Legislature(2003 - 2004)

04/16/2003 03:20 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                                                                         
                         April 16, 2003                                                                                         
                           3:20 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Tom Anderson, Chair                                                                                              
Representative Bob Lynn, Vice Chair                                                                                             
Representative Nancy Dahlstrom                                                                                                  
Representative Carl Gatto                                                                                                       
Representative Norman Rokeberg                                                                                                  
Representative Harry Crawford                                                                                                   
Representative David Guttenberg                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 250                                                                                                              
"An Act relating to protests  of state contract awards, to claims                                                               
on  state   contracts,  to  the  arbitration   of  certain  state                                                               
construction contract  claims, and to hearings  and appeals under                                                               
the State  Procurement Code; making conforming  amendments in the                                                               
State Procurement Code; and providing for an effective date."                                                                   
                                                                                                                                
     - MOVED CSHB 250(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 251                                                                                                              
"An  Act  exempting  certain  foreign  pleasure  craft  from  the                                                               
mandatory pilotage requirement."                                                                                                
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
HOUSE BILL NO. 255                                                                                                              
"An Act  amending the Alaska Wage  and Hour Act as  it relates to                                                               
flexible work  hour plans, the  provision of training  wages, and                                                               
the definitions of certain terms;  and repealing the exemption in                                                               
the Act from the payment of minimum wages for learners."                                                                        
                                                                                                                                
     - MOVED CSHB 255(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 259                                                                                                              
"An Act relating to public school transportation, and to the                                                                    
minimum wages for school bus drivers; and providing for an                                                                      
effective date."                                                                                                                
                                                                                                                                
     - BILL HEARING POSTPONED                                                                                                   
                                                                                                                                
PREVIOUS ACTION                                                                                                               
                                                                                                                                
BILL: HB 250                                                                                                                  
SHORT TITLE:STATE CONTRACTS                                                                                                     
SPONSOR(S): REPRESENTATIVE(S)HOLM                                                                                               
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
04/07/03     0818       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
04/07/03     0818       (H)        L&C, STA                                                                                     
04/16/03                (H)        L&C AT 3:15 PM CAPITOL 17                                                                    
                                                                                                                                
BILL: HB 251                                                                                                                  
SHORT TITLE:MARINE PILOT FOR FOREIGN PLEASURE CRAFT                                                                             
SPONSOR(S): REPRESENTATIVE(S)DAHLSTROM                                                                                          
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
04/07/03     0819       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
04/07/03     0819       (H)        L&C, FIN                                                                                     
04/16/03                (H)        L&C AT 3:15 PM CAPITOL 17                                                                    
                                                                                                                                
BILL: HB 255                                                                                                                  
SHORT TITLE:WAGES:TRAINING/FLEX-TIME/DEFINITIONS                                                                                
SPONSOR(S): REPRESENTATIVE(S)ROKEBERG                                                                                           
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
04/09/03     0868       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
04/09/03     0868       (H)        L&C, FIN                                                                                     
04/14/03                (H)        L&C AT 3:15 PM CAPITOL 17                                                                    
04/14/03                (H)        Heard & Held                                                                                 
                                   MINUTE(L&C)                                                                                  
04/16/03                (H)        L&C AT 3:15 PM CAPITOL 17                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE JIM HOLM                                                                                                         
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified as sponsor of HB 250.                                                                            
                                                                                                                                
DICK CATTANACH, Executive Director                                                                                              
Associated General Contractors of Alaska                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Explained reasoning behind HB 250;                                                                         
encouraged members' support and answered questions.                                                                             
                                                                                                                                
MARK O'BRIEN, Chief Contracts Officer                                                                                           
Contracting, Procurement and Appeals                                                                                            
Office of the Commissioner                                                                                                      
Department of Transportation & Public Facilities                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Explained reasoning behind HB 250 and the                                                                  
department's fiscal note; answered questions.                                                                                   
                                                                                                                                
MICHAEL SWALLING, President                                                                                                     
Swalling Construction Company                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 250.                                                                            
                                                                                                                                
REX SHATTUCK, Staff                                                                                                             
to Representative Nancy Dahlstrom                                                                                               
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As staff to the bill's sponsor, presented                                                                  
information on HB 251.                                                                                                          
                                                                                                                                
KATE TESAR, Lobbyist                                                                                                            
for Alaska Yacht Services and Provisioning                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in favor of HB 251.                                                                              
                                                                                                                                
CAPTAIN ROBERT WINTER, Marine Pilot                                                                                             
Southeast Alaska Pilots' Association                                                                                            
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified that he could not support HB 251                                                                 
as written but expects compromise language to be introduced in a                                                                
future CS will meet his concerns.                                                                                               
                                                                                                                                
HEATHER NOBREGA, Staff                                                                                                          
to Representative Norman Rokeberg                                                                                               
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions on HB 255.                                                                              
                                                                                                                                
DON ETHERIDGE, Lobbyist                                                                                                         
for Alaska State AFL-CIO                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Voiced complete opposition to HB 255.                                                                      
                                                                                                                                
CHIP WAGONER, Lobbyist                                                                                                          
for Alaska Catholic Conference                                                                                                  
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Urged  the committee  to  drop Section  4,                                                               
Training wages, from HB 255.                                                                                                    
                                                                                                                                
BARBARA HUFF TUCKNESS, Director                                                                                                 
of Legislative and Governmental Affairs                                                                                         
General Teamsters, Local 959, Alaska                                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Spoke in opposition to HB  255, noting that                                                               
businesses will not  be able to find workers willing  to work for                                                               
$5.15 an hour.                                                                                                                  
                                                                                                                                
JOHN ZULEGER                                                                                                                    
Fairbanks, Alaska                                                                                                               
POSITION  STATEMENT:    Testified   against  HB  255,  saying  it                                                               
benefits businesses but not blue collar workers.                                                                                
                                                                                                                                
KAREN PLESS, Apprentice                                                                                                         
International Union of Operating Engineers, Local 302                                                                           
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Opposed HB 255.                                                                                            
                                                                                                                                
JOHN BROWN, President                                                                                                           
Fairbanks Central Labor Council;                                                                                                
International Union of Operating Engineers, Local 302                                                                           
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:   Testified  against HB  255, saying  it will                                                               
continue the erosion of wages for workers in Alaska.                                                                            
                                                                                                                                
JOHN DAVID RAGAN                                                                                                                
Laborers International Union of North America, Local 942;                                                                       
Ester Community Association;                                                                                                    
Volunteer fire fighter                                                                                                          
Ester Volunteer Fire Department                                                                                                 
Ester, Alaska                                                                                                                   
POSITION STATEMENT:   Spoke  against HB 255,  describing it  as a                                                               
direct attack on the minimum wage and the 8-hour day.                                                                           
                                                                                                                                
MATTHEW SAMPSON                                                                                                                 
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:   Opposed  HB 255,  stating that  no employee                                                               
will make better wages as the result of this bill.                                                                              
                                                                                                                                
CARL WEED                                                                                                                       
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:   Spoke against HB 255, arguing  that it does                                                               
not help workers who are also consumers.                                                                                        
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 03-36, SIDE A                                                                                                            
Number 0001                                                                                                                     
                                                                                                                                
CHAIR TOM ANDERSON  called the House Labor  and Commerce Standing                                                             
Committee  meeting  to  order  at   3:20  p.m.    Representatives                                                               
Anderson,  Dahlstrom,   Gatto,  Crawford,  and   Guttenberg  were                                                               
present at the call to  order.  Representatives Lynn and Rokeberg                                                               
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
HB 250-STATE CONTRACTS                                                                                                        
                                                                                                                                
CHAIR ANDERSON announced  that the first order  of business would                                                               
be HOUSE  BILL NO.  250, "An  Act relating  to protests  of state                                                               
contract   awards,  to   claims  on   state  contracts,   to  the                                                               
arbitration of  certain state  construction contract  claims, and                                                               
to hearings and appeals under  the State Procurement Code; making                                                               
conforming  amendments   in  the  State  Procurement   Code;  and                                                               
providing for  an effective  date."  [In  packets was  a proposed                                                               
committee substitute (CS), Version H.]                                                                                          
                                                                                                                                
Number 0095                                                                                                                     
                                                                                                                                
REPRESENTATIVE  JIM  HOLM,  Alaska  State  Legislature,  sponsor,                                                               
explained  that  HB  250  attempts  to  alleviate  problems  that                                                               
contractors  have  been having  in  the  extremely costly  claims                                                               
process.    The  desire  is to  have  expeditious  resolution  of                                                               
claims.   However, the perception  of the  construction community                                                               
is  that the  process has  slowly deteriorated  and is  no longer                                                               
fair or expeditious.                                                                                                            
                                                                                                                                
REPRESENTATIVE  HOLM noted  that the  bill was  worked on  by the                                                               
Associated General  Contractors of  Alaska ("AGC of  Alaska") and                                                               
that  Dick Cattanach  had  negotiated with  Mark  O'Brien of  the                                                               
Department of  Transportation & Public Facilities  (DOT&PF); they                                                               
went through  the bill extensively.   Representative Holm pointed                                                               
out  that  the  sectional  analysis   [for  Version  H]  mentions                                                               
recovery  of   attorney  fees  and   how  the  process   will  be                                                               
maintained.                                                                                                                     
                                                                                                                                
Number 0206                                                                                                                     
                                                                                                                                
REPRESENTATIVE GATTO moved to adopt  the proposed CS, Version 23-                                                               
LS0501\H, Bannister,  4/14/03, as a  work draft.  There  being no                                                               
objection, Version H was before the committee.                                                                                  
                                                                                                                                
REPRESENTATIVE  HOLM   explained  that  presently  there   is  no                                                               
independent [third] party review  in contract resolution with the                                                               
state,  in either  the purchasing  departments or  contracts with                                                               
DOT&PF; it  is difficult  for people who  assert claims  for less                                                               
than $250,000 to afford them because of litigation costs.                                                                       
                                                                                                                                
REPRESENTATIVE HOLM reported  that AGC of Alaska  and Mr. O'Brien                                                               
went through  potential problems  and "pretty much  solved them."                                                               
Referring  to the  written sponsor  statement, he  noted that  it                                                               
lists six of the most important  [modifications made by HB 250 to                                                               
current statute]:   1) if  a procurement officer doesn't  issue a                                                               
written  decision  by  the  due date,  the  contractor  may  seek                                                               
arbitration;  2)  on  appeals of  all  construction  claims,  the                                                               
parties can  agree to binding  arbitration; 3) the  timelines for                                                               
decisions   have  been   tightened  and   redundant  requirements                                                               
eliminated;  4)  an arbitrator  or  hearing  officer who  doesn't                                                               
issue a decision  by the deadline is disqualified for  a year; 5)                                                               
qualifications  for  arbitrators  and hearing  officers  will  be                                                               
established   by   the   commissioner  of   the   Department   of                                                               
Administration in  regulation; and 6) the  contractor is entitled                                                               
to recover some of the claims costs incurred.                                                                                   
                                                                                                                                
REPRESENTATIVE HOLM called this a  balanced bill, and pointed out                                                               
that   there  are   time  constraints   because  of   the  coming                                                               
construction season.   He mentioned that it  has an indeterminate                                                               
fiscal note  because of the  inability to determine the  costs of                                                               
claims resolution.   He  suggested that it  would be  less costly                                                               
and a better  business situation, however, if people  had an easy                                                               
way to rectify their problems without litigation.                                                                               
                                                                                                                                
Number 0455                                                                                                                     
                                                                                                                                
DICK   CATTANACH,   Executive    Director,   Associated   General                                                               
Contractors of  Alaska, requested  that Mr.  O'Brien join  him at                                                               
the witness  table.  Noting  that they'd  worked on the  bill for                                                               
more than  two years, he said  about three months had  been spent                                                               
getting input  from the Department of  Law.  He noted  that there                                                               
was input  from the  Department of Administration  as well.   Mr.                                                               
Cattanach  told members  that  time is  critical  and noted  that                                                               
DOT&PF's  construction budget  is roughly  $400 million;  without                                                               
passage  of  the  bill,  that  $400 million  will  be  under  the                                                               
existing statute, rather than this bill.                                                                                        
                                                                                                                                
MR. CATTANACH told  members the bill is a  compromise intended to                                                               
do three things:  speed up the  system, make it so the process is                                                               
viewed as more fair, and lower  claims costs.  First, with regard                                                               
to speeding up the system, he  explained that a claim comes about                                                               
because  the  contractor  and  the  owner  -  the  parties  in  a                                                               
construction contract  - disagree  about whether certain  work is                                                               
covered  in the  contact;  the current  claims process  reputedly                                                               
takes upwards of two years to  resolve in some cases.  Second, he                                                               
reported that  right or wrong,  contractors have a  perception of                                                               
unfairness because claims officers are  selected by DOT&PF from a                                                               
list  maintained  by DOT&PF,  based  on  criteria established  by                                                               
DOT&PF; the  bill changes the  system, with  a lot of  it modeled                                                               
after the arbitration of  AAA [American Arbitration Association].                                                               
Mr. Cattanach remarked,  "We're going to be  recommending the use                                                               
of arbitration  more."   Third, he noted  that members  have told                                                               
him a  significant claim  may cost  $250,000 to  prosecute; those                                                               
costs aren't recovered under the current statute.  He said:                                                                     
                                                                                                                                
     The theory that we're espousing  is that the reason the                                                                    
     contractor  has  to spend  that  money  is because  the                                                                    
     claim that  he ultimately  ... gets  was not  the claim                                                                    
     that he  was offered; therefore,  he has to  spend that                                                                    
     money to get what was  reasonably his, as determined by                                                                    
     a  third  party.   We  recognize  their  difference  of                                                                    
     opinion.                                                                                                                   
                                                                                                                                
MR. CATTANACH  explained that  the bill  addresses court  rules -                                                               
Rules 68,  79, and  82   - with  respect to  how those  costs are                                                               
determined.   He  deferred  to  Mr. O'Brien  for  details on  the                                                               
fiscal note and related his belief  that this bill will result in                                                               
a significant improvement.  He encouraged members' support.                                                                     
                                                                                                                                
Number 0751                                                                                                                     
                                                                                                                                
MARK O'BRIEN,  Chief Contracts Officer;  Contracting, Procurement                                                               
and   Appeals;  Office   of  the   Commissioner;  Department   of                                                               
Transportation   &  Public   Facilities,  pointed   out  positive                                                               
benefits in terms of the three  goals of being faster, more fair,                                                               
and less expensive.   The bill shortens  some existing timeframes                                                               
in statute  and creates timeframes  where none existed.   It also                                                               
offers  arbitration -  generally  considered  less expensive  and                                                               
onerous, and requiring less preparation  and associated costs and                                                               
fees - as an  alternative to the hearing process.   He said it is                                                               
both  faster and  less  expensive.   The  arbitration process  is                                                               
final; there is  no appeal to the courts unless  there has been a                                                               
gross misrepresentation or fraud,  for example, and thus normally                                                               
there  won't be  the additional  costs  and legal  fees of  going                                                               
through  a court  process.   As for  fairness, the  bill requires                                                               
adoption of regulations to govern  the selection process [for the                                                               
hearing  officer].    "We  look   forward  to  working  with  the                                                               
Department of Administration to  get those established and create                                                               
some specific guidelines on the selection," he remarked.                                                                        
                                                                                                                                
Number 0886                                                                                                                     
                                                                                                                                
MR. O'BRIEN  reported that [the  state's] only  disagreement with                                                               
AGC of Alaska  was on the issue  of costs and fees.   Noting that                                                               
Rules  79 and  82 allow  recovery  of partial  attorney fees  and                                                               
costs for the prevailing party,  he explained that it slices both                                                               
ways:  if the state prevails,  there is an opportunity to recover                                                               
some of  its cost.   Generally, though,  the prevailing  party is                                                               
defined as the  person who receives any  judgment.  Historically,                                                               
[the  claimant] almost  always receives  something.   If  someone                                                               
with a $200,000 claim is  awarded $15,000 by the hearing officer,                                                               
[the state]  may think it's  a "win,"  but [the claimant]  is the                                                               
prevailing party and thus receives  attorney fess and costs, or a                                                               
portion of them.                                                                                                                
                                                                                                                                
MR. O'BRIEN explained  the calculations for the fiscal  note.  He                                                               
said he'd  looked at  the last  11 years'  records on  claims and                                                               
used  an  example of  a  $2  million  claim  with a  $.5  million                                                               
judgment by  an arbitrator, based  on actual cases in  that range                                                               
for which costs  and fees were typical; it was  calculated that a                                                               
contractor  who was  the prevailing  party would  receive roughly                                                               
$73,000 for  his/her portion  of the  costs and  fees.   He noted                                                               
that under  almost any  scenario, there  will be  a cost  [to the                                                               
state].  Using  that model and looking at the  claims history for                                                               
11 years, applying roughly the  same factors, Mr. O'Brien said it                                                               
had  been averaged  over  the 11-year  period,  resulting in  the                                                               
estimate in the fiscal note of $145,000 a year.                                                                                 
                                                                                                                                
MR. O'BRIEN  pointed out that  $145,000 is the  baseline estimate                                                               
of possible liability [to the  state], since hearing officers and                                                               
arbitrators have  the ability  to enhance those  fees based  on a                                                               
number of  factors including protracted litigation  or associated                                                               
costs that  are particularly  high.  Another  key factor  is that                                                               
Rule 79  and Rule 82 costs  and fees aren't eligible  for federal                                                               
aid  through  the  federal  highway bill.    Most  of  [DOT&PF's]                                                               
contract  appeals  - the  $400  million  construction budget  Mr.                                                               
Cattanach mentioned  - are through  the federal highway  bill, he                                                               
noted,  but those  provisions don't  allow  reimbursement to  the                                                               
state for costs and fees.   Hence any judgment for costs and fees                                                               
will require a  general fund payment from [DOT&PF]  and any other                                                               
department   that  has   "construction  authority   with  federal                                                               
funding."                                                                                                                       
                                                                                                                                
Number 1068                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CRAWFORD  asked  what  happens when  there  is  a                                                               
contract for less than $25,000,  and whether it is cost-effective                                                               
to go into arbitration for a few thousand dollars in dispute.                                                                   
                                                                                                                                
MR.  O'BRIEN explained  that  something like  98  percent of  the                                                               
claims  brought forward  by such  contractors are  settled before                                                               
ever  becoming  an appeal  at  the  level of  the  commissioner's                                                               
office.   In many  cases, they're  able to work  it out  with the                                                               
project manager  on-scene as well  as the prime contractor  if it                                                               
is a subcontract situation.   The appointment of hearing officers                                                               
and  arbitrators applies  to those  2-3 percent  of the  cases in                                                               
which the parties absolutely cannot come to an agreement.                                                                       
                                                                                                                                
Number 1150                                                                                                                     
                                                                                                                                
REPRESENTATIVE CRAWFORD  conveyed his understanding  from talking                                                               
to  contractors that  some just  give up  because it  isn't cost-                                                               
effective to  pursue several thousand  dollars when  the contract                                                               
may only be  for $25,000.  He mentioned a  contractor who built a                                                               
fence at Bethel airport; when  DOT&PF changed the specifications,                                                               
the contractor  was stuck  with 3,000 feet  of fencing  that cost                                                               
too  much to  transport back  to Anchorage.   He  reiterated that                                                               
many times people give up instead  of being part of the 2 percent                                                               
who [appeal].                                                                                                                   
                                                                                                                                
MR. O'BRIEN  said he  would argue  that this  arbitration process                                                               
offers  a better  opportunity, at  less cost,  than those  people                                                               
have ever had.                                                                                                                  
                                                                                                                                
REPRESENTATIVE CRAWFORD asked that  the even smaller contracts be                                                               
looked after.                                                                                                                   
                                                                                                                                
Number 1234                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  observed  that  page 6  of  the  bill                                                               
discusses the commissioner's ability  to extend the timeline, but                                                               
also disciplines an  arbitrator who doesn't make a  decision in a                                                               
timely manner.   He  asked whether  there has  been a  history of                                                               
that problem.  If not, he asked why is it in the bill.                                                                          
                                                                                                                                
MR. O'BRIEN answered:                                                                                                           
                                                                                                                                
     I've been  doing this  since 1998,  and there  have not                                                                    
     been a  significant number of  complaints.  In  fact, I                                                                    
     honestly don't  remember a  single complaint  about the                                                                    
     length  of   time  that  a  hearing   officer  had  the                                                                    
     decision.  Generally, the complaint  is the length that                                                                    
     the  contracting officer  at  the first  level has  the                                                                    
     decision.   ... But there were  some concerns addressed                                                                    
     by the AGC [of Alaska]  during ... the discussions that                                                                    
     we  had that  there  could well  be  an instance  where                                                                    
     they're  not  getting  a timely  delivery  by  ...  the                                                                    
     arbitrator of  the decision  after he's  had it  in his                                                                    
     hands  for a  final decision.   And  so they  wanted to                                                                    
     build  in kind  of a  punitive  measure ...  to try  to                                                                    
     encourage a quick decision.                                                                                                
                                                                                                                                
Number 1325                                                                                                                     
                                                                                                                                
MR.  CATTANACH   also  responded,   saying  contractors   have  a                                                               
perception that the timeline does  "slip."  He explained that the                                                               
contractor already  would have  paid the  costs back  before ever                                                               
filing  a  claim,  and  would  want  that  money  as  quickly  as                                                               
possible.  "So we put some  teeth into this," Mr. Cattanach said,                                                               
noting  that an  arbitrator  now will  have  timelines; if  those                                                               
aren't met, the  arbitrator will be barred  from participating in                                                               
the arbitration process for a year.                                                                                             
                                                                                                                                
Number 1360                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  offered  his  understanding  that  an                                                               
arbitrator would be an independent  contractor.  He asked whether                                                               
a hearing officer would be a state employee.                                                                                    
                                                                                                                                
MR. O'BRIEN said no.                                                                                                            
                                                                                                                                
Number 1391                                                                                                                     
                                                                                                                                
MICHAEL SWALLING, President,  Swalling Construction Company, told                                                               
members his company has been in  business about 56 years and that                                                               
he  has been  with the  company  30 years;  much or  most of  the                                                               
company's  work  is   with  DOT&PF.    Specifying   that  he  was                                                               
testifying in favor of HB 250, he said:                                                                                         
                                                                                                                                
     For  nearly  25  years,  I  had  no  formal  claims  on                                                                    
     [DOT&PF] work.   All the  disputes I had  were resolved                                                                    
     pretty much  at the project  level within what  I would                                                                    
     consider a  reasonable amount of  time.  About  5 years                                                                    
     ago I  had my first claim;  it went all the  way to the                                                                    
     hearing-officer ...  level for  resolution, and  I came                                                                    
     away from  that experience  very dissatisfied  with the                                                                    
     time, the  cost, and the  process [for]  resolving that                                                                    
     construction dispute.                                                                                                      
                                                                                                                                
     And since  then, I've  had two  more ...  formal claims                                                                    
     with  [DOT&PF].    At the  beginning,  they  were  both                                                                    
     denied  in their  entirety, ...  and were  both delayed                                                                    
     significantly during the  administrative portion of the                                                                    
     process,  up   through  the  contracting-officer-appeal                                                                    
     level.   Both  disputes  eventually  were settled  last                                                                    
     year for  a total of $591,000.   But it took  two years                                                                    
     and $250,000  in legal  and expert  expenses to  get to                                                                    
     the settlement table.  Frankly, that's a crime.                                                                            
                                                                                                                                
     Unlike any  other legal  dispute, where  the prevailing                                                                    
     party  receives  some  compensation  for  the  expenses                                                                    
     incurred, I  got nothing.   All  of that  250 [thousand                                                                    
     dollars] basically  came out of the  settlement, and so                                                                    
     I got  a very  poor return  on the  dollars ...  that I                                                                    
     spent getting that settlement.   It's not a fair system                                                                    
     the way  it is set up  right now.  Frankly,  it was all                                                                    
     the justice that I could afford.   I had to settle, and                                                                    
     I had to move on.                                                                                                          
                                                                                                                                
Number 1488                                                                                                                     
                                                                                                                                
MR. SWALLING continued:                                                                                                         
                                                                                                                                
     My perception right now of  the current process is that                                                                    
     it's  basically a  war  of attrition.    The state  has                                                                    
     nothing to lose by  delaying, denying, or obfuscating a                                                                    
     construction  claim   for  as  long  as   it  can,  and                                                                    
     everything to  gain by forcing the  contractor to spend                                                                    
     as  much   money,  time,  and  effort   to  pursue  the                                                                    
     settlement of the dispute.   And at this point, they've                                                                    
     got  almost  unlimited  resources and  the  ability  to                                                                    
     extend response  dates almost at their  will, while the                                                                    
     contractors  are forced  basically to  do the  opposite                                                                    
     and respond to fixed  timelines or basically lose their                                                                    
     right to pursue  the claim.  They also  have to finance                                                                    
     the  work and  pay  the cost  incurred,  and then  pay,                                                                    
     additionally, the  cost of legal and  professional help                                                                    
     to help pursue the claim.                                                                                                  
                                                                                                                                
     House Bill  250 provides an  incentive to the  state to                                                                    
     settle  these disputes  in a  more timely  fashion, and                                                                    
     allows the  contractor to recover  some of the  cost of                                                                    
     pursuing what  is ultimately rightfully  his.   I think                                                                    
     it solves  some of the  inequities in this  process; it                                                                    
     doesn't  solve them  all, but  moves the  state in  the                                                                    
     right direction.  And I think it should be passed.                                                                         
                                                                                                                                
Number 1535                                                                                                                     
                                                                                                                                
REPRESENTATIVE GATTO asked Mr. Swalling  whether he'd figured out                                                               
what the difference  would have been with regard  to his $250,000                                                               
loss if this legislation had been in place.                                                                                     
                                                                                                                                
MR. SWALLING  answered that  he doesn't know  what Rule  82 would                                                               
provide, but suggested  there would have been some  recovery.  He                                                               
said  the  bill  does  provide   an  incentive  to  get  [claims]                                                               
resolved.  He  emphasized the importance of time and  the need to                                                               
settle these and move on.                                                                                                       
                                                                                                                                
Number 1583                                                                                                                     
                                                                                                                                
CHAIR ANDERSON, upon determining there  were no questions for any                                                               
of the testifiers, closed the public hearing.                                                                                   
                                                                                                                                
Number 1592                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG moved  to report  CSHB 250,  Version 23-                                                               
LS0501\H, Bannister,  4/14/03, out  of committee  with individual                                                               
recommendations and  the accompanying indeterminate  fiscal note.                                                               
There being  no objection,  CSHB 250(L&C)  was reported  from the                                                               
House Labor and Commerce Standing Committee.                                                                                    
HB 251-MARINE PILOT FOR FOREIGN PLEASURE CRAFT                                                                                
                                                                                                                                
[Contains discussion of SB 20.]                                                                                                 
                                                                                                                                
Number 1610                                                                                                                     
                                                                                                                                
CHAIR ANDERSON  announced that the  next order of  business would                                                               
be  HOUSE  BILL  NO.  251,  "An  Act  exempting  certain  foreign                                                               
pleasure craft from the mandatory pilotage requirement."                                                                        
                                                                                                                                
Number 1650                                                                                                                     
                                                                                                                                
REPRESENTATIVE DAHLSTROM, sponsor of  HB 251, explained that this                                                               
bill exempts  certain foreign pleasure crafts  from the mandatory                                                               
pilotage requirements while visiting  Alaska.  Pleasure craft are                                                               
vessels that  are not for  hire.   Currently, American-registered                                                               
pleasure craft  of any size are  not required to employ  a marine                                                               
pilot,  however, all  foreign-registered vessels  are, she  said.                                                               
The only exception [to the  marine pilotage requirement] is while                                                               
the vessel is  moored at a dock  or at anchor.  The  intent of HB
251  is  to  standardize  the  operation  of  pleasure  craft  by                                                               
granting a  waiver or exemption to  foreign-registered vessels of                                                               
less  than 200  feet.    A recent  Legislative  Budget and  Audit                                                               
Committee report  [recommended] these changes.   Recommendation 4                                                               
of  the  Legislative  Audit, 08-20015-02,  dated  Nov.  1,  2002,                                                               
reads:                                                                                                                          
                                                                                                                                
     The  Board  of  Marine  Pilots  should  seek  statutory                                                                    
     authority to  allow the board  the discretion  to grant                                                                    
     waivers  of  pilotage  requirement  to  large  pleasure                                                                    
     craft.                                                                                                                     
                                                                                                                                
REPRESENTATIVE DAHLSTROM  noted the time and  effort [contributed                                                               
by] the marine pilots in helping  develop this bill.  [This bill]                                                               
will  bring greater  economic  [activity]  into Southeast  Alaska                                                               
[through increased  yacht traffic].   She  said that  all parties                                                               
are in agreement  on this bill, and she will  present a committee                                                               
substitute (CS) [at the April 23rd meeting of the committee].                                                                   
                                                                                                                                
REPRESENTATIVE  DAHLSTROM,   in  response  to  a   question  from                                                               
Representative Rokeberg, said she would  prefer to wait until the                                                               
[April 23] meeting to have  the committee adopt a working version                                                               
of the bill.                                                                                                                    
                                                                                                                                
Number 1762                                                                                                                     
                                                                                                                                
REX  SHATTUCK, Staff  to Representative  Nancy Dahlstrom,  Alaska                                                               
State  Legislature, explained  that  this bill  grew  out of  the                                                               
March  12, 2003,  [House Labor  and Commerce  Standing Committee]                                                               
hearing for SB  20, which extends the Board of  Marine Pilots; SB
20 passed out  of this committee with six "Do  Passes" and passed                                                               
the House  floor with 38 "Yeas"  and two excused.   He noted that                                                               
the audit included a letter  from DCED [Department of Community &                                                               
Economic Development] that encouraged  the legislature to enact a                                                               
law that would  allow the Board of Marine  Pilots [the discretion                                                               
to  grant waivers  of pilotage  requirements  to larger  pleasure                                                               
crafts].    Mr. Shattuck  stated  that  the forthcoming  CS  will                                                               
address  the  concerns of  the  stakeholders,  some of  who  will                                                               
testify today.   He said that the parties agreed  to an amendment                                                               
[to HB  251] that would exempt  [smaller foreign-flagged pleasure                                                               
craft  from the  pilotage  requirement] and  allow  the board  to                                                               
waive the  pilotage requirement for larger  vessels under certain                                                               
conditions.   He explained that foreign-flagged  vessels under 53                                                               
meters in length would be required  to take a pilot [on board] no                                                               
matter  which zone  they were  going into.   They  would also  be                                                               
required to use an Alaskan agent,  whose purpose would be to make                                                               
arrangements between  the marine  pilots and  the customer.   The                                                               
Division  of  Occupational  Licensing  in DECD  would  write  the                                                               
regulations [implementing the law].                                                                                             
                                                                                                                                
Number 1872                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG asked what  length vessels are covered in                                                               
the bill.                                                                                                                       
                                                                                                                                
MR.  SHATTUCK explained  that [a  vessel  of] 53  meters is  just                                                               
under 175  feet.   He said  that the  [measurement of]  53 meters                                                               
will be  used because  it's an  international standard  for those                                                               
vessels.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  ROKEBERG asked  Mr. Shattuck  to clarify  how the                                                               
bill affects vessels under 53 meters.                                                                                           
                                                                                                                                
MR. SHATTUCK replied  that any vessel under 53  meters would have                                                               
to meet  the requirements in  regulation that will be  drafted by                                                               
the Board of  Marine Pilots.  He said those  standards will cover                                                               
the vessel  size and the  requirement to  take on a  pilot coming                                                               
into Alaskan waters.                                                                                                            
                                                                                                                                
REPRESENTATIVE ROKEBERG asked  if a vessel under  53 meters would                                                               
have to have a pilot.                                                                                                           
                                                                                                                                
MR. SHATTUCK said  that such a vessel would have  to have a pilot                                                               
from the entry point [into  Alaskan waters] to the vessel's first                                                               
port.                                                                                                                           
                                                                                                                                
CHAIR ANDERSON  said that  a vessel  would have  to have  a pilot                                                               
from the entry  point into Alaskan waters to the  first port.  It                                                               
would not  have a pilot  [after that],  whereas in current  law a                                                               
vessel  must  have a  pilot  [on  board  the  entire time  it  is                                                               
moving].                                                                                                                        
                                                                                                                                
Number 1933                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  observed that the pilots  have "one bite                                                               
at  the apple."   He  asked about  the agent  [referenced by  Mr.                                                               
Shattuck].                                                                                                                      
                                                                                                                                
MR. SHATTUCK  said at present  there is an agent's  license under                                                               
the Board  of Marine Pilots.   That  agent would arrange  for the                                                               
marine pilots to be available at the pilot stations.                                                                            
                                                                                                                                
REPRESENTATIVE ROKEBERG  asked whether the CS  will give specific                                                               
details for the regulations.                                                                                                    
                                                                                                                                
MR. SHATTUCK replied  the bill will contain  the tenants outlined                                                               
today, while the regulations, formulated  in part by the Board of                                                               
Marine Pilots, will be more detailed.                                                                                           
                                                                                                                                
Number 1982                                                                                                                     
                                                                                                                                
REPRESENTATIVE CRAWFORD surmised that a  marine pilot is on board                                                               
during the first voyage into Alaskan  waters to the first port in                                                               
order to  see if  the master  is capable  of piloting  in Alaskan                                                               
waters.  What happens if the master is incompetent, he queried.                                                                 
                                                                                                                                
MR. SHATTUCK replied  that the marine pilots will  be involved in                                                               
writing  the regulations  to  cover what  should  happen in  that                                                               
circumstance.   Because the  marine pilots are  the eyes  and the                                                               
ears  of the  state, statute  gives  them some  authority to  say                                                               
whether the vessel would be safe in Alaskan waters.                                                                             
                                                                                                                                
CHAIR  ANDERSON confirmed  that the  board  will have  more of  a                                                               
regulatory purview.                                                                                                             
                                                                                                                                
Number 2032                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GATTO  commented  that  the  marine  pilot  would                                                               
notify the Coast Guard of whatever was found.                                                                                   
                                                                                                                                
REPRESENTATIVE ROKEBERG  asked what size  vessel needs to  have a                                                               
marine pilot aboard.                                                                                                            
                                                                                                                                
MR.  SHATTUCK said  that currently,  there is  an [exemption  for                                                               
foreign-flagged pleasure  craft of  less than] 300  [gross] tons;                                                               
that exemption would be removed  [under the forthcoming CS].  The                                                               
CS will deal with vessels up to  a maximum of 53 meters, which is                                                               
just  under 175  feet.   As  far as  [waivers for  vessels of]  a                                                               
minimum size,  [no minimum  size] has yet  been established.   He                                                               
said he  anticipated that  [a minimum size  will be  included] in                                                               
the CS.                                                                                                                         
                                                                                                                                
Number 2086                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG  said  that  it's  not  the  committee's                                                               
intent  to  negatively affect  the  small  craft tourism  in  the                                                               
state.                                                                                                                          
                                                                                                                                
MR.  SHATTUCK replied  that the  intent  is not  to impact  those                                                               
craft that would not normally carry a marine pilot.                                                                             
                                                                                                                                
REPRESENTATIVE  ROKEBERG asked  why  the  [exemption for  vessels                                                               
less than] 300 gross tons [will be] removed.                                                                                    
                                                                                                                                
MR.  SHATTUCK replied  that there  are vessels  of less  than 300                                                               
[gross tons] that  qualify [for an exemption]  under existing law                                                               
but those  vessels could be  larger than  the [200] feet  or [53]                                                               
meters [limit in  the proposed CS].  Sail craft  might have to be                                                               
addressed separately, he said.                                                                                                  
                                                                                                                                
REPRESENTATIVE  ROKEBERG commented  that if  the CS  is going  to                                                               
remove  the 300-ton  threshold,  there must  be  an argument  [in                                                               
favor] of that [action].                                                                                                        
                                                                                                                                
MR. SHATTACK  said the bill  is targeting vessels over  that [300                                                               
ton  size],  many  of  which are  substantially  larger  than  53                                                               
meters.                                                                                                                         
                                                                                                                                
Number 2164                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CRAWFORD said  that  now any  [vessel] under  300                                                               
tons  is exempt  from pilotage;  it doesn't  have anything  to do                                                               
with the length of  the boat.  If the 300  tons is removed, there                                                               
will need to be some sort of a minimum size [in statute].                                                                       
                                                                                                                                
MR. SHATTUCK said  in some cases the minimum  tonnage is actually                                                               
larger.                                                                                                                         
                                                                                                                                
REPRESENTATIVE CRAWFORD said, no, in feet.                                                                                      
                                                                                                                                
REPRESENTATIVE  ROKEBERG   surmised  that  [these   vessels]  are                                                               
shorter but weigh more.                                                                                                         
                                                                                                                                
MR. SHATTUCK agreed.                                                                                                            
                                                                                                                                
REPRESENTATIVE  CRAWFORD  said  the  state wouldn't  want  to  be                                                               
requiring pilots for a 40-foot ketch.                                                                                           
                                                                                                                                
MR.  SHATTUCK said  that this  bill addresses  motorized pleasure                                                               
craft.   However, it does  not address  sail craft.   The tonnage                                                               
issue is something all together different.                                                                                      
                                                                                                                                
REPRESENTATIVE DAHLSTROM suggested  addressing these questions to                                                               
the marine pilots [present at the hearing].                                                                                     
                                                                                                                                
CHAIR  ANDERSON said  that  the bill  will be  held  and will  be                                                               
brought up first [at the meeting] next week.                                                                                    
                                                                                                                                
Number 2227                                                                                                                     
                                                                                                                                
KATE TESAR, Lobbyist for Alaska  Yacht Services and Provisioning,                                                               
stated  that  her  client  works  with  yacht  owners  and  yacht                                                               
management  companies  throughout  the country,  assisting  these                                                               
yachts in  coming to  Alaska.  She  supervises port  services for                                                               
the  guests and  crews of  these large  yachts.   She is  working                                                               
aboard a yacht now.                                                                                                             
                                                                                                                                
MS. TESAR said  her client supports [HB] 251.   She said that the                                                               
stakeholders   reached  agreement   on  how   to  address   these                                                               
exemptions a  very short time  ago.  They  agreed to work  on the                                                               
language together  and so do  not yet have specific  language for                                                               
the committee.   She said that  the group has worked  out the 53-                                                               
meter size limit, which mandates that  a pilot be on board at the                                                               
initial  entry point  into each  region, and  the use  of Alaskan                                                               
agents, which will  also be a revenue-producer for  some of these                                                               
small  communities.   The stakeholders  support the  [legislative                                                               
audit] recommendation  4 that says  the state should  address the                                                               
situation  with these  large yachts.   She  said that  the yachts                                                               
bring  a large  amount of  commerce into  the small  communities.                                                               
She thanked  Representative Dahlstrom  and the marine  pilots for                                                               
working  to find  a solution  that  will allow  this commerce  to                                                               
continue in the state.                                                                                                          
                                                                                                                                
Number 2302                                                                                                                     
ROBERT WINTER,  Captain, Marine  Pilot, Southeast  Alaska Pilots'                                                               
Association,   testified   that   he  supports   legislation   to                                                               
accommodate the needs  of these small yachts, but  that his group                                                               
cannot  support  HB 251  as  written.   [The  various  interested                                                               
parties] have  reached some agreements, but  [additional work] is                                                               
necessary.    Mr.  Winter   said  he  appreciated  Representative                                                               
Dahlstrom's   leadership   in   bringing  together   the   pilots                                                               
[associations] and  the agents  for the  small yachts  to discuss                                                               
the  issue.   He  said  he thinks  there  is  agreement with  the                                                               
language, so the process can move forward.                                                                                      
                                                                                                                                
MR. WINTERS identified  several issues key to his group.   One is                                                               
the definition of pleasure craft.   He said the group has reached                                                               
agreement  on  a legal  definition:    "a  not for  hire  foreign                                                               
vessel."  [Another  issue is that] all foreign  yachts would have                                                               
to [carry]  a pilot from  the vessel's initial entry  into Alaska                                                               
waters to its first port of call  in each region.  The purpose of                                                               
this requirement,  he said, is  not to decide whether  the master                                                               
was  competent, but  rather  to give  the  master information  on                                                               
Southeast, for example, gill net  openings, cruise ship schedules                                                               
so  that the  master would  know  what traffic  to expect,  radio                                                               
frequencies to monitor as well as information on passages.                                                                      
                                                                                                                                
TAPE 03-36, SIDE B                                                                                                            
Number 2364                                                                                                                     
                                                                                                                                
MR.  WINTER explained  that the  pilot would  make sure  that the                                                               
master had all  the pertinent charts.  [The  pilot's role covers]                                                               
strictly safety  issues.  He  said the pilots  associations would                                                               
also want  to have  a pilot  on board when  the yacht  leaves the                                                               
region.                                                                                                                         
                                                                                                                                
MR. WINTER  said the group  agreed to a  length of 53  meters and                                                               
agreed  to  get  rid  of  the gross  tonnage  because  it  is  an                                                               
ambiguous number.   For example,  a 170-foot ship could  be 1,000                                                               
gross tons,  while a vessel [varying  in length from] 170  to 300                                                               
feet could be  99 gross tons.  [Tonnage] is  a volume measurement                                                               
built around a  bunch of specialized rules.  He  used the example                                                               
of the Yorktown Clipper, which is  almost 300 feet but is only 99                                                               
gross tons.   Therefore, this legislation uses a  fixed figure of                                                               
length and anyone can look at a vessel and determine its length.                                                                
                                                                                                                                
MR. WINTER  said the pilots wanted  to put in some  conditions on                                                               
[yachts'] transit.  There are  some areas, regardless of the size                                                               
of the  yacht, that [should] require  a state pilot on  board, he                                                               
said.   These  include  Valdez Narrows,  Wrangell Narrows,  Peril                                                               
Straits, and  Sergius Narrows in  Southeast Alaska.  He  said the                                                               
yachts  have an  option  of using  a pilot  for  that transit  or                                                               
choosing a  different route so there's  no need for a  pilot.  He                                                               
said the  concern is for  commerce.  If a  ship of 170  feet goes                                                               
aground in Wrangell Narrows, it  would interrupt commerce as well                                                               
as  ferry traffic.    He said  that the  pilots  consider this  a                                                               
safety  issue.   They  also want  an  Alaska-registered agent  to                                                               
represent  the yachts.    In  the past,  the  pilots  have had  a                                                               
difficult time  getting paid  by some foreign  yachts.   An agent                                                               
takes care of bonds, [can be  held responsible for payment to the                                                               
pilots], can  arrange contracts and  give pilots  advance notice,                                                               
and handles the customs and immigration details for the yachts.                                                                 
                                                                                                                                
Number 2261                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG noted  that  there's  a distinction  [in                                                               
state law]  now in the  exemptions between a  U.S.-registered and                                                               
foreign-registered vessels  of less than  300 tons.  He  asked if                                                               
the compromise  leaves the U.S.  registry alone or will  it apply                                                               
to both types of registry.                                                                                                      
                                                                                                                                
MR. WINTER  replied that the requirements  for U.S.-flagged ships                                                               
are federal.  He explained  that the federal government regulates                                                               
U.S.-flagged vessels,  and the  state regulates  foreign vessels.                                                               
The legislature can't do anything about U.S.-flagged vessels.                                                                   
                                                                                                                                
REPRESENTATIVE ROKEBERG  asked about the federal  requirement for                                                               
pilotage on U.S.-registered vessels.                                                                                            
                                                                                                                                
MR. WINTER  responded that if the  vessel is under 99  gross tons                                                               
and [engaged] in coast-wise trade, even  if it's a U.S. hull, the                                                               
master and  the mates must have  made three round trips  in every                                                               
area before  they can act as  a first class pilot.   The Yorktown                                                               
Clipper, the Sea Lion, and many  other 99 gross "tonners" seen in                                                               
Southeast Alaska all have crew on  board that have made a minimum                                                               
of three round trips in every  area.  For a pleasure yacht, there                                                               
is no such requirement.                                                                                                         
                                                                                                                                
REPRESENTATIVE ROKEBERG  confirmed that for any  U.S.- registered                                                               
[pleasure  craft], there  is no  restriction  or requirement  for                                                               
pilotage.   He also  confirmed that this  [bill applies]  only to                                                               
foreign-registered vessels.                                                                                                     
                                                                                                                                
MR. WINTER said  only if those vessels are under  300 gross tons.                                                               
He said HB 251 covers vessels up  to 53 meters -- they would have                                                               
no pilotage  requirements other than  initial entry and  exit and                                                               
for the couple of narrow passages in Southeast.                                                                                 
                                                                                                                                
REPRESENTATIVE  ROKEBERG  asked  whether smaller  pleasure  craft                                                               
from British Columbia are considered foreign registry.                                                                          
                                                                                                                                
MR. WINTER said  if it's between 20 and 53  meters, it [wouldn't]                                                               
need a pilot.  A vessel under 20 meters does not need a pilot.                                                                  
                                                                                                                                
REPRESENTATIVE ROKEBERG  asked about the minimum  [vessel size of                                                               
under 20 meters].                                                                                                               
                                                                                                                                
MR. WINTER  said the 20 meters  comes from the COLREGS,  which is                                                               
The International  Regulations for Avoiding Collisions  at Sea or                                                               
Rules of the Road.   He said that 20 meters [65  feet or less] is                                                             
the break between small vessels and big vessels.                                                                                
                                                                                                                                
REPRESENTATIVE ROKEBERG  said anything above the  53 meters would                                                               
have to  have a pilot.   He recalled that Mr.  Shattuck mentioned                                                               
inbound pilotage and inquired about outbound [pilotage].                                                                        
                                                                                                                                
Number 2140                                                                                                                     
                                                                                                                                
MR. WINTER said that [pilots would  be required to be onboard] on                                                               
initial entry  and on exit from  the region; that's the  only two                                                               
times pilotage would  be required.  He  described different entry                                                               
points in Southeast Alaska.                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG  asked  if   there  is  a  problem  with                                                               
availability of pilots.                                                                                                         
                                                                                                                                
MR. WINTER  testified that  since pilotage  started in  Alaska in                                                               
1972,  there  has   never  been  a  ship  that   went  without  a                                                               
[requested] pilot.                                                                                                              
                                                                                                                                
REPRESENTATIVE  ROKEBERG asked  how  long in  advance do  vessels                                                               
need to make a reservation [for a pilot].                                                                                       
                                                                                                                                
MR.  WINTER said  that a  reservation must  be made  96 hours  in                                                               
advance, according to statute.                                                                                                  
                                                                                                                                
REPRESENTATIVE ROKEBERG  inquired as  to the  typical cost  of an                                                               
in-bound voyage.                                                                                                                
                                                                                                                                
Number 2119                                                                                                                     
                                                                                                                                
MR. WINTER said it would be $600-900, depending on the weather.                                                                 
                                                                                                                                
CHAIR ANDERSON  said he will hold  [HB 251] over until  next week                                                               
and keep public testimony open.                                                                                                 
                                                                                                                                
HB 255-WAGES:TRAINING/FLEX-TIME/DEFINITIONS                                                                                   
                                                                                                                                
Number 2063                                                                                                                     
                                                                                                                                
CHAIR ANDERSON announced  that the final order  of business would                                                               
be HOUSE BILL NO. 255, "An  Act amending the Alaska Wage and Hour                                                               
Act as it  relates to flexible work hour plans,  the provision of                                                               
training  wages,  and  the  definitions  of  certain  terms;  and                                                               
repealing the  exemption in the  Act from the payment  of minimum                                                               
wages for learners."                                                                                                            
                                                                                                                                
The committee took a brief at-ease from 4:18 to 4:20 p.m.                                                                       
                                                                                                                                
Number 1992                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG moved to adopt Amendment 1 which read:                                                                  
                                                                                                                                
     Page 2, Line 4:                                                                                                            
          Delete:  "solely"                                                                                                     
                                                                                                                                
     Page 3, Line 16 and 17:                                                                                                    
          Keep in statute:                                                                                                      
         "and the written agreement has been filed with                                                                         
          the  department"                                                                                                      
                                                                                                                                
REPRESENTATIVE LYNN objected for purposes of discussion.                                                                        
                                                                                                                                
Number 1963                                                                                                                     
                                                                                                                                
REPRESENTATIVE   ROKEBERG  explained   that  removing   the  word                                                               
"solely"  on page  2, line  4, helped  clarify the  definition of                                                               
supervisory capacity.  He addressed  the other change, on page 3,                                                               
lines  16-17.    The  amendment restores  the  current  statutory                                                               
language,  "and the  written agreement  has been  filed with  the                                                               
department", which was mistakenly removed,  he said.  He reviewed                                                               
the  affect of  the amendment:   after  an employer  and employee                                                               
agree to  a voluntary  flexible work  hour plan,  a copy  must be                                                               
filed with the  department [of Labor &  Workforce Development] so                                                               
[department staff] can audit it.                                                                                                
                                                                                                                                
CHAIR  ANDERSON  reminded  committee   members  that  this  is  a                                                               
technical amendment.                                                                                                            
                                                                                                                                
REPRESENTATIVE ROKEBERG  explained that the flex-time  plan needs                                                               
to be filed with the department;  [removing it from the bill] was                                                               
an oversight on his part.                                                                                                       
                                                                                                                                
REPRESENTATIVE  GUTTENBERG asked  about  the  impact of  deleting                                                               
"solely" from  the language [about supervisory  capacity] on page                                                               
2.                                                                                                                              
                                                                                                                                
Number 1904                                                                                                                     
                                                                                                                                
HEATHER NOBREGA, Staff to  Representative Norman Rokeberg, Alaska                                                               
State Legislature, explained  that there was a  request to delete                                                               
"solely" so that  the work of supervisory employees  would not be                                                               
limited   to   assigning   and  directing   the   activities   of                                                               
subordinates.   She said  that removing  the word  "solely" gives                                                               
the [employer] more flexibility in  the duties the supervisor can                                                               
perform.                                                                                                                        
                                                                                                                                
CHAIR ANDERSON explained that the  assigning and directing duties                                                               
would no longer be all-inclusive,  whereas solely makes them all-                                                               
inclusive.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  ROKEBERG said  that the  amendment speaks  to the                                                               
allocation of  a supervisor's time between  supervisory and other                                                               
duties.   The word  solely implies only  supervisory duties.   He                                                               
said as written, the current statutory wording is too tight.                                                                    
                                                                                                                                
REPRESENTATIVE   GATTO   suggested    [substituting]   the   word                                                               
"primarily" for "solely."                                                                                                       
                                                                                                                                
Number 1835                                                                                                                     
                                                                                                                                
REPRESENTATIVE LYNN removed his objection to Amendment 1.                                                                       
                                                                                                                                
CHAIR ANDERSON  confirmed that Representative Guttenberg  did not                                                               
object  to  the amendment.    There  being no  other  objections,                                                               
Amendment 1 was adopted.                                                                                                        
                                                                                                                                
Number 1777                                                                                                                     
                                                                                                                                
DON ETHERIDGE, Lobbyist for Alaska  State AFL-CIO, testified that                                                               
his group  opposes the entire  bill, even  with Amendment 1.   He                                                               
spoke  against  removing  the   department's  [approval]  of  the                                                               
voluntary flexible-hour  work plan.   He  said [simply]  filing a                                                               
piece of paper  with the department doesn't give  an employee the                                                               
backbone to  stand up against  an employer who might  say, "Here,                                                               
sign this if  you want the job,"  or, "If you don't  want this to                                                               
be your  last day, here,  sign this piece  of paper."   He stated                                                               
that there are unscrupulous employers who would do such a thing.                                                                
                                                                                                                                
MR.  ETHERIDGE also  opposed  the training  wage  portion of  the                                                               
bill.   He  said  this  provision fleeces  working  kids who  are                                                               
trying to make  money for school or  to buy their own  cars.  The                                                               
30 hours  a week allowed  by the  current statute is  already too                                                               
much.  "To push  [those 30 hours] to a full-time  job -- we don't                                                               
believe in it,"  he said.  Union apprentices start  at $13 or $14                                                               
an hour;  he said  that they need  to make a  decent living.   He                                                               
predicted  that  a young  person  with  a  90-day summer  job  at                                                               
training wages  would wind up  working the next year  for another                                                               
employer at  $5.15 for another 90  days.  If young  workers don't                                                               
go back to  the same employer, they could end  up working forever                                                               
at  $5.15  an  hour,  he   cautioned.    He  concluded  that  his                                                               
organization is totally opposed to HB 255.                                                                                      
                                                                                                                                
Number 1648                                                                                                                     
                                                                                                                                
CHAIR ANDERSON asked  what happens when a young  person works for                                                               
a new employer after receiving training wages at a previous job.                                                                
                                                                                                                                
REPRESENTATIVE ROKEBERG  said that once  a young person  has some                                                               
experience, the  person doesn't need  to be trained [again].   He                                                               
said there is so much  demand for experienced, hard-working young                                                               
people, that the [teenager] would  [easily] find work at a higher                                                               
wage.  He said  he doesn't think kids are going  to be fleeced in                                                               
the current labor market.   This bill provides an opportunity for                                                               
more  jobs for  young  people.   He said  that  the 30-hour  rule                                                               
doesn't change  [under HB  255].  There  has been  testimony that                                                               
it's  difficult  for  employers  to use  [the  30-hour  per  week                                                               
maximum for  training wages] because of  paperwork and accounting                                                               
problems.   This [bill]  provides for a  longer [work]  period of                                                               
[40 hours per week].                                                                                                            
                                                                                                                                
Number 1540                                                                                                                     
                                                                                                                                
MR. ETHERIDGE  stated that  grocery stores hire  lots of  kids at                                                               
training  wages for  30-hour  weeks.   They  box [groceries]  and                                                               
stock [the  shelves].  He  disagreed that it's that  difficult to                                                               
track a young person's time for the 30-hour [limit].                                                                            
                                                                                                                                
REPRESENTATIVE  ROKEBERG  said  he's not  repealing  the  30-hour                                                               
provision in [regulations]; it's still there.                                                                                   
                                                                                                                                
MR. ETHERIDGE  countered that  the 30-hour  [work week]  is being                                                               
expanded to 40 hours, which he opposes.                                                                                         
                                                                                                                                
Number 1502                                                                                                                     
                                                                                                                                
REPRESENTATIVE GUTTENBERG  asked how the 90  consecutive calendar                                                               
days, on page 5, [line 5,] is calculated.                                                                                       
                                                                                                                                
MR. ETHERIDGE agreed that calculation  of the 90 consecutive days                                                               
is another concern.  He asked  if a young worker misses some time                                                               
or  gets laid  off, does  the  90 consecutive  day [clock]  start                                                               
over.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  GATTO said  he interprets  the  language to  mean                                                               
that 90  days after the young  person starts work, the  worker no                                                               
longer qualifies  for the [training  wage].  He asked  what other                                                               
interpretation of this provision is possible.                                                                                   
                                                                                                                                
MR. ETHERIDGE gave the example  of problems currently experienced                                                               
by  some  of  the  state  [workers].    They  have  to  work  195                                                               
consecutive days to get  bumped up.  He said that  if they miss a                                                               
day at work,  their supervisors [reset the 195-day  clock].  That                                                               
practice is  going on  right now,  he said,  and that's  why he's                                                               
concerned.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  ROKEBERG asked  if people  covered by  collective                                                               
bargaining  are exempt  from the  Alaska  Wage and  Hour Act  and                                                               
these provisions.                                                                                                               
                                                                                                                                
MR. ETHERIDGE said that collective  bargaining can exempt some of                                                               
the  [provisions  of  state  law].    But  collective  bargaining                                                               
agreements can't  exempt the  payment of  minimum wage  and can't                                                               
exempt working over 10-hour days, he said.                                                                                      
                                                                                                                                
Number 1364                                                                                                                     
                                                                                                                                
REPRESENTATIVE   ROKEBERG  stated   that  collective   bargaining                                                               
workers are  exempt under the  current Alaska Wage and  Hour Act.                                                               
He  said  they  are  governed   by  their  collective  bargaining                                                               
agreement, not the statute.                                                                                                     
                                                                                                                                
Number 1354                                                                                                                     
                                                                                                                                
REPRESENTATIVE CRAWFORD pointed to  subparagraph (14)(B), page 3,                                                               
lines 18-25,  and said that  this language limits  ironworkers to                                                               
the  "four-tens"  workweek   under  their  collective  bargaining                                                               
agreements.   He  said the  "four-tens" [represents  the maximum]                                                               
flexibility before overtime [provisions take effect].                                                                           
                                                                                                                                
REPRESENTATIVE  ROKEBERG   explained  that   it's  part   of  the                                                               
bargaining agreement.                                                                                                           
                                                                                                                                
REPRESENTATIVE CRAWFORD  replied that  no, [this  requirement] is                                                               
not part  of the  bargaining agreement;  it is  in statute.   The                                                               
"four-ten"  workweek is  the only  flexible schedule  ironworkers                                                               
can  use,  other   than  the  five-day,  8-hour   week.    [Union                                                               
employees]  are  not exempt  from  the  statute.   He  said,  for                                                               
example,  that  ironworkers can't  work  [a  week consisting  of]                                                               
three 12-hour days and a 4-hour day.                                                                                            
                                                                                                                                
REPRESENTATIVE ROKEBERG said, "You make my case."                                                                               
                                                                                                                                
Number 1295                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CRAWFORD  asked  Representative  Rokeberg  if  he                                                               
intends to  delete this part of  the law so that  jobs outside of                                                               
collective bargaining  can have  any work  schedule agreed  to by                                                               
the employer  and the employee.   He  said he can  support "four-                                                               
tens" but not just any schedule that an employer wants.                                                                         
                                                                                                                                
Number 1274                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GUTTENBERG asked  Mr.  Etheridge if  subparagraph                                                               
(14)(B) [were removed  from state law], could  [an employer] work                                                               
someone two twenty-hour ("two-twenties") days.                                                                                  
                                                                                                                                
MR.  ETHERIDGE agreed.   [An  employer] could  work the  employee                                                               
back-to-back  weeks and  get 40  hours in  four days,  if it  was                                                               
timed just right.                                                                                                               
                                                                                                                                
REPRESENTATIVE GUTTENBERG described a  theoretical situation at a                                                               
cannery, in  which the employer worked  the staff "two-twenties,"                                                               
charged  them room  and board,  resulting in  pay lower  than the                                                               
minimum wage.   He said  the employee  could owe the  employer at                                                               
the end of the week.                                                                                                            
                                                                                                                                
Number 1229                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG asked  about organized  labor's position                                                               
on working parents and their need for flexible work time.                                                                       
                                                                                                                                
MR.  ETHERIDGE  stated  that his  group  supports  every  working                                                               
person and does  what they think is best for  all of those folks.                                                               
If several people  need a specific [schedule]  change, it doesn't                                                               
mean  that the  whole contract  is changed  to accommodate  them.                                                               
One of the  main rules in negotiations is looking  at the good of                                                               
the [whole group], not just the good of the few.                                                                                
                                                                                                                                
Number 1167                                                                                                                     
                                                                                                                                
CHIP WAGONER, Lobbyist for  Alaska Catholic Conference, explained                                                               
that  the conference  is the  voice of  the three  Roman Catholic                                                               
Bishops  of  Alaska,  who  represent  55,000  Alaskans,  and  100                                                               
parishes  and  missions.    He noted  that  the  Catholic  Church                                                               
nationally has been an advocate  for the minimum wage since 1919,                                                               
fully  two  decades before  the  federal  law  was passed.    Mr.                                                               
Wagoner explained  that Catholic  social teaching flows  from the                                                               
Bible  and the  Gospels,  and  he quoted  Jesus  as saying,  "The                                                               
Spirit ... has  sent me to bring  glad tidings to the  poor."  He                                                               
emphasized that work has dignity and  is a way for people to meet                                                               
their community  obligations and their  material needs.   He said                                                               
in order for a  person to have a dignity of  life, they must have                                                               
a living  wage sufficient to  provide adequate  housing, shelter,                                                               
healthcare, and food.   That's why, in 2001,  the Alaska Catholic                                                               
Conference  endorsed the  increase to  the minimum  wage and  the                                                               
indexing provision.                                                                                                             
                                                                                                                                
MR. WAGONER  spoke to Section 4,  of HB 255, Training  Wages.  In                                                               
considering  any   legislation,  he  reported  that   the  church                                                               
evaluates the affect of the bill on  the poor and what it does to                                                               
help the  poor to help  themselves.  According to  the Department                                                               
of  Labor  &  Workforce  Development,   about  14,000  to  15,000                                                               
Alaskans earn  minimum wage.   At the national level,  72 percent                                                               
of  those   on  the   minimum  wage  are   22  years   or  older.                                                               
[Therefore], he concluded that HB  255 would affect approximately                                                               
3,300 people in Alaska.                                                                                                         
                                                                                                                                
Number 0960                                                                                                                     
                                                                                                                                
MR. WAGONER  stated that HB  255 takes $2  out of the  pockets of                                                               
these  3,300  people, who  are  at  the  bottom of  the  economic                                                               
ladder, and  puts it into  the pockets of  people who are  not at                                                               
the bottom of the economic  ladder.  There's a difference between                                                               
a job  with training sessions  and on-the-job training.   He said                                                               
he has  been a cook, a  janitor, a highway worker,  and a seafood                                                               
processor, and  in all of  those jobs, he  worked hard.   He said                                                               
that even  though he was a  new employee, he deserved  to be paid                                                               
the same  amount as the  person standing  next to him  because it                                                               
was on-the-job  training.   He observed  that generally,  the new                                                               
worker is being trained by fellow  workers.  He said there hasn't                                                               
been  any testimony  that describes  the so-called  training that                                                               
requires the  employer to  pay the  new worker  $2 less  an hour,                                                               
which is a substantial amount.                                                                                                  
                                                                                                                                
MR. WAGONER  also raised issues of  equity.  He used  the example                                                               
of two  new employees hired at  McDonalds -- one is  19 years old                                                               
and the other is  20.  One earns $7.15 a hour  and the other gets                                                               
paid  $5.15.    There's  no  equity there,  he  said.    He  also                                                               
described the situation of a  32-year-old woman, a single mom who                                                               
doesn't have a  lot of job skills  but needs the work.   He asked                                                               
whom  the employer  would  hire in  the  summertime, someone  for                                                               
$7.15  an hour,  or someone  for  $5.15 a  hour.   It creates  an                                                               
imbalance, he claimed.  Young  people will benefit but the people                                                               
over age  20 won't  be able  to get the  jobs.   These unintended                                                               
consequences are not good, he said.                                                                                             
                                                                                                                                
MR.  WAGONER  recommended  that Section  4  [Training  wages]  be                                                               
dropped from  the bill.   He said  the conference has  no problem                                                               
with the  rest of the  bill and is not  taking a position  on it.                                                               
He said his  wife uses the flexible schedule.   He applied to the                                                               
department for those wages.                                                                                                     
                                                                                                                                
Number 0807                                                                                                                     
                                                                                                                                
REPRESENTATIVE LYNN  identified himself as  a member of  the same                                                               
church, but disagreed  with Mr. Wagoner, saying  that the bishops                                                               
are  expressing   a  political  position  rather   than  a  moral                                                               
position.    He  said  he  didn't  remember  seeing  anything  in                                                               
scripture  about minimum  wage.   He  agrees  with Mr.  Wagoner's                                                               
point  about the  dignity of  work and  the right  to work  for a                                                               
living, decent wage.                                                                                                            
                                                                                                                                
MR. WAGONER noted that preference  for the poor and vulnerable is                                                               
a  tenet of  Catholic  social  teaching.   The  most often  cited                                                               
subject in  the New Testament  is service  to the poor,  he said.                                                               
He recounted  the story  of the field  manager who  hired workers                                                               
throughout  the day  and paid  each one  a full  day's wage.   He                                                               
explained  that each  worker  was paid  the  amount necessary  to                                                               
survive to the next day.                                                                                                        
                                                                                                                                
CHAIR ANDERSON commented  that the turnover rate is  very high at                                                               
fast  food restaurants.   There  needs to  be a  balance for  the                                                               
business owner, too, he said.                                                                                                   
                                                                                                                                
Number 0562                                                                                                                     
                                                                                                                                
MR.  WAGONER described  a local  business in  town that  pays its                                                               
workers more than  minimum wage; this business  doesn't have high                                                               
turnover.  If an employer  treats the workers with respect, there                                                               
is less turnover.   There are some jobs that  don't require a lot                                                               
of  training  and people  move  [through  the business  rapidly].                                                               
People  who have  good key  employees  don't want  to lose  them.                                                               
Some  of  these small-thinking  businesses  would  rather have  a                                                               
revolving mill because they don't  care.  He reiterated that this                                                               
bill is an attempt to take $2  out of the pockets of those people                                                               
who need  it the most.   There's not a  lot of training  in these                                                               
jobs, he said.                                                                                                                  
                                                                                                                                
Number 0470                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  agreed with  Mr. Wagoner's  tenets about                                                               
the dignity of work but took  exception to his analysis.  He said                                                               
he believes that  he is accomplishing Mr. Wagoner's  [goals].  He                                                               
said he intends  to open opportunities for young  people and give                                                               
them  an  opportunity  to  become  employed,  to  learn,  and  to                                                               
progress.    He  said  he   believes  in  the  marketplace;  when                                                               
employees prove  their worth, they  will be rewarded.   He stated                                                               
that  he  agrees  with the  enlightened  self-interest  style  of                                                               
management that treats employees well.   He contended that people                                                               
who had the training  will be hired at a higher  wage in a better                                                               
position.                                                                                                                       
                                                                                                                                
REPRESENTATIVE ROKEBERG  asked if the Catholic  Church is against                                                               
the current training wage for 16 and  17 year olds for 30 hours a                                                               
week.   This bill  expands the  current law to  18- and  19- year                                                               
olds and allows them to work 10  hours more a week.  He also said                                                               
he was  distressed that  the Catholic  Church was  not supporting                                                               
flexible schedules for working parents.   He asked Mr. Wagoner to                                                               
consider this provision and give it  his support.  He said of all                                                               
the  major employment  issues in  the country  right now,  single                                                               
parents need to have flexibility in their workday.                                                                              
                                                                                                                                
MR. WAGONER  said he would take  the flex-time issue back  to the                                                               
Alaska Catholic Conference.                                                                                                     
                                                                                                                                
REPRESENTATIVE   LYNN  agreed   with  Representative   Rokeberg's                                                               
comments.                                                                                                                       
                                                                                                                                
Number 0204                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GUTTENBERG thanked  Mr. Wagoner  for representing                                                               
the church's  position on HB  255.  He  said they agree  that the                                                               
best thing  to give a  person is a  good job with  good benefits.                                                               
He said that  undercutting the minimum wage by $2  an hour for 90                                                               
days  because  it's called  training  is  bizarre.   An  employer                                                               
learns a  worker's worth in  an afternoon,  he opined.   He asked                                                               
Mr. Wagoner  whether filing  the flex-time  request for  his wife                                                               
was difficult.                                                                                                                  
                                                                                                                                
Number 0128                                                                                                                     
                                                                                                                                
MR. WAGONER  replied that  it was "a  pain," a  regulations hoop.                                                               
This occurred seven  years ago, for "four-tens",  which the staff                                                               
[at his wife's office] loves.   If there was more flexibility [in                                                               
the program], it would have been  good to have a different set of                                                               
hours, he said.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  GUTTENBERG commented  that  removing language  on                                                               
page 3,  lines 18-25, [that  requires department approval  of any                                                               
flex  plan]  opens   the  program  to  complete   abuse  [by  the                                                               
employer].   There are no  restrictions regarding  [what schedule                                                               
an  employer could  demand], he  said.   An  employer could  work                                                               
somebody two twenty-hour shifts in a row.                                                                                       
                                                                                                                                
Number 0027                                                                                                                     
                                                                                                                                
MR. WAGONER said  the goal of flex time  is important, regardless                                                               
of a person's side  of the bargaining table.  One  reason he is a                                                               
real estate agent  is the flexibility of  his schedule, [allowing                                                               
him to drive his children to various events].                                                                                   
                                                                                                                                
TAPE 03-37, SIDE A                                                                                                            
Number 0009                                                                                                                     
                                                                                                                                
MR. WAGONER reiterated his opposition to training wages.                                                                        
                                                                                                                                
Number 0033                                                                                                                     
                                                                                                                                
REPRESENTATIVE GATTO  used the example  of his daughter who  is a                                                               
college  sophomore  and  scans  groceries at  a  large  store  in                                                               
Wasilla.  He said that she  learned how to push groceries through                                                               
a scanner in  the first 45 seconds  of her job.  If  she had been                                                               
hired at a training  wage, it would have been a way  to pay her a                                                               
lot less.   He said  he would favor paying  $1 an hour  less than                                                               
the prevailing minimum wage for  a maximum of 10 consecutive work                                                               
hours.  He asked Mr. Wagoner if he favored this approach.                                                                       
                                                                                                                                
Number 0170                                                                                                                     
                                                                                                                                
MR.  WAGONER  said  he  would  go back  to  the  Alaska  Catholic                                                               
Conference to ask the members' opinion.                                                                                         
                                                                                                                                
REPRESENTATIVE  GATTO   said  he   is  considering   offering  an                                                               
amendment that would modify the training wages.                                                                                 
                                                                                                                                
MR. WAGONER said $1 less for 10  hours is a total of $10 [saved].                                                               
The working college student is  a good example, he recalled using                                                               
the money  he earned in  the summer to pay  for his next  year of                                                               
college.                                                                                                                        
                                                                                                                                
Number 0254                                                                                                                     
                                                                                                                                
BARBARA HUFF  TUCKNESS, Director of Legislative  and Governmental                                                               
Affairs, General Teamsters, Local  959, Alaska, testified against                                                               
HB 255.   She asked about  the public outcry [for  this change in                                                               
the law].   With respect  to the proposed definition  changes [in                                                               
Section 1], she noted that  the federal government is considering                                                               
changing   its   definitions   and   cautioned   against   Alaska                                                               
incorporate  [a  changing  federal definition].    She  advocated                                                               
state control  -- rather  than federal  [dictates] --  over those                                                               
decisions that affect working people.                                                                                           
                                                                                                                                
MS. HUFF  TUCKNESS testified  that she  was very  concerned about                                                               
[changes in HB 255 in] flexible  schedules.  The Teamsters do not                                                               
oppose flexible schedules, she said,  but the bill in its current                                                               
form allows an  employer to direct an employee  to work according                                                               
to  the  particular  needs  of  that  employer.    She  said  the                                                               
Teamsters  support  [flexible  schedules]  with  sideboards  that                                                               
protect  the employees.   She  described dealing  with employers,                                                               
under collective  bargaining agreements, who attempted  to misuse                                                               
the flexible schedule for the  employers' convenience, not at the                                                               
employee's request.   She  suggested the  need for  language that                                                               
addressed that particular issue.   The language [in HB 255] gives                                                               
full power  and control to  any employer to implement  a flexible                                                               
schedule, [which could] negatively  impact an employee's overtime                                                               
hours.                                                                                                                          
                                                                                                                                
Number 0505                                                                                                                     
                                                                                                                                
MS.  HUFF  TUCKNESS  addressed  the training  wage  issue.    She                                                               
discussed the bill  with her 19-year-old son who  told her, "Mom,                                                               
at $5.15 an  hour, I can't afford  to put gas in my  truck or pay                                                               
for  my  insurance."   She  explained  that  at  age 18,  he  was                                                               
training the  new, older workers  at a  parts store where  he was                                                               
employed.  She said this is  called a training wage, but it's not                                                               
about training.   These  are workers coming  in at  minimum wage.                                                               
The people get trained, and  they move through the system; that's                                                               
the purpose  of the minimum wage.   She said she  doesn't know of                                                               
any business  that pays less  than minimum  wage that is  able to                                                               
keep children let alone adults in these positions.                                                                              
                                                                                                                                
Number 0638                                                                                                                     
                                                                                                                                
CHAIR ANDERSON said  that a big group [of  fast food restaurants]                                                               
support this  bill.  He said  that there's the issue  of fairness                                                               
for the  business owner who must  make cuts in order  to pay that                                                               
minimum wage.  The  intent [of HB 255] is not  to be punitive; he                                                               
said  that  Representative  Rokeberg   is  trying  to  work  with                                                               
businesses and assist in the spirit  of employment.  He asked how                                                               
she would respond  to a restaurant owner who wants  to expand the                                                               
[training wage work  week by] 10 hours because  [most] kids leave                                                               
before three months.                                                                                                            
                                                                                                                                
Number 0727                                                                                                                     
                                                                                                                                
MS. HUFF  TUCKNESS replied that if  this bill is a  jobs creation                                                               
bill,  [accomplished by]  reducing an  employee's wage  by $2  an                                                               
hour, she  doesn't agree with it.   She said she  doesn't believe                                                               
that there will be kids who will work for $5.15 an hour.                                                                        
                                                                                                                                
CHAIR ANDERSON restated  Ms. Huff Tuckness's point  that [HB 255]                                                               
would  hurt the  business because  kids  would not  work at  that                                                               
wage.                                                                                                                           
                                                                                                                                
Number 0809                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GATTO mentioned  the  proposed $100  head tax  as                                                               
another [impediment]  that would  [discourage young  people] from                                                               
taking a job [at training wages].                                                                                               
                                                                                                                                
REPRESENTATIVE  ROKEBERG asked  Ms. Huff  Tuckness what  wage her                                                               
son was earning.                                                                                                                
                                                                                                                                
MS. HUFF TUCKNESS said he was  earning $9.25 an hour at the parts                                                               
store.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  ROKEBERG read  an  [exemption]  from the  current                                                               
overtime statute on page 3, line  11:  "(13) work performed by an                                                               
employee under a flexible work hour  plan if the plan is included                                                               
as part  of a  collective bargaining  agreement;".   He concluded                                                               
that  employees [covered  by]  collective  bargaining are  exempt                                                               
from the provisions  of the flexible work hour  plan for overtime                                                               
payment under  Alaska statutes.   He asked  Ms. Huff  Tuckness if                                                               
that is correct.                                                                                                                
                                                                                                                                
MS. HUFF TUCKNESS  replied yes.  She added  that unions negotiate                                                               
overtime that is applicable to any of these schedules.                                                                          
                                                                                                                                
REPRESENTATIVE ROKEBERG asked  Representative Crawford to comment                                                               
on this provision.                                                                                                              
                                                                                                                                
REPRESENTATIVE CRAWFORD replied that  under his union's contract,                                                               
employees can  work "four-tens"  under state  law but  they can't                                                               
work [a  week consisting of three  twelve hour days and  one four                                                               
hour day] "three twelves and a four".                                                                                           
                                                                                                                                
Number 0951                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  disagreed.  He said  union employees can                                                               
work whatever  [flexible schedule] they bargain;  they are exempt                                                               
under collective  bargaining agreements.  That's  the whole point                                                               
here,  he  said;  all  organized   labor  is  exempt  from  these                                                               
provisions.                                                                                                                     
                                                                                                                                
MS. HUFF TUCKNESS responded that  whether the union represents 30                                                               
people  or  thousands,  those workers  are  protected  under  the                                                               
collective   bargaining  agreement   with   overtime  rules   and                                                               
regulations as restrictive  or as flexible as they need  to be to                                                               
accommodate  the  particular employer.    That  is those  workers                                                               
protection.   She stated  that there  are still  grievances, even                                                               
with  a contract  in  writing,  over wages  and  schedules.   She                                                               
advised  against [removing]  the  sideboards  from the  statutes.                                                               
She  [mischievously]   suggested  that  organized   labor  should                                                               
support  the   bill,  creating   the  best   possible  organizing                                                               
opportunity.   She  reiterated that  the Teamsters  are not  here                                                               
testifying against flexible schedules.   She said that this exact                                                               
issue  was debated  several years  ago in  Washington, D.C.,  and                                                               
went down  for the  same reasons.   When an  employer looks  at a                                                               
flexible schedule, it's for totally  different reasons than those                                                               
of  an  employee.   An  employer's  perspective is  managing  the                                                               
workforce and  getting the work  product out in the  most timely,                                                               
efficient  manner.     Unfortunately,  it  is   the  workers  who                                                               
ultimately end up [paying the price].                                                                                           
                                                                                                                                
Number 1100                                                                                                                     
                                                                                                                                
JOHN  ZULEGER, explained  that he  represented himself  and other                                                               
hard working, voting Alaskans who oppose  HB 255.  He put himself                                                               
through college at age 18 and  19 by working these same jobs that                                                               
the committee is discussing.  He  said at $5.15 an hour, he could                                                               
not  have done  it  without  [taking out]  loans  and drawing  on                                                               
everybody else.   He said  it doesn't take  90 days to  learn how                                                               
flip a hamburger, make  a bed, or mop a floor.   It took him five                                                               
minutes.  Ninety  days is the working season for  the majority of                                                               
people; it's  the time  they make  their money.   If they  had to                                                               
work for $2 an hour less, they  couldn't survive.  He said he now                                                               
works in the  road construction industry, which has  a very short                                                               
season.  If  he had to work  for less than time and  a half after                                                               
eight hours,  he said he  couldn't survive  either.  He  said the                                                               
workers get  the job  done, and  that's what it  takes.   He said                                                               
that  employers can't  throw  in  other people  and  do the  flex                                                               
schedule; it's  not productive.   He said  that the  only support                                                               
for  this bill  is  from the  business people  who  are going  to                                                               
benefit.  He quoted average  blue collar working persons who told                                                               
him, "This is nothing but a  bad deal for me," especially younger                                                               
people working in the fast food restaurants and grocery stores.                                                                 
                                                                                                                                
Number 1269                                                                                                                     
                                                                                                                                
KAREN  PLESS,   Apprentice,  International  Union   of  Operating                                                               
Engineers, Local  302, testified  against HB  255.   Taking money                                                               
from the  pockets of Alaskans  hurts all Alaskans,  including the                                                               
businesspeople [whose  interests] are  represented in  this bill,                                                               
she said.   She said that  legislators, of all people,  should be                                                               
aware of the  short working season; this is when  a large segment                                                               
of  Alaskans   make  their   yearly  wages.     She   decried  as                                                               
unconscionable the idea  that people under age 20  do not deserve                                                               
a decent  wage.  Many  of these individuals support  families and                                                               
pay  child support,  [difficult to  do on]  $5.15 an  hour.   She                                                               
predicted  that  most  of  the   committee  will  receive  Social                                                               
Security, but  a lot of  these people won't have  Social Security                                                               
by the  time they retire.   This bill will effectively  take jobs                                                               
away from Alaskans  who cannot insist on [the minimum]  wage.  In                                                               
her industry, she's  protected.  But employers can  "pink slip" a                                                               
worker [to  avoid paying]  overtime; they  wouldn't have  to give                                                               
any  reason to  let the  employee go.   She  encouraged committee                                                               
members to think  of all the people out there  who don't have the                                                               
protection  that  [Operating  Engineers]  Local  302  offers  its                                                               
members.                                                                                                                        
                                                                                                                                
Number 1348                                                                                                                     
                                                                                                                                
JOHN   BROWN,  President,   Fairbanks   Central  Labor   Council;                                                               
International Union of Operating  Engineers, Local 302, explained                                                               
that he represents  almost 10,000 members.   He testified against                                                               
HB 255.   The working families of  Alaska do not need  a pay cut.                                                               
Alaska has gone from having the  highest per capita income in the                                                               
nation to the middle of the pack  in the last 15 years; this bill                                                               
will  continue the  erosion of  wages for  workers in  Alaska, he                                                               
cautioned.    He  said  the   testimony  from  the  [hospitality]                                                               
industry at the earlier hearing  [indicated that] they want their                                                               
employees  to work  more hours  for  less money.   Currently  all                                                               
employers pay overtime and minimum wages  on a level basis.  This                                                               
bill will allow  some employers to pay less in  overtime and less                                                               
than the  minimum wage.   Many industries in Alaska  are seasonal                                                               
in nature  and the  employees in those  industries depend  on the                                                               
overtime to make up  for the lack of work.   The reduced wage for                                                               
90 days in many cases would  [pay] young workers at a substandard                                                               
rate for  their entire employment  period.  He quoted  an earlier                                                               
witness who testified that this  legislation is needed for people                                                               
who work  two jobs.   Mr.  Brown commented that  it's a  very sad                                                               
commentary on our  state and our society that a  person must work                                                               
two jobs  just to survive.   This bill will push  more workers in                                                               
that direction.   He said  that collective  bargaining agreements                                                               
are not  exempted [from  state law].   He  invited Representative                                                               
Rokeberg to talk  to specific attorneys and union  officials.  He                                                               
said [employers  with union contracts]  must pay overtime  on the                                                               
same  basis as  everyone else.   That  right cannot  be bargained                                                               
away under state law.                                                                                                           
                                                                                                                                
Number 1492                                                                                                                     
                                                                                                                                
JOHN DAVID RAGAN, Laborers International  Union of North America,                                                               
Local 942;  Ester Community Association; Volunteer  fire fighter,                                                               
Ester  Volunteer Fire  Department,  opposed HB  255.   He  quoted                                                               
Henry Ford  who said that he  wanted every worker in  his factory                                                               
to earn enough money to buy  his or her own automobile.  American                                                               
workers  making  a  decent   wage,  buying  automobiles,  houses,                                                               
consumer  goods,  patronizing  local  businesses,  sending  their                                                               
children to  college, and  raising families,  has been  the motor                                                               
creating America's prosperity  in the 20th century.   That decent                                                               
wage, as Franklin  D. Roosevelt called it, was  guaranteed by the                                                               
great labor victories in the  nineteenth and twentieth centuries.                                                               
That  decent wage  is what  makes the  economy so  different from                                                               
third world  countries like Mexico,  where money  is concentrated                                                               
in the hands of  a few people and the mass  of people barely make                                                               
enough  to  buy the  basic  necessities  of  life.   Because  the                                                               
majority of people  in many third world countries  have no buying                                                               
power, their economies have stagnated  and are unable to develop.                                                               
Because  American  workers were  paid  a  decent wage,  the  U.S.                                                               
became the economic  powerhouse of the world.   This legislation,                                                               
HB 255,  is a direct  attack on the  minimum wage and  the 8-hour                                                               
day, which  the American  labor movement fought  for and  died to                                                               
make the law of the land in 20th century America.                                                                               
                                                                                                                                
MR.  RAGAN  complained  that  he  and many  others  came  to  the                                                               
legislative [information] office on  Monday to testify.  Instead,                                                               
the committee heard the testimony  of paid industry lobbyists who                                                               
spoke at length without any  time limits, while [ignoring] normal                                                               
working people in Fairbanks who could not travel to Juneau.                                                                     
                                                                                                                                
Number 1585                                                                                                                     
                                                                                                                                
CHAIR  ANDERSON  explained  the  time  constraints  on  committee                                                               
hearings and invited Mr. Ragan  to submit written testimony which                                                               
would be included in all  legislators' bill packets when the bill                                                               
goes to the House floor.                                                                                                        
                                                                                                                                
MR.  RAGAN  replied  that  there were  15-20  people  waiting  to                                                               
testify on Monday.                                                                                                              
                                                                                                                                
CHAIR ANDERSON apologized for the delays.                                                                                       
                                                                                                                                
Number 1638                                                                                                                     
                                                                                                                                
MATTHEW SAMPSON disagreed  that HB 255 makes  improvements to the                                                               
Alaska Wage and Hour Act and  argued that it is user-friendly for                                                               
employers  but  not  employees.     He  said  this  bill  enables                                                               
employers to make  money off of the little guy.   He said Section                                                               
3 undermines  current overtime laws.   The people voted  to raise                                                               
the  Alaska minimum  wage, which  is different  from the  federal                                                               
minimum wage  for a reason.   Mr.  Sampson said that  the written                                                               
agreement  between a  newly hired  employee and  employer is  all                                                               
that's  needed  to reduce  the  [worker's]  current overtime  pay                                                               
requirements.  Nothing in this  bill allows for oversight or that                                                               
holds employers to a standard that prevents abuse.                                                                              
                                                                                                                                
Number 1766                                                                                                                     
                                                                                                                                
MR.  SAMPSON said  that  the 8-hour  day,  40-hour workweek  came                                                               
about in  the 1930's for the  benefit of the working  man and the                                                               
employer.   He said it  has worked for the  last 70 years  and is                                                               
going  to work  for  the next  70 years.    [The 90-day  training                                                               
period in] Section 4 covers  seasonal workers, and it's about the                                                               
length of the  summertime season in Fairbanks.   It [appears that                                                               
the  bill  is  written]  for  the  food  processing  and  service                                                               
industry employers  who make  most of their  money in  the summer                                                               
off of  cheap labor.  He  said he heard testimony  from employers                                                               
who  stand to  make money  off this  bill.   He has  yet to  hear                                                               
testimony from  any employee  who will make  better wages  as the                                                               
result of this bill.  He has  yet to hear from any single parents                                                               
who support the bill.  He said  it doesn't take too long to learn                                                               
how  to cut  the head  off  a fish  or how  to  make a  bed.   He                                                               
understands training and learning, and  that's why he's part of a                                                               
union;  he   gets  paid   to  get  that   training.     The  bill                                                               
discriminates against people under the age of 20.                                                                               
                                                                                                                                
Number 1915                                                                                                                     
                                                                                                                                
CARL WEED  opposed HB  255, which he  described as  regressive in                                                               
helping workers, who are consumers,  and also for the businessman                                                               
who is selling products.   He anticipated that the [results would                                                               
ultimately harm the families of]  the person working two jobs and                                                               
the parent  who owes child support.   He said he  could train any                                                               
young person to put a pickle on a hamburger.                                                                                    
                                                                                                                                
CHAIR  ANDERSON, upon  hearing  no one  else  wished to  testify,                                                               
closed the public hearing.                                                                                                      
                                                                                                                                
Number 2030                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  moved to  adopt Conceptual  Amendment 2.                                                               
In Section 3 [page 3,  line 17, after "department" from Amendment                                                               
1] add:                                                                                                                         
                                                                                                                                
     and the plan provides that the work is for 80 hours in                                                                     
     a two-week period and not more than 12 hours a day;                                                                        
                                                                                                                                
REPRESENTATIVE ROKEBERG  explained that now, the  current rule is                                                               
40  hours in  a week,  but any  employee can't  make up  any time                                                               
missed.  He said he used  12 hours because the current maximum is                                                               
10 hours,  and it would be  the maximum [allowed] in  a flex-time                                                               
provision.  He  said this provides additional  sideboards so that                                                               
when the  [flex-time] contract is  filed with the  department, it                                                               
would  have  a  way  to  enforce the  contract  if  there  was  a                                                               
complaint.   This [provision] avoids the  "two twenties" [example                                                               
cited earlier] which is absurd but makes a point.                                                                               
                                                                                                                                
Number 2115                                                                                                                     
                                                                                                                                
CHAIR  ANDERSON,  hearing  no objections,  said  that  Conceptual                                                               
Amendment 2 was adopted.                                                                                                        
                                                                                                                                
REPRESENTATIVE  ROKEBERG  said  he  would like  to  consult  with                                                               
people  directly affected  by the  training wage,  including some                                                               
workers.  State  law has an existing 30-hour [per  week] rule for                                                               
16- and  17- year olds.   This bill relates  to 18- and  19- year                                                               
olds who  could work [at training  wages] for 40 hours  [a week].                                                               
He said  that because of the  testimony and [his desire  to avoid                                                               
this  becoming] a  ploy  for [employers  of]  summer or  seasonal                                                               
workers, he is considering lowering  [the 90-day training period]                                                               
to 30 days.   He disagreed that  a person could be  trained in 10                                                               
hours, unless  it [involves] scanning  [groceries].  He  said the                                                               
intention  is to  hire people,  to avoid  the revolving  door [of                                                               
short-term employees], to get kids  up to speed [in work skills].                                                               
The bill's purpose  is not to relieve the employer  of paying the                                                               
[minimum] wage.   He said he is not going  to offer the amendment                                                               
today, but he'll consider it for the next committee.                                                                            
                                                                                                                                
CHAIR ANDERSON  said he agrees  with this  [potential amendment];                                                               
it helps with one of the issues he has been trying to balance.                                                                  
                                                                                                                                
Number 2221                                                                                                                     
                                                                                                                                
REPRESENTATIVE   ROKEBERG  said   that   Section   1,  with   the                                                               
definitions of  supervisors and executives,  defaults to  the new                                                               
federal  regulations  that are  part  of  the  bill packet.    He                                                               
pointed out  the unintended  consequence of  a regulation  [8 AAC                                                               
15.910.  Definitions]  by the  Department  of  Labor &  Workforce                                                               
Development  is  that it  requires  anyone  in an  administrative                                                               
category to be  paid 2.5 times the minimum wage,  that is, $17.88                                                               
an hour  or $37,000  a year.   This is a  crushing blow  to small                                                               
businesses, he  said, and  needs to be  corrected.   He explained                                                               
that the  department offered to  change the regulation,  but this                                                               
bill uses  the language and  the standards of federal  law, which                                                               
raise the wages [of administrative staff  to a minimum of] $425 a                                                               
week.  He said he wanted to put this issue on the record.                                                                       
                                                                                                                                
CHAIR ANDERSON said  that he particularly agrees  with the change                                                               
[in Section 1].  No one has spoken in opposition to it, he said.                                                                
                                                                                                                                
Number 2280                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  said that regulation forced  the wage up                                                               
to a very  high level.  If someone is  building a resume, working                                                               
into a managerial position, the  person would only be making $10,                                                               
$12, or $14 an hour, which is  all a small business can afford to                                                               
pay.  He used the example of  his own small business, in which he                                                               
hired people out of the  correctional institutions to give them a                                                               
break  and give  them  some managerial  responsibility.   But  he                                                               
can't  afford to  pay $17.88  an hour.   It  looks good  on their                                                               
resume,  gives  them  good  experience,  helps  put  their  lives                                                               
together,   and  [allows   them   to]  make   a  decent   income.                                                               
Representative Rokeberg  said he shouldn't  be forced by  the law                                                               
to  have to  pay  somebody  overtime if  they  work  an extra  15                                                               
minutes, if  they have  a certain  amount of  responsibility over                                                               
the other folks.  It's just not fair, he said.                                                                                  
                                                                                                                                
CHAIR  ANDERSON   invited  committee  members  to   make  closing                                                               
statements.                                                                                                                     
                                                                                                                                
Number 2346                                                                                                                     
                                                                                                                                
REPRESENTATIVE LYNN  said the bill  will help small  business and                                                               
help employees  because [the businesses]  will be able  to afford                                                               
to hire  more employees.  He  advised caution so that  it doesn't                                                               
have unintended consequences.                                                                                                   
                                                                                                                                
TAPE 03-37, SIDE A                                                                                                            
Number 2371                                                                                                                     
                                                                                                                                
REPRESENTATIVE GUTTENBERG  said he disagrees regarding  the flex-                                                               
time  portion of  the bill.   The  committee heard  the bill;  we                                                               
heard arguments from the [hospitality]  industry that it wanted a                                                               
level playing  field, which  he called a  bizarre statement.   He                                                               
said the  bill leaves considerable difference  between people who                                                               
are  covered by  collective  bargaining agreement  and those  who                                                               
aren't.   If an  employee is covered  by a  collective bargaining                                                               
agreement, the  person has  a contract  and a  representative who                                                               
can come  in and have a  discussion with the employer.   However,                                                               
the [nonunion] employee  may be given a form to  sign agreeing to                                                               
a flex-time schedule, and therefore in  the end the person has no                                                               
options.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  GUTTENBERG expressed  concern  with the  training                                                               
wage.   In a minimum wage  job, it doesn't take  [a new employee]                                                               
more  than an  hour to  figure out  how to  bus dishes,  cut fish                                                               
heads,  mop  floors,  or  grind   coffee.    Employees  make  the                                                               
business.  If  a business doesn't pay its  employees what they're                                                               
worth,  if  it hides  behind  a  training  excuse to  reduce  the                                                               
minimum wage, he said he can't  imagine that the business will be                                                               
successful  anyway.    Tourism   and  food  service  are  service                                                               
industries.   He  recalled Mr.  Wagoner's comments  on the  basic                                                               
human  dignity [of  work].   Representative Guttenberg  said that                                                               
the best  social service program  is a  decent job with  a decent                                                               
salary,  with health  and welfare  benefits to  take care  of the                                                               
worker  and the  family.   He said  this bill  erodes that  basic                                                               
[role] of society.                                                                                                              
                                                                                                                                
Number 2276                                                                                                                     
                                                                                                                                
REPRESENTATIVE DAHLSTROM said for the  record that this bill does                                                               
not affect the basic minimum wage of $7.15 an hour.                                                                             
                                                                                                                                
Number 2267                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CRAWFORD apologized  that he  missed some  of the                                                               
testimony  today  and  earlier   that  might  have  answered  his                                                               
questions.   He  focused on  moving  the training  wage age  from                                                               
under  18 years  to  under 20  years.   He  said  there was  some                                                               
[justification] for  workers under  age 18  because they  had not                                                               
reached the age  of majority yet.  But 18-  and 19-year olds have                                                               
reached the age  of majority, and he said there  might be grounds                                                               
for an age  discrimination suit, which he would  prefer to avoid.                                                               
He said  he's still not  certain whether changing  the definition                                                               
of managers  affects their rights to  overtime.  If they  give up                                                               
their  rights  to  overtime,  do they  still  have  minimum  wage                                                               
protection under this  bill, he asked.  He said  he believes that                                                               
a flexible work schedule is up to  10 hours a day.  He would hate                                                               
to see  not having those  sideboards [protecting workers]  in the                                                               
law.                                                                                                                            
                                                                                                                                
Number 2164                                                                                                                     
                                                                                                                                
CHAIR  ANDERSON said  that Representative  Rokeberg's staff  just                                                               
provided  him  with  an  analysis   from  Legislative  Legal  and                                                               
Research Services  to answer one  of the questions.   The federal                                                               
law on minimum  wage, 29 U.S.C. 026, already  allows for training                                                               
wages for newly hired employees less than 20 years old.                                                                         
                                                                                                                                
REPRESENTATIVE   ROKEBERG  confirmed   that   [these  items   are                                                               
contained] in  the federal law.   [Provisions in HB  255] clearly                                                               
default to federal law.   He reviewed for Representative Crawford                                                               
the affect of Amendments 1 and 2  on the bill and his interest in                                                               
a  potential amendment  to cut  the  training period  back to  30                                                               
days.   He commented  that to make  flex-time work,  the employee                                                               
needs longer  than a one-week work  period to make up  time; most                                                               
small businesses  pay over a  two-week work period.   [This bill]                                                               
provides more flexibility to make up time.                                                                                      
                                                                                                                                
Number 2103                                                                                                                     
                                                                                                                                
REPRESENTATIVE CRAWFORD  said he  has worked  many a  12-hour day                                                               
and he knows that after 10  hours people get a lot more fatigued.                                                               
[The number of hours  in a work day] becomes a  safety issue.  He                                                               
said  that a  10-hour  workday  is flexible  enough.   A  12-hour                                                               
workday is  above and beyond  a normal person's capacity  to work                                                               
except in an  emergency situation.  He said he  still favors four                                                               
10-hour days in a 7-day period.                                                                                                 
                                                                                                                                
Number 2062                                                                                                                     
                                                                                                                                
REPRESENTATIVE DAHLSTROM moved to report  HB 255, as amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying fiscal note.                                                                                                       
                                                                                                                                
Number 2038                                                                                                                     
                                                                                                                                
REPRESENTATIVE GUTTENBERG objected.                                                                                             
                                                                                                                                
A  roll   call  vote  was  taken.     Representatives  Dahlstrom,                                                               
Rokeberg,  Lynn,  and Anderson  voted  in  favor  of HB  255,  as                                                               
amended.   Representatives Guttenberg and Crawford  voted against                                                               
it.  Therefore, CSHB 255 was reported out of the House Labor and                                                                
Commerce Standing Committee by a vote of 4-2.                                                                                   
                                                                                                                                
CHAIR ANDERSON invited all witnesses who testified to submit                                                                    
written testimony to the next committee of referral, the House                                                                  
Finance Standing Committee.                                                                                                     
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Labor and Commerce Standing Committee meeting was adjourned at                                                                  
5:58 p.m.                                                                                                                       
                                                                                                                                

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