Legislature(1999 - 2000)

03/29/1999 03:25 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
    HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                                 
                   March 29, 1999                                                                                               
                     3:25 p.m.                                                                                                  
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative Norman Rokeberg, Chairman                                                                                        
Representative Andrew Halcro, Vice Chairman                                                                                     
Representative Jerry Sanders                                                                                                    
Representative Lisa Murkowski                                                                                                   
Representative John Harris                                                                                                      
Representative Sharon Cissna                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
Representative Tom Brice                                                                                                        
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
HOUSE BILL NO. 127                                                                                                              
"An Act relating to the sale of studded tires; and providing for an                                                             
effective date."                                                                                                                
                                                                                                                                
     - MOVED CSHB 127(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
* HOUSE BILL NO. 61                                                                                                             
"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 HB 61 OUT OF COMMITTEE                                                                                             
                                                                                                                                
(* First public hearing)                                                                                                        
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: HB 127                                                                                                                    
SHORT TITLE: LIMIT WEIGHT OF STUDS USED ON TIRES                                                                                
SPONSOR(S): REPRESENTATIVES(S) MASEK                                                                                            
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 3/05/99       368     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 3/05/99       368     (H)  TRA, L&C                                                                                            
 3/18/99               (H)  TRA AT  1:00 PM CAPITOL 17                                                                          
 3/18/99               (H)  MOVED OUT OF COMMITTEE                                                                              
 3/19/99       511     (H)  TRA RPT  5DP 1NR                                                                                    
 3/19/99       511     (H)  DP: HUDSON, KEMPLEN, COWDERY, HALCRO                                                                
 3/19/99       511     (H)  MASEK; NR: SANDERS                                                                                  
 3/19/99       511     (H)  ZERO FISCAL NOTE (DOT)                                                                              
 3/19/99       511     (H)  REFERRED TO LABOR & COMMERCE                                                                        
 3/29/99               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
                                                                                                                                
BILL: HB 61                                                                                                                     
SHORT TITLE: OVERTIME WAGE EXEMPTION AIRLINE EMPLOYEES                                                                          
SPONSOR(S): REPRESENTATIVES(S) HALCRO                                                                                           
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 1/22/99        68     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 1/22/99        68     (H)  LABOR & COMMERCE                                                                                    
 3/29/99               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
TED DEATS, Researcher                                                                                                           
   for Representative Beverly Masek                                                                                             
Alaska State Legislature                                                                                                        
Capitol Building, Room 432                                                                                                      
Juneau, Alaska 99801                                                                                                            
Telephone:  (907) 465-2679                                                                                                      
POSITION STATEMENT:  Presented HB 127 for the bill sponsor.                                                                     
                                                                                                                                
SAM KITO III, Chairman                                                                                                          
Legislative Liaison Committee                                                                                                   
Alaska Professional Design Council                                                                                              
6420 East Northern Lights Boulevard, Number 7-E                                                                                 
Anchorage, Alaska 99504                                                                                                         
Telephone:  (907) 338-5486                                                                                                      
POSITION STATEMENT:  Testified in support of HB 127.                                                                            
                                                                                                                                
TONY BARTER, Statewide Materials Engineer                                                                                       
Division of Statewide Design and Engineering Services                                                                           
Department of Transportation and Public Facilities                                                                              
Anchorage, Alaska 99507-1225                                                                                                    
Telephone:  (907) 269-6230                                                                                                      
POSITION STATEMENT:  Answered questions regarding HB 127.                                                                       
                                                                                                                                
GARY WESSEL, President                                                                                                          
Bruno Wessel, Incorporated                                                                                                      
300 Long Beach Boulevard                                                                                                        
Stratford, Connecticut 06615                                                                                                    
Telephone:  (203) 380-2524                                                                                                      
POSITION STATEMENT:  Testified in support of HB 127 as manufacturer                                                             
of tire studs, provided information.                                                                                            
                                                                                                                                
DENNIS POSHARD, Legislative Liaison/Special Assistant                                                                           
Office of the Commissioner                                                                                                      
Department of Transportation and Public Facilities                                                                              
3132 Channel Drive                                                                                                              
Juneau, Alaska 99801-7898                                                                                                       
Telephone:  (907) 465-3904                                                                                                      
POSITION STATEMENT:  Testified in support of HB 127.                                                                            
                                                                                                                                
JAMES M. JOHNSON, President                                                                                                     
Johnson's Tire Service Incorporated                                                                                             
3330 Denali Street                                                                                                              
Anchorage, Alaska 99503                                                                                                         
Telephone:  (907) 561-1414                                                                                                      
POSITION STATEMENT:  Testified in support of HB 127.                                                                            
                                                                                                                                
MATT SEIDLER, Owner                                                                                                             
Alaska Tire Service                                                                                                             
2330 East 88th Avenue                                                                                                           
Anchorage, Alaska 99507                                                                                                         
Telephone:  (907) 344-6288                                                                                                      
POSITION STATEMENT:  Addressed question to Mr. Wessel during HB 127                                                             
hearing.                                                                                                                        
                                                                                                                                
JANET SEITZ, Legislative Assistant                                                                                              
   to Representative Norman Rokeberg                                                                                            
Alaska State Legislature                                                                                                        
Capitol Building, Room 24                                                                                                       
Juneau, Alaska 99801                                                                                                            
Telephone:  (907) 465-4968                                                                                                      
POSITION STATEMENT:  Explained Version H committee substitute for                                                               
HB 127 as aide to the House Labor and Commerce Standing Committee.                                                              
                                                                                                                                
JONATHON LACK, Legislative Assistant                                                                                            
   to Representative Andrew Halcro                                                                                              
Alaska State Legislature                                                                                                        
Capitol Building, Room 418                                                                                                      
Juneau, Alaska 99801                                                                                                            
Telephone:  (907) 465-4939                                                                                                      
POSITION STATEMENT:  Presented HB 61 for the bill sponsor.                                                                      
                                                                                                                                
MICHELLE BUCKMASTER                                                                                                             
1205 Hollywood Drive, Number 600                                                                                                
Anchorage, Alaska 99501                                                                                                         
Telephone:  (907) 276-4364                                                                                                      
POSITION STATEMENT:  Testified in support of HB 61.                                                                             
                                                                                                                                
DWIGHT PERKINS, Deputy Commissioner                                                                                             
Department of Labor                                                                                                             
P.O. Box 21149                                                                                                                  
Juneau, Alaska 99802-1149                                                                                                       
Telephone:  (907) 465-2700                                                                                                      
POSITION STATEMENT:  Provided department positions on HB 61 and                                                                 
possible Version G committee substitute for HB 61.                                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 99-30, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CHAIRMAN NORMAN ROKEBERG called the House Labor and Commerce                                                                    
Standing Committee meeting to order at 3:25 p.m.  Members present                                                               
at the call to order were Representatives Rokeberg, Halcro,                                                                     
Sanders, Murkowski and Harris.  Representative Cissna arrived at                                                                
3:26 p.m.  Chairman Rokeberg circulated the committee's advancement                                                             
of the name of Ed Flanagan as commissioner of the Department of                                                                 
Labor for signature.  The chairman noted the motion had been made                                                               
at the committee's previous meeting [March 19, 1999] but the                                                                    
document had been held for more members' signatures.  He indicated                                                              
a signature on the document would not be an endorsement; the                                                                    
confirmation would be taken up by the full joint body of the                                                                    
legislature.                                                                                                                    
                                                                                                                                
                                                                                                                                
HB 127 - LIMIT WEIGHT OF STUDS USED ON TIRES                                                                                    
                                                                                                                                
Number 0169                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG announced the committee would address HB 127, "An                                                             
Act relating to the sale of studded tires; and providing for an                                                                 
effective date."  He invited the sponsor's representative forward.                                                              
                                                                                                                                
Number 0190                                                                                                                     
                                                                                                                                
TED DEATS, Researcher for Representative Beverly Masek, Alaska                                                                  
State Legislature, came forward to present HB 127.  The purpose of                                                              
HB 127 is to require installation of lightweight studs in new                                                                   
passenger studded snow tires.  It is a point-of-sale legislation                                                                
that will grandfather in all studded tires currently in use.  The                                                               
law would take effect July 1, 2000, which would allow companies                                                                 
time to prepare their inventory.  According to the Department of                                                                
Transportation and Public Facilities (DOT-PF), $5 million worth of                                                              
stud-related road wear is done each year to Alaska's highways.                                                                  
Many Alaskan roads have severe ruts which cause hydroplaning and                                                                
loss of control.  One of the ways to reduce this road wear is by                                                                
requiring the use of lightweight studs in snow tires.  The                                                                      
reasoning is that as the tire spins at 55 miles per hour, the stud                                                              
strikes the road with a certain amount of force.  Mr. Deats                                                                     
indicated the heavier the stud, the more striking force.                                                                        
                                                                                                                                
Number 0292                                                                                                                     
                                                                                                                                
MR. DEATS stated the majority of rutting on Alaska's high-volume                                                                
roads is caused by passenger studded tires, rather than heavy truck                                                             
studded tires.  These aluminum and lightweight studs will cost $1                                                               
to $2 more in material per tire.  However, HB 127 should be seen as                                                             
a bill to reduce wear on Alaska's roads, not as a bill to ban steel                                                             
tire studs.  Both lightweight and conventional tire studs are steel                                                             
tire studs.  Tire studs are a two-part item; the inner pin of                                                                   
hardened carbide steel is what provides the traction on the road.                                                               
An outer casing of aluminum or steel holds the pin in the tire.                                                                 
Both types of studs are engineered to wear at the same rate as the                                                              
tire, and are claimed to provide three to four winters' worth of                                                                
traction.  Tests in Finland and Sweden have shown there is no                                                                   
appreciable difference in the traction characteristics of the two                                                               
[types of] studs.  Mr. Deats urged the committee to pass the                                                                    
legislation as a way to reduce wear on Alaska's roads and maintain                                                              
safe driving surfaces throughout the state.  Witnesses to testify                                                               
are:  the Alaska Profession Design Council (APDC) which asked                                                                   
Representative Masek to sponsor the bill, a tire company already                                                                
selling tires with the lightweight studs, and one of the primary                                                                
Alaska and Northwest tire stud suppliers.                                                                                       
                                                                                                                                
Number 0440                                                                                                                     
                                                                                                                                
REPRESENTATIVE CISSNA mentioned she has heard the lighter-weight                                                                
studs do not work as well with antilocking [ABS] brakes.                                                                        
                                                                                                                                
MR. DEATS replied he is not aware of this issue but one of the                                                                  
speakers might be.                                                                                                              
                                                                                                                                
Number 0505                                                                                                                     
                                                                                                                                
SAM KITO III, Chairman, Legislative Liaison Committee, Alaska                                                                   
Professional Design Council, testified via teleconference from                                                                  
Anchorage in support of HB 127.  The Alaska Professional Design                                                                 
Council is a consortium of professional societies representing                                                                  
architects, engineers, land surveyors, building code officials and                                                              
landscape architects.  He stated, "Ten member organizations, a                                                                  
combined membership of over 1,400 and represent approximately 5,000                                                             
licensed professionals."  The Alaska Professional Design Council                                                                
addresses issues of concern to the various design professions                                                                   
through workshops, seminars, ad hoc and standing committees, and                                                                
governmental task forces.  One of the priorities of this year's                                                                 
legislative committee is to work toward passage of legislation                                                                  
mandating the sale of only lightweight studded tires.  The APDC                                                                 
proposal is before the committee as HB 127.  Mr. Kito indicated the                                                             
APDC's collective desire is to foster an environment where Alaska                                                               
is not reacting to damage to its roads or loss of its facilities by                                                             
continually deferring maintenance.  Deferred maintenance may not                                                                
appear to be directly related to studded tires but there is a                                                                   
connection.  In the effort to encourage the legislature to pass HB
127, APDC is encouraging a proactive step towards taking care of                                                                
Alaska's assets.                                                                                                                
                                                                                                                                
Number 0592                                                                                                                     
                                                                                                                                
MR. KITO noted the state of Alaska is battling with severe roadway                                                              
wear.  Everyone has seen and driven in the ruts in the state's                                                                  
major roadways.  Studies completed by DOT-PF indicate there are                                                                 
three factors which, when addressed, will significantly decrease                                                                
road wear on Alaska's highways.  1) The utilization of a stone                                                                  
mastic asphalt mix.  2) Utilization of harder aggregate or rock                                                                 
material in pavement.  3) Encouraging the use of lightweight                                                                    
studded tires.  The Department of Transportation and Public                                                                     
Facilities is currently utilizing stone mastic asphalt mix design;                                                              
it is investigating, and has located, some possible sources of                                                                  
harder aggregate material.  The third component in reduction of                                                                 
stud-related road wear is the use of lightweight studded tires.                                                                 
This use can decrease the wear and rutting of Alaskan roads by                                                                  
decreasing the striking force of each stud.  The Alaska                                                                         
Professional Design Council is interested in this issue for two                                                                 
basic reasons.  1) To advocate safety on Alaska's roadways.  APDC                                                               
believes the rutted roadways pose safety hazards to the motoring                                                                
public if left unrepaired.  2) To encourage preventative                                                                        
maintenance of Alaska's road infrastructure.  While connecting                                                                  
direct savings to decreasing wear on Alaska's roadways  would be                                                                
extremely difficult, APDC believes that by engaging in this type of                                                             
preventative maintenance, the state is bound to free up an                                                                      
undetermined amount of federal construction funding that will then                                                              
be available for other projects.  The Alaska Professional Design                                                                
Council believes this is an important preventative maintenance                                                                  
issue and they would like to encourage all members of the committee                                                             
to support the legislation's passage.                                                                                           
                                                                                                                                
Number 0696                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG asked what kind of scientific and engineering                                                                 
background and studies the design council has for its position.                                                                 
                                                                                                                                
MR. KITO referred the question to DOT-PF, commenting that numerous                                                              
studies have been done, predominantly in Scandinavia.  Mr. Kito                                                                 
mentioned Tony Barter of DOT-PF is available via teleconference.                                                                
                                                                                                                                
CHAIRMAN ROKEBERG rhetorically questioned whether that meant the                                                                
committee would have to rely on the department again for technical                                                              
information, not the private sector.  He requested Mr. Barter's                                                                 
testimony.                                                                                                                      
                                                                                                                                
Number 0778                                                                                                                     
                                                                                                                                
TONY BARTER, Statewide Materials Engineer, Division of Statewide                                                                
Design and Engineering Services, Department of Transportation and                                                               
Public Facilities, spoke via teleconference from Anchorage.  He                                                                 
stated he did not have any prepared testimony; he is available to                                                               
answer questions as a technical representative of the department.                                                               
                                                                                                                                
Number 0822                                                                                                                     
                                                                                                                                
GARY WESSEL, President, Bruno Wessel, Incorporated, testified next                                                              
via teleconference off-network from New York in support of HB 127.                                                              
He noted Bruno Wessel is one of the major suppliers of tire studs                                                               
and related equipment in North America.  He indicated his company                                                               
tries to be involved in anything concerning its products.  Mr.                                                                  
Wessel said Mr. Barter has done quite a bit of research regarding                                                               
the road wear characteristics from the Nordic countries.  Bruno                                                                 
Wessel is there simply to answer any questions regarding studs and                                                              
related equipment:  deliveries, inventories, pricing issues, et                                                                 
cetera.  Mr. Wessel stated they are in support of HB 127; anything                                                              
reducing road wear related problems due to tire studs, hopefully                                                                
reducing road maintenance costs, will certainly be a benefit to the                                                             
state of Alaska and, hopefully, other states using tire studs.                                                                  
Regarding the ABS [antilock brake systems] brake question, ABS                                                                  
brakes do not reduce the performance of tire studs, either steel or                                                             
aluminum, to his company's knowledge.  Mr. Wessel noted there have                                                              
been quite a few studies done.  He indicated Jim Johnson of                                                                     
Johnson's Tire Service, one of the larger Alaskan tire dealers, has                                                             
been using aluminum studs for approximately four years and would be                                                             
able to provide information about his customers' response if he is                                                              
available.                                                                                                                      
                                                                                                                                
Number 0929                                                                                                                     
                                                                                                                                
REPRESENTATIVE HARRIS questioned if any studies have been done                                                                  
about the life span of an aluminum stud versus a steel stud.  He                                                                
asked the anticipated life of the stud on a tire with aluminum                                                                  
studs versus a tire with steel studs on an average Alaskan winter.                                                              
                                                                                                                                
MR. WESSEL replied the average life of the stud should be the same                                                              
whether it is aluminum or steel if the stud is properly inserted                                                                
into the tire.  The actual life of a tire varies depending the                                                                  
individual's driving characteristics, vehicle type and weight, and                                                              
amount of driving.  The stud basically wears with the snow tire                                                                 
itself.  If the snow tire is going to last two to three seasons                                                                 
then the studs should last two to three seasons.  There should                                                                  
really be no wear difference between the aluminum and steel stud.                                                               
                                                                                                                                
Number 1017                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG asked Mr. Wessel if his company supplied all                                                                  
different varieties of studs.                                                                                                   
                                                                                                                                
MR. WESSEL indicated it does.  In North America the number one stud                                                             
is a standard steel stud that has been used for the last 30 years.                                                              
Stud manufacturing has improved quite a bit over that time, just as                                                             
tires and roads have improved.  In North America Bruno Wessel sells                                                             
steel studs, some aluminum studs, and Mr. Wessel noted there is now                                                             
a modified steel stud.  This could be called a lightweight steel                                                                
stud.  He indicated there are currently three levels of tire studs:                                                             
1) the standard steel stud, 2) a slightly lighter modified steel                                                                
stud, 3) a considerably lighter aluminum stud.  He commented the                                                                
carbide insert is the same.  They also have plastic studs but these                                                             
are not used very often in North America.                                                                                       
                                                                                                                                
CHAIRMAN ROKEBERG confirmed the name of Mr. Wessel's company.  The                                                              
chairman asked what the company's North American market share is.                                                               
                                                                                                                                
MR. WESSEL replied probably 70 to 75 percent.  In answer to the                                                                 
chairman's inquiries, Mr. Wessel noted his company is not publicly                                                              
traded and is located in Stratford, Connecticut.                                                                                
                                                                                                                                
Number 1126                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG mentioned HB 127 contains a stud specification by                                                             
weight.  The chairman mentioned existing state statute or                                                                       
regulation [AS 28.35.155(b)] has a 1/4-inch protrusion factor;                                                                  
other states have different protrusion factors down to a .04-inch                                                               
protrusion.                                                                                                                     
                                                                                                                                
MR. WESSEL said the normal standard of measurement in tires is                                                                  
thirty-secondths of an inch.  He questioned whether they were                                                                   
referring to the distance the stud protrudes from the tire.  He                                                                 
noted a 1/4-inch protrusion would be significant, and, for some                                                                 
tire studs, it would be the entire stud length.  Normally the                                                                   
protrusion is 1/32 to 2/32 of an inch out of a tire.  Mr. Wessel                                                                
indicated the carbide tip of the stud is really the only thing                                                                  
doing any work; the body of the stud should wear out very quickly                                                               
to equal that of the rubber around it.                                                                                          
                                                                                                                                
CHAIRMAN ROKEBERG referred to a state-by-state chart in the bill                                                                
packet titled, "Studded Tire Use as of April 10, 1998."  The chart                                                              
seems to indicate there is variability in allowed protrusion from                                                               
state to state - 3/32-inch plus or minus, or 1/16-inch - and Alaska                                                             
has a 1/4-inch protrusion.  The chairman asked the length of a                                                                  
normal stud.                                                                                                                    
                                                                                                                                
Number 1211                                                                                                                     
                                                                                                                                
MR. WESSEL replied studs are measured in millimeters (mm) but he                                                                
can also give thirty-secondths of an inch.  He stated, "The average                                                             
stud - the 80 percent of the market - is a[n] 11 millimeter [mm]                                                                
which is a 12/32 (indisc.) and it's about a quarter of an inch ...                                                              
I'm sorry, maybe about a half an inch.                                                                                          
                                                                                                                                
CHAIRMAN ROKEBERG commented, then, Mr. Wessel's testimony is that                                                               
the protrusion of the stud from the tire is usually only 1/32 or                                                                
2/32 of an inch.  He asked about a specific recommendation.                                                                     
                                                                                                                                
MR. WESSEL mentioned a guideline of the proper studding method                                                                  
which basically shows a side-view diagram of a tire with three                                                                  
studs:  one correct, one too deep, one protruding too far.  The                                                                 
true protrusion of a tire stud from the rubber should only be the                                                               
small carbide tip in the middle.  The body of the stud should be                                                                
flush with the rubber around it.                                                                                                
                                                                                                                                
CHAIRMAN ROKEBERG mentioned limitations in other states on the                                                                  
percentage of coverage area, such as 3 percent of the total tire                                                                
contact surface.  He asked what this means.                                                                                     
                                                                                                                                
MR. WESSEL replied he was not sure, indicating he was not familiar                                                              
with the document the chairman was reviewing.  Mr. Wessel commented                                                             
most states basically have time limitations on tire studs and there                                                             
is not really much enforcement on the protrusion of the stud; if a                                                              
stud sticks out too far, it is going to fall out anyway.                                                                        
Therefore, if a stud has not been inserted properly, by the time it                                                             
starts to wear out the stud will fall out.                                                                                      
                                                                                                                                
Number 1314                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG commented the document he is reviewing is a very                                                              
good chart; it even says studs are allowed in the Mauna Kea Reserve                                                             
in Hawaii.  The chairman questioned if they recommended that only                                                               
a certain number studs be inserted into a tire of a particular                                                                  
size, or if is there a specific spacing, or how this is done.                                                                   
                                                                                                                                
MR. WESSEL responded the rubber manufacturers mainly determine how                                                              
many studs go into a tire.  The average tire has approximately 90                                                               
studs; the studs go down the left and right sides of the tire and                                                               
are spaced about one inch apart.  The desired configuration is to                                                               
have three or four tire studs making contact on the ground at one                                                               
time if the vehicle is in a slide condition.  However, the stud                                                                 
manufacturer does not determine the number of studs that go into a                                                              
tire.  Cooper tires average about 75 studs per tire, last year's                                                                
Firestone tires averaged about 126 studs per tire, Gislaved, from                                                               
Sweden, averages about 115 studs per tire.  The number of studs per                                                             
tire varies depending on the manufacturer.                                                                                      
                                                                                                                                
CHAIRMAN ROKEBERG said it seems logical the Cooper tire with 75                                                                 
studs would have less wear on the roadways than the Firestone tire                                                              
with 126.                                                                                                                       
                                                                                                                                
Number 1395                                                                                                                     
                                                                                                                                
MR. WESSEL answered absolutely; it would also perform less in the                                                               
related conditions.                                                                                                             
                                                                                                                                
CHAIRMAN ROKEBERG questioned, then, if he purchased a tire that                                                                 
would take the maximum number studs and asked that 125 or 150                                                                   
1.3-gram studs be inserted, wouldn't the numbers of studs have as                                                               
much to do with it as the amount of protrusion or weight of the                                                                 
stud?                                                                                                                           
                                                                                                                                
MR. WESSEL replied not really.  He wished he could provide the                                                                  
complicated mathematical equation which they have at their office.                                                              
He mentioned perhaps Mr. Barter could assist there.  The equation                                                               
to calculate the impact on the road is extensive, and it really has                                                             
nothing to do with the volume of studs as far as they understand                                                                
it.  They basically look at the weight, and with the centrifugal                                                                
force; that is how it comes down and impacts the ground.  One would                                                             
assume that more studs in the tire would increase road wear, but he                                                             
does not know if that is necessarily true.  Mr. Wessel said he has                                                              
not read a study saying that.                                                                                                   
                                                                                                                                
Number 1459                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG asked the cost of the 1.3-gram aluminum stud                                                                  
versus the 1.6-gram steel stud.                                                                                                 
                                                                                                                                
MR. WESSEL answered studs are purchased boxes of 1,000 at a time.                                                               
The average price of tire studs in Alaska is about $25/1,000 for                                                                
steel studs and about $35/1,000 for aluminum studs.  This increases                                                             
the cost to a tire dealer about $1 per tire.  In response to the                                                                
chairman's question if that is based on 90 studs per tire, Mr.                                                                  
Wessel replied it is based on 100 studs per tire.                                                                               
                                                                                                                                
CHAIRMAN ROKEBERG confirmed Mr. Wessel's company is an "OEM"                                                                    
[original equipment manufacturer] supplier to the tire                                                                          
manufacturers.  The chairman questioned whether most tires sold in                                                              
the United States are sold with steel studs.                                                                                    
                                                                                                                                
MR. WESSEL replied most are.  However, Michelin and Firestone both                                                              
purchase aluminum studs.                                                                                                        
                                                                                                                                
CHAIRMAN ROKEBERG questioned that there would be fewer brands for                                                               
Alaskan consumers to choose from if this legislation is passed                                                                  
unless the tire manufacturers change their manufacturing "specs"                                                                
[specifications] to meet the Alaskan market.                                                                                    
                                                                                                                                
Number 1536                                                                                                                     
                                                                                                                                
MR. WESSEL answered no.  The tire manufacturer does not specify                                                                 
what tire stud will be used; most tires studding is actually done                                                               
in the field.  Michelin and Firestone have contracts with Sam's                                                                 
Club Membership Warehouse, for example, and some of the larger                                                                  
warehouses that want to buy tires ready to go right off the shelf.                                                              
A typical Alaskan tire dealer like Johnson's Tire Service will                                                                  
begin studding tires in June to build up an inventory.  Since the                                                               
tire dealers are responsible for studding most tires and they                                                                   
basically decide which stud will be used, this would not reduce the                                                             
consumer's choice of tires at all.                                                                                              
                                                                                                                                
Number 1604                                                                                                                     
                                                                                                                                
DENNIS POSHARD, Legislative Liaison/Special Assistant, Office of                                                                
the Commissioner, Department of Transportation and Public                                                                       
Facilities, came forward in Juneau to testify in support of HB 127.                                                             
He brought some samples of different types of tire studs - plastic,                                                             
aluminum and steel - labeled with their weights.  Mr. Poshard                                                                   
stated to the committee, using his prepared materials as the basis                                                              
for his remarks:                                                                                                                
                                                                                                                                
     "A little background first:  Studded tires were first                                                                      
     developed and used in Finland in 1959.  By the winter of                                                                   
     1963, studded tires were being used in all 50 states.  As                                                                  
     early as 1972, the State of Alaska Department of Highways                                                                  
     released a report outlining the problems of studded tire                                                                   
     use on Alaska roads.  The department estimates that                                                                        
     studded tires cause approximately $5 million damage to                                                                     
     Alaska roads annually.  This is damage that, some of                                                                       
     which the department repairs, and much of which gets                                                                       
     added to our deferred maintenance backlog.                                                                                 
                                                                                                                                
     "The use of studded tires and the relationship to road                                                                     
     wear is a subject of comprehensive international interest                                                                  
     - over the last 30 years the Scandinavian countries have                                                                   
     spent over $50 million researching this topic.                                                                             
                                                                                                                                
     "In 1995 and 1996 the department did an extensive review                                                                   
     of the Scandinavian research and released a report                                                                         
     titled, "Options for Reducing Stud-Related Pavement                                                                        
     Wear."  And I think you all have a copy in your packet.                                                                    
     To summarize briefly, that study had 3 recommendations                                                                     
     for reducing stud wear:  number 1) the use of stone                                                                        
     mastic asphalt [SMA], number 2) using harder, more                                                                         
     durable aggregates in the pavement mix, and number 3) was                                                                  
     requiring use of lightweight studs.                                                                                        
                                                                                                                                
     "First, stone mastic asphalt.  The department has begun                                                                    
     using stone mastic asphalt in the Anchorage area.  This                                                                    
     type of asphalt contains a higher percentage of coarse                                                                     
     aggregates and has been shown to reduce pavement wear by                                                                   
     25 to 50 percent.  It's a much more expensive asphalt and                                                                  
     use to date has been limited to the Anchorage area where                                                                   
     traffic counts make it economically feasible.  The                                                                         
     Department plans to continue to increase the use of                                                                        
     SMA-type pavements."                                                                                                       
                                                                                                                                
Number 1714                                                                                                                     
                                                                                                                                
     "The second recommendation was harder, more durable                                                                        
     aggregates because they provide much better wear                                                                           
     resistance.  First, let me say that Scandinavia, which                                                                     
     has been working on this issue for 30 years, has                                                                           
     determined that only 2 to 4 percent of their available                                                                     
     aggregate materials meet the standard for stone mastic                                                                     
     asphalt pavement mix to resist studded tire wear.  In                                                                      
     Alaska, we're comparatively in our geologic infancy when                                                                   
     it comes to identifying good materials sites.  To date,                                                                    
     the department has found three sites with acceptable                                                                       
     materials:  1) is the Chistochina, 2) is Black Rapids and                                                                  
     3) is near Cantwell.  We have shipped in materials from                                                                    
     the Cantwell site for the test projects in the Anchorage                                                                   
     area.                                                                                                                      
                                                                                                                                
     "The third recommendation from the report was the use of                                                                   
     lightweight studs - mandating the use of the lightweight                                                                   
     studs.  The use of lightweight studs can decrease                                                                          
     pavement wear by up to 50 percent.  To explain why this                                                                    
     is the case, if you have the report in front of you ...                                                                    
     on page 12 there's a chart that shows the energy that is                                                                   
     in the use of a stud.  And the energy that does the most                                                                   
     damage is the energy in the dynamic hit and the energy in                                                                  
     the after-scratch.  That's what does the most damage.                                                                      
     Harkening back to your physics classes, or to the                                                                          
     Transportation Committee [House Transportation Standing                                                                    
     Committee] a couple of weeks ago [March 18, 1999], I                                                                       
     brought out the fact that Energy = 1/2 Mass times                                                                          
     Velocity squared.  When you look at that equation there's                                                                  
     only two variables that we can change to reduce the                                                                        
     energy, or the wear on the roads, ... mass and velocity.                                                                   
     Assuming that we don't want to lower the speed limit to                                                                    
     30 mile-per-hour [mph] on all of our roads, we need to                                                                     
     focus on the mass, or the weight of the stud.  By                                                                          
     reducing the weight of the studs we can reduce the energy                                                                  
     and the wear on our roads.  This can be done, as you've                                                                    
     heard, without reducing the effectiveness of the studded                                                                   
     tires.                                                                                                                     
                                                                                                                                
     "In conclusion, the department is supportive of this                                                                       
     legislation as a safety measure and as a way of reducing                                                                   
     the annual damage done to Alaska's roads."                                                                                 
                                                                                                                                
MR. POSHARD said he would be happy to answer any questions and                                                                  
indicated Mr. Barter, the department's expert on tire studs, is                                                                 
also available in Anchorage.  He asked Mr. Barter to address the                                                                
previous question on Alaska law regarding tire stud protrusion, and                                                             
possibly also the number of studs in a tire versus the weight of                                                                
the studs in terms of roadway damage.                                                                                           
                                                                                                                                
Number 1851                                                                                                                     
                                                                                                                                
MR. BARTER answered that the length of the stud and the protrusion                                                              
from the tire is related to the performance characteristics.  Mr.                                                               
Barter noted he thinks Mr. Wessel also addressed number of studs                                                                
per tire.  The variance being seen is based on the size of the                                                                  
tire, a 13-inch tire versus a 15-inch.  The predominant passenger                                                               
tire is in the 13-inch to 14-inch range.  Mr. Barter commented,                                                                 
therefore, they were running on the lower side of 75 to 90 studs                                                                
per tire.  The number of studs installed in the tire is based on                                                                
the tire manufacturer who pre-molds the tire with the tread                                                                     
pattern; this determines the quantity of studs that will be                                                                     
installed.  Another key component of the aluminum studs is that the                                                             
technology has improved to the point where a component called                                                                   
"Duralcan (ph)" is being added.  He indicated this strengthens the                                                              
stud and improves durability.                                                                                                   
                                                                                                                                
REPRESENTATIVE MURKOWSKI referred to information in the bill packet                                                             
discussing that much of the roadway damage cause by studs comes in                                                              
the shoulder seasons.  She asked Mr. Poshard what efforts DOT-PF                                                                
makes to educate people to change their tires so that this type of                                                              
wear does not occur once the roads are dry.  Additionally,                                                                      
Representative Murkowski asked if that could be used to ameliorate                                                              
some of the problem.                                                                                                            
                                                                                                                                
Number 1940                                                                                                                     
                                                                                                                                
MR. POSHARD answered that, in the past, the department acted to                                                                 
alert car owners and tire stud users of the existing state law                                                                  
prohibiting studded tire use after certain dates.  He believes                                                                  
these dates are April 15 for those living below 60 degrees of                                                                   
latitude and May 15 for those living above 60 degrees.  Mr. Poshard                                                             
mentioned a radio commercial from the department with "Click and                                                                
Clack" [Tom and Ray Magliozzi, hosts of the "Car Talk" radio                                                                    
program] reminding Alaska tire stud users to remove their studs by                                                              
the required date.  The department has taken other measures, and                                                                
will continue this.  He indicated this year the department may be                                                               
planning to ask the local law enforcement agencies to assist with                                                               
enforcement for a short period of time after the removal date.  The                                                             
department will also probably do another public information                                                                     
campaign this year.                                                                                                             
                                                                                                                                
REPRESENTATIVE MURKOWSKI noted the existing law requiring removal                                                               
of studded tires by a certain date, but she commented the weather                                                               
in any given year may not require studded tire use all the way to                                                               
that removal date.  Mentioning the procrastination tendency, she                                                                
thinks there needs to be a more concerted effort to inform people                                                               
the longer they keep their studded tires on, the more damage they                                                               
may be causing to the road.  She indicated people should do the                                                                 
right thing by removing their studded tires early in this                                                                       
situation.  Representative Murkowski commented she never hears that                                                             
message.                                                                                                                        
                                                                                                                                
Number 2046                                                                                                                     
                                                                                                                                
MR. POSHARD agreed that is a good point and will consider doing                                                                 
that.  In the past, the department's efforts have focused on making                                                             
sure people switch their tires by the deadline.                                                                                 
                                                                                                                                
REPRESENTATIVE SANDERS asked how many passenger vehicles are on the                                                             
roads in Alaska.                                                                                                                
                                                                                                                                
MR. POSHARD indicated Mr. Barter might have some information, but                                                               
he did not know that figure.                                                                                                    
                                                                                                                                
MR. BARTER stated he did not know the exact number of passenger                                                                 
vehicles, but he can relate the percentage of vehicles using                                                                    
studded tires if that is of interest.  In the Anchorage market the                                                              
department periodically runs parking lot surveys, evaluating 500                                                                
vehicles at a time.  At the peak of the season, about 50 percent of                                                             
the passenger vehicles will have studded tires.                                                                                 
                                                                                                                                
REPRESENTATIVE SANDERS questioned, though, that they did not have                                                               
any idea of the number of passenger vehicles in the state.                                                                      
                                                                                                                                
MR. BARTER replied he does not know the registered vehicle count.                                                               
                                                                                                                                
MR. POSHARD offered to try to obtain that information for                                                                       
Representative Sanders from the Division of Motor Vehicles.                                                                     
                                                                                                                                
Number 2112                                                                                                                     
                                                                                                                                
REPRESENTATIVE SANDERS said his reason for asking is because $2 a                                                               
tire may not sound like very much money.  However, if, for                                                                      
instance, there are 500,000 cars on the road and 50 percent are                                                                 
using studded tires, that is $2 million dollars a year, which is                                                                
effectively a tax on transportation.  Representative Sanders                                                                    
commented he remembered the House Transportation Standing Committee                                                             
testimony was that there was not going to be any fiscal note, that                                                              
there was not going to be any savings.  He added, "So if there's no                                                             
savings we're just -- the people who are driving on the roads are                                                               
just forking out another $2 million dollars ...."                                                                               
                                                                                                                                
MR. POSHARD responded he thinks, as was heard in the House                                                                      
Transportation Standing Committee and on the department's fiscal                                                                
note, the department projects the use of the lighter-weight studs                                                               
would reduce the amount of damage being done to Alaska's roads.                                                                 
They approximate about 40 percent, or $2 million per year, less in                                                              
damage.  He would say currently most of that is winding up on the                                                               
department's deferred maintenance backlog.  Therefore, there is a                                                               
benefit to the public, even if it is not a direct budgetary benefit                                                             
in terms of general fund savings.  Mr. Poshard respectfully                                                                     
indicated he thinks the cost to the consumer would be less than $2                                                              
million annually because a certain percentage of passenger cars                                                                 
probably already have lightweight studs and a good set of snow                                                                  
tires should last more than one year.                                                                                           
                                                                                                                                
Number 2204                                                                                                                     
                                                                                                                                
REPRESENTATIVE HARRIS commented Representative Sanders had brought                                                              
up a good point.  Representative Harris stated, "Your executive                                                                 
summary here says that you believe you spend about $5 million                                                                   
dollars a year on ... stud-related pavement damage, at least you                                                                
attribute it to stud-related pavement damage, and then you're                                                                   
saying that you would save about, I think you just said two and a                                                               
half million dollars (indisc.).  Something doesn't - something                                                                  
doesn't quite come together there."  Representative Harris                                                                      
commented the department's executive summary states both                                                                        
lightweight and conventional studs use the same carbon-tungsten end                                                             
for traction.  Noting if that is the case, he questioned if just                                                                
that much difference in weight pounding the road over a period of                                                               
time at the speed creates the added damage.                                                                                     
                                                                                                                                
MR. POSHARD addressed Representative Harris' first question:  there                                                             
would still be stud-related damage even using lightweight studs,                                                                
but the amount of stud-related damage would be reduced.  He said                                                                
the department estimated it would reduce the $5 million dollar                                                                  
annual damage by about $2 million annually.  In response to                                                                     
Representative Harris' second question, Mr. Poshard said                                                                        
essentially the weight of the stud is the only difference.  The                                                                 
carbon-tungsten tip is the same in the examples he distributed,                                                                 
whether the studs are plastic, aluminum or steel.  The tip is what                                                              
provides the traction performance.  Really, it is only the                                                                      
difference in the weight of the stud, in terms of the difference                                                                
between the stud types.                                                                                                         
                                                                                                                                
REPRESENTATIVE HARRIS asked, then, is he to assume that what DOT-PF                                                             
would really like to see is the elimination of studded tires                                                                    
completely.  He asked if that would save the department the most                                                                
amount of money.                                                                                                                
                                                                                                                                
Number 2301                                                                                                                     
                                                                                                                                
MR. POSHARD replied that is not a correct assumption.  The                                                                      
department recognizes there is a safety factor to lightweight                                                                   
studs.  For example, several of the Scandinavian countries                                                                      
researched require the use of studded tires with lightweight studs                                                              
on vehicles for insurance and safety purposes.  Heavier weight                                                                  
studs have been completely outlawed.  The department recognizes                                                                 
there is a benefit to using studs, but it does not see a difference                                                             
in effectiveness between lightweight studs and steel studs.                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO mentioned the presentation Mr. Poshard had                                                                
given in the House Transportation Standing Committee.                                                                           
Representative Halcro said he was struck in particular by a comment                                                             
made by Representative Hudson after adjournment.  He related that                                                               
Representative Hudson had said he had steel studs and, if they were                                                             
banned, he would just continue using his until he had to replace                                                                
them.  Representative Halcro asked if the department had considered                                                             
the possibility retailers might create concern in consumers to                                                                  
purchase steel studs before July 1, 2000 [the legislation's                                                                     
effective date].  He commented on a huge retail sales rush on these                                                             
studded tires, noting, then, the department would not see a return                                                              
on this legislation for a while.                                                                                                
                                                                                                                                
MR. POSHARD replied this question might be better addressed to the                                                              
sponsor.  He noted outlawing the sale would delay the full benefit                                                              
to some degree, as opposed to outlawing use altogether, but he                                                                  
thinks this is probably a better way to implement the law for                                                                   
Alaskan consumers.                                                                                                              
                                                                                                                                
Number 2427                                                                                                                     
                                                                                                                                
REPRESENTATIVE HARRIS asked Mr. Poshard if the department would                                                                 
have someone checking with all the tire sales people to make sure                                                               
they are complying with the law, if this goes into effect.                                                                      
                                                                                                                                
MR. POSHARD answered the department does not have any plans for                                                                 
this.  He noted, though, there are a limited number of tire sales                                                               
places in the state.  Mr. Poshard indicated he thought it would be                                                              
likely that a competitor would let the appropriate agency know, for                                                             
enforcement measures, if steel tire studs sales were outlawed but                                                               
someone continued to sell them.                                                                                                 
                                                                                                                                
REPRESENTATIVE HARRIS indicated he wanted to ensure this                                                                        
legislation would not add department staff.                                                                                     
                                                                                                                                
MR. WESSEL commented, as a supplier of tire studs, there are truly                                                              
only two people in North America who supply tire studs to the tire                                                              
dealer network.  If Alaska passes this law, they would simply not                                                               
be selling steel studs to Alaska.  Getting steel studs to Alaska is                                                             
not one of the most convenient things to do; Mr. Wessel commented                                                               
they are always concerned with their freight costs, so they would                                                               
make sure the product going up into the area would be aluminum                                                                  
studs.  He indicated about the only way steel studs would get to                                                                
Alaska would be if someone was willing to spend a lot of extra                                                                  
money to purchase the studs out-of-state and then barge them up.                                                                
                                                                                                                                
Number 2499                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO addressed Mr. Wessel, "Let me ask you, with                                                               
75 percent of the stud market..." [TESTIMONY INTERRUPTED BY TAPE                                                                
CHANGE]                                                                                                                         
                                                                                                                                
[From tape log notes:  'a lot of feedback from (retailers?) ...                                                                 
presentation in Transportation']                                                                                                
                                                                                                                                
TAPE 99-31, SIDE B                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO continued, "... (indisc.) who were opposed to                                                             
this legislation, and I'm gonna read you a quote and I just want to                                                             
get your feedback.  This one particular retailer said, 'We saw the                                                              
carbide tips just smashed right down into the casing of the stud.'                                                              
Have you heard this from your retailers at all?  ... Is this an                                                                 
aversion to buying lightweight studs?"                                                                                          
                                                                                                                                
Number 0018                                                                                                                     
                                                                                                                                
MR. WESSEL answered he believes that is a dealer, for whatever                                                                  
reason, voicing an opposition with no facts.  A pin pushing down                                                                
into the body of a stud is possible, it is also possible on a steel                                                             
stud.  It only means it is a defective stud.  He recalls five or                                                                
fewer phone calls regarding something of that nature in the last                                                                
ten years.  Mr. Wessel indicated he did not think an Alaskan tire                                                               
dealer who had not used aluminum studs could really comment on the                                                              
studs' performance without testing the studs themselves.  He noted                                                              
Jim Johnson is the only Alaskan tire dealer using aluminum studs on                                                             
a high volume and regular basis, and he would certainly be the                                                                  
person to speak to the consumer response towards the lightweight                                                                
studs.                                                                                                                          
                                                                                                                                
CHAIRMAN ROKEBERG confirmed Mr. Johnson is online.  The chairman                                                                
further confirmed Mr. Poshard has a copy of an article on highways                                                              
from Fortune magazine provided by the committee aide ["Industrial                                                               
Management & Technology - Smoother, Sturdier, High-Tech Highways"                                                               
by Stuart F. Brown, Fortune magazine, 12/21/98].                                                                                
                                                                                                                                
Number 0088                                                                                                                     
                                                                                                                                
JAMES M. JOHNSON, President, Johnson's Tire Service Incorporated,                                                               
testified next via teleconference from Anchorage.  He said he is                                                                
present to assist or answer any questions concerning the use of                                                                 
lightweight studs.  Johnson's Tire Service has been using this type                                                             
of stud since 1994.                                                                                                             
                                                                                                                                
CHAIRMAN ROKEBERG noted he understood the testimony earlier was                                                                 
that 13-inch to 14-inch tires were the norm.  He questioned whether                                                             
it wasn't true that the move was to lower-profile 15 and 16-inch                                                                
tires.                                                                                                                          
                                                                                                                                
MR. JOHNSON replied he thinks the mix is almost 50/50 now.                                                                      
                                                                                                                                
CHAIRMAN ROKEBERG questioned, though, that the trend is to bigger                                                               
tires.                                                                                                                          
                                                                                                                                
MR. JOHNSON agreed, but noted that does not mean the tire contains                                                              
more studs.  In response to the chairman's request, he explained                                                                
the manufacturer molds the stud hole in the tire during the                                                                     
manufacturing process.  His company uses an average of                                                                          
approximately 100 studs per tire.                                                                                               
                                                                                                                                
Number 0136                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG questioned that the manufacturer predetermines                                                                
the number of studs which can be installed.                                                                                     
                                                                                                                                
MR. JOHNSON indicated the placement of the studs for maximum                                                                    
traction and longevity is all done by computer.  He agreed that a                                                               
very small 13-inch tire would have fewer stud holes than a large                                                                
15-inch or 16-inch tire, but the number is pretty close.  100 studs                                                             
per tire is a very good average.                                                                                                
                                                                                                                                
REPRESENTATIVE HALCRO asked if Mr. Johnson had heard his                                                                        
(Representative Halcro's) question to Mr. Wessel concerning the day                                                             
after the House Transportation Standing Committee meeting.                                                                      
                                                                                                                                
MR. JOHNSON replied he could discuss that and a few other things.                                                               
Johnson's Tire Service has been using the lightweight environmental                                                             
stud since 1994.  The usage of this stud came through the March                                                                 
1994 Winter Cities meeting.  They heard the testimony of "VTI (ph)"                                                             
experts and engineers from Finland and Sweden, and went to Bruno                                                                
Wessel inquiring about this environment-friendly stud because they                                                              
thought it was a good idea.  Bruno Wessel provided them with a lot                                                              
of studs to choose from, and, luckily, Mr. Johnson noted, they                                                                  
chose the best stud.  It is ranked number one; Johnson's Tire                                                                   
Service has been using it since 1994.  The first year they put it                                                               
in approximately half their tires and studded the other half with                                                               
steel studs because they were concerned about the consumer trusting                                                             
the lightweight stud.  The next year they went to the lightweight                                                               
stud 100 percent at their retail level.  Mr. Johnson commented if                                                               
the benefits of the lightweight stud are explained to the consumer,                                                             
and the consumer is assured that the longevity and traction are the                                                             
same, the consumer will buy the environment-friendly stud.                                                                      
                                                                                                                                
Number 0227                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO asked if Mr. Johnson had seen anything from                                                               
his customers like the situation described in the article, "'We saw                                                             
the carbide tips just smash right down into the casing of the                                                                   
stud.'"                                                                                                                         
                                                                                                                                
MR. JOHNSON answered in the negative.  He indicated when Johnson's                                                              
Tire Service began this lightweight stud in 1994, they closely                                                                  
examined the tires coming off vehicles in the spring.  The company                                                              
has a very large share of the market and if the consumer is unhappy                                                             
with the performance or longevity of the stud, the consumer simply                                                              
is not going to buy the studs again.  Mr. Johnson said his                                                                      
company's sales continue to increase year after year, so the                                                                    
consumers are very pleased with the environmental stud his company                                                              
is using at least.  There are many different grades of studs,                                                                   
including lightweight studs.  Mr. Johnson emphasized his company                                                                
chose the best.                                                                                                                 
                                                                                                                                
CHAIRMAN ROKEBERG asked what the best is.                                                                                       
                                                                                                                                
MR. JOHNSON replied it is a stud his company is purchasing from                                                                 
Bruno Wessel.  The studs are expensive, but, again, his company has                                                             
taken the route to provide an environmental stud which they think                                                               
is the right thing to do to reduce road wear and save taxes.                                                                    
                                                                                                                                
CHAIRMAN ROKEBERG asked the weight of the stud.                                                                                 
                                                                                                                                
MR. JOHNSON answered 1.1 [grams].  They also use .9 gram stud                                                                   
developed by Nokia in Finland.  Mr. Johnson emphasized that the                                                                 
lighter weight does not mean traction or longevity is going to be                                                               
decreased.                                                                                                                      
                                                                                                                                
Number 0303                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG asked about the protrusion.                                                                                   
                                                                                                                                
MR. JOHNSON replied each manufacturer gives a list of tire offering                                                             
sizes and specify what size stud to use in their literature.                                                                    
Perhaps five choices - 11 [mm], 12, 13, 15 or 16 - might be given.                                                              
He noted, "The recommendation is to follow the manufacturer's                                                                   
recommendational stud length, and we do that - we adhere to that                                                                
100 percent."  If a specific size [tire] calls for a 12 [mm] stud,                                                              
that is what Johnson's uses.  Mr. Johnson indicated if the wrong                                                                
size stud is inserted into a tire, the stud will not hold and the                                                               
longevity of the tire will be decreased dramatically.                                                                           
                                                                                                                                
CHAIRMAN ROKEBERG asked about the legislation's 1.3 gram maximum                                                                
weight and a type of tire requiring a longer protrusion or stud,                                                                
noting the weight is limited.                                                                                                   
                                                                                                                                
MR. JOHNSON answered, "The magic number, the one we use, is the one                                                             
-- that's where the largest volume is.  As you go up into a, say a                                                              
15 or 16, that's gonna be increased slightly, but all the studs we                                                              
would use - whether it's a 12, 13, 15, or 16 - would meet the 1.3.                                                              
weight requirements."  In response to the chairman's question about                                                             
the diameter increasing with a longer stud, Mr. Johnson noted the                                                               
diameter is the same; only the length is longer, which slightly                                                                 
increases the weight of the stud.  Mr. Johnson reiterated the 1.3                                                               
[gram] would meet all requirements.  He commented, "It is very                                                                  
difficult to say, okay, all 13s will take 1-1 [1.1], all number 15s                                                             
will take 1-2 [1.2], and I think a 1-3 [1.3] is an average and you                                                              
should not exceed that."                                                                                                        
                                                                                                                                
Number 0402                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG asked what keeps this legislation from being the                                                              
Johnson's Tire Service bill versus its competitors.                                                                             
                                                                                                                                
MR. JOHNSON said that with or without the bill, his company has                                                                 
been selling these studs since 1994.  They have not increased their                                                             
prices even though the studs cost them about a $1 more per tire                                                                 
than what the standard steel studs cost their competitors; the                                                                  
labor costs are the same for steel studs or lightweight studs.  Mr.                                                             
Johnson asked if the chairman's question was the reason why                                                                     
Johnson's Tire Service is using lightweight studs instead of steel.                                                             
                                                                                                                                
CHAIRMAN ROKEBERG answered in the negative.  He indicated he was                                                                
asking why this wouldn't give Johnson's Tire Service a competitive                                                              
advantage.                                                                                                                      
                                                                                                                                
MR. JOHNSON replied his company would just go to another level,                                                                 
another step.  Consumers will not walk out of their stores because                                                              
they only have lightweight studs.  He noted a previous question, "I                                                             
think someone mentioned a question that if people knew that ... the                                                             
steel studs were gonna be banned they would have a run on studs.                                                                
I disagree with that totally.  ... The consumer, you know, they --                                                              
if you can assure them the same quality, same longevity, same                                                                   
traction, and ... even if they cost a little bit more, the                                                                      
consumers are concerned about the environment just like everybody                                                               
else."                                                                                                                          
                                                                                                                                
CHAIRMAN ROKEBERG repeated his question was what makes this bill                                                                
not advantageous to Mr. Johnson's company.  The chairman noted it                                                               
seems to him this legislation would give Mr. Johnson's company a                                                                
competitive advantage because it has been selling the lightweight                                                               
studs.                                                                                                                          
                                                                                                                                
Number 0485                                                                                                                     
                                                                                                                                
MR. JOHNSON said he somewhat disagrees.  He indicated this                                                                      
legislation could work against them.  Mr. Johnson indicated they                                                                
are using the environment-friendly nature of the lightweight stud                                                               
as a selling feature, and they have a very large market share, but                                                              
could lose this selling feature because the guy down the street                                                                 
would be able to make the same claim.  However, he thinks it boils                                                              
down to [the fact that] consumers buy from dealers who provide them                                                             
quality and service equally.  He is for this bill; his company has                                                              
been using the studs for five years; the consumers love them.  The                                                              
legislation might affect them in some way, but he expressed his                                                                 
interest in protecting the environment.                                                                                         
                                                                                                                                
REPRESENTATIVE MURKOWSKI referred to Representative Halcro's                                                                    
quoting of the March 19, 1999, Anchorage Daily News article in the                                                              
bill packet regarding the problem with the aluminum stud.  Her                                                                  
understanding is that Mr. Johnson is selling the best lightweight                                                               
aluminum stud.  Representative Murkowski questioned whether the                                                                 
quality of stud she might buy from Johnson's Tire Center selling a                                                              
Bruno Wessel stud might be different from the 1.3 [gram] aluminum                                                               
stud she might buy from COSTCO Wholesale Corporation.                                                                           
                                                                                                                                
MR. JOHNSON answered yes.  There are a lot of lightweight studs                                                                 
available in different grades and qualities.  The choice of stud is                                                             
up to the tire dealer.  Johnson's Tire Service is paying a lot of                                                               
money for the studs they buy, but they're receiving quality in                                                                  
return.  Whether or not an independent tire dealer would want to                                                                
spend the additional money to get the best stud is a question Mr.                                                               
Johnson cannot answer; the choice is up to the dealer.  He thinks                                                               
the additional cost is the main reason Alaskan tire dealers have                                                                
not gone to the lightweight studs.                                                                                              
                                                                                                                                
Number 0633                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG asked:  1) Does Mr. Johnson buy his studs from                                                                
Bruno Wessel?  2) Are there other suppliers of quality studs?                                                                   
                                                                                                                                
MR. JOHNSON replied his company has been buying studs from Bruno                                                                
Wessel since 1982, indicating his company has never had a reason to                                                             
consider changing or even looking somewhere else.                                                                               
                                                                                                                                
CHAIRMAN ROKEBERG asked Mr. Wessel if he had competitors for these                                                              
lightweight studs.                                                                                                              
                                                                                                                                
MR. WESSEL replied they did.                                                                                                    
                                                                                                                                
CHAIRMAN ROKEBERG confirmed Bruno Wessel did not have a corner on                                                               
the market for lightweight studs, asking to make sure the company                                                               
did not have an exclusive agreement with Nokia or anything like                                                                 
that.                                                                                                                           
                                                                                                                                
MR. WESSEL noted there are about five tire stud manufacturers                                                                   
world-wide.  Only two are really capable of handling the quantity                                                               
requirements for the world.  The other manufacturers are smaller,                                                               
specializing in different types and shapes of studs, each with its                                                              
market niche.  About 400 different types of studs are made.  For                                                                
example, studs are made for horseshoes, shoes, and Zamboni ice                                                                  
machines.                                                                                                                       
                                                                                                                                
Number 0738                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG noted he has always been a skeptic about Alaskan                                                              
roads; he questioned Mr. Poshard if the Alaska is one of the 45                                                                 
states using the WesTrack and Superpave [superior-performing                                                                    
asphalt pavements] procedures.                                                                                                  
                                                                                                                                
MR. POSHARD deferred the question to Mr. Barter because of Mr.                                                                  
Barter's involvement in research and materials.                                                                                 
                                                                                                                                
CHAIRMAN ROKEBERG referred to the December 21, 1998, Fortune                                                                    
magazine article ["Industrial Management & Technology - Smoother,                                                               
Sturdier, High-Tech Highways"] in the bill packet that describes                                                                
the WesTrack, a 1.8 mile oval located near Carson City, Nevada.                                                                 
The WesTrack contains 26 different asphalt recipes and is a                                                                     
cooperative venture.  The chairman asked Mr. Barter if he is aware                                                              
of this project.                                                                                                                
                                                                                                                                
MR. BARTER answered in the affirmative.  The Alaska Department of                                                               
Transportation and Public Facilities is a cooperative sponsor in                                                                
the pooled funds; Alaska helped finance part of the research taking                                                             
place there through the Federal Highway Administration.                                                                         
                                                                                                                                
CHAIRMAN ROKEBERG noted, "In the executive summary it says about 50                                                             
percent of the wear could be laid down to the -- is it just the ...                                                             
stone mastic mix, or is it the hard aggregate?  And the studs,                                                                  
there seems to be various percentages granted."  He commented there                                                             
seems to be no mention of the road base; the chairman questioned                                                                
Mr. Barter about that being a major factor in Alaska.                                                                           
                                                                                                                                
Number 0806                                                                                                                     
                                                                                                                                
MR. BARTER replied in that regard one is into the displacement type                                                             
rutting - a totally different phenomena.  That is where the                                                                     
structural capability of the road bed embankment will not carry the                                                             
additional weight of the heavier vehicles.                                                                                      
                                                                                                                                
CHAIRMAN ROKEBERG questioned, then, that the aggregate and the                                                                  
various other types of fill materials do not have an impact on the                                                              
standard passenger car type rutting, or even commercial vehicle                                                                 
rutting.                                                                                                                        
                                                                                                                                
MR. BARTER responded that the quality of the aggregate is a very                                                                
significant component.  This is where they start talking about the                                                              
hard, durable aggregates.  In Alaska, the glacial deposits are                                                                  
(indisc.) random valleys, so the deposits are very sorted and                                                                   
mixed.  Technically speaking, Alaska has a soft rock in comparison                                                              
to what it could have.  Mr. Barter referred to the research                                                                     
mentioned earlier:  DOT-PF has identified three other sources and                                                               
started its experiments last season with the hard rock out of the                                                               
Cantwell area.  The department is not building full depth pavement                                                              
with it; it is just trying to armor-coat or "black-coat" the                                                                    
surface so it is more resistant to the studded tire impact.  Mr.                                                                
Barter commented it is a grinding action, not a shoving or pushing                                                              
type action.                                                                                                                    
                                                                                                                                
CHAIRMAN ROKEBERG asked if there were further questions of DOT-PF.                                                              
There being none, he asked if anyone else wished to testify on HB
127.                                                                                                                            
                                                                                                                                
Number 0886                                                                                                                     
                                                                                                                                
MATT SEIDLER, Owner, Alaska Tire Service, testified next via                                                                    
teleconference from Anchorage.  Mr. Seidler stated he had a                                                                     
question for Mr. Wessel.  He noted some of the northwestern states,                                                             
Washington and Oregon, have had lightweight stud laws in effect                                                                 
before, and he asked if this had been reversed or if those states                                                               
had had problems with the same legislation before the committee.                                                                
                                                                                                                                
MR. WESSEL indicated the issue has  been raised in "Tire Talk," the                                                             
trade magazine (indisc.) the Northwest.  Mr. Wessel said the state                                                              
of Oregon was the first state to pass a law regarding lightweight                                                               
studs.  This law set a 1.1 gram requirement [limit].  There were                                                                
problems the first year with about 3 percent of the tires studded.                                                              
However, Mr. Wessel noted they could provide quite a bit of data                                                                
showing most of those problems were related to installation of the                                                              
tire stud.  Mr. Wessel indicated the aluminum tire studs have been                                                              
used worldwide and there have been no reversals of laws in any area                                                             
where aluminum studs are used.  He clarified that Oregon had                                                                    
modified its law, increasing the requirement [limit] to 1.5 grams.                                                              
                                                                                                                                
CHAIRMAN ROKEBERG confirmed there was no further testimony on HB
127, closing the public hearing.  He invited Ms. Seitz forward to                                                               
explain the Version H proposed committee substitute (CS).                                                                       
                                                                                                                                
Number 1001                                                                                                                     
                                                                                                                                
JANET SEITZ, Legislative Assistant to Representative Norman                                                                     
Rokeberg, Alaska State Legislature, came forward as aide to the                                                                 
House Labor and Commerce Standing Committee to explain a possible                                                               
committee substitute (CS) for HB 127, Version H.  Version H,                                                                    
labeled 1-LS0567\H, Ford, 3/25/99, was drafted by Mike Ford,                                                                    
Legislative Counsel, Legislative Legal and Research Services,                                                                   
Legislative Affairs Agency, to address the concern expressed in the                                                             
municipality's [Municipality of Anchorage] letter about emergency                                                               
vehicles.  In response to the chairman's question, Ms. Seitz                                                                    
indicated Representative Masek's office is aware of the possible                                                                
CS.                                                                                                                             
                                                                                                                                
MR. DEATS added, in response to the chairman's question, that                                                                   
Representative Masek's office has no objection.                                                                                 
                                                                                                                                
                                                                                                                                
MS. SEITZ explained the change in the CS, indicating subsection (1)                                                             
of Version H reads:                                                                                                             
                                                                                                                                
          (1) "commercial motor vehicle" means a vehicle                                                                        
     described in AS 19.10.399(1)(A)-(C);                                                                                       
                                                                                                                                
MS. SEITZ noted the difference from the original bill is the                                                                    
addition of "(1)(A)-(C)".  Ms. Seitz indicated and confirmed                                                                    
emergency vehicles, school buses, fire equipment, and farm                                                                      
vehicles, as well as other commercial vehicles, would be excluded                                                               
from the provisions of the legislation.                                                                                         
                                                                                                                                
Number 1114                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO made a motion to adopt Version H as the                                                                   
proposed committee substitute for HB 127.  There being no                                                                       
objection, it was so ordered.                                                                                                   
                                                                                                                                
CHAIRMAN ROKEBERG confirmed there was no further discussion of HB
127.                                                                                                                            
                                                                                                                                
Number 1133                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO made a motion to move CSHB 127 out of                                                                     
committee with individual recommendations and the attached zero                                                                 
fiscal note.  There being no objections, CSHB 127(L&C) moved out of                                                             
the House Labor and Commerce Standing Committee.                                                                                
                                                                                                                                
                                                                                                                                
HB 61 - OVERTIME WAGE EXEMPTION AIRLINE EMPLOYEES                                                                               
                                                                                                                                
Number 1183                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG announced the committee's next order of business                                                              
is HB 61, "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."  He invited the sponsor's representative forward.                                                              
                                                                                                                                
Number 1195                                                                                                                     
                                                                                                                                
JONATHON LACK, Legislative Assistant to Representative Andrew                                                                   
Halcro, Alaska State Legislature, came forward to present HB 61.                                                                
He noted Representative Halcro is offering HB 61, which was                                                                     
introduced the previous legislative session as HB 389.  House Bill                                                              
389 moved out of the House Labor and Commerce Standing Committee                                                                
but did not make it to the House floor because it was introduced                                                                
late in the session.  Mr. Lack explained HB 61 is intended to allow                                                             
airline employees to trade workdays with each other without                                                                     
invoking overtime pay requirements for their employers.  Under                                                                  
current Alaska Statute, a substitute employee who works a shift for                                                             
another employee must be paid overtime if that substitute employee                                                              
has already worked 8 hours in the same workday or 40 hours in the                                                               
same workweek.  Employees currently enjoy shift-trading so they can                                                             
attend special events for their children, take longer weekend                                                                   
trips, and travel.  This legislation is necessary because Alaska is                                                             
the only western state with a daily overtime requirement.                                                                       
Shift-trading is very common nationwide throughout the airline                                                                  
industry.  Usually it is done informally, with the employer's tacit                                                             
approval, and HB 61 would legitimize the custom in the industry.                                                                
Mr. Lack, noting the committee was running short on time, made                                                                  
himself available for questions and said Michelle Buckmaster is                                                                 
also available in Anchorage to testify in favor of the legislation.                                                             
                                                                                                                                
CHAIRMAN ROKEBERG asked Mr. Lack to quickly list for the record the                                                             
letters of support for the legislation in the bill packet.                                                                      
                                                                                                                                
Number 1288                                                                                                                     
                                                                                                                                
MR. LACK commented there are letters of support from Alaska                                                                     
Airlines, ERA Aviation and the Alaska Air Carriers Association, as                                                              
well as a resolution of support from the Alaska Air Carriers                                                                    
Association.  There is a letter of support for the previous                                                                     
session's HB 389 from Peninsula Airways, Incorporated [d.b.a.                                                                   
PenAir].  There are letters of support from a number of airline                                                                 
employees.  Mr. Lack said the bill packet also contains petition                                                                
format support forms from various airline employees including ERA                                                               
Aviation, United Airlines counter and airfreight staff, United                                                                  
Airlines ramp agents, and Delta Airlines.                                                                                       
                                                                                                                                
REPRESENTATIVE HARRIS asked Mr. Lack if they had received any                                                                   
comments from the Department of Labor.                                                                                          
                                                                                                                                
Number 1379                                                                                                                     
                                                                                                                                
MR. LACK noted Mr. Perkins [Deputy Commissioner, Department of                                                                  
Labor] had been present earlier but had to leave to attend a                                                                    
"Finance Subcommittee" meeting.  Mr. Lack said Mr. Perkins has                                                                  
indicated the department and the Administration do not oppose the                                                               
intent of this legislation as written.                                                                                          
                                                                                                                                
REPRESENTATIVE MURKOWSKI commented a couple of the letters in the                                                               
packet are in support but they express the desire that the flexible                                                             
work hour be included.  She questioned, "I notice that it                                                                       
specifically does not include, and that's why you're asking for                                                                 
this additional exemption.  What's going on there?"                                                                             
                                                                                                                                
MR. LACK indicated he thinks there possibly may have just been a                                                                
misunderstanding and that is why the letters include flexible work                                                              
hour.  He noted the state of Alaska already has provision for                                                                   
people to work four 10-hour shifts for their employers.  They                                                                   
simply have to sign up for that and it has to be approved by the                                                                
Department of Labor.  The legislation before the committee would                                                                
allow shift trading within the same work period, either an 8-hour                                                               
period or a 40-hour workweek.  Mr. Lack stated he believes this is                                                              
what the letter's authors are speaking of when they talk about                                                                  
flexible shifts.                                                                                                                
                                                                                                                                
Number 1449                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI said, then, the exemptions set out in                                                                  
subsections (13) and (14) in statute [AS 23.10.060(d)] do not                                                                   
currently cover the miscellaneous airline employees.                                                                            
                                                                                                                                
MR. LACK answered no, they do not.                                                                                              
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked why.                                                                                             
                                                                                                                                
MR. LACK indicated he does not know, he has been told by                                                                        
legislative counsel that those exemptions do not cover these                                                                    
employees.                                                                                                                      
                                                                                                                                
CHAIRMAN ROKEBERG questioned if it has anything to do with whether                                                              
they are under a labor agreement.                                                                                               
                                                                                                                                
REPRESENTATIVE MURKOWSKI reviewed subsections (13) and (14).  [AS                                                               
23.10.060(d)(13) and (14) read:                                                                                                 
                                                                                                                                
          (13) work performed by an employee under a flexible                                                                   
     work hour plan if the plan is included as part of a                                                                        
     collective bargaining agreement;                                                                                           
          (14) work performed by an employee under a voluntary                                                                  
     flexible work hour plan if                                                                                                 
               (A) the employee and the employer have signed                                                                    
     a written agreement and the written agreement has been                                                                     
     filed with the department; and                                                                                             
               (B) the department has issued a certificate                                                                      
     approving the plan that states the work is for 40 hours                                                                    
     a week and not more than 10 hours a day; for work over 40                                                                  
     hours a week or 10 hours a day under a flexible work hour                                                                  
     plan not included as part of a collective bargaining                                                                       
     agreement, compensation at the rate of one and one-half                                                                    
     times the regular rate of pay shall be paid for the                                                                        
     overtime;]                                                                                                                 
                                                                                                                                
Number 1515                                                                                                                     
                                                                                                                                
MR. LACK indicated he understands it is currently possible for the                                                              
employee and the union to negotiate whether or not to have flexible                                                             
time rules.  He noted that is allowed, but non-union airlines do                                                                
not have this luxury because they're not part of a collective                                                                   
bargaining agreement.                                                                                                           
                                                                                                                                
CHAIRMAN ROKEBERG said he remembers this provision very well,                                                                   
stating, "That is, if you have a collective bargaining (indisc.) if                                                             
you have a flex-work plan that's already bargained for -- but if                                                                
not, you have to have an approved plan."  The chairman indicated                                                                
this is for a flexible work plan hour, normally providing for a                                                                 
four 10-hour day work week.  He noted it is a formalized process                                                                
which has to be approved.                                                                                                       
                                                                                                                                
REPRESENTATIVE HALCRO indicated the shift-trading practice has been                                                             
going on for a very long time.  The problem lies with Alaska's                                                                  
daily overtime requirement.  A lot of airlines have told their                                                                  
employees that they can't allow the employees to trade shifts until                                                             
this is resolved in statute and the airlines are protected.                                                                     
Representative Halcro noted a large part of working in the airline                                                              
industry is the ability to trade shifts.  He indicated this                                                                     
practice is done in every state and the legislation is just a means                                                             
of legitimizing the practice in Alaska.                                                                                         
                                                                                                                                
CHAIRMAN ROKEBERG announced the committee would take Ms.                                                                        
Buckmaster's testimony.                                                                                                         
                                                                                                                                
Number 1636                                                                                                                     
                                                                                                                                
MICHELLE BUCKMASTER testified via teleconference from Anchorage in                                                              
support of HB 61.  She spoke mainly from a prepared statement:                                                                  
                                                                                                                                
     "Mr. Chairman, members of the committee, ... I am a                                                                        
     customer service representative for United Airlines in                                                                     
     Anchorage, Alaska.  I am here on behalf of numerous                                                                        
     airline employees who are from various airlines here in                                                                    
     the state of Alaska.  I would like to thank you for                                                                        
     giving me the opportunity to give my testimony.                                                                            
     Unfortunately there may not be too many people here today                                                                  
     because of the short notice of this hearing, so I am                                                                       
     speaking on behalf of quite a few people.  I am here in                                                                    
     regard to HB 61, which I hope will be passed through ...                                                                   
     this legislation [legislature] this year.  As you are                                                                      
     aware, the states of Washington and Hawaii passed a                                                                        
     similar bill last year.                                                                                                    
                                                                                                                                
     "In May of 1997 United Airlines informed us employees in                                                                   
     Alaska that because of the labor laws in our state, the                                                                    
     trade policy in company regulations would no longer                                                                        
     pertain to us.  The trade policy is a significant benefit                                                                  
     to us as employees as well as all airline employees in                                                                     
     the state of Alaska.                                                                                                       
                                                                                                                                
     "The airline industry ... is an industry that spends 24                                                                    
     hours a day, 7 days a week, 52 weeks a year in promoting                                                                   
     and supporting the economic growth of our state through                                                                    
     tourism, conventions, sporting events and numerous other                                                                   
     activities.  The trade policy is a valuable benefit and                                                                    
     tool to its employees who would otherwise miss out on                                                                      
     precious time with their family, observance of religious                                                                   
     holidays, educational opportunities, summer vacations and                                                                  
     extra income for those who require it.                                                                                     
                                                                                                                                
     "In an industry where competition is always a priority,                                                                    
     as we know, we have come together to make a change that                                                                    
     will benefit and create a win-win situation for all                                                                        
     airline employees."                                                                                                        
                                                                                                                                
Number 1737                                                                                                                     
                                                                                                                                
     "Over the past two years employees from several airlines                                                                   
     have worked together to encourage implementation of this                                                                   
     bill.  As you are aware, last year [you] received                                                                          
     numerous phone calls and letters from concerned airline                                                                    
     employees; this still holds true today and the support is                                                                  
     here.  I faxed you Friday a (indisc.) petition I had sent                                                                  
     to airlines to have signed in support of this bill, just                                                                   
     to show you a little support this and that we still stand                                                                  
     behind our word.  Unfortunately today Doug Orcutt who                                                                      
     works for Alaska Airlines, the largest airline in Alaska,                                                                  
     has a previous engagement in Washington, D.C.  I talked                                                                    
     with him and he reassured me of the full support from                                                                      
     Alaska Airlines employees.  He is a ramp serviceman here                                                                   
     in Anchorage.  There has been a great deal of grassroots                                                                   
     support for this legislation.  I would like to remind you                                                                  
     that this is on a volunteer basis by employees, making                                                                     
     their own choice.  This will not invoke overtime pay                                                                       
     requirements.  This will ... ["not" stated on tape and in                                                                  
     written statement] give individual workers the freedom to                                                                  
     schedule specific time off or to make extra earnings                                                                       
     without invoking overtime.  Therefore you will have                                                                        
     happier, more productive, more dedicated employees in a                                                                    
     highly traveled state."                                                                                                    
                                                                                                                                
     "To give you an example:  Employee A works 40 hours a                                                                      
     week, Friday/Saturday off.  Employee A would like to have                                                                  
     an extra day off, Thursday, so he can have a long weekend                                                                  
     fishing.  Employee B works 20 hours a week,                                                                                
     Wednesday/Thursday off.  He would like to work for                                                                         
     Employee A on Thursday to get the extra hours and money,                                                                   
     however he only receives straight-time pay on (indisc.)                                                                    
     volunteer basis.  If the company needs him to work extra                                                                   
     hours on (indisc.) day or his day off and he is eligible                                                                   
     for the overtime, then he would receive (indisc.) the                                                                      
     applicable overtime rate.  Let's not get confused that                                                                     
     the overtime that the company needs you to work is                                                                         
     (indisc.) totally separate issue (indisc.) assumption.                                                                     
     Another example is Employee B needs an extra day off.  He                                                                  
     needs Saturday, he is running the Mayors Marathon here in                                                                  
     Anchorage.  Employee A will work for him that Saturday on                                                                  
     a volunteer basis and only receives straight-time pay                                                                      
     even though he exceeds his forty hours in a work week                                                                      
     and/or 8 hours in a day, he only receives his                                                                              
     straight-time pay.  However, if his company needs him to                                                                   
     work the overtime or calls him in needs of his service,                                                                    
     he is eligible then for the applicable overtime rate.  As                                                                  
     you see this does not hurt anyone, the company or the                                                                      
     employee.  They both meet their needs.                                                                                     
                                                                                                                                
     "In closing, Mr. Chairman, members of the committee, we                                                                    
     understand and respect that the labor laws are here to                                                                     
     protect us.  However, this particular law which may be a                                                                   
     protection in your eyes has eliminated a benefit in ours                                                                   
     here in Alaska.  Therefore, here I am on behalf of these                                                                   
     employees to request the amendment we have brought before                                                                  
     you not only be passed, but in a timely manner be passed.                                                                  
     This is a very valuable benefit to us, and throughout the                                                                  
     country with United Airlines as well as many other                                                                         
     airlines.  I am here again to support HB 61 along with                                                                     
     several other airline employees.  Thank you again for                                                                      
     your time."                                                                                                                
                                                                                                                                
Number 1946                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG stated the committee appreciated Ms. Buckmaster's                                                             
efforts.  He invited Mr. Perkins forward.                                                                                       
                                                                                                                                
Number 1978                                                                                                                     
                                                                                                                                
DWIGHT PERKINS, Deputy Commissioner, Department of Labor, came                                                                  
forward to testify on HB 61.  He noted the department has                                                                       
historically opposed these types of legislation because the                                                                     
department feels they weaken overtime requirements for employers.                                                               
However, Mr. Perkins indicated the department feels HB 61's                                                                     
voluntary written agreement between the employer and employee                                                                   
provides a safeguard for the employee against being coerced by the                                                              
employer to voluntarily work when the employee really does not want                                                             
to.  The benefits the employees received from the airlines kind of                                                              
make up for "the sometimes pay that they may not receive on the                                                                 
paycheck," so this is a benefit the employees would lose if this is                                                             
not changed.  Mr. Perkins also indicated the employers do have a                                                                
possibly strong liability out there and the department understands                                                              
the employers' need and desire to add this exemption.  He stated                                                                
the department does not oppose this legislation.                                                                                
                                                                                                                                
CHAIRMAN ROKEBERG commented to Mr. Perkins there is also a possible                                                             
CS [labeled 1-LS0335\G, Cramer, 3/19/99] which deletes the written                                                              
contract.  He asked for the department's position on this CS.                                                                   
                                                                                                                                
Number 2160                                                                                                                     
                                                                                                                                
MR. PERKINS answered the department supports HB 61, Version A, as                                                               
he has testified.  However, the department would have some concern,                                                             
and probably not be able to give its non-opposition to the bill, if                                                             
the CS was to be adopted.  The written agreement provides some sort                                                             
of safeguard for the employee and does ensure the employee                                                                      
voluntarily agreed to the shift change.  Mr. Perkins indicated he                                                               
thinks the employer would want to have that as well to protect them                                                             
against possible claims of unpaid overtime from an employee.                                                                    
                                                                                                                                
CHAIRMAN ROKEBERG asked, for the record, if the voluntary written                                                               
agreement would be between the employer and employee, and asked how                                                             
that would work as a practical matter regarding Department of Labor                                                             
enforcement.                                                                                                                    
                                                                                                                                
MR. PERKINS responded that if a wage claim was brought to the                                                                   
department, the department would ask the employer for supporting                                                                
documentation and the employer would produce the written agreement.                                                             
Mr. Perkins referred to subsection (d)(18)(D) of HB 61, which                                                                   
reads:                                                                                                                          
                                                                                                                                
     * Section 1.  AS 23.10.060(d) is amended by adding a new                                                                   
     paragraph to read:                                                                                                         
          (18) work performed by an employee under a voluntary                                                                  
     written agreement addressing the trading of work shifts                                                                    
     among employees if ...                                                                                                     
               (D) the trading agreement states that the                                                                        
     employee is not entitled to receive overtime for any                                                                       
     hours worked by the employee when the employee                                                                             
     voluntarily works those hours under a shift trading                                                                        
     practice under which the employee has the opportunity, in                                                                  
     the same or other work weeks, to reduce hours worked by                                                                    
     voluntarily offering a shift for trade or reassignment.                                                                    
                                                                                                                                
MR. PERKINS stated he believes it is a good safeguard for both                                                                  
employer and employee, and it is a workable solution.                                                                           
                                                                                                                                
NUMBER 2333                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG, confirming there were no questions for Mr.                                                                   
Perkins and that no one else wished to testify on HB 61, announced                                                              
the public hearing was closed.  The chairman commented he was                                                                   
familiar with the practice of shift trading from his work                                                                       
experience in 1966 and 1967 as a transportation agent for Northwest                                                             
Airlines and a customer service representative for Alaska Airlines.                                                             
He noted the practice is longstanding and has almost completely no                                                              
bearing on labor practices.  Chairman Rokeberg indicated HB 61                                                                  
merely legitimizes this customary practice.  He thanked organized                                                               
labor for not opposing the legislation and the Department of Labor                                                              
for its non-opposition.  The chairman indicated he wished Mr. Lack                                                              
to explain why the verbiage in subsection(18)(A) is necessary.  He                                                              
understands it, but wishes the explanation to be on the record.                                                                 
[Subsection (A) reads:                                                                                                          
                                                                                                                                
               (A) the employee is employed by an air carrier                                                                   
     subject to subchapter II of the Railway Labor Act (45                                                                      
     U.S.C. 181-188), including employment as a customer                                                                        
     service representative;]                                                                                                   
                                                                                                                                
Number 2486                                                                                                                     
                                                                                                                                
MR. LACK replied, "Mr. Chairman, to answer your question, the                                                                   
reason we -- it's put in the Railway Labor Act and defined as who                                                               
are ... employees of an air carrier under that Act is because the                                                               
Act specifically allow..."  [SOME TESTIMONY LOST DUE TO BRIEF TAPE                                                              
MALFUNCTION DURING TAPE CHANGE.  A REQUEST WAS MADE TO THE CHAIRMAN                                                             
TO RESTATE HIS QUESTION SO MR. LACK'S ANSWER COULD BE FULLY                                                                     
RECORDED.  A VERY BRIEF AT-EASE WAS TAKEN DURING THE TAPE                                                                       
MALFUNCTION.]                                                                                                                   
                                                                                                                                
TAPE 99-32, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG stated, "For the record, could you answer why                                                                 
including employment as a customer service representative is                                                                    
stipulated in the bill."                                                                                                        
                                                                                                                                
MR. LACK answered, "Mr. Chairman, it is redundant including                                                                     
customer service representative.  However, because ... the federal                                                              
Railway Labor Act does include all employees of the air carrier                                                                 
unless they're involved in the mining of coal.  So it is redundant,                                                             
however there was some concern by people, apparently last year,                                                                 
that customer service agents might not be included under the                                                                    
federal Act."                                                                                                                   
                                                                                                                                
CHAIRMAN ROKEBERG confirmed Mr. Lack had read the minutes from the                                                              
last session.  The chairman recalled there had been a reason but                                                                
could not remember exactly why.  He asked Mr. Lack to follow up on                                                              
this with Representative John Cowdery [sponsor of the previous                                                                  
session's HB 389], noting the committee did not like to have                                                                    
surplus wordage and definitely wanted to avoid redundancy.                                                                      
                                                                                                                                
Number 0097                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO indicated the initial version of HB 389, the                                                              
bill introduced the previous session, did not contain that                                                                      
provision but the version brought back before the committee after                                                               
work with organized labor had that language added [Note:                                                                        
Representative Halcro's testimony mentioned the creation of "kind                                                               
of a work subcommittee" for HB 389; HB 389 was not formally                                                                     
assigned to a subcommittee].                                                                                                    
                                                                                                                                
CHAIRMAN ROKEBERG confirmed there was no further discussion.  He                                                                
indicated both he and Representative Halcro represent the area                                                                  
encompassing Anchorage International Airport and he does not think                                                              
this is a conflict of interest.  The chairman commented there are                                                               
some 10,000 jobs at that airport; the airport is very important to                                                              
the economy of Anchorage and the state of Alaska.                                                                               
                                                                                                                                
Number 0172                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI clarified that the sponsor had withdrawn                                                               
the possible CS.                                                                                                                
                                                                                                                                
CHAIRMAN ROKEBERG noted the written contract was being retained.                                                                
                                                                                                                                
Number 0206                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI made a motion to move HB 61 out of                                                                     
committee with the zero fiscal note and individual recommendations.                                                             
There being no objection, HB 61 moved out of the House Labor and                                                                
Commerce Standing Committee.                                                                                                    
                                                                                                                                
Number 0222                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG announced the March 31, 1999, House Labor and                                                                 
Commerce Committee meeting would be cancelled.                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
Number 0257                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG adjourned the House Labor and Commerce Standing                                                               
Committee meeting at 5:04 p.m.                                                                                                  

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