Legislature(1997 - 1998)

05/01/1998 03:32 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                                
                    May 1, 1998                                                
                     3:32 p.m.                                                 
                                                                               
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Representative Norman Rokeberg, Chairman                                       
Representative John Cowdery, Vice Chairman                                     
Representative Bill Hudson                                                     
Representative Jerry Sanders                                                   
Representative Joe Ryan                                                        
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
Representative Tom Brice                                                       
Representative Gene Kubina                                                     
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
HOUSE BILL NO. 389                                                             
"An Act relating to an exemption from the requirement for payment              
for overtime under a voluntary written agreement for certain                   
employees in the airline industry; and providing for an effective              
date."                                                                         
                                                                               
     - MOVED CSHB 389(L&C) OUT OF COMMITTEE                                    
                                                                               
HOUSE BILL NO. 300                                                             
"An Act relating to health insurance; and providing for an                     
effective date."                                                               
                                                                               
     - TABLED                                                                  
                                                                               
* HOUSE BILL NO. 490                                                           
"An Act relating to insurance premium taxes."                                  
                                                                               
     - MOVED CSHB 490(L&C) OUT OF COMMITTEE                                    
                                                                               
CS FOR SENATE BILL NO. 305(L&C)                                                
"An Act establishing a standard for determining when an injured                
worker is eligible for reemployment benefits and establishing a                
procedure for adopting a new, revised, or replacement standard for             
determining when an injured worker is eligible for reemployment                
benefits."                                                                     
                                                                               
     - MOVED CSSB 305(L&C) OUT OF COMMITTEE                                    
                                                                               
HOUSE BILL NO. 388                                                             
"An Act relating to the right to refuse to sell, give, or serve an             
alcoholic beverage."                                                           
                                                                               
     - MOVED HB 388 OUT OF COMMITTEE                                           
                                                                               
CS FOR SENATE BILL NO. 336(L&C)                                                
"An Act relating to excluding professional hockey team members from            
workers' compensation coverage."                                               
                                                                               
     - MOVED CSSB 336(L&C) OUT OF COMMITTEE                                    
                                                                               
CS FOR SENATE BILL NO. 330(RES)                                                
"An Act relating to locations of underground facilities and                    
excavations in the area of underground facilities."                            
                                                                               
     - MOVED HCS CSSB 330(RES) OUT OF COMMITTEE                                
                                                                               
(* First public hearing)                                                       
                                                                               
PREVIOUS ACTION                                                                
                                                                               
BILL: HB 389                                                                   
SHORT TITLE: OVERTIME WAGE EXEMPTION AIRLINE EMPLOYEES                         
SPONSOR(S): REPRESENTATIVES(S) COWDERY                                         
                                                                               
Jrn-Date    Jrn-Page           Action                                          
02/11/98      2279     (H)  READ THE FIRST TIME - REFERRAL(S)                  
02/11/98      2279     (H)  LABOR & COMMERCE                                   
04/22/98               (H)  L&C AT  3:15 PM CAPITOL 17                         
04/22/98               (H)  MINUTE(L&C)                                        
04/24/98               (H)  L&C AT  3:15 PM CAPITOL 17                         
04/24/98               (H)  MINUTE(L&C)                                        
05/01/98               (H)  L&C AT  3:15 PM CAPITOL 17                         
                                                                               
BILL: HB 300                                                                   
SHORT TITLE: ALASKA PATIENTS' BILL OF RIGHTS                                   
SPONSOR(S): REPRESENTATIVES(S) BUNDE, James, Rokeberg                          
                                                                               
Jrn-Date    Jrn-Page           Action                                          
01/12/98      2023     (H)  PREFILE RELEASED  1/2/98                           

01/12/98 2023 (H) READ THE FIRST TIME - REFERRAL(S)

01/12/98 2023 (H) HES, LABOR & COMMERCE 02/19/98 (H) HES AT 3:00 PM CAPITOL 106 02/19/98 (H) MINUTE(HES) 02/24/98 (H) HES AT 3:00 PM CAPITOL 106 02/24/98 (H) MINUTE(HES) 02/25/98 2423 (H) HES RPT CS(HES) NT 1DP 2DNP 2NR 02/25/98 2423 (H) DP: BUNDE; DNP: PORTER, VEZEY; 02/25/98 2423 (H) NR: DYSON, GREEN 02/25/98 2423 (H) ZERO FISCAL NOTE (DCED) 02/25/98 2423 (H) REFERRED TO L&C 03/20/98 (H) L&C AT 3:15 PM CAPITOL 17 03/20/98 (H) MINUTE(L&C) 03/23/98 (H) L&C AT 3:15 PM CAPITOL 17 03/23/98 (H) MINUTE(L&C) 04/27/98 (H) L&C AT 3:15 PM CAPITOL 17 04/27/98 (H) MINUTE(L&C) 05/01/98 (H) L&C AT 3:15 PM CAPITOL 17 05/01/98 3444 (H) COSPONSOR(S): ROKEBERG BILL: HB 490 SHORT TITLE: INSURANCE PREMIUM TAX SPONSOR(S): RULES BY REQUEST Jrn-Date Jrn-Page Action 04/27/98 3279 (H) READ THE FIRST TIME - REFERRAL(S) 04/27/98 3279 (H) L&C, FINANCE 05/01/98 (H) L&C AT 3:15 PM CAPITOL 17 BILL: SB 305 SHORT TITLE: IMPLEMENTATION OF WORK COMP EDITION SPONSOR(S): SENATOR(S) DUNCAN, Ellis; REPRESENTATIVE(S) Rokeberg Jrn-Date Jrn-Page Action 02/16/98 2524 (S) READ THE FIRST TIME - REFERRAL(S) 02/16/98 2524 (S) L&C, JUD 03/10/98 (S) L&C AT 3:45 PM FAHRENKAMP RM 203 03/10/98 (S) MINUTE(L&C) 03/10/98 (S) MINUTE(L&C) 03/12/98 2841 (S) L&C RPT CS 4DP NEW TITLE 03/12/98 2841 (S) DP: LEMAN, KELLY, MACKIE, HOFFMAN 03/12/98 2841 (S) ZERO FNS TO SB & CS (LABOR, ADM) 03/23/98 2957 (S) COSPONSOR: ELLIS 04/15/98 (S) JUD AT 1:45 PM BELTZ ROOM 211 04/17/98 (S) JUD AT 1:30 PM BELTZ ROOM 211 04/18/98 3361 (S) JUD RPT 2DP 1NR (L&C)CS 04/18/98 3361 (S) DP: TAYLOR, MILLER; NR: PARNELL 04/18/98 3361 (S) PREVIOUS ZERO FNS (ADM, LABOR) 04/20/98 (S) RLS AT 11:35 AM FAHRENKAMP RM 203 04/23/98 3457 (S) RULES TO CALENDAR 4/23/98 04/23/98 3458 (S) READ THE SECOND TIME 04/23/98 3458 (S) L&C CS ADOPTED UNAN CONSENT 04/23/98 3458 (S) ADVANCED TO THIRD READING UNAN CONSENT 04/23/98 3458 (S) READ THE THIRD TIME CSSB 305(L&C) 04/23/98 3459 (S) PASSED Y18 N- E1 A1 04/23/98 3459 (S) DONLEY NOTICE OF RECONSIDERATION 04/24/98 3491 (S) RECONSIDERATION NOT TAKEN UP 04/24/98 3492 (S) TRANSMITTED TO (H) 04/27/98 3271 (H) READ THE FIRST TIME - REFERRAL(S) 04/27/98 3271 (H) L&C, JUDICIARY 05/01/98 (H) L&C AT 3:15 PM CAPITOL 17 05/01/98 3444 (H) CROSS SPONSOR(S): ROKEBERG BILL: HB 388 SHORT TITLE: RIGHT TO REFUSE TO SERVE LIQUOR SPONSOR(S): REPRESENTATIVES(S) DYSON Jrn-Date Jrn-Page Action 02/06/98 2241 (H) READ THE FIRST TIME - REFERRAL(S) 02/06/98 2241 (H) HES, LABOR & COMMERCE 04/09/98 (H) HES AT 3:00 PM CAPITOL 106 04/09/98 (H) MINUTE(HES) 04/16/98 (H) HES AT 3:00 PM CAPITOL 106 04/17/98 3036 (H) HES RPT 3DP 3NR 04/17/98 3037 (H) DP: DYSON, BUNDE, PORTER; NR: GREEN, 04/17/98 3037 (H) KEMPLEN, BRICE 04/17/98 3037 (H) ZERO FISCAL NOTE (REV) 04/17/98 3037 (H) REFERRED TO LABOR & COMMERCE 04/29/98 (H) L&C AT 3:15 PM CAPITOL 17 04/29/98 (H) MINUTE(L&C) 05/01/98 (H) L&C AT 3:15 PM CAPITOL 17 BILL: SB 336 SHORT TITLE: WORKERS' COMP: EXEMPT HOCKEY PLAYERS SPONSOR(S): LABOR & COMMERCE Jrn-Date Jrn-Page Action 03/09/98 2791 (S) READ THE FIRST TIME - REFERRAL(S) 03/09/98 2791 (S) L&C, FIN 03/19/98 (S) L&C AT 1:30 PM FAHRENKAMP RM 203 03/19/98 (S) MINUTE(L&C) 03/23/98 2946 (S) L&C RPT CS 1DP 2NR SAME TITLE 03/23/98 2946 (S) DP: LEMAN; NR: KELLY, MACKIE 03/23/98 2946 (S) ZERO FISCAL NOTE TO SB & CS (LABOR) 04/20/98 (S) FIN AT 5:30 PM SENATE FINANCE 532 04/22/98 (S) FIN AT 9:00 AM SENATE FINANCE 532 04/22/98 (S) RLS AT 11:20 AM FAHRENKAMP RM 203 04/22/98 3433 (S) FIN RPT 1DP 5NR (L&C)CS 04/22/98 3433 (S) DP: PHILLIPS; NR: PEARCE, SHARP, 04/22/98 3433 (S) DONLEY, ADAMS, PARNELL 04/22/98 3433 (S) PREVIOUS ZERO FN (LABOR) 04/23/98 3457 (S) RULES TO CALENDAR 4/23/98 04/23/98 3459 (S) READ THE SECOND TIME 04/23/98 3459 (S) L&C CS ADOPTED UNAN CONSENT 04/23/98 3459 (S) ADVANCED TO THIRD READING UNAN CONSENT 04/23/98 3460 (S) READ THE THIRD TIME CSSB 336(L&C) 04/23/98 3460 (S) PASSED Y13 N5 E1 A1 04/23/98 3460 (S) ADAMS NOTICE OF RECONSIDERATION 04/24/98 3491 (S) RECONSIDERATION NOT TAKEN UP 04/24/98 3492 (S) TRANSMITTED TO (H) 04/27/98 3271 (H) READ THE FIRST TIME - REFERRAL(S) 04/27/98 3271 (H) L&C, FINANCE 05/01/98 (H) L&C AT 3:15 PM CAPITOL 17 BILL: SB 330 SHORT TITLE: LOCATING UNDERGROUND FACILITIES SPONSOR(S): LABOR & COMMERCE Jrn-Date Jrn-Page Action 02/24/98 2631 (S) READ THE FIRST TIME - REFERRAL(S) 02/24/98 2631 (S) L&C, RES 03/12/98 (S) L&C AT 1:30 PM FAHRENKAMP RM 203 03/12/98 (S) MINUTE(L&C) 03/23/98 2945 (S) L&C RPT CS 2DP 1NR SAME TITLE 03/23/98 2945 (S) DP: LEMAN, HOFFMAN NR: MACKIE 03/23/98 2945 (S) ZERO FISCAL NOTE TO SB & CS (S.L&C) 03/30/98 (S) RES AT 3:30 PM BUTROVICH ROOM 205 04/07/98 3178 (S) RES RPT CS 1DP 3NR NEW TITLE 04/07/98 3178 (S) DP: LEMAN; NR: HALFORD, SHARP, GREEN 04/07/98 3178 (S) PREVIOUS ZERO FN APPLIES (S.L&C) 04/08/98 (S) RLS AT 11:20 AM FAHRENKAMP RM 203 04/08/98 (S) MINUTE(RLS) 04/08/98 3197 (S) ZERO FISCAL NOTE TO CS (DCED) 04/14/98 3242 (S) RULES TO CALENDAR 4/14/98 04/14/98 3243 (S) READ THE SECOND TIME 04/14/98 3244 (S) RES CS ADOPTED UNAN CONSENT 04/14/98 3244 (S) ADVANCED TO THIRD READING UNAN CONSENT 04/14/98 3244 (S) READ THE THIRD TIME CSSB 330(RES) 04/14/98 3244 (S) PASSED Y16 N- E4 04/14/98 3248 (S) TRANSMITTED TO (H) 04/15/98 2979 (H) READ THE FIRST TIME - REFERRAL(S) 04/15/98 2979 (H) RESOURCES, LABOR & COMMERCE 04/23/98 (H) RES AT 1:00 PM CAPITOL 124 04/23/98 (H) MINUTE(RES) 04/24/98 3242 (H) RES RPT HCS(RES) 1DP 6NR 04/24/98 3242 (H) DP: MASEK; NR: OGAN, HUDSON, NICHOLIA, 04/24/98 3242 (H) JOULE, BARNES, WILLIAMS 04/24/98 3242 (H) SENATE ZERO FISCAL NOTE (DCED) 4/8/98 04/24/98 3242 (H) SENATE ZERO FISCAL NOTE (S.L&C) 3/23/98 05/01/98 (H) L&C AT 3:15 PM CAPITOL 17 WITNESS REGISTER JAMES HORNADAY, Legislative Assistant to Representative Pete Kott Alaska State Legislature Capitol Building, Room 204 Juneau, Alaska 99801 Telephone: (907) 465-6848 POSITION STATEMENT: Presented HB 490. JERRY REINWAND, Lobbyist for Blue Cross Blue Shield Alaska 2 Marine Way, Suite 119 Juneau, Alaska 99801 Telephone: (907) 586-8966 POSITION STATEMENT: Testified in support of HB 490. ED LINDQUIST, Director Contract Administration/Benefits Anchorage School District 4600 DeBarr Road P.O. Box 196614 Anchorage, Alaska 99519-6614 Telephone: (907) 269-2428 POSITION STATEMENT: Testified in support of HB 490. LINDA HULBERT P.O. Box 81402 Fairbanks, Alaska 99708 Telephone: (907) 452-4400 POSITION STATEMENT: Testified in favor of the amendment to HB 490. PATTI BLATTMACHR Alaska Trust Company 1029 West Third Avenue, Suite 601 Anchorage, Alaska 99501 Telephone: (907) 278-6775 POSITION STATEMENT: Testified in favor of the amendment to HB 490. WENDY REDMAN, Vice President for University Relations University of Alaska P.O. Box 755200 Fairbanks, Alaska 99775 Telephone: (907) 474-7582 POSITION STATEMENT: Testified on HB 490. 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 490. BARBARA HUFF TUCKNESS, Director Legislative Affairs and Government Affairs International Brotherhood of Teamsters Local 959 520 East 34th Avenue Anchorage, Alaska 99503 Telephone: (907) 565-8236 POSITION STATEMENT: Testified in support of proposed committee substitute for HB 490. SANDY BURD, Researcher for Senator Jim Duncan Alaska State Legislature Capitol Building, Room 119 Juneau, Alaska 99801 Telephone: (907) 465-4766 POSITION STATEMENT: Testified for sponsor on SB 305. REPRESENTATIVE FRED DYSON Alaska State Legislature Capitol Building, Room 428 Juneau, Alaska 99801 Telephone: (907) 465-2199 POSITION STATEMENT: Sponsor of HB 388. ANNETTE KREITZER, Legislative Assistant to Senator Loren Leman Alaska State Legislature Capitol Building, Room 113 Juneau, Alaska 99801 Telephone: (907) 465-3844 POSITION STATEMENT: Presented SB 336; presented SB 330. PAUL GROSSI, Director Division of Workers' Compensation Department of Labor P.O. Box 25512 Juneau, Alaska 99802-5512 Telephone: (907) 465-2790 POSITION STATEMENT: Testified on SB 336. SHIRLEY ARMSTRONG, Legislative Assistant to Chairman Rokeberg Alaska State Legislature Capitol Building, Room 24 Juneau, Alaska 99801 Telephone: (907) 465-4968 POSITION STATEMENT: Provided information on SB 330. JIM ROWE, Executive Director Alaska Telephone Association 201 East 56th Avenue, Suite 114 Anchorage, Alaska 99518 Telephone: (907) 563-4000 POSITION STATEMENT: Answered questions on SB 330. ERIC YOULE, Executive Director Alaska Rural Electric Cooperative Association 703 West Tudor Road Anchorage, Alaska 99503 Telephone: (907) 561-6103 POSITION STATEMENT: Testified on SB 330. ACTION NARRATIVE CHAIRMAN NORMAN ROKEBERG called the House Labor and Commerce Standing Committee meeting to order at 3:22 p.m. Members present at the call to order were Representatives Rokeberg, Cowdery, Sanders and Ryan. Representative Hudson arrived as the meeting was in progress [NO ARRIVAL TIME WAS NOTED FOR REPRESENTATIVE HUDSON IN THE TAPE LOG NOTES OR IN RECORDED TESTIMONY. THE BEGINNING OF THIS MEETING WAS NOT RECORDED.] HB 389 - OVERTIME WAGE EXEMPTION AIRLINE EMPLOYEES [NO TAPE NUMBER AVAILABLE. THE BEGINNING OF THIS MEETING, WITH THE CHAIRMAN'S ANNOUNCEMENT THE COMMITTEE WOULD TAKE UP HB 389 AS ITS FIRST ORDER OF BUSINESS AND ADOPTION OF THE PROPOSED COMMITTEE SUBSTITUTE, WAS NOT RECORDED. TESTIMONY RECONSTRUCTED FROM TAPE LOG NOTES.] CHAIRMAN ROKEBERG announced the committee's first order of business was HB 389, "An Act relating to an exemption from the requirement for payment for overtime under a voluntary written agreement for certain employees in the airline industry; and providing for an effective date." REPRESENTATIVE JOHN COWDERY made a motion to adopt the proposed committee substitute for HB 389, labeled 0-LS1448\E, Cramer, dated 4/27/98. There being no objections, the proposed committee substitute was adopted. [BEGINNING OF RECORDED TESTIMONY] TAPE 98-56, SIDE A Number 0001 REPRESENTATIVE COWDERY stated, "... and we had some problems, our - our labor people got together with the employees and worked out this committee substitute." He indicated it was unlikely the legislation would make it through the process because it was so late in the session, but he would like to move the legislation unless "labor" or somebody wanted to speak. Representative Cowdery made motion to move the proposed committee substitute for HB 389 out of committee with individual recommendations and the attached zero fiscal note. Number 0052 CHAIRMAN ROKEBERG asked if there were any objections. There being none, CSHB 389(L&C) was moved out of the House Labor and Commerce Standing Committee. HB 300 - ALASKA PATIENTS' BILL OF RIGHTS Number 0075 CHAIRMAN ROKEBERG announced the committee's next order of business was HB 300, "An Act relating to health insurance; and providing for an effective date." He stated there was a proposed committee substitute, Version M, labeled 0-LS1248\M, Ford, dated 4/30/98, and he explained the changes which had been made. Chairman Rokeberg indicated on page 1, line 1, the word "care" had been placed in the title so the language read, "health care insurance". The chairman noted the same addition had been made on page 1, line 2, also in the bill title. The next changes had been made in Section 3 of Version M, "AS 21 is amended by adding a new chapter to read: Chapter 07. Regulation of Health Care Insurance Plans.". On page 2, line 28, Sec. 21.07.010(5)(E) had been modified to read, "(E) current, usual, customary, and reasonable reimbursement schedules, and methodology.". On page 3, line 3, Sec. 21.07.020(2), emergency room provisions had been changed to read, "(2) emergency room services shall be covered if authorized by the attending physician;". Chairman Rokeberg indicated the language which had been subsection (3) in Version J, "copayment requirements shall be uniform between health care providers", had been deleted from Version M. He commented, "Subsection 3, the word 'provided' was put in there in Amendment 1. We're still on page 3." On page 3, line 13, in Sec. 21.07.030(a), after "insurer" the words "or managed care contractor" had been inserted to "pick up the definition." Number 0266 CHAIRMAN ROKEBERG noted in Sec. 21.07.250(1) "health insurance" had been changed to "health care insurance", indicating this subsection had formerly been had been subsection (3) and was now (1). He indicated Sec. 21.07.250(3), on page 4, the health care services, had been redefined to mean "services for diagnosis, prevention, treatment, or cure or relief of a health condition, illness, injury, or disease" ["subsection 2" stated on tape]. Managed care plan was redefined in Sec. 21.07.250(6). In Sec.07.250(9) the utilization review definition had been changed to read, "(9) "utilization review" means a system of reviewing the medical necessity, appropriateness, efficacy, or efficiency of health care services, procedures, settings, and supplies provided under a managed care plan using specified guidelines, including preadmission certification, case management, second opinion, the application of practice guidelines, concurrent review, discharge planning, ambulatory review, and retrospective review.". Chairman Rokeberg explained the change in Section 4, which would amend AS 21.42 by adding new section, "Sec. 21.42.390. Required health care insurance coverage provisions.". He indicated the language, "this paragraph does not apply to a health care insurance plan or contract if the covered person signs a written waiver of the provisions of this paragraph" had been added to Sec. 21.42.390(a)(1) after "prohibits a covered person from obtaining health care service from a health care provider of the person's choice, including a specialist". He continued, "And it goes on to ... and the old 'c' sub '1' was deleted." He noted those were the changes in Version M. Number 0449 CHAIRMAN ROKEBERG asked if he heard a motion to adopt the proposed committee substitute, Version M. There being no motion to adopt Version M, Chairman Rokeberg stated HB 300 had been tabled. HB 490 - INSURANCE PREMIUM TAX Number 0474 CHAIRMAN ROKEBERG announced the committee's next order of business was HB 490, "An Act relating to insurance premium taxes." Number 0500 JAMES HORNADAY, Legislative Assistant to Representative Pete Kott, came forward to present HB 490. He stated HB 490 was introduced by request; it exempted certain premiums paid by employers participating in the Public Employees Retirement System (PERS) of Alaska or in the Teachers Retirement System (TRS) of Alaska, and premiums paid under contracts purchased under AS 39.30 from the tax levied on insurers found in AS 21.09.210. He stated, "This amendment, we hope, will encourage participation in the systems (indisc.) it will strengthen those programs as well as assist the individual employees in those systems." Mr. Hornaday said he understood, from brief discussions with Representative Ryan and also the director of the Division of Insurance, there was an amendment which Representative Kott did not oppose, and which Mr. Hornaday said he was told would make this an even better bill. The sponsor statement read: Current Alaska law (AS 21.09.210(I)) prohibits taxes of any kind from being imposed on insurance premiums paid by the State. However, buried in Alaska's voluminous insurance laws is a provision which could be interpreted to require the Director of Insurance to levy a unique type of premium tax on certain health insurance policies issued to the University of Alaska, municipalities and school districts. HB 490 leaves in place this seldom used tax but clarifies that the tax does not apply to health insurance premiums written to the University of Alaska, municipalities and school districts. The public policy issue which HB 490 clarifies is that the State of Alaska will not impose a tax on health insurance sold to the University of Alaska, municipalities and school districts. To impose a "back door" health insurance tax on the University and the State's political subdivisions makes no sense from either a policy or fiscal perspective. I urge your support of the legislation. Number 0600 CHAIRMAN ROKEBERG indicated the committee had distributed to the members a May 1, 1998, letter from the Anchorage school district written by Mr. Lindquist. Chairman Rokeberg asked Mr. Hornaday if he wished to speak to the provisions on the "jumbo" insurance. MR. HORNADAY deferred to Mr. Reinwand. Number 0656 JERRY REINWAND, Lobbyist for Blue Cross Blue Shield Alaska (Blue Cross), came forward to testify. He noted they had put some information in the bill packets. Mr. Reinwand indicated some information the director of the Division of Insurance somehow unhappy with an aspect of this information and he apologized. Mr. Reinwand summarized the issue in Blue Cross's view, stating, "Should insurance that is sold by Blue Cross and any other insurer to municipalities, school districts, REAAs [Rural Education Attendance Areas] -- there's a question about whether the university is covered or not covered. The premium tax has never been collected on the university, but there has been a debate about whether they're in or they're out. The bottom-line question is: Should those insurance policies be taxed for public entities? The state -- there's a specific provision in the insurance code that exempts the state when the state was purchasing insurance before it went self-insured that exempted the state from paying taxes on any insurance that they bought. And at least us, and again we may ... be open to error on this, but that's - that's really what we believe the public policy is, should the legislature or should anyone impose a tax on insurance purchased by public entities other than the state. ... The Section 2 of the ... proposed committee substitute basically says that if you're a member of PERS or ... TRS, you do not have to pay the tax. ... That is an oversimplification, but that's the basic issue." Section 2 of Version E read: * Sec.2. AS 21.09.210(i) is amended to read: (i) Premiums paid by the state, premiums paid by employers who participate in the Public Employees' Retirement System of Alaska or in the Teacher's Retirement System of Alaska, [FOR INSURANCE POLICIES] and premiums paid under contracts purchased under the provisions of AS 39.30 are exempt from taxation under this chapter [SECTION]. An insurer may not include the tax imposed under this section in a premium charged on an insurance policy or contract purchased by the state under the provisions of AS 39.30. An insurer may claim the exemption on forms provided by the division of insurance. Number 0758 CHAIRMAN ROKEBERG indicated Mr. Reinwand mentioned there was a problem with the information Blue Cross had given the committee. The chairman said he was not quite sure what Mr. Reinwand had been referring to. Number 0766 MR. REINWAND said he would let the director of the Division of Insurance speak to it. CHAIRMAN ROKEBERG confirmed Blue Cross supported the legislation. MR. REINWAND answered in the affirmative. Number 0790 REPRESENTATIVE COWDERY asked Mr. Reinwand to elaborate on his comments about the university. Number 0798 MR. REINWAND indicated Wendy Redman, Vice President for Government Relations, University of Alaska, was present and should speak to that. Mr. Reinwand stated, as he understood it, Blue Cross has had discussions with the division but the tax has never been imposed, nor has the tax ever been collected on the University of Alaska. He indicated HB 490 would clearly say that in no event would it ever happen, noting insurance directors change and it could be something that might be done differently in the future. He said it was clear that there was that possibility for other public entities and the real question was, "In effect, should you tax public entities?" He noted Blue Cross did not think they should. Number 0838 CHAIRMAN ROKEBERG stated, "So your testimony, Mr. Reinwand, is the university's been skating on this one." MR. REINWAND said that was not his testimony. Number 0868 ED LINDQUIST, Director, Contract Administration/Benefits, Anchorage School District, testified via teleconference from Anchorage. He stated the district's primary interest in this was that it was funded in large part by the state so the district was, in effect, just sending money back to the state that the state had sent it. He said, "We are under a minimum contract where ... insurance companies that would administer our plan, but it's the funds of the district which are provided by the state that really manage the plan. What essentially happens, then, that we are supported by funding and then the premiums, which either the district pays or the employee, ... the premium is then raised by that amount until the money simply comes back. Our concern is, and particularly in recent years, and I could probably have seven or eight employee groups here to testify, but I don't think you would want to spend that amount of time, is, in recent year, the employee contributions have gone up significantly because the district has not had enough money to fund any portion of the premium to a greater extent then it did about six years ago. Consequently this is a directly a tax on the employee when the premium is paid, the employee and the premium increases. That 2 percent comes directly out of the employee's pocketbook and it's kind of negative direction, particularly in - in terms of the way wages and salaries have been virtually frozen for the last several years. So consequently it really is a negative thing." Number 0987 MR. LINDQUIST continued, "Our belief is that if this applies to state employees and other agencies in the state who are funded by the state, that the same principles and policies ought to apply to employees of the school district. (Indisc.) that's our position, it really doesn't matter which insurance company it may happen to be at any given time. Our concern is that we think we're spending time (indisc.) around money coming to us and sending it back in a manner that's not particularly efficient and secondly, it is a wage tax in a sense on employees who are paying a higher premium than they would otherwise have to pay when their salaries and wages are funded primarily by the state." He indicated that summed up his comments. Number 1043 LINDA HULBERT testified next via teleconference from Fairbanks. She stated she had lived in Fairbanks for 30 years and was an insurance agent. Ms. Hulbert testified in favor of the amendment to HB 490. She stated the proposal was that state premiums had to be paid at the usual 2.7 percent for individual life insurance policies, up to $100,000 per year, which she said would yield the state about $2,700; she indicated the state premium tax would then be decreased on amounts above $100,000 per year. Ms. Hulbert stated there were not very many premiums in the state of Alaska for individual life insurance exceeding $100,000 per year and continued, "With the advent of the Alaska Trust Act, we have had a significant increase in the amount of trust and the interest in doing trust business in the state of Alaska. I've had the privilege of traveling all around the United States working with attorneys, working with accountants, and working with insurance agents to publicize and let people know about the Alaska Trust Act." She said the state premiums had been an been an issue, not just with other states, but also in placing trusts in foreign jurisdictions. In foreign jurisdictions there were, she said, of course, no premium tax at all. She asked the committee's consideration of this amendment, she thought it was very favorable, a revenue enhancer to the state of Alaska, and would certainly encourage large insurance policies to be placed in Alaska trusts. She said it would make the state much more competitive in the marketplace. Number 1136 CHAIRMAN ROKEBERG indicated Ms. Hulbert had said there were very few policies of that amount in Alaska. He asked if there were any such policies. Number 1143 MS. HULBERT stated she did not know and deferred that question to the director of the Division of Insurance. She said she couldn't say she personally did not know of any, but would say that the revenue from them was probably not that significant. She thinks Alaska could see significant revenue with large policies if this amendment was enacted. She said she thought it would be very revenue positive for the state of Alaska and it would certainly encourage people to do their trust planning in Alaska. She commented, "More trusts mean more trust officers, more attorneys, more jobs in the state." Number 1177 REPRESENTATIVE JOE RYAN asked if she had anything encouraging to say about it. MS. HULBERT replied she had done a small amount of research with the life insurance marketing and research area. She said their research statistics indicated approximately 12,000 individual life insurance policies were sold per year with insurance premiums of over $100,000 per year. She commented, "So, I think that it's a good thing for the state of Alaska and I think it will enhance the trust industry and the financial planning services industry that we're all so eager to build." Number 1216 REPRESENTATIVE COWDERY asked Ms. Hulbert who she envisioned would ultimately have to pay this tax, wondering whether it would be the employee. Number 1220 MS. HULBERT said this was not an employee-employer situation, it was an individual. She commented there were very few people employed in the state of Alaska who could afford to put $100,000 a year into a life insurance policy. She said, "We think that primarily this is going to attract policies from outside the state of Alaska. We would normally not see any of these premiums and ... they would go to a foreign jurisdiction or into another state. But when we add them to the Alaska Trust Act, a lot of people are very eager, in my estimation, to place business and new work with the Alaska trust, but when you do work with the Alaska Trust Act, that policy is sold in Alaska and owned in Alaska by an Alaska trust company. That means the premium revenues come to the state of Alaska. So, instead of the premium revenues going to another state or instead of the policy going offshore, it comes here and we get the revenue. (Indisc.) most of the revenue that would come in under this amendment is revenue that would come in under this amendment is revenue that would come in from individuals living outside the state of Alaska." Number 1288 PATTI BLATTMACHR, Alaska Trust Company, testified next via teleconference from Anchorage. She stated she spoke in favor of the amendment because she believed it would increase revenue for Alaska, indicating Ms. Hulbert's comments had been fairly complete. Number 1303 CHAIRMAN ROKEBERG confirmed there were no more witnesses on teleconference for HB 490. Number 1350 REPRESENTATIVE BILL HUDSON apologized for not being present promptly when the meeting began. He asked if the proposed committee substitute had been adopted properly before the committee. CHAIRMAN ROKEBERG answered it had not. REPRESENTATIVE HUDSON noted he had heard two witnesses indicate support for the amendments and he said he was assuming, then, that the witnesses were in favor of the revised bill in this draft. CHAIRMAN ROKEBERG agreed and he noted he believed there was an additional amendment. REPRESENTATIVE HUDSON made a motion to adopt the proposed committee substitute for HB 490, Version E, labeled 0-LS1775\E, Ford, dated 4/29/98. There being no objections, Version E was adopted. Number 1415 BARBARA HUFF TUCKNESS, Director, Legislative Affairs and Government Affairs, International Brotherhood of Teamsters Local 959, came forward to testify. She stated she was there to speak in favor of the proposed committee substitute for HB 490. Referring to Mr. Lindquist's testimony, she noted in her "other job" she negotiated collective bargaining agreements and had actually been hit with this particular issue across the table. She noted, "Mr. Lindquist is exactly right, our members ended up paying. We represent three of the seven bargaining units there that he referred to earlier in his testimony. What I found interesting -- I also negotiate contracts with the city of Anchorage and unless possibly the Division of Insurance has different information, I have never faced that particular issue with the Municipality of Anchorage. So, even within the city of Anchorage, there's a difference in how that tax has historically been applied with (indisc.) Municipality of Anchorage versus the Anchorage School District. Anyway, we are very much in favor and encourage the members of the committee to support it as well." Number 1429 WENDY REDMAN, Vice President for University Relations, University of Alaska, came forward to testify. She noted she had not seen the proposed committee substitute [Version E] and indicated she was therefore speaking to original version of HB 490 and the section on the exemption for the PERS and TRS employees. She noted, as Mr. Reinwand had stated, the university was currently exempt from paying this type of retaliatory tax and had never paid it, however, she said, "In my long experience in this state, I always feel a lot more comfortable if things are really clear in law. So, I think making a very clear statement that PERS and TRS are clearly exempt would be ... very helpful, certainly from our perspective." Number 1476 CHAIRMAN ROKEBERG noted for the committee's information that was Section 2 of the proposed committee substitute. He noted Ms. Burke would be the last witness on HB 490, and if anyone else wished to testify he or she should inform the chair. Number 1502 MARIANNE BURKE, Director, Division of Insurance, Department of Commerce and Economic Development, came forward to testify next. In the interest of clarity, Ms. Burke said she would like to first address the portion of the legislation specific to life insurance policies and then the larger issue. She stated the Division of Insurance supported the amendment which would impose a premium tax of 2.7 percent for the first $100,000 of premium on a single life insurance policy. For a premium over $100,000, the premium tax would be at 0.1 percent. Ms. Burke said this was very positive for the state in the opinion of the Division of Insurance's opinion for the reasons Ms. Hulbert stated. Ms. Burke indicated it would potentially create additional premium tax revenue because these policies currently went to the state with the lowest tax. She noted they would like to have these policies in Alaska for the very obvious reason of collecting the premium tax, but she noted the larger reason was that it would generate additional industry in Alaska for the entities formed under the Alaska Trust Act. She commented she would be happy to address questions to that extent and then address the remainder of the bill. Number 1589 CHAIRMAN ROKEBERG noted Sections 1 and 3 of the bill related to the "jumbo insurance premium tax exemption revenue gainer." He asked, "I know it's very difficult to try to estimate, but ... in terms of what kind of revenues you think we would generate because ... of these provisions?" Number 1614 MS. BURKE said the chairman was correct, it was very difficult. She said she foresaw and intended to work toward encouraging life insurance companies to form subsidiaries in Alaska which would market these very large policies to the ultra rich. Ms. Burke indicated the potential revenue was from zero to infinity. Number 1644 REPRESENTATIVE RYAN said he had received a call from an estate planning attorney in New York City the other day, urging him to submit this amendment. He noted the attorney said he had a client who paid a yearly premium of $200 million and that policy could be in Alaska if the state was competitive with offshore jurisdictions. Representative Ryan commented it was difficult for him to imagine someone with $200 million dollars a year to pay for a life insurance policy, but he assumed there were those kind of folks in the world and he'd be more than happy to encourage them to bring their business to Alaska. Number 1670 CHAIRMAN ROKEBERG confirmed $200 million was the premium, indicating he wondered what the face value of the policy was. He said to Ms. Burke it was clear there would be positive results from that but it was just difficult to predict them, asking her if that was correct. Number 1683 MS. BURKE replied that was correct, saying she would like to add one thing. She said she would prefer to see people who were paying that kind of money place their business with regulated companies as opposed to going offshore or going to the Cayman Islands or the Terks (ph) and Cacos (ph), et cetera. Number 1699 CHAIRMAN ROKEBERG asked if she suspected the primary reason these people had gone offshore was that all 50 states, acting independently, had some type of premium tax. MS. BURKE replied she thought that was one of the reasons. CHAIRMAN ROKEBERG asked the ranges of premiums taxes for other states. Number 1714 MS. BURKE said it was very difficult to compare premium taxes because other states attached other types of taxes. She said with this amendment, Alaska would be highly competitive if not the lowest. CHAIRMAN ROKEBERG asked if there were any further questions in this area. AN UNIDENTIFIED SPEAKER, possibly Representative Ryan stated he had an amendment. CHAIRMAN ROKEBERG said, "Well no, it's in her testimony ...." He indicated he wished Ms. Burke to proceed to her testimony on Section 2 of the proposed committee substitute. Number 1747 MS. BURKE noted this area was far more complex and she would do her best to be as clear as possible. She said that this was not ideal language, and so she would like to address the concept. In AS 39.30, the legislature decided many years ago that it didn't really make sense to have circular money, and she explained, "Why would the state tax the state, collect the money and then give it back to the state to form a circular situation. And in AS 39.30, they said political subdivisions, I mean it's not good language. Over the years, various insurance companies, various directors, various attorney generals, attorneys general, have interpreted this in different ways. The division needs the guidance of this body to clarify what you want. That is, in my opinion, the crux of this matter. There is a lot of extraneous information that's being introduced and I would like to address that, but the bottom line is, if the state of Alaska is providing monies to governmental entities, everything from a small little city, a fourth-class city some place in the state to the state itself. If it is the intent of the legislature not to have this circular money, then all of those entities should be treated the same. There's been testimony the University of Alaska has never been taxed on, and that's true. There are a number of other entities that have never been taxed on the premium tax. I am asking that we have clear indication from this body that either you want them taxed or you don't. The language that we have put together would make sure that the decision, if reached not to tax them, would be applied fairly to every governmental entity." Number 1868 MS. BURKE stated, "By using PERS and TRS, and the reason I object to that, is there are some small governmental entities that can't afford to participate in PERS. If we adopted this into law as it reads, we would penalize the ones who are too poor for PERS." Ms. Burke indicated she would like to make sure everyone was treated fairly and noted she thought this was an attempt to try to capture those entities, but she indicated it was very clear some of the smaller cities did not participate and there were also entities in there that would not be considered governmental entities. Ms. Burke said she did not think it was the original intent, nor would she suspect the current intent be to extend that to non- governmental entities. She stated, "So to that extent, I support this concept ... and as the director of the Division of Insurance, I'm asking that it be clarified." Ms. Burke indicated there was another issue, one she felt it was absolutely critical that it be addressed, which had been raised by the Anchorage School District. She said Mr. Reinwand indicated she was unhappy and said that was a very fair statement." Number 1940 MS. BURKE commented, "We're mixing apples and oranges here ... and I think it's important that we clarify this. The premium tax of the state of Alaska is 2.7 percent. It is imposed on entities that aren't exempted. However, if those entities purchase their insurance from a hospital medical corporation that is domiciled in another state, they can be subject to a retaliatory tax. Now the purpose of the retaliatory tax goes back a long time and I'm not sure that I understand the rationale of why it came about, but it did. And basically it says that if the domiciliary state imposes a tax that's greater than the state of Alaska, the company must pay to the state of Alaska tax at the same rate as the other state. So, in 1994, the state of Washington changed their taxing scheme. As a result their domiciled companies pay more in premium tax than they would pay if they were in the state of Alaska, and they have to pay the state of Alaska the difference. Since this didn't exist before 1994 it was not issue." Number 2013 MS. BURKE continued, "In 1994 when this happened, this retaliatory tax kicked in. A business decision was made that tax on to the purchasers of insurance and since we only have one writer of health insurance in the state of Alaska that is subject to this retaliatory tax, they are the only ones who got hit by it. They passed it on and I am not questioning for a second the appropriateness of passing it on, it is a cost of doing business. But it was characterized as an additional tax that the state of Alaska was imposing on health care costs when in fact it was not premium tax, it was an additional cost of business that was imposed because that company is domiciled in a different state. It does put an unfair disadvantage on that company. As you know, one of my charges is to maintain an even playing field; not to discriminate in favor or against any one company but to try to keep it fair for competition. The clarification of who is and is not subject to the premium tax will clarify this entire problem and it'll go away. However, it is very important to me to make sure that the people who were hit by this tax realize that this is a result of the state of Washington's change in their tax system, not the result of Alaska's change in tax system. And I realize it's complicated and I apologize for that, I try to bring it down to, hopefully, something we can all understand ...." She said she would be happy to answer the committee's questions. Number 2116 CHAIRMAN ROKEBERG said Ms. Burke had indicated Blue Cross was the only company paying this retaliatory tax. He asked if that was because there was no other large group insurer which happened to insure these groups of workers. Number 2127 MS. BURKE replied that was correct. She stated, "No other large health care provider that's domiciled in the state of Washington. Other states have retaliatory tax, but it does not kick in for Alaska. (Indisc.) just happen." CHAIRMAN ROKEBERG asked why that was MS. BURKE replied, "It's the way the Washington tax structure is set up. Let's take AETNA [AETNA US Health Care] for example, since that's another big one. Happens to be domiciled in Connecticut. When you compute their tax according to their schedule and compare it to ours, there's no problem." CHAIRMAN ROKEBERG asked if it was because it was similar. MS. BURKE said, "And the bottom line ... does come out the same (indisc.)." CHAIRMAN ROKEBERG said, "Similar or lower, (indisc.) not higher, higher is the Washington problem?" MS. BURKE said that was correct. CHAIRMAN ROKEBERG said, "So it's unique to Blue Cross only because ... where they're domiciled." MS. BURKE replied, "Exactly ... and thank you for making that clear, it is only because they happen to be domiciled in the state of Washington and Washington's taxing structure is the way it is." Number 2175 CHAIRMAN ROKEBERG said, "So their socialist policies (indisc.) affected us, 'cause I been asking 'em for years what happened, why Blue's rates went up so much. Maybe that explains the explains the 25 percent increase in Blue Cross's premiums in the state of Alaska this year." MS. BURKE stated, "Mr. Chairman, if I may, one ... of my biggest task[s] I see is to make sure that none of the Washington cost are pushed onto the people of the state of Alaska." Number 2194 CHAIRMAN ROKEBERG said, "Also ... is the fact that if - if language is changed to make it more universally applicable to other political subdivisions, is that the division's opinion or the administration's opinion on this bill? Number 2203 MS. BURKE replied she was very comfortable that this was in line with the Administration, she did not think it was the Administration's position that taxing should be unequal. CHAIRMAN ROKEBERG additionally asked about the fiscal note, stating, "Whereas in FY [fiscal year] there'd be a $2.651 million loss of revenue, is that correct?" Number 2220 MS. BURKE confirmed that was correct and said she would specifically like to address that. She said that was their best estimate and they have explained how it would be extrapolated. If the revenue did not come in, they must make sure the revenue did not go out. However that was accomplished, she noted that if they were going to have a circular flow of money they had to make sure the whole circle was addressed. CHAIRMAN ROKEBERG asked if she had any suggested language or if the department had had a chance to look at it. Number 2249 MS. BURKE responded it was her understanding it was not ready to be presented in the form of an amendment and if this committee moved the legislation, it would be introduced in the next committee at the first hearing. Number 2260 CHAIRMAN ROKEBERG commented he did not see a sponsor's representative present and said perhaps Representative Ryan could speak to the issue. REPRESENTATIVE RYAN indicated he had not been aware of this and would have to know the sponsor's wishes before he spoke. Number 2292 CHAIRMAN ROKEBERG asked the will of the committee, noting he was somewhat concerned if the Administration was going to have additional input on the bill. He indicated the bill had no further committees of referral besides the House Finance Standing Committee. REPRESENTATIVE RYAN stated he would like to offer an amendment and move the bill. Number 2311 CHAIRMAN ROKEBERG asked Representative Ryan if he had an amendment and if there was any further testimony on HB 490. Hearing none, he stated the public hearing on HB 490 had been closed. Number 2314 REPRESENTATIVE RYAN said the director of the Division of Insurance wanted to be sure there wasn't any ambiguous language. He commented on the wording of Section 3 in Version E, which read, "AS 21.09.21 is amended by adding a new subsection to read: (n) The tax imposed under this section shall be computed at the rate of one-tenth of a percent for a policy of life insurance with a policy year premium that equals or exceeds $100,000." Representative Ryan stated, "To give the director comfort, I would like to add this conceptual amendment which says, an new sentence, add after the $100,000, where it says: 'Policy year premiums below the value of $100,000 shall be taxed at a rate of 2.7 percent of the amount of the policy year premium' and that clarifies the fact that we're not removing the 2.7 percent tax for those policies below that - that value." [It appeared Representative Ryan may have given the chairman a written copy of the language.] Number 2355 CHAIRMAN ROKEBERG commented it was a clarification amendment. REPRESENTATIVE RYAN answered in the affirmative. CHAIRMAN ROKEBERG asked if he had made a motion. REPRESENTATIVE RYAN made a motion to adopt the conceptual amendment, designated as Conceptual Amendment 1. CHAIRMAN ROKEBERG read Conceptual Amendment 1 for the record. Conceptual Amendment 1, on page 2, beginning on line 23, after $100,000, add an additional sentence to read: "Policy year premiums below the value of $100,000 shall be taxed at a rate of 2.7 percent of the amount of the policy year premium." He asked if there were any objections. There being none, Conceptual Amendment 1 was adopted. Number 2384 CHAIRMAN ROKEBERG noted he would offer a conceptual amendment on page 2, line 14, after "Teacher's Retirement System of Alaska," insert "all other political subdivisions in the state". He noted it was a conceptual amendment, not a specific word amendment, to provide that the testimony of the department would be met. He said he did not see anyone present from the bill sponsor's office and confirmed it only affected "governmentals." He indicated the committee would have the sponsor contact Ms. Burke's office to make sure the language was appropriate. MS. BURKE replied that would be fine. CHAIRMAN ROKEBERG asked if there were any objections to Conceptual Amendment 2. There being no objections, Conceptual Amendment 2 was adopted. Number 2450 REPRESENTATIVE RYAN made a motion to move the proposed committee substitute, Version E, for HB 490 as amended with the accompanying fiscal note. There being no objections, CSHB 490(L&C) was moved out of the House Labor and Commerce Standing Committee. CSSB 305(L&C) - IMPLEMENTATION OF WORK COMP EDITION Number 2464 CHAIRMAN ROKEBERG announced the committee's next order of business was CSSB 305(L&C), "An Act establishing a standard for determining when an injured worker is eligible for reemployment benefits and establishing a procedure for adopting a new, revised, or replacement standard for determining when an injured worker is eligible for reemployment benefits." He noted the sponsor's representative was present. TAPE 98-56, SIDE B Number 0001 [THE BEGINNING OF MS. BURD'S TESTIMONY WAS NOT RECORDED DUE TO TAPE CHANGE] SANDY BURD, Researcher for Senator Jim Duncan, came forward to testify as the sponsor's representative. Ms. Burd stated, "... for workers' rehabilitation to update their selected characteristics of occupations defined and the Dictionary of Occupational Titles." The sponsor statement read: When an injured worker suffers diminished physical capacities, vocational rehabilitation services step in. They identify occupations and retrain the worker for a job that will fit within the worker's physical abilities. There is a medical evaluation of whether the worker can perform the job at the level described. The Selected Characteristics of Occupations Defined in the Dictionary of Occupational Titles (SCODDOT) gives the physical demands and environmental conditions for the occupations. The 1993 edition gives frequency standards for physical demands - like the number of times a worker will lift or bend. This information is necessary for proper evaluation. The Workers' Compensation Division in the Department of Labor was recently informed that it has based decisions on a 1993 edition of SCODDOT which is not in accordance with the law. Under current law, they are required to use a 1981 edition which lacks frequency standards. SB 305 will allow the Department of Labor to adopt revised editions of SCODDOT through regulation. The bill provides for a public meeting to set a date for the adoption of the new standards. Number 0011 CHAIRMAN ROKEBERG indicated the committee had previous heard this bill in the form of HB 475 [HB 475 - Rehabilitation of Injured Workers]. Number 0020 REPRESENTATIVE COWDERY made a motion to move CSSB 305(L&C) with individual recommendations and the attached fiscal note. There being no objections, CSSB 305(L&C) was moved out of the House Labor and Commerce Standing Committee. CHAIRMAN ROKEBERG commented he become a cosponsor of SB 305 that day. HB 388 - RIGHT TO REFUSE TO SERVE LIQUOR Number 0025 CHAIRMAN ROKEBERG announced the committee's next order of business was HB 388, "An Act relating to the right to refuse to sell, give, or serve an alcoholic beverage." Number 0051 REPRESENTATIVE FRED DYSON came forward as sponsor of HB 388. He stated he has spent most of the last two years working on child protection issues. Last summer he, Representative Reggie Joule and Commissioner Perdue [Department of Health and Social Services (H&SS)] put together a statewide symposium on fetal alcohol syndrome (FAS) and fetal alcohol effects (FAE). He noted FAE is now called "alcohol-related neurological disorders," and has to do with prenatal poisoning of children. He indicated this made him realize how pervasive this problem was in Alaska, particularly in some areas, noting there are some communities where the teachers estimate half the entering children are permanently mentally retarded as a result of alcohol poisoning. He said the corrections community believes half of Alaska inmates have alcohol-related mental defects. Representative Dyson said FAE is, by definition, not visible, but the kids almost always have problems reasoning from general principles to specific action, an inability to empathize with others, and short attention spans. Number 0108 REPRESENTATIVE DYSON noted this was almost the classic definition of sociopath. He indicated all of this had made him interested in finding out what the legislature could do toward prevention, indicating he thought some of the committee members had been there when legislation was passed requiring signs be posted in bars. He mentioned there were labels "and so on." Representative Dyson stated he went "hat in hand" to ARBA CHAR (ph), the bar owners' association and the bar workers' professional union. He said after these groups "got over thinking that I was the bald avenger who was gonna go out and destroy them," they came to at least three things they thought they could work together on. He said first they are getting more material for these groups to use in their training, noting these groups said the question always came up in their training of bar workers, "Can we refuse to serve someone who is obviously pregnant?" Number 0145 REPRESENTATIVE DYSON indicated this was because the literature now says there is no known safe amount of alcohol for a pregnant woman to consume that is known to be safe for the unborn child, and the bar owners and workers are concerned. He said some of them were concerned because they were afraid of liability, some of them because they really cared about kids. Representative Dyson commented, "So we agreed on three things, ... we've gotten material and [the] Administration's working with them getting our material for their training; secondly, they're probably going to put quite a bit of money into helping kids with FAS and diagnostic equipment; and thirdly, they said that they're caught in a legal no man's land. Most of them say that they refuse to serve, as a matter of - of company policy, someone who is obviously pregnant, but they believe that they're open to civil action, not having a clear mandate that they can refuse to serve someone. The law says that you can refuse to serve if you can believe they're going to be a danger to themself or others. Our law since '73 doesn't clearly recognize unborn child as an other ... to be protected, and they believe they're on shaky ground." He noted in Oregon bar owners had been sued for both refusing to serve a pregnant woman and not refusing to serve. He said to the best of his knowledge neither lawsuit had been successfully prosecuted so far, but he indicated the people in the industry were afraid they were going to be sued on behalf of an advocate for a permanently retarded child, "in light of our suit-happy world and 'dram' shop ... type laws and being held accountable for the actions of people who are served," and so, he said, they ask for this. Number 0219 Representative Dyson stated, "I met with them when they had their board of directors meetings here in February, and we talked about it, and it was absolutely universal acclaim at the table and - and so on. When I got back to them a month ago, to Miss Whitehead (ph) ... their director there in Anchorage, I said, 'Can you guys get me a letter,' and she said, 'Oh my goodness, we didn't realize you were gonna do what you said,' and she said, 'Until we get a board meeting, I can't give you a letter,' but she said, 'Far as I know, there's no trouble.' So I can't tell that there's an official word from ARBA CHAR (ph) on this .... That's the long and the short of it, I have not lined up people to testify ...." He indicated he had been attending Senate committee meetings. Number 0254 REPRESENTATIVE HUDSON said he assumed this provision only referred to those licensed to serve alcoholic beverages, not necessarily a liquor store, and asked Representative Dyson if that was correct. Number 0260 REPRESENTATIVE DYSON said he would have to look in the code there, quoting, "Licensee, an agent or employee." He indicated he thought it referred to a bar, not a package store. Number 0280 CHAIRMAN ROKEBERG indicated he thought it was going to be any license, commenting it was in the general provisions. REPRESENTATIVE HUDSON asked, "Including a package store?" CHAIRMAN ROKEBERG replied, "Everybody." Number 0288 REPRESENTATIVE COWDERY indicated someone selling alcoholic beverages at a package store would not know who was consuming those beverages. He noted he believed someone could not consume in a package store. REPRESENTATIVE DYSON indicated Representative Cowdery was correct in that consumption in a package store was not permitted. CHAIRMAN ROKEBERG said, "You could carry it out." REPRESENTATIVE COWDERY agreed, "But you could carry it out and give it to .... I don't know, for whatever that's worth." Number 0303 CHAIRMAN ROKEBERG said, "Chapter 20 ..." REPRESENTATIVE COWDERY asked Representative Dyson if bars were the main intention of the legislation. Number 0306 REPRESENTATIVE DYSON stated it was his intention to protect the bar owners from a civil suit because they choose to refuse to serve, under whatever circumstances they made that decision as a policy. He said that is what they have asked for. REPRESENTATIVE COWDERY commented he wanted to have that on the record. Number 0319 CHAIRMAN ROKEBERG informed the committee this was in the general provisions section of Title 4, Chapter 21, which was followed by [AS] 04.21.065, "posting of warning signs, two separate warning signs and beverage dispensary license, restaurant or eating place license, pub license, brewery license, package store license, common carrier dispensary license, ...." He continued listing the licenses and quoted the warning sign requirements. Chairman Rokeberg commented that with the current statute and the way the bill was drafted, it applied to everybody, as the signs currently did. Number 0379 REPRESENTATIVE RYAN said he thought it was pretty good legislation and would be happy to move it along. CHAIRMAN ROKEBERG commented, "I think it's kind of redundant (indisc.) what the law says. They already have signs saying they can do it, plus I think it'll give rise to law suits not otherwise. Because if you say that ... they have the right to refuse 'em -- right now, ... 'cause it speaks to it, now it doesn't speak to it." Number 0395 REPRESENTATIVE RYAN reminded the chairman, "Mark Twain said, 'Difference of opinion is what makes horse races.'" CHAIRMAN ROKEBERG agreed that was very true. Number 0405 REPRESENTATIVE DYSON quoted the required sign wording, "Warning, drinking alcoholic beverages such a beer or wine, wine coolers and distilled spirits or smoking cigarettes during pregnancy can cause birth defects." He quoted the (indisc.) one, "Surgeon's warning: smoking by pregnant women may result in fetal injury, premature birth, low birth weight." Number 0424 CHAIRMAN ROKEBERG stated he would prefer to something in the file from CHAR (ph) and "some other folks." He indicated going on hearsay made him a little uncomfortable, noting it was not that he did not believe the bill sponsor. Chairman Rokeberg said he would prefer to hold the legislation until the committee received something, mentioning Ms. Whitehead (ph). He said the committee had been trying to get a hold of those people to verify that. Number 0446 REPRESENTATIVE DYSON noted time was short and he guessed the legislation would not make it all the way through the process, although he said he would like to see it continue, noting there was a small chance. He indicated he did not think waiting for the documentation the chairman requested would make a material difference. Number 0462 REPRESENTATIVE COWDERY stated it was his understanding all HB 388 did was give some latitude to someone serving [alcoholic beverages] to make certain that the server is within the law. He indicated he thought that was all the sponsor was trying to achieve. Number 0476 REPRESENTATIVE DYSON agreed. He related, "Interestingly enough ... I went over and visited with my good friends at the ACLU [American Civil Liberties Union] and ... they spent 2 1/2 months trying to decide whether they were upset by this or not, and finally decided they couldn't figure that out, and think it's fine, which is [the] first time they've agreed with me in a long time." Number 0493 REPRESENTATIVE RYAN commented it was good legislation. CHAIRMAN ROKEBERG asked the will of the committee. Number 0498 REPRESENTATIVE COWDERY said he would like to make motion to move the legislation along, commenting that hopefully the sponsor would follow and get answers to the committee's concerns. Number 0507 REPRESENTATIVE COWDERY made a motion to move HB 388 with individual recommendations and accompanying zero fiscal note. There being no objections, HB 388 was moved out of the House Labor and Commerce Standing Committee. Number 0520 REPRESENTATIVE DYSON indicated he would withdraw the legislation if ARBA CHAR (ph) was not in favor of it. CSSB 336(L&C) - WORKERS' COMP: EXEMPT HOCKEY PLAYERS Number 0528 CHAIRMAN ROKEBERG announced the committee's next order of business was CSSB 336(L&C), "An Act relating to excluding professional hockey team members from workers' compensation coverage." Number 0545 ANNETTE KREITZER, Legislative Assistant to Senator Loren Leman, presented SB 336. She stated Senator Leman, the chair of the Senate Labor and Commerce Standing Committee, was approached by the Anchorage Aces about taking the Florida approach to providing coverage for hockey players. The Anchorage Aces' concern was the cost of the workers' compensation program. Ms. Kreitzer said the team was advised to go to the Division of Insurance [Department of Commerce and Economic Development] and the Division of Workers' Compensation [Department of Labor] to see if this problem could be resolved that way. She noted the Anchorage Aces had gone through that process and she said Paul Grossi, the director of the Division of Workers' Compensation, was present to speak about the division's position. Ms. Kreitzer reviewed the sponsor statement, explaining that the coaches would be covered because they were player coaches and she indicated the Anchorage Aces were aware of the liability concerns raised by the Division of Insurance. She indicated the Division of Workers' Compensation had also advised the Anchorage Aces' ownership of the risks, and the ownership still wished to go forward with the idea, believing that it put them in a better financial position. Ms. Kreitzer said the player representative who had testified said the players went along with the idea and were willing to move forward. She noted other committees had been concerned about how the players felt. The sponsor statement read: This bill amends Worker's Compensation provisions by adding professional hockey teams to the list of persons not covered under AS 23.30.230. In exchange for this exemption, a team owner would have to provide a medical and disability program to cover the players (and anyone else associated with the team who is in the same Worker's Comp risk category, e.g., coaches, assistant coaches, but not office personnel) 100% of the time - whether on duty, travel or their own time. The owner is responsible for the cost of the premiums on this coverage. The idea is taken from Florida's approach to this problem. The committee was asked to introduce this legislation by the sole professional hockey team in the state, the Anchorage Aces. The Department of Labor, Division of Worker's Compensation has reviewed the legislation and is neutral on the bill. Number 0623 CHAIRMAN ROKEBERG said he had heard the testimony on the bill in a Senate committee and indicated he wondered why there wasn't a supporting letter in the bill packet from Mr. Cusack (ph). MS. KREITZER confirmed that a letter from Mr. Cusack (ph) had not been omitted from the bill packet. Number 0653 REPRESENTATIVE COWDERY asked if other professional hockey associations had similar coverage for their players. Number 0659 MS. KREITZER replied there had been testimony that there was a western hockey association with, apparently, many similarities in coverage. She said this particular idea was taken from Florida, which used this approach. Ms. Kreitzer said she could not say specifically how many of the teams in the western region took the same approach. Number 0675 REPRESENTATIVE COWDERY asked if this was common with other sporting events such as football or basketball. Number 0681 MS. KREITZER said she did not know the answer to that question. She noted there had been discussion about it but she did not feel competent to answer. Number 0689 REPRESENTATIVE RYAN commented he had been a paid licensed football official 25 or 30 years ago. He said he practiced that profession for some time and was never covered by any insurance or had any problem with it. Number 0706 CHAIRMAN ROKEBERG indicated the bill packet spoke of soccer players in the Eastern Indoor Soccer League in the state of Florida. He asked Mr. Grossi if he had any comments. PAUL GROSSI, Director, Division of Workers' Compensation, Department of Labor, replied he was available for questions. CHAIRMAN ROKEBERG asked Mr. Grossi if he could find out if other states had exemptions from workers' compensation for professional athletes, indicating the chairman wished the information before the legislation reached the House floor. Mr. GROSSI replied he would try. Number 0729 REPRESENTATIVE COWDERY made a motion to move CSSB 336(L&C) with individual recommendations and the attached zero fiscal note. There being no objections, CSSB 336(L&C) was moved out of the House Labor and Commerce Standing Committee. CSSB 330(RES) - LOCATING UNDERGROUND FACILITIES Number 0744 CHAIRMAN ROKEBERG announced the committee's next order of business was CSSB 330(RES), "An Act relating to locations of underground facilities and excavations in the area of underground facilities." Number 0755 ANNETTE KREITZER, Legislative Assistant to Senator Loren Leman, came forward to present SB 330. She stated SB 330 was requested by the Alaska Telephone Association (ATA) and had been through approximately 20 iterations attempting to make sure it was very fair and balanced. Ms. Kreitzer noted they spent a lot of time trying to make sure the expectations for excavators and utility owners were very balanced in the bill. She stated SB 330 provided an understanding of the standards and responsibilities for locating and excavating underground facilities for utilities and contractors, amending AS 42.30 to set out responsibilities for excavators, construction project owners and underground facility owners when a "locate" was requested. She said the bill provided for a penalty if an excavator intentionally damaged a located underground facility. Ms. Kreitzer noted there was no current statewide locate standard. She said there were some national standards related to issues of locating (indisc.) encumbering underground utilities, but nothing as comprehensive on the statewide level as SB 330. She stated there were others present to testify from Alaska Rural Electric Cooperative (ARECA) and another organization she could not recall. Number 0830 REPRESENTATIVE COWDERY asked if there was any definition of "excavator" in the bill. CHAIRMAN ROKEBERG referred Representative Cowdery to page 5. The definition on page 5, line 31, read, "(4) "excavator" means a person conducts excavation in the state;". REPRESENTATIVE COWDERY confirmed it could be a private person doing this. MS. KREITZER answered in the affirmative. Number 0859 REPRESENTATIVE RYAN noted the question might not be relevant, but said years ago he had been on an assembly and the railroad told them they had to maintain the railroad's crossing in the assembly's municipality. He asked, "Is there anything here where an entity can put off on another person?" Number 0872 MS. KREITZER replied in the negative, indicating that if an excavator requested a locate SB 330 laid out that the utility had a certain number of days to respond, spoke about emergency locates and talked about what happened if an excavator intentionally did damage. She noted there was already a definition in law for "intentionally". Ms. Kreitzer said SB 330 laid out things like that, it was to simplify the current process, and in all the iterations she noted there had been a conscious effort not to create a burden for one party or the other in terms of maintaining lines or anything else. Number 0905 CHAIRMAN ROKEBERG asked about the cap in terms of the penalty clause on page 4, (line 25) "nor more than $1,000 for each offense ...". He questioned, "(Indisc.) civil penalty from whom?" Section 42.30.440 of CSSB 330(RES)read: Sec. 42.30.440. Penalties; injunctive relief. (a) A person who violates a provision of AS 42.30.400 - 42.30.490 is subject to a civil penalty of not less than $50 nor more than $1,000 for each offense if the violation results in or significantly contributes to damage to an underground facility. (b) If the court finds that an excavator is violating or threatening to violate a provision of AS 42.30.400 - 42.30.490 and the violation may result in damage to an underground facility, the court may grant injunctive relief to the underground facility operator. MS. KREITZER indicated she believed the chairman was referring to a violation of a provision of Sections 42.30.400 to 490 by an excavator. She indicated that if the excavator did not do what the excavator was supposed to do then a court could assess a penalty of not less than $50 nor more than $1,000 for each offense if it resulted in or significantly contributed to damage to that underground facility. Number 0949 CHAIRMAN ROKEBERG noted the amount was only $1,000 and asked if the actual damages were provided for. MS. KREITZER responded she believed actual damages were provided for, but did not think it was in that section. CHAIRMAN ROKEBERG indicated Mr. Youle [Executive Director, ARECA] might know the answers to those technical questions. ERIC YOULE, Executive Director, Alaska Rural Electric Cooperative Association, indicated he did not know the answer that question. Number 0979 REPRESENTATIVE RYAN said he was wondering about that as well, noting language on page 4, lines 20 and 22, from subsection (b), ".... The operator of an underground facility that was damaged during excavation shall arrange for repair or relocation of the facility as soon as practical." He asked where the liability was for the person who did the damage, questioning if the requirement that the person "make it whole" was in there. Number 0995 MS. KREITZER indicated she believed it was in the language above that, reading from the beginning of subsection (b) "(b) An excavator who, in the course of excavation, contacts or damages an underground facility shall notify the operator. If the damage causes an emergency, the excavator shall also alert local public safety agencies and take reasonable steps to ensure public safety." Section 42.30.430, subsection (b), of CSSB 330(RES) read: (b) An excavator who, in the course of excavation, contacts or damages an underground facility shall notify the operator. If the damaged causes an emergency, the excavator shall also alert appropriate local public safety agencies and take reasonable steps to ensure public safety. A damaged underground facility may not be reburied until it is repaired or relocated to the satisfaction of the operator. The operator of an underground facility that was damaged during excavation shall arrange for repair or relocation of the facility as soon as practical. Number 1009 REPRESENTATIVE RYAN said his question had been, "Are they financially responsible for the repair?" MS. KREITZER answered in the affirmative. Number 1015 CHAIRMAN ROKEBERG asked where it said that. MS. KREITZER stated her understanding was that injunctive relief also spoke to the damages. Number 1030 CHAIRMAN ROKEBERG commented that injunctive relief was in the court of equity and did not necessarily provide damages. REPRESENTATIVE RYAN commented, "Liability ..." SHIRLEY ARMSTRONG, Legislative Assistant to Chairman Rokeberg, commented that Mr. Rowe might still be on teleconference in Anchorage to answer technical questions. Number 1069 JIM ROWE, Executive Director, Alaska Telephone Association, testified via teleconference from Anchorage. Mr. Rowe stated the ATA was a trade association comprised of 22 local exchange carriers in Alaska. He said he thought the question asked of Ms. Kreitzer was under civil liability; a person, an entity, is responsible for damages. Mr. Rowe stated it was not particularly written out in this legislation and he noted he was not just speaking of underground or locate damages. Number 1113 CHAIRMAN ROKEBERG asked why it was not in the legislation. MR. ROWE replied it was law elsewhere. CHAIRMAN ROKEBERG asked if he could tell the committee where that would be. Chairman Rokeberg confirmed the legislation did not have a referral to the House Judiciary Standing Committee and had not had a referral to the Senate Judiciary Standing Committee. Number 1134 REPRESENTATIVE RYAN said there were more than just the physical repair damages and he commented, for example, on the damage to a business from loss of telephone service. He said he assumed a business would have a cause of action against the person or persons responsible for the discontinuation of service and said he would be comfortable if that was addressed somewhere otherwise in law, commenting, "But I would think that you might want to give that consideration." Number 1160 MS. KREITZER stated they had given that consideration. She noted a previous bill version had spoken of treble damages and that section had been deleted in the House Resources Standing Committee. She indicated the bill sections dealing with liability had also been deleted because the treble damages deletion left the bill lopsided in terms of what the liability was for the excavator, leaving it to current law and other statutes that deal with civil liability. She commented that if people got into this situation they needed to go to court anyway, and she stated, "A statute is not going to address every situation where a contractor has a problem with a - a telephone company or with a cable company. We would rather they resolve that in court. We just want to lay out some standards so that people understand that when you call for a locate, this is what you can expect to happen. When something occurs, where you hit a gas line or whatever, you're gonna go to court anyway and figure out who owes what and somebody's gonna assert that they didn't do it intentionally and someone's gonna assert that you should of known better, and so we didn't try to address all the liability questions, we left ... those types of things to current law." Number 1232 CHAIRMAN ROKEBERG stated he wasn't an expert but this looked like tort reform for excavators, noting it looked like a civil penalty cap of $1,000 per incident with injunctive relief for a "cease and desist." Number 1252 MR. ROWE indicated the penalty in Section 42.30.440(a) being discussed was only a fine to someone for not having done something correctly in the process which caused significant damage. He stated the liability was very much there. He noted, "The Alaska Telephone Association initiated or - or exhibited concerns of this over two years ago, and went through many iterations, and we appreciate very the help we've had in Senator Leman's office and the legislature overall in working through some of this." Mr. Rowe said the association has recognized that three quarters of the time the utility, who he commented he seemed to represent, was actually the excavator. He said the telephone company would be excavating by the electric company's or the gas company's underground facility and he indicated the impression this bill was adversarial in nature was incorrect. Mr. Rowe stated, "We're putting out standards for ourself, and quite honestly, by putting out the standards, the time frames, the distances from facilities, and being specific about it, we're expecting we're going to be more efficient in complying with good business practice. People being able to estimate how long it will take to get a job done, what kind of response time they can look at, and probably avoiding litigation." He noted the treble damages Ms. Kreitzer had referred to which were removed from the bill would have only applied to intentional damages, commenting, "Where there have been practices, a contractor, be it utility, private contractor, whatever, recognizing with the expense of equipment, it's easier just to go down along a right-of-way and tear up what's there and pay for the damage, than it is to go around it." Mr. Rowe said, however, from a utility's view point they were very concerned their customers were not sustaining an outage. He stated, "We want to encourage that and we think we have in this bill, to protect not only the dollars returned of electricity being on and the meters spinning, but very importantly that our customers don't experience an outage." He said they have addressed the emergency response, they want to respond in any emergency condition, and even more importantly, avoid those emergency conditions, keeping the utility to the public. He noted that is what they have tried to address in the legislation and emphasized the fine in Section 42.30.440 was for wrong-doing; it was not compensation for the damage done. Mr. Rowe indicated the compensation for damage was in liability. Number 1400 REPRESENTATIVE RYAN said Alaska was unique because a lot of utilities were owned by public and quasi-public corporations "as such." He asked if this applied to government as well as the private sector. MS. KREITZER answered in the affirmative. Number 1425 REPRESENTATIVE COWDERY asked if he was correct in saying there was some regulation of utilities being in the proper place and proper depth, indicating he was referring to the bill. He indicated in his excavating experience he has gone to a vacant lot to put something like a foundation in and unexpectedly hit a gas line, noticing out of the corner of his eye a house on a separate lot next door had a meter. Representative Cowdery noted a lot of this had happened in the early days and he indicated he was wondering if there were any depth requirements in the legislation and about the location of underground facilities with respect to easements. He directed his questions to Mr. Rowe. Number 1485 MS. KREITZER commented Mr. Rowe would speak to this in more detail, but she believed Representative Cowdery was referring to Section 42.30.410, page 2, beginning on line 24, which went into the field marks for an underground facility. She asked if this was what Representative Cowdery was speaking to. Section 42.30.410, subsection (c), beginning on line 24, read: (c) The field marks for an underground facility buried 10 feet deep or less must be located within 24 horizontal inches of the outside dimensions of the facility. For a facility buried deeper than 10 feet, the operator shall locate the field marks within 30 horizontal inches of the outside dimensions of the facility. The operator shall use stakes, paint, or other clearly identifiable material to show the field location of the underground facility. The marker used to designate the approximate location of an underground facility must follow the current color code standard used by the American Public Works Association. Number 1513 REPRESENTATIVE COWDERY answered in the affirmative, indicating he also wanted to know where it was located. MS. KREITZER commented she would let Mr. Rowe speak more to that section of the bill. Number 1525 MR. ROWE said they have talked about horizontal requirements for the locate and have intentionally not spoken about depth. He stated if the locate was done incorrectly and damage occurred at no fault of the excavator because of this, then the responsibility certainly was on the locate service. He noted the depth had been intentionally left out because different underground facilities have been buried at different depths in Alaska. He added, "Plus, we seem to at least (indisc.) the law road right-of-ways, that - that depth certainly changes as graders go along and - and snow plows go along and change the depth, and especially in rural areas I know that's quite a concern. Sometimes things are higher than anticipated. Hopefully if you're going down with a backhoe they're deeper than you anticipated so that's not going to cause any problem." He reiterated that only the horizontal measurements were addressed in the bill. Number 1595 REPRESENTATIVE COWDERY indicated his question, however, had to do with excavating on virgin ground, giving the example of someone owning a vacant lot for years that had never been built on, putting a foundation on it and hitting something that's (indisc.). Representative Cowdery noted there had been no need for a locate because it was virgin ground and the work was not going off the property; he said that happened frequently to some excavators, especially in Anchorage in the earlier days. Number 1623 MR. ROWE replied, "Mr. Chairman, I think we need to look for a locate and I think that's why we ask for locates and this does ..." REPRESENTATIVE COWDERY interjected, "You mean every excavating job regardless of where it's at should have a locate?" MR. ROWE replied he did not think every job needed to, but if they hit any underground utility it was probably not virgin ground. He stated, "And (indisc.) around Anchorage, if we see power lines or ... have reason to suspect there's a gas line there, if you call a locate service and say, 'We're going to be digging,' and they say, 'There's nothing there,' you're covered." Number 1656 CHAIRMAN ROKEBERG commented Mr. Youle had to catch a flight. Number 1665 ERIC YOULE, Executive Director, Alaska Rural Electric Cooperative Association, came forward to testify. He stated he was there basically in favor of SB 330. He commented he would have to say ATA had done a very good job of coordinating the bill with all interested parties, and in particular with the electric utility industry. Mr. Youle said ATA came to ARECA over 1 1/2 years ago with draft legislation and let ARECA distribute it among its members. He said they examined it and proposed a number of changes which were considered and adopted where appropriate. Mr. Youle noted he thought ATA took that attitude as a general rule with most entities which would be affected by the bill, and he stated ARECA's members were satisfied with the bill at that time. Number 1716 CHAIRMAN ROKEBERG asked Ms. Colter (ph) if she wanted to testify. MS. COLTER (ph) replied, "Concur. My staff looked at it too, and ..." [NOTE: WITNESS DID NOT SIGN WITNESS REGISTER AND WAS NOT OTHERWISE IDENTIFIED] CHAIRMAN ROKEBERG interjected that there was one other thing, addressing his comments to Ms. Kreitzer. The chairman said it seemed to him there were a number of utilities and "other folks" conspicuous by their absence from the bill file, particularly even from the Anchorage area. He gave the example of ENSTAR Natural Gas Company (ENSTAR) and indicated the bill file contained letters to these entities from Mr. Rowe requesting support, but not corresponding letters of support from the entities. Number 1765 MS. KREITZER indicated she felt this was not a high priority for those entities. She stated, "Within the Municipality of Anchorage, for instance, they have (indisc.) call locate center. We did speak with [the] municipality of Unalaska, which doesn't have a one-call locate and they were satisfied with the bill after ... the amendments in the Resources Committee." Ms. Kreitzer said they did make the attempts, indicating the entities knew about the bill and had had opportunity to comment. Number 1816 REPRESENTATIVE RYAN said he could see the wisdom of not going to depth, noting in a great area of the state things sink and rise in the ground, and it would be difficult in those places to determine the actual depth. Number 1836 MR. ROWE said he spoke with Ms. Crisafulli of ENSTAR in November of 1997. Mr. Rowe's November 24, 1997, letter to Kimberly Crisafulli of ENSTAR, taken from the bill packet, read: Thank you for your help with the number of locates earlier today. I look forward to receiving your year end compilation when it is available. Enclosed is a draft of the proposed locate legislation we expect to have introduced in January. It has been shared with utilities and contractors and I encourage widespread distribution. Over the past year I have made a number of changes in response to suggestions. I welcome your input. Number 1875 CHAIRMAN ROKEBERG asked Mr. Rowe, "If you could provide the Labor and Commerce Committee and the Rules chairman for submission to the floor package, a letter confirming the ability of a damaged owner or other -- (indisc.) to have a -- they'd have a standing for a cause of action in the court that (indisc.) excluded bill, that there's other remedies at law to be able to do that, we'd appreciate that so we could move this bill along ...." MR. ROWE said he would do that. Number 1940 CHAIRMAN ROKEBERG called a brief at ease at 5:01 p.m. The committee came back to order at approximately 5:02 p.m. Number 1952 REPRESENTATIVE COWDERY made a motion to move CSSB 330(RES) with individual recommendations and the attached zero fiscal note. There being no objections, CSSB 330(RES) moved out of the House Labor and Commerce Standing Committee. ADJOURNMENT Number 1976 CHAIRMAN ROKEBERG adjourned the House Labor and Commerce Standing Committee meeting at 5:03 p.m.

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