Legislature(2001 - 2002)

05/06/2002 03:25 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                          May 6, 2002                                                                                           
                           3:25 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Lisa Murkowski, Chair                                                                                            
Representative Andrew Halcro, Vice Chair                                                                                        
Representative Kevin Meyer                                                                                                      
Representative Norman Rokeberg                                                                                                  
Representative Harry Crawford                                                                                                   
Representative Joe Hayes                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Pete Kott                                                                                                        
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 323                                                                                                              
"An  Act relating  to  emergency and  disaster  relief forces  as                                                               
state employees  for purposes of workers'  compensation benefits;                                                               
relating to  the Emergency Management Assistance  Compact and the                                                               
implementation  of the  compact; and  providing for  an effective                                                               
date."                                                                                                                          
                                                                                                                                
     - MOVED HB 323 OUT OF COMMITTEE                                                                                            
                                                                                                                                
CS FOR SENATE BILL NO. 215(FIN)                                                                                                 
"An Act relating to licensing common carriers to dispense                                                                       
alcoholic beverages; and providing for an effective date."                                                                      
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS ACTION                                                                                                               
                                                                                                                                
BILL: HB 323                                                                                                                  
SHORT TITLE:EMERGENCY MANAGEMENT ASSISTANCE COMPACT                                                                             
SPONSOR(S): RLS BY REQUEST OF THE GOVERNOR                                                                                      
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
01/16/02     1970       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    

01/16/02 1970 (H) MLV, STA, L&C

01/16/02 1970 (H) FN1: ZERO(MVA)

01/16/02 1970 (H) GOVERNOR'S TRANSMITTAL LETTER 04/04/02 (H) MLV AT 3:00 PM CAPITOL 124 04/04/02 (H) Moved Out of Committee MINUTE(MLV) 04/05/02 2814 (H) MLV RPT 4DP 1NR 04/05/02 2814 (H) DP: KOTT, MURKOWSKI, HAYES, 04/05/02 2814 (H) CHENAULT; NR: GREEN 04/05/02 2814 (H) FN1: ZERO(MVA) 04/25/02 (H) STA AT 8:00 AM CAPITOL 102 04/25/02 (H) Moved Out of Committee 04/25/02 (H) MINUTE(STA) 04/25/02 3127 (H) STA RPT 7DP 04/25/02 3127 (H) DP: WILSON, CRAWFORD, STEVENS, JAMES, 04/25/02 3127 (H) FATE, HAYES, COGHILL 04/25/02 3127 (H) FN1: ZERO(MVA) 05/06/02 (H) L&C AT 3:15 PM CAPITOL 17 BILL: SB 215 SHORT TITLE:COMMON CARRIER LIQUOR LICENSE SPONSOR(S): SENATOR(S) COWDERY Jrn-Date Jrn-Page Action 04/30/01 1357 (S) READ THE FIRST TIME - REFERRALS 04/30/01 1357 (S) TRA, FIN

01/22/02 (S) TRA AT 1:30 PM BUTROVICH 205

01/22/02 (S) Moved CS(TRA) Out of Committee MINUTE(TRA)

01/23/02 2017 (S) TRA RPT CS 3DP 2NR SAME TITLE

01/23/02 2017 (S) DP: COWDERY, WILKEN, TAYLOR;

01/23/02 2017 (S) NR: WARD, ELTON

01/23/02 2017 (S) FN1: (REV) 03/04/02 (S) FIN AT 9:00 AM SENATE FINANCE 532 03/04/02 (S) Scheduled But Not Heard 03/05/02 (S) FIN AT 9:00 AM SENATE FINANCE 532 03/05/02 (S) Moved CS(FIN) Out of Committee 03/05/02 (S) MINUTE(FIN) 03/06/02 2382 (S) FIN RPT CS 5DP 3NR SAME TITLE 03/06/02 2382 (S) DP: KELLY, HOFFMAN, WILKEN, WARD, 03/06/02 2382 (S) LEMAN; NR: DONLEY, GREEN, OLSON 03/06/02 2383 (S) FN2: (REV) 03/26/02 (S) RLS AT 11:00 AM FAHRENKAMP 203 03/26/02 (S) MINUTE(RLS) 04/19/02 2858 (S) RULES TO CALENDAR 4/19/02 04/19/02 2859 (S) READ THE SECOND TIME 04/19/02 2859 (S) FIN CS ADOPTED UNAN CONSENT 04/19/02 2859 (S) ADVANCED TO THIRD READING UNAN CONSENT 04/19/02 2860 (S) READ THE THIRD TIME CSSB 215(FIN) 04/19/02 2860 (S) PASSED Y14 N4 E1 A1 04/19/02 2860 (S) EFFECTIVE DATE(S) SAME AS PASSAGE 04/19/02 2863 (S) TRANSMITTED TO (H) 04/19/02 2863 (S) VERSION: CSSB 215(FIN) 04/22/02 3058 (H) READ THE FIRST TIME - REFERRALS 04/22/02 3058 (H) L&C, FIN 04/29/02 (H) L&C AT 3:15 PM CAPITOL 17 04/29/02 (H) Heard & Held MINUTE(L&C) 05/06/02 (H) L&C AT 3:15 PM CAPITOL 17 WITNESS REGISTER MG PHILLIP OATES, Adjutant General/Commissioner Department of Military & Veterans' Affairs PO Box 5800 Fort Richardson, Alaska 99505-0800 POSITION STATEMENT: Presented HB 323 on behalf of the administration. DON SMITH, Staff to Senator John Cowdery Alaska State Legislature Capitol Building, Room 101 Juneau, Alaska 99801 POSITION STATEMENT: Testified on behalf of the sponsor of CSSB 215(FIN), Senator Cowdery. ACTION NARRATIVE TAPE 02-72, SIDE A Number 0001 CHAIR LISA MURKOWSKI called the House Labor and Commerce Standing Committee meeting to order at 3:25 p.m. Representatives Murkowski, Halcro, Meyer, Crawford, and Hayes were present at the call to order. Representative Rokeberg arrived as the meeting was in progress. HB 323 - EMERGENCY MANAGEMENT ASSISTANCE COMPACT Number 0061 CHAIR MURKOWSKI announced that the first order of business would be HOUSE BILL NO. 323, "An Act relating to emergency and disaster relief forces as state employees for purposes of workers' compensation benefits; relating to the Emergency Management Assistance Compact and the implementation of the compact; and providing for an effective date." Number 0099 MG PHILLIP OATES, Adjutant General/Commissioner, Department of Military & Veterans' Affairs (DMVA), presented HB 323 on behalf of the administration. He said that the Emergency Management Assistance Compact (EMAC) is very important because no state or nation can have enough resources or wealth to deal with the large contingencies of an attack with weapons of mass destruction. Therefore, compacts with other states is very important due to the need for rapid access to resources as well as the ability to rapidly provide resources to those in need. He explained that the EMAC is a duty roster of support in which a state is prepared to provide a certain package of assistance. The state is indemnified from providing the support and is reimbursed for this support. The state can ultimately have these resources returned, if need be. General Oates pointed out that quick response to a weapons of mass destruction event can result in great success. However, a slow response, especially with a biological event, could result in no success. Therefore, it's important to enter into the compact, he reiterated. He estimated that only four states wouldn't be part of EMAC by the end of this legislative session. GENERAL OATES informed the committee of discussions with Governor Tom Ridge, the Director of the Office of Homeland Security and the Federal Emergency Management Agency (FEMA) regarding the notion that states should have the availability to have a soft match for the federal assistance. Because of the country's economic recession, states are having difficulty funding their existing programs. Therefore, a hard match to obtain federal dollars will be difficult to achieve. Moreover, most state legislative sessions have ended. General Oates noted that the need for a procedural match and soft match have been argued. [It has also been argued] that one of the most important things for receiving federal assistance is having an EMAC. General Oates related his belief that this legislation is good and helps Alaska assist others, which is a long-standing Alaskan trait. He requested that the committee move this legislation forward this year. Number 0424 CHAIR MURKOWSKI informed the committee that in the House Special Committee on Military and Veterans' Affairs she had asked whether it's necessary to include the language of the entire compact to which the National Emergency Management Association responded in the affirmative. Number 0530 REPRESENTATIVE HAYES moved to report HB 323 out of committee with individual recommendations and the accompanying zero fiscal note. There being no objection, HB 323 was reported from the House Labor and Commerce Standing Committee. SB 215-COMMON CARRIER LIQUOR LICENSE CHAIR MURKOWSKI announced that the next order of business would be CS FOR SENATE BILL NO. 215(FIN), "An Act relating to licensing common carriers to dispense alcoholic beverages; and providing for an effective date." REPRESENTATIVE HALCRO recalled that the public testimony was closed on CSSB 215(FIN). CHAIR MURKOWSKI informed the committee that she had concern that there might have been some small [carriers] who, upon this legislation coming into effect, would face higher [fees]. In looking through the list of licensees in Alaska, almost all the smaller entities with a common carrier license has a common carrier seasonal license. This common carrier seasonal license can be obtained for about half the price and thus they're not in the same situation as Alaska Airlines and its multiple carrier licenses. Number 0708 REPRESENTATIVE ROKEBERG turned to the reference labeled "SB 215 - License Renewal Breakdown". He remarked that the "Others" category seems significant in regard to the gains and losses. CHAIR MURKOWSKI informed the committee that those entities impacted by this [legislation are] ERA Aviation, Marriott, Phillips Alaska, Inc., Revolution Airways, the State of Alaska, United Airlines, and the White Pass and Yukon Route Railroad. The others have seasonal common carrier licenses. She related her feeling that the [smaller] seasonal operators are addressed. In further response to Representative Rokeberg, Chair Murkowski confirmed that the cruise ships have to sign up as well and pointed out that they are seasonal as well. She noted that these fees haven't increased since 1980. [This legislation] would raise the fees for everyone and pass the discount to Alaska Airlines. CHAIR MURKOWSKI commented that she didn't how other states deal with their licensure fees. The sponsor statement specifies that what Alaska Airlines pays in Alaska is an inordinate amount compared to what it pays in other states. Therefore, she questioned whether there are other taxes that the other states might impose in addition to the licensure fee, which would make Alaska's licensure fee look incongruent with the licensure fees of other states. REPRESENTATIVE HALCRO related his belief that the difference may have to do with landing fees. Number 1050 CHAIR MURKOWSKI informed the committee that Texas charges a per drink tax on alcohol consumed over the air in Texas. Chair Murkowski announced that the bill could be held until answers to the committee's questions are received. REPRESENTATIVE ROKEBERG noted his preference to move the bill. CHAIR MURKOWSKI restated her question regarding whether other states charge other fees related to alcohol provided by an airline that the state would recoup. Number 1140 DON SMITH, Staff to Senator John Cowdery, Alaska State Legislature, said that he didn't know. In further response to Chair Murkowski, Mr. Smith answered that he didn't know how Alaska has gotten so "out of whack" with the other states because he wasn't familiar with how other states charge for liquor licenses. Mr. Smith mentioned [Alaska Airlines'] growth and [the fact] that in the aggregate about 40 percent of Alaska Airlines' air time is spent in Alaska. Mr. Smith recalled that there were problems each time an airplane was licensed when it received a new start-up date. CHAIR MURKOWSKI remarked that Section 1 seems important due to making it easier to obtain the licensing. MR. SMITH pointed out that eventually everything will be on a two-year cycle. CHAIR MURKOWSKI characterized this matter as a policy call and noted that this would be a direct benefit to Alaska Airlines. Number 1274 REPRESENTATIVE ROKEBERG expressed concern with regard to the symmetry between the $1,000 fee for the first ten licenses and the $100 fee for each thereafter, as it relates to the seasonal fees. MR. SMITH indicated that the [licenses] fall under the applicable fee. He noted that some of the trains and cruise ships purchase a half-year license, which is cheaper. He related that someone had told him that West Tours would have to have three more train cars before this legislation would make economic sense for them. Although this legislation is written as if it will impact everyone, it only impacts one carrier at the moment. REPRESENTATIVE ROKEBERG related his belief that this legislation will increase the fees on everyone else until the entity reaches the number of ten aircraft or train cars. MR. SMITH said that his understanding is that those with less than ten would stay under the current [license fees]. CHAIR MURKOWSKI interjected her belief that the reason the smaller entities would be Okay under this is because most of the smaller entities operate under a seasonal license. MR. SMITH indicated agreement that such is the case and would be the case unless the entity grew. CHAIR MURKOWSKI directed attention to Section 3, which relates that this legislation applies to a new common carrier dispensary license or renewal occurring on or after the effective date. Therefore, if the licenses are up for renewal every other year, these entities will fall under these renewal fees [at that time]. REPRESENTATIVE ROKEBERG noted that this has to do with Title 4. Number 1407 CHAIR MURKOWSKI commented that it seems a bit ironic to provide a break in the amount collected from a carrier on the carrier's license to dispense alcoholic beverages when the legislature just voted to increase the alcohol tax. REPRESENTATIVE MEYER, after discussion, surmised that Alaska Airlines would probably buy alcohol in Alaska because its cheaper in Alaska when one considers the taxes in Seattle. The committee took an at-ease from 3:50 p.m. to 3:52 p.m. CHAIR MURKOWSKI recalled that one of the questions hasn't been answered and thus this legislation would be held to Wednesday. REPRESENTATIVE ROKEBERG remarked that it would be impossible to sort out the landing fees that may be incorporated in the [license fees] of other states. CHAIR MURKOWSKI disagreed and remarked that someone in the administration of Alaska Airlines should be able to specify what, beyond the license fee, is paid in various states. REPRESENTATIVE ROKEBERG suggested that a list of the common carrier license fees in each state would probably be adequate. CHAIR MURKOWSKI agreed that might be helpful. She reiterated that the legislation would be held until Wednesday. ADJOURNMENT There being no further business before the committee, the House Labor and Commerce Standing Committee meeting was adjourned at 3:50 p.m.

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