Legislature(1999 - 2000)

03/01/2000 03:34 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 1, 2000                                                                                         
                            3:34 p.m                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative Norman Rokeberg, Chairman                                                                                        
Representative Andrew Halcro, Vice Chairman                                                                                     
Representative Lisa Murkowski                                                                                                   
Representative John Harris                                                                                                      
Representative Tom Brice                                                                                                        
Representative Sharon Cissna                                                                                                    
Representative Jerry Sanders                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
HOUSE BILL NO. 380                                                                                                              
"An Act relating to contributions to the Alaska Fire Standards                                                                  
Council and to an insurer tax credit for those contributions; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED CSHB 380(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 382                                                                                                              
"An Act relating to the licensing of social workers and to the                                                                  
use of the title 'social worker' without a license; and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
     - MOVED CSHB 382(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 369                                                                                                              
"An Act relating to property exemptions under the Alaska                                                                        
Exemptions Act; and providing for an effective date."                                                                           
                                                                                                                                
     - MOVED HB 369 OUT OF COMMITTEE                                                                                            
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: HB 380                                                                                                                  
SHORT TITLE: INSURER TAX CREDIT: FIRE STANDARDS COUNCIL                                                                         
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/16/00      2213     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 2/16/00      2213     (H)  STA, L&C, FIN                                                                                       
 2/22/00               (H)  STA AT  8:00 AM CAPITOL 102                                                                         
 2/22/00               (H)  Moved CSHB 380(STA) Out of Committee                                                                
 2/22/00               (H)  MINUTE(STA)                                                                                         
 2/23/00      2274     (H)  STA RPT CS(STA) 6DP                                                                                 
 2/23/00      2275     (H)  DP: JAMES, SMALLEY, GREEN, WHITAKER,                                                                
 2/23/00      2275     (H)  OGAN, HUDSON                                                                                        
 2/23/00      2275     (H)  ZERO FISCAL NOTE (DPS)                                                                              
 2/25/00      2315     (H)  COSPONSOR(S): SMALLEY                                                                               
 3/01/00               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
                                                                                                                                
BILL: HB 382                                                                                                                  
SHORT TITLE: SOCIAL WORKER LICENSING                                                                                            
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/16/00      2214     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 2/16/00      2214     (H)  L&C, FIN                                                                                            
 3/01/00               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
                                                                                                                                
BILL: HB 369                                                                                                                  
SHORT TITLE: PROPERTY EXEMPTIONS                                                                                                
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/11/00      2183     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 2/11/00      2184     (H)  L&C, JUD                                                                                            
 3/01/00               (H)  L&C AT  3:15 PM CAPITOL 17                                                                          
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
JOE BALASH, Staff                                                                                                               
   to Representative Gene Therriault                                                                                            
Alaska State Legislature                                                                                                        
Capitol Building, Room 511                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Introduced HB 380 on behalf of sponsor.                                                                    
                                                                                                                                
MICHAEL McGOWAN, Coordinator                                                                                                    
Fire Science Program                                                                                                            
University of Alaska - Fairbanks                                                                                                
University Park Building                                                                                                        
510 Second Avenue                                                                                                               
Fairbanks, Alaska 99701                                                                                                         
POSITION STATEMENT:  Testified in favor of HB 380.                                                                              
                                                                                                                                
GARY POWELL, State Fire Marshall and Director                                                                                   
Division of Fire Prevention                                                                                                     
Department of Public Safety                                                                                                     
5700 East Tudor Road                                                                                                            
Anchorage, Alaska 99507-1225                                                                                                    
POSITION STATEMENT:  Testified in favor of HB 380.                                                                              
                                                                                                                                
JIM WHITE, Chief of Fire Service Training                                                                                       
Anchorage Fire Department                                                                                                       
5700 East Tudor Road                                                                                                            
Anchorage, Alaska 99507-1225                                                                                                    
POSITION STATEMENT:  Testified in favor of HB 380.                                                                              
                                                                                                                                
MIKE DOLPH, President                                                                                                           
Alaska Fire Chiefs Association                                                                                                  
811 Willow Street                                                                                                               
Kodiak, Alaska 99615                                                                                                            
POSITION STATEMENT:  Testified in favor of HB 380.                                                                              
                                                                                                                                
BOB LOHR, Director                                                                                                              
Division of Insurance                                                                                                           
Department of Community and Economic Development                                                                                
P.O. Box 110805                                                                                                                 
Juneau, Alaska 99811                                                                                                            
POSITION STATEMENT:  Testified on HB 380.                                                                                       
                                                                                                                                
JOHN GEORGE, Lobbyist                                                                                                           
   for the National Association of Independent Insurers                                                                         
3328 Fritz Cove Road                                                                                                            
Juneau, Alaska 99801                                                                                                            
POSITION STATEMENT:  Testified in favor of HB 380.                                                                              
                                                                                                                                
MYRNA McGHIE, Staff                                                                                                             
  to Representative Jeannette James                                                                                             
Alaska State Legislature                                                                                                        
Capitol Building, Room 102                                                                                                      
Juneau, Alaska 99801                                                                                                            
POSITION STATEMENT:  Introduced HB 382 on behalf of sponsor.                                                                    
                                                                                                                                
COLLEEN PATRICK-RILEY, Chair                                                                                                    
Board of Clinical Social Work Examiners                                                                                         
3400 Illiamna Avenue                                                                                                            
Anchorage, Alaska 99517                                                                                                         
POSITION STATEMENT:  Testified on HB 382.                                                                                       
                                                                                                                                
CATHERINE REARDON, Director                                                                                                     
Division of Occupational Licensing                                                                                              
Department of Community and Economic Development                                                                                
P.O. Box 110806                                                                                                                 
Juneau, Alaska 99811-0806                                                                                                       
POSITION STATEMENT:  Testified on HB 382.                                                                                       
                                                                                                                                
JOHN MANLY, Staff                                                                                                               
   to Representative John Harris                                                                                                
Alaska State Legislature                                                                                                        
Capitol Building, Room 511                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Introduced HB 369 on behalf of sponsor.                                                                    
                                                                                                                                
STEPHEN GREER, Attorney                                                                                                         
4041 B Street, Suite 205                                                                                                        
Anchorage, Alaska 99503                                                                                                         
POSITION STATEMENT:  Testified on HB 369.                                                                                       
                                                                                                                                
CHRIS MILLER, Chief                                                                                                             
Research Section                                                                                                                
Division of Administrative Services                                                                                             
Department of Labor and Workforce Development                                                                                   
P.O. Box 21149                                                                                                                  
Juneau, Alaska 99802-1149                                                                                                       
POSITION STATEMENT:  Testified on HB 369.                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 00-23, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CHAIRMAN  NORMAN  ROKEBERG called  the  House Labor  and  Commerce                                                              
Standing Committee meeting to order  at 3:34 p.m.  Members present                                                              
at  the  call to  order  were  Representatives  Rokeberg,  Halcro,                                                              
Harris and Cissna.   Representatives Murkowski,  Sanders and Brice                                                              
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
An at-ease  was declared at 3:37  p.m.   The committee  was called                                                              
back to order at 3:40 p.m.                                                                                                      
                                                                                                                                
HB 380 - INSURER TAX CREDIT: FIRE STANDARDS COUNCIL                                                                           
                                                                                                                                
Number 0148                                                                                                                     
                                                                                                                                
CHAIRMAN  ROKEBERG  announced that  the  first order  of  business                                                              
would be HOUSE BILL NO. 380, "An  Act relating to contributions to                                                              
the Alaska  Fire Standards  Council and to  an insurer  tax credit                                                              
for those  contributions;  and providing  for an effective  date."                                                              
[Before the committee was CSHB 380(STA).]                                                                                       
                                                                                                                                
Number 0145                                                                                                                     
                                                                                                                                
JOE BALASH, Staff to Representative  Gene Therriault, Alaska State                                                              
Legislature,  introduced  HB  380  by  reading  briefly  from  the                                                              
sponsor  statement.   He  said HB  380  creates  an insurance  tax                                                              
credit for contributions to the Alaska  Fire Standards Council for                                                              
fire   services  training   programs.     Created   by  the   20th                                                              
legislature, the  Fire Standards Council  will meet for  the first                                                              
time on July 1, 2000, and HB 380  creates a funding source for the                                                              
council's operations.   The council  will adopt minimum  standards                                                              
for  employment,  as  well as  curriculum  requirements  for  fire                                                              
fighters   and   fire  instructors   around   the   state.     The                                                              
certification [of  fire fighters] is  not mandatory.   The council                                                              
will  allow  the state  to  adopt  fire standards  appropriate  to                                                              
Alaska's unique climate.                                                                                                        
                                                                                                                                
Number 0258                                                                                                                     
                                                                                                                                
REPRESENTATIVE  HALCRO  asked  about the  difference  between  the                                                              
original  bill and CSHB  380(STA).   He noted  that the  committee                                                              
substitute (CS) deletes the word "training" and asked why.                                                                      
                                                                                                                                
MR. BALASH  said the intent was to  open up the language  a little                                                              
to  cover  the  cost  of  operations  in  this  initial  year,  as                                                              
standards are being developed.                                                                                                  
                                                                                                                                
[JASON  ELSON, Fire  Chief, City  of Kenai,  and a  member of  the                                                              
Alaska Fire  Chiefs Association,  told members via  teleconference                                                              
that  he and  Chief  Len Malmquist,  also  on teleconference  from                                                              
Kenai, would defer to colleagues from Anchorage and Fairbanks.]                                                                 
                                                                                                                                
Number 0390                                                                                                                     
                                                                                                                                
MICHAEL McGOWAN, Coordinator, Fire  Science Program, University of                                                              
Alaska -  Fairbanks, testified  by teleconference from  Fairbanks.                                                              
He identified himself as past president  of the Alaska Fire Chiefs                                                              
Association  and  coordinator of  the  University  of Alaska  Fire                                                              
Science Program at  Fairbanks.  He said Alaska has  the worst fire                                                              
loss and  fatality record in the  United States.   Alaska's police                                                              
and Emergency Medical  Services (EMS) personnel  have had training                                                              
standards for about 20-25 years.   The Police Standards Council is                                                              
funded  by  $10 per  [traffic  citation],  and the  EMS  Standards                                                              
Council  is  funded  through  the   state  Department  of  Health,                                                              
Education and Social Services.                                                                                                  
                                                                                                                                
MR.  McGOWAN  said the  only  fire  training standards  in  Alaska                                                              
recognized  by   the  federal   Occupational  Safety   and  Health                                                              
Administration  are   those  established  by  the   National  Fire                                                              
Protection  Association.     Alaska   has  about  25   urban  fire                                                              
departments  that cover  about 90  percent of  the population  and                                                              
about 225  rural fire departments  that cover about 10  percent of                                                              
the population.   It is very  difficult for the  urban departments                                                              
to achieve those  training standards and "totally  unrealistic for                                                              
the rural departments to even begin to meet them."                                                                              
                                                                                                                                
MR. McGOWAN  said the Alaska  Fire Chiefs Association  supports HB
380 and establishment  of an Alaska Fire Council  to adopt minimum                                                              
training standards  for both fire  fighters and instructors.   The                                                              
funding  mechanism provided  by HB  380 will  allow the  insurance                                                              
industry to support the fire training.  Hopefully, the result will                                                              
be  an increase  in  fire fighter  safety  and  reduction of  fire                                                              
losses and fatalities.                                                                                                          
                                                                                                                                
Number 0573                                                                                                                     
                                                                                                                                
GARY POWELL,  State Fire Marshall  and Director, Division  of Fire                                                              
Prevention,   Department   of   Public    Safety,   testified   by                                                              
teleconference  from Anchorage.    He said  the  Division of  Fire                                                              
Prevention supports HB 380.                                                                                                     
                                                                                                                                
Number 0602                                                                                                                     
                                                                                                                                
JIM  WHITE,  Chief  of  Fire  Service   Training,  Anchorage  Fire                                                              
Department,  testified  by  teleconference  from  Anchorage.    He                                                              
expressed  support for  HB 380  on  behalf of  the Anchorage  Fire                                                              
Department.  He  also relayed a verbal commitment  of support from                                                              
the  Anchorage  Fire Fighters  Union,  Local  1264, and  said  the                                                              
union's endorsement is expected to  be ratified by a vote on March                                                              
9.                                                                                                                              
                                                                                                                                
CHAIRMAN  ROKEBERG  asked  where  Anchorage  training  would  take                                                              
place.                                                                                                                          
                                                                                                                                
MR. WHITE  answered that  Anchorage trains  its own fire  fighters                                                              
using facilities  in  Kenai and Fairbanks.   As  the largest  fire                                                              
department in  the state, Anchorage  also supplies  instructors to                                                              
Kenai, Fairbanks and outlying villages.                                                                                         
                                                                                                                                
Number 0752                                                                                                                     
                                                                                                                                
MIKE DOLPH, President,  Alaska Fire Chiefs  Association, testified                                                              
by teleconference  from Kodiak.  He identified  himself as retired                                                              
fire chief of the City of Kodiak  as well as the current president                                                              
of  the  Alaska  Fire  Chiefs  Association.    He  reaffirmed  the                                                              
association's  support for  HB 380,  commenting  on its  "fiscally                                                              
responsible and  accountable method of funding the  Fire Standards                                                              
Council."                                                                                                                       
                                                                                                                                
BOB  LOHR,   Director,  Division   of  Insurance,  Department   of                                                              
Community and Economic  Development, informed members  that he was                                                              
available to answer questions.                                                                                                  
                                                                                                                                
Number 0882                                                                                                                     
                                                                                                                                
JOHN GEORGE, Lobbyist for the National  Association of Independent                                                              
Insurers, told  committee members that the insurance  industry had                                                              
been  silent on  this issue,  and so had  been asked  to lend  its                                                              
support to HB  380.  He said member companies  have indicated that                                                              
they would consider  donating to this type of thing  [a state Fire                                                              
Standards Council].   Most insurance  companies have  a foundation                                                              
or committee  that reviews applications  for donations  each year.                                                              
"These are the kinds of things that we do consider," he said.                                                                   
                                                                                                                                
MR. GEORGE said member agencies appreciate  that contributions are                                                              
not mandatory, but  that the insurance industry is  being given an                                                              
opportunity to donate money to this,  which is certainly needed in                                                              
the  state.   He  voiced  support  for HB  380  on behalf  of  the                                                              
National  Association of  Independent  Insurers.   In closing,  he                                                              
urged legislators not to close themselves  to thinking about other                                                              
funding  sources.   The Fire  Standards Council  has an  important                                                              
mission, is very worthy of financing,  and should not have to rely                                                              
100 percent on insurance company donations for its financing.                                                                   
                                                                                                                                
Number 0992                                                                                                                     
                                                                                                                                
CHAIRMAN  ROKEBERG clarified  that HB  380 will  allow members  to                                                              
make donations  in exchange for a  tax credit to  the organization                                                              
not to exceed $150,000 a year.                                                                                                  
                                                                                                                                
MR. GEORGE  said it would  be a partial  tax credit,  not one-for-                                                              
one.   If  an  insurance  company gives  $50,000,  it  can take  a                                                              
$25,000  credit  on  its  premium  taxes  derived  from  insurance                                                              
premiums that  relate to  fire.  The  company still gives  some of                                                              
its  money,  but  the donation  would  reduce  the  company's  tax                                                              
obligation.    This  program  is  very similar  to  one  that  the                                                              
University of Alaska has, also dealing with premium taxes.                                                                      
                                                                                                                                
Number 1031                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO  asked if there  was any similar  program in                                                              
any other state.                                                                                                                
                                                                                                                                
MR. GEORGE said he was not aware  of any similar programs in other                                                              
states,  but  that  insurance  companies  give  money  to  various                                                              
charities and causes throughout the country.                                                                                    
                                                                                                                                
Number 1070                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  noted   that  HB  380  refers  to  cash                                                              
contributions.  She asked whether  any other kind of contributions                                                              
could be made.                                                                                                                  
                                                                                                                                
MR. GEORGE said  insurance companies have many ways  in which they                                                              
might contribute.   Whether  HB 380 allows  it is another  matter.                                                              
For  example, insurance  companies  have  print  shops where  they                                                              
print policies  and  riders, and  they might be  willing to  print                                                              
brochures, pamphlets, training manuals,  and that kind of thing as                                                              
an in-kind donation.   They might provide access  to their mailing                                                              
list or put a  flyer in with their billings  to Alaskan residents,                                                              
but he thinks HB 380 does not address that.                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI said HB  380 specifically refers to "cash                                                              
contributions," and she wonders if it is purposefully specific.                                                                 
                                                                                                                                
MR. BALASH  explained that  the language  in HB  380 was  based on                                                              
that  which is  already in  place  for the  University of  Alaska.                                                              
There was  not a  particular intent  to restrict contributions  to                                                              
cash only.                                                                                                                      
                                                                                                                                
REPRESENTATIVE HALCRO  asked Mr. Balash if it  would be acceptable                                                              
to eliminate the  word "cash" in the bill.  What  if one wished to                                                              
donate a building or vehicles, or  make in-kind contributions such                                                              
as printing or  legal assistance?.  He wondered if  there would be                                                              
a benefit to deleting the specific  reference to cash and allowing                                                              
all kinds of contributions.                                                                                                     
                                                                                                                                
MR. BALASH said he didn't think that  would be a problem, but said                                                              
he would prefer  to let the Fire  Council speak for itself  on the                                                              
matter  [of in-kind  and other  possible non-cash  contributions].                                                              
He  wondered  how those  other  types  of contributions  would  be                                                              
accounted  for  under  the  Division  of  Insurance  statutes  and                                                              
regulations.                                                                                                                    
                                                                                                                                
CHAIRMAN  ROKEBERG  said  he  thought  it  would  cause  a  severe                                                              
accounting problem,  and evaluation [of such donations]  would add                                                              
to the  cost.   He favors the  relatively simple,  straightforward                                                              
program capped at $150,000.                                                                                                     
                                                                                                                                
CHAIRMAN  ROKEBERG then  asked Mr.  Balash why  HB 380 includes  a                                                              
reference to title insurance premium taxes.                                                                                     
                                                                                                                                
MR. BALASH  said he thought  that was an oversight,  inadvertently                                                              
left in from earlier drafts of the bill.                                                                                        
                                                                                                                                
[CHAIRMAN ROKEBERG  addressed Mr.  Lohr, and there  was discussion                                                              
concerning the fiscal note.]                                                                                                    
                                                                                                                                
CHAIRMAN ROKEBERG  requested confirmation that the  bill will save                                                              
the state money.                                                                                                                
                                                                                                                                
MR.  LOHR explained  that it  would result  in a  net increase  in                                                              
revenues to the  state because the contributions are  in excess of                                                              
the tax credits allowable.  That was the intended outcome.                                                                      
                                                                                                                                
Number 1594                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked Mr.  Lohr to comment on the earlier                                                              
discussion  about the applicability  of  tax credits for  non-cash                                                              
contributions.                                                                                                                  
                                                                                                                                
MR.  LOHR  said   the  associated  evaluation  issues   get  quite                                                              
"thorny," and  that he  thought the cash  contribution would  be a                                                              
much cleaner approach.                                                                                                          
                                                                                                                                
REPRESENTATIVE  HALCRO  asked  about  a donation  of  assets  that                                                              
already  have an  established  value,  such as  land  that has  an                                                              
assessed valuation that can be documented.                                                                                      
                                                                                                                                
MR. LOHR said that might be possible.                                                                                           
                                                                                                                                
Number 1711                                                                                                                     
                                                                                                                                
CHAIRMAN  ROKEBERG  moved  to  adopt  Amendment  1,  a  conceptual                                                              
amendment  to page 1,  line 11,  deleting the  reference to  title                                                              
insurance  premium tax.    There  being no  objection,  it was  so                                                              
ordered.                                                                                                                        
                                                                                                                                
Number 1747                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO made a motion  to move out of committee CSHB
380(STA), as amended, with individual  recommendations and the two                                                              
accompanying  fiscal  notes.    There  being  no  objection,  CSHB
380(L&C) was  moved out of the  House Labor and  Commerce Standing                                                              
Committee.                                                                                                                      
                                                                                                                                
HB 382-SOCIAL WORKER LICENSING                                                                                                
                                                                                                                                
CHAIRMAN ROKEBERG  announced that the next item  of business would                                                              
be  HOUSE BILL  NO.  382, "An  Act relating  to  the licensing  of                                                              
social  workers  and to  the  use  of the  title  'social  worker'                                                              
without a license; and providing for an effective date."                                                                        
                                                                                                                                
Number 1830                                                                                                                     
                                                                                                                                
MYRNA  McGHIE, Staff  to  Representative Jeannette  James,  Alaska                                                              
State  Legislature, presented  HB 382  on behalf  of the  sponsor,                                                              
Representative James,  who was out of town.  Ms.  McGhie explained                                                              
that HB 382 is related to legislation  passed in 1988 establishing                                                              
minimum qualifications  and licensure  for social workers.   Since                                                              
then, the  Division  of Family and  Youth Services  has found  the                                                              
original  legislation  to  be  too  restrictive,  creating  hiring                                                              
problems.    House Bill 382 will  amend the current laws  to allow                                                              
temporary  licensing for  up to one  year for  newly hired  social                                                              
workers who  have met  all requirements  other than the  licensing                                                              
exam.  The bill also extends by one  year the provision in statute                                                              
relating to  the criminal  penalty for using  the title  of social                                                              
worker without a license.                                                                                                       
                                                                                                                                
CHAIRMAN ROKEBERG asked whether Representative  James supports the                                                              
amendment before the committee.                                                                                                 
                                                                                                                                
[Provided by Catherine  Reardon and later adopted  as Amendment 1,                                                              
it  read:   "Delete  page  1  line  10  through page  2,  line  1.                                                              
Renumber  subsections.   Make  conforming  amendments  to page  2,                                                              
lines  15  and  19.    This  amendment  will  eliminate  temporary                                                              
licenses at the clinical level."]                                                                                               
                                                                                                                                
MS. MCGHIE said yes.                                                                                                            
                                                                                                                                
Number 1973                                                                                                                     
                                                                                                                                
COLLEEN  PATRICK-RILEY,  Chair,  Board  of  Clinical  Social  Work                                                              
Examiners, informed the committee  via teleconference that she was                                                              
available to answer questions.                                                                                                  
                                                                                                                                
Number 2011                                                                                                                     
                                                                                                                                
CATHERINE REARDON,  Director, Division of Occupational  Licensing,                                                              
Department of  Community and  Economic Development,  reported that                                                              
her division staffs the Board of  Social Work Examiners.  She said                                                              
both  the  department  and  the board  support  HB  382  and  urge                                                              
adoption of the  amendment eliminating temporary  licensure at the                                                              
clinical level;  that is the highest  level of social  work, which                                                              
permits diagnosis.                                                                                                              
                                                                                                                                
MS. REARDON explained  that the reason for temporary  licensure is                                                              
that there  is a large  vacancy rate,  and providing  the required                                                              
notarized references  delays by  a month or  more the time  when a                                                              
person  is available  to start  work.   There is  a difference  of                                                              
opinion.    The   board  would  like  to  have   the  professional                                                              
references   at  the  time   of  temporary   licensure,   but  the                                                              
departments  would like  that requirement  to  wait for  permanent                                                              
licensure.   This has  been discussed  with Representative  James,                                                              
who recognizes the  urgency and is comfortable  with deferring the                                                              
reference requirement to the time of permanent licensure.                                                                       
                                                                                                                                
Number 2298                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  asked  about  the  proposed  change  to                                                              
Section   4  [of  the   existing  statute],   relating  to   "good                                                              
professional standing."                                                                                                         
                                                                                                                                
MS. REARDON said  that the current wording is "fit  to practice as                                                              
determined by  the board," and that  HB 382 would permit  staff to                                                              
issue the temporary licenses.                                                                                                   
                                                                                                                                
REPRESENTATIVE MURKOWSKI  asked how many temporary  social workers                                                              
might need to be hired.                                                                                                         
                                                                                                                                
MS. REARDON said the board expects about 80 applications a year.                                                                
                                                                                                                                
Number 2452                                                                                                                     
                                                                                                                                
REPRESENTATIVE   MURKOWSKI   expressed  concern   about   granting                                                              
temporary  licensure to  applicants  against whom  there might  be                                                              
unresolved complaints or disciplinary actions.                                                                                  
                                                                                                                                
Number 2478                                                                                                                     
                                                                                                                                
MS. REARDON  assured her  those applicants  could simply  be ruled                                                              
out [for temporary licensure].                                                                                                  
                                                                                                                                
TAPE 00-23, SIDE B                                                                                                              
                                                                                                                                
[Tape numbers decline]                                                                                                          
                                                                                                                                
MS. REARDON suggested that HB 382  might be reworded so that staff                                                              
could approve temporary licensure  of the applicant who appears to                                                              
satisfy requirements  for fitness to practice, leaving  it for the                                                              
board to make the final determination.                                                                                          
                                                                                                                                
REPRESENTATIVE  HALCRO asked  how  the board  determines "of  good                                                              
moral character."                                                                                                               
                                                                                                                                
MS. REARDON  said there are no  regulations defining that  at this                                                              
time, and  the question might  be addressed to  Ms. Patrick-Riley.                                                              
There is,  however, a  regulation that lists  some of  the reasons                                                              
why  someone could  be denied  a  license, and  refers to  certain                                                              
criminal convictions.                                                                                                           
                                                                                                                                
Number 0124                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  asked   Ms.  Patrick-Riley  to  briefly                                                              
explain how the board determines good moral character.                                                                          
                                                                                                                                
Number 0134                                                                                                                     
                                                                                                                                
MS. PATRICK-RILEY  said the application  now includes a  series of                                                              
questions  that both the  applicant and  that person's  references                                                              
need  to  answer.   These  specifically  address  the  applicant's                                                              
character, fitness to practice, history  of prior substance abuse,                                                              
impairment that might affect the  applicant's ability to practice,                                                              
and  information   about  prior   criminal  convictions.     "That                                                              
constellation  of questions  and answers"  provides the board  the                                                              
information needed to determine both competency and character.                                                                  
                                                                                                                                
REPRESENTATIVE  MURKOWSKI asked whether  the application  requests                                                              
references?"                                                                                                                    
                                                                                                                                
MS. PATRICK-RILEY said absolutely,  and that the board relies upon                                                              
those   individuals'  personal   knowledge   of  the   applicant's                                                              
experience and fitness to practice.                                                                                             
                                                                                                                                
MS. REARDON  further explained  that references  are requested  on                                                              
the current application form, but  that they would not be required                                                              
for the temporary license.                                                                                                      
                                                                                                                                
Number 0289                                                                                                                     
                                                                                                                                
CHAIRMAN   ROKEBERG  asked   if   [the  board   and   professional                                                              
associates] agree  on eliminating  temporary certification  at the                                                              
clinical level.                                                                                                                 
                                                                                                                                
MS. PATRICK-RILEY said  the board fully supports that.   The board                                                              
also supports temporary  licensure at the lower  levels, and would                                                              
prefer, but does not insist, that  the requirements [for temporary                                                              
licensure] include references.                                                                                                  
                                                                                                                                
Number 0431                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI  asked if there will be  a distinction on                                                              
the certificates of those who hold the temporary license.                                                                       
                                                                                                                                
MS.  REARDON  said  such  certificates   generally  say  "holds  a                                                              
temporary license  to practice." As an alternative,  the temporary                                                              
document  might be  called a  "permit  to practice"  instead of  a                                                              
"temporary license."                                                                                                            
                                                                                                                                
Number 0432                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO  moved to adopt  Amendment 1  [text provided                                                              
earlier], eliminating  temporary licensure at the  clinical level.                                                              
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
Number 0451                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO  made a motion  to move HB 382,  as amended,                                                              
out  of   committee  with   individual  recommendations   and  the                                                              
accompanying  fiscal  note.    There   being  no  objection,  CSHB
382(L&C) was  moved out of the  House Labor and  Commerce Standing                                                              
Committee.                                                                                                                      
                                                                                                                                
CHAIRMAN ROKEBERG declared an at-ease  at 4:41 p.m.  The committee                                                              
was called back to order at 4:45 p.m.                                                                                           
                                                                                                                                
HB 369 - PROPERTY EXEMPTIONS                                                                                                  
                                                                                                                                
CHAIRMAN ROKEBERG  announced that the next item  of business would                                                              
be HOUSE  BILL NO. 369,  "An Act  relating to property  exemptions                                                              
under the  Alaska Exemptions Act;  and providing for  an effective                                                              
date."                                                                                                                          
                                                                                                                                
Number 0508                                                                                                                     
                                                                                                                                
JOHN  MANLY, Staff  to Representative  John  Harris, Alaska  State                                                              
Legislature,  introduced HB  369  on behalf  of the  sponsor.   He                                                              
explained  that HB  369  makes changes  to  Title  9, Chapter  38,                                                              
commonly  called   the  Alaska  Exemptions  Statute.     The  bill                                                              
increases  the  dollar  amounts   of  specified  assets  that  are                                                              
currently  in the  statute  and provides  some  new protection  to                                                              
assets  that  currently are  not  covered.   The  current  statute                                                              
specifies what assets  are protected from creditors  when a person                                                              
loses a lawsuit  and has a judgment entered against  him.  It also                                                              
applies in  those cases  of bankruptcy in  which the  person going                                                              
bankrupt  chooses  to  take  the state  rather  than  the  federal                                                              
exemptions.                                                                                                                     
                                                                                                                                
MR. MANLY  said HB 369  will increase  the homestead  exemption to                                                              
$250,000 per individual.   It would also increase  to $250,000 the                                                              
exemption  for  the cash  value  of  a life  insurance  policy  or                                                              
annuity  contract which  is  owed to  the  individual seeking  the                                                              
exemption.  It provides an unlimited  exemption on the proceeds or                                                              
a life insurance  contract or annuity  paid to a beneficiary.   It                                                              
also increases  from six months to  two years the time  allowed to                                                              
trace assets.                                                                                                                   
                                                                                                                                
MR. MANLY described  the new provisions that HB  369 is proposing.                                                              
One  is to  protect  the reserves  that  are kept  by  condominium                                                              
associations, such as dues that have  been paid and are designated                                                              
for  upkeep of  the property.   The  bill  also protects  deferred                                                              
compensation plans, provides a very  limited cash and liquid asset                                                              
exemption of up  to $8,075, and changes how some  revocable trusts                                                              
are treated.   It also makes some  changes to how indexing  of the                                                              
exemption  would be  figured over  each  year in  relation to  the                                                              
Consumer Price Index (CPI).                                                                                                     
                                                                                                                                
Number 0675                                                                                                                     
                                                                                                                                
REPRESENTATIVE   BRICE   asked   when  the   $5,400   number   was                                                              
established.                                                                                                                    
                                                                                                                                
MR. MANLY  said he  thinks it was  in 1982, and  that it  has been                                                              
updated two or three times since.                                                                                               
                                                                                                                                
CHAIRMAN ROKEBERG asked who brought this bill forward.                                                                          
                                                                                                                                
MR. MANLY  said some trust  attorneys asked Representative  Harris                                                              
to introduce it.                                                                                                                
                                                                                                                                
Number 0732                                                                                                                     
                                                                                                                                
STEPHEN GREER,  Attorney, said HB  369 originated about  two years                                                              
ago, following a fire that caused  a devastating financial loss to                                                              
a  complex that  has hundreds  of units.   Some  tenants who  were                                                              
renting units sued the condominium  association.  Fortunately, the                                                              
judgment was less  than the amount of the  association's insurance                                                              
coverage.  Had   it  not  been   less,  all  of   the  condominium                                                              
association's reserves  could have been depleted,  and hundreds of                                                              
people could have  been dispossessed of their  units because there                                                              
would  have been  no money  to pay utility  bills  and to pay  for                                                              
future maintenance and repairs.                                                                                                 
                                                                                                                                
MR.  GREER said  an exemption  signifies  that there  is a  public                                                              
policy decision behind an individual's  right to keep a particular                                                              
asset.   For example, in  the condominium  case, there would  be a                                                              
public  policy  decision  behind  letting  dues be  used  for  the                                                              
purposes  for which  they were  intended.   HB  369 also  includes                                                              
exemptions  not presently  contemplated  by  the current  statute,                                                              
such  as deferred  compensation  plans for  government  employees,                                                              
plans which  are not now exempted  despite the fact that  they are                                                              
comparable to a 401K plan in the  private sector, which is exempt.                                                              
                                                                                                                                
Number 0893                                                                                                                     
                                                                                                                                
CHRIS MILLER, Chief, Research Section,  Division of Administrative                                                              
Services, Department  of Labor and Workforce  Development (DOLWD),                                                              
concurred with  reservations expressed  by Chairman Rokeberg.   He                                                              
recommended using  the United States  all-city CPI instead  of the                                                              
Anchorage CPI, as specified by HB  369. The United States all-city                                                              
average is  calculated monthly rather  than just semi-annually, he                                                              
noted; it includes more data points and is less volatile.                                                                       
                                                                                                                                
Number 1090                                                                                                                     
                                                                                                                                
REPRESENTATIVE  BRICE asked if  the DOLWD  had any other  concerns                                                              
about HB 369.                                                                                                                   
                                                                                                                                
MR.  MILLER  said  DOLWD  has  technical  concerns  regarding  the                                                              
inflation index.   One is that there  is no January CPI  index for                                                              
Anchorage, as is specified in the  bill.  Second, DOLWD recommends                                                              
using the  full inflation factor  throughout the  calculations and                                                              
rounding it only at the end.                                                                                                    
                                                                                                                                
Number 1169                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  asked Mr.  Greer  whether  most of  the                                                              
exemptions in HB 369 mirror federal ones.                                                                                       
                                                                                                                                
MR. GREER  said some  do.   The insurance  exemption is  more than                                                              
what the federal government would  allow.  The homestead exemption                                                              
matches  the  one in  a  bill  now  before  the federal  House  of                                                              
Representatives.                                                                                                                
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  asked  how  much of  a  life  insurance                                                              
exemption the federal government currently allows.                                                                              
                                                                                                                                
MR.  GREER said  the federal  government allows  a life  insurance                                                              
cash value of $8,625, so Alaska's  present statute is generally in                                                              
line with  federal bankruptcy exemptions.   He went on  to explain                                                              
that there  is nothing  in Alaska's  current law  to protect  life                                                              
insurance beneficiaries  from the policy owner's  creditors.  Most                                                              
states offer that protection.                                                                                                   
                                                                                                                                
Number 1352                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI expressed  concern  about the  unlimited                                                              
protection  proposed  for a  condominium  homeowners  association.                                                              
She wondered  if a homeowners  association might contrive  to take                                                              
advantage of that.                                                                                                              
                                                                                                                                
MR. GREER  said he doesn't think  there is any potential  for that                                                              
happening.                                                                                                                      
                                                                                                                                
CHAIRMAN ROKEBERG  asked Mr. Greer  if he had talked  with someone                                                              
who represents the condominium community associations.                                                                          
                                                                                                                                
MR. GREER said  the associations wonder how they  can collect dues                                                              
from a member protected by the $8,075 cash exemption.                                                                           
                                                                                                                                
CHAIRMAN  ROKEBERG said  that is  a  separate issue.   [There  was                                                              
concurrence by committee members.]                                                                                              
                                                                                                                                
[CHAIRMAN  ROKEBERG  and  Mr. Greer  then  discussed  whether  the                                                              
exemptions included  in HB 369 might affect alimony  claims, child                                                              
support, or divorce settlements.]                                                                                               
                                                                                                                                
MR.  GREER  said none  of  those  would  be affected  because  the                                                              
exemptions  protect   the  joint   interest  from  a   third-party                                                              
creditor.                                                                                                                       
                                                                                                                                
CHAIRMAN ROKEBERG  asked Representative Harris to  work with DOLWD                                                              
on  the department's  suggested technical  changes,  and to  bring                                                              
those recommendations to the next  committee of purview, the House                                                              
Judiciary Committee.                                                                                                            
                                                                                                                                
Number 1654                                                                                                                     
                                                                                                                                
REPRESENTATIVE  HALCRO  made  a  motion  to move  HB  369  out  of                                                              
committee with  individual recommendations  and the  attached zero                                                              
fiscal note.   There being no objection,  HB 369 was moved  out of                                                              
the House Labor and Commerce Standing Committee.                                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
Number 1674                                                                                                                     
                                                                                                                                
There being  no further business  before the committee,  the House                                                              
Labor and  Commerce Standing  Committee  meeting was adjourned  at                                                              
5:05 p.m.                                                                                                                       
                                                                                                                                

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