eight years. Number 1552 CHAIRMAN ROKEBERG confirmed Mr. Dean felt a replacement rental for nonconforming equipment should be part of collateral costs. MR. DEAN answered in the affirmative, noting how important the equipment was to his mobility. Number 1582 CHAIRMAN ROKEBERG asked if there were any further questions of Mr. Dean and thanked him for his testimony and additional information. MR. DEAN responded that this bill was very important to him. Number 1597 CHAIRMAN ROKEBERG commented that he was going to become a cosponsor of HB 451, stating there were a few technical issues the committee would correct and then move the bill on. Chairman Rokeberg indicated the work done in this committee would help the legislation with its next committee of referral, the House Judiciary Standing Committee. Number 1649 SHELLEY GREENE, Direct Service Supervisor, Access Alaska Fairbanks, came forward to testify next. She stated she was there representing Access Alaska Fairbanks, an independent living center which provides services to people in the northern region who experience disabilities. Ms. Greene said she was testifying in support of HB 451 basically as a service provider but noted the committee could see she, too, experiences disability [Ms. Greene walks with a crutch and has MS]. She knows from personal experience that she would not be able to get to work to provide for her family without adaptive equipment. She would certainly like, for herself and the consumers they serve through Access Alaska Fairbanks, to be assured of warranties and the likelihood of replacement in the event that their equipment should break. She said they receive about 1,000 information and referral calls per year, noting many calls are about servicing equipment and many of these concern advocacy in relation to getting equipment serviced. Referring to earlier testimony, she reiterated it is emotionally difficult to lose a piece of adaptive equipment and difficult to deal with in many other ways. As a service provider offering advocacy, Access Alaska Fairbanks finds it spends a lot time helping people with deal with the issue of settlement of equipment breakdown. She mentioned earlier information relating that one in seven Alaskans potentially faces a disability. Out of those 1 in 7, she said surveys they have done show that 2/3 of those people want to work. She said in order for these people to work, their equipment must be acceptable, in good repair and warrantied. Number 1766 REPRESENTATIVE BRICE asked how accessible assistive technology is in the Interior, in Fairbanks. He asked how many dealers and how many avenues of access people have for wheelchairs, for example. Number 1792 MS. GREENE said there are probably about three providers in the Interior: the hospital, Geneva Woods (ph) and Apria Medical (ph). She indicated most of the rest is done by mail, both through other parts of the state and outside Alaska. Number 1812 REPRESENTATIVE BRICE asked if Access Alaska Fairbanks helped its clients through the process of obtaining assistive equipment. MS. GREENE answered in the affirmative. Access Alaska Fairbanks helps with research for the most part, but not necessarily with the purchase of these items although it may assist in finding a resource to help pay. Number 1831 CHAIRMAN ROKEBERG referred to the list of items qualifying as assistive technology devices which included computer equipment, (indisc.) devices, artificial voice output devices, optical scanners, et cetera. He asked if she or other people from Access Alaska Fairbanks have ever gotten involved with any of that "high tech" equipment. Number 1851 MS. GREENE answered in the affirmative, noting when they feel out of their element they always seek the advice of more skilled individuals or organizations. She said they use scanning devices and other equipment in their office, both for employee use and for informational use by community members. Number 1882 CHAIRMAN ROKEBERG stated it is the committee's responsibility to make sure business works and services are provided for the people of Alaska in all sectors. He commented he had a somewhat difficult question and he apologized if he was putting her on the spot. He asked what would keep someone from being an overly picky, problem consumer in this situation. He indicated he was asking if they were going too far here, or if it was something human nature would take care of. Number 1944 MS. GREENE said she thought human nature would take care of it herself, noting there would always be the occasional person who can never be satisfied. However, as a service provider at Access Alaska Fairbanks, she said they provide advocacy as one of their services and that is something they would help a person sort through so that, hopefully, it wouldn't become problematic either for the consumer or the businessperson. Number 1996 PATRICK REINHART, Executive Director, Statewide Independent Living Council (SILC), Department of Education, came forward to testify next. He said the SILC is made up of a majority of people with disabilities from around the state; its primary responsibility is the development of a state plan for independent living and the implementation of that plan with its partner centers for independent living around the state like Access Alaska in Fairbanks. He said they are all working toward the right of self- determination for people with disabilities and the ability for these people to hopefully live independent of institutional walls in the communities of their choice. Referring to Ms. Ryan's previous comments, he said when they collect testimony from around the state, this issue of the ability to get assistive technology equipment and have it repaired when appropriate has come up quite a bit. He said, therefore, SILC is very much in support of HB 451. Mr. Reinhart noted the council had, in fact, requested the bill's introduction. He said this had been especially through the efforts of one of the council members, Jeri Best (ph), noting the committee had probably been receiving e-mail messages from Ms. Best for a while. Mr. Reinhart thanked Representatives Green and Davies for their efforts. Number 2058 MR. REINHART said much of this equipment is purchased through third-party vendors like state entities such as DMHDD, as Mr. Johnson mentioned; or the Division of Vocational Rehabilitation. He said Medicaid also purchases equipment for individuals, noting the programs he has mentioned are all state and joint federal-state programs. He indicated that possibly the motivation to pursue fixing broken equipment may not be there all the time, especially if there is the possibility another piece of equipment might be purchased for a consumer by another state entity or group. Mr. Reinhart said he thinks this bill will provide motivation and support for agencies purchasing equipment for people with disabilities as well as for those people themselves, noting it might eventually save the state some money. He noted the definitions of assistive technology and communication devices had been mentioned; he said Mr. Johnson told him some of these devices run from $3,000 to $40,000. Mr. Reinhart stated this brings up an issue that is not in HB 451 but that the committee might consider: maybe a warranty period of more than one year could be considered for pieces of equipment meeting a threshold cost level. He commented on the cost of Mr. Dean's wheelchair and suggested longer warranties for equipment costing, perhaps, $10,000 or more, indicating a one-year warranty seemed inadequate when dealing with equipment costing $20,000 to $30,000. Additionally, Mr. Reinhart pointed out that this really is not a problem with the in-state businesses and dealers who are reputable and working on behalf of people with disabilities. He indicated it is the best interest of these businesses to provide good service for the equipment they sell and that a lot of the problems have been with out-of-state purchases. He commented this might "level the playing field" for those in-state dealers competing with "cutthroat" out-of-state operators. Mr. Reinhart said he thought, for that reason, there would be a lot of support from the in-state dealers. Number 2217 CHAIRMAN ROKEBERG asked if he had any comments on the collateral cost issue. MR. REINHART referred to the items Mr. Dean mentioned. He said he has heard those before, commenting on the shipping costs and rental of replacement equipment. He stated it could be further defined to actually list those types of things, noting this might add to the bill's length. Mr. Reinhart indicated he understood the concern about possible misconstruing of the term to apply to unrelated items, but said he thinks "collateral" itself means that it is related. Number 2246 CHAIRMAN ROKEBERG said his desire to shorten the bill might be more form than substance. Chairman Rokeberg asked Mr. Logan about use of the term "express warranty" indicating he was troubled by the wording of the sentence on page 1, lines 11 through 14, "If a manufacturer fails to furnish an express warranty as required by this section, the assistive technology device or mobility aid shall be covered by the express warranty as if the manufacturer had furnished an express warranty as required by this section." He asked Mr. Logan to check with the drafter, commenting it might be an implied warranty but he questioned whether it would have the strength. Additionally, Chairman Rokeberg referred to Mr. Dean's letter and commented that the definition of "collateral costs" would have to be lengthened to cover these items. Chairman Rokeberg also noted the amortization schedule, page 2, Section 620(1)(B), based on 1,825 days (five years) was not clear. He asked if it was lease vis- -vis a purchase. Number 2394 MR. LOGAN replied that it was simply an attempt to construct a formula to determine the remaining value of a piece of equipment. He said it hadn't seemed complicated to him before, but now that the question has been asked he sees that and thinks they could come up with a simpler formula. CHAIRMAN ROKEBERG said subsection (1) appeared to refer to purchase and that subsection (2) might apply to leasing. MR. LOGAN said that was correct. CHAIRMAN ROKEBERG noted he didn't understand why there had to be a differentiation. He also commented on the "reasonable allowance for use" in the amortization, asking Mr. Logan to explain that for the committee. Number 2442 MR. LOGAN said, again, they were trying to determine the remaining value of the piece of equipment. He indicated this would allow the manufacturer to deduct, in essence, some depreciation for a piece of equipment that had been used by a consumer for some time before malfunctioning and being returned to the manufacturer. Mr. Logan said that is the intent behind "less a reasonable allowance for use". TAPE 98-30, SIDE A Number 0001 MR. LOGAN indicated they would work with the committee staff to present an acceptable committee substitute [BEGINNING OF TESTIMONY CUT OFF BY TAPE CHANGE]. CHAIRMAN ROKEBERG stated they looked forward to moving HB 451. The legislation was held. ADJOURNMENT Number 0037 CHAIRMAN ROKEBERG adjourned the House Labor and Commerce Standing Committee meeting at 4:57 p.m.

Document Name Date/Time Subjects