Legislature(2007 - 2008)BARNES 124
03/14/2007 03:30 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Commissioner, Department of Labor & Workforce Development | |
| Commissioner, Department of Commerce, Community, & Economic Development | |
| Regulatory Commission of Alaska | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
JOINT MEETING
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 14, 2007
3:35 p.m.
MEMBERS PRESENT
HOUSE LABOR AND COMMERCE
Representative Kurt Olson, Chair
Representative Mark Neuman, Vice Chair
Representative Carl Gatto
Representative Gabrielle LeDoux
Representative Jay Ramras
Representative Robert L. "Bob" Buch
Representative Berta Gardner
SENATE LABOR AND COMMERCE
Senator Johnny Ellis, Chair
Senator Con Bunde
MEMBERS ABSENT
HOUSE LABOR AND COMMERCE
All members present
SENATE LABOR AND COMMERCE
Senator Gary Stevens, Vice Chair
Senator Bettye Davis
Senator Lyman Hoffman
COMMITTEE CALENDAR
CONFIRMATION HEARING(S)
Commissioner, Department of Labor & Workforce Development
Clark "Click" Bishop - Fairbanks
Commissioner, Department of Commerce, Community, & Economic
Development
Emil Notti - Anchorage
Regulatory Commission of Alaska
Kate Giard - Anchorage
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
CLARK "CLICK" BISHOP, Acting Commissioner
Department of Labor & Workforce Development
Juneau, Alaska
POSITION STATEMENT: Testified as appointed commissioner of the
Department of Labor & Workforce Development.
EMIL NOTTI, Acting Commissioner
Department of Commerce, Community, & Economic Development
Juneau, Alaska
POSITION STATEMENT: Testified as appointed commissioner of the
Department of Commerce, Community, & Economic Development.
KATE GIARD, Commissioner, Chair
Regulatory Commission of Alaska (RCA)
Department of Commerce, Community, & Economic Development
(DCCED)
Anchorage, Alaska
POSITION STATEMENT: Testified as an appointee to the Regulatory
Commission of Alaska.
ACTION NARRATIVE
CHAIR JOHNNY ELLIS called the joint meeting of the Senate and
House Labor and Commerce Standing Committees to order at 3:35:08
PM. Senators Bunde and Ellis, and Representatives Gardner,
Gatto, Neuman, Buch, and Olson were present at the call to
order. Representatives Ramras and LeDoux arrived as the meeting
was in progress.
^CONFIRMATION HEARING(S)
^Commissioner, Department of Labor & Workforce Development
3:36:15 PM
CHAIR ELLIS announced that the first order of business would be
the confirmation hearing on the appointment of Clark "Click"
Bishop as commissioner to the Department of Labor & Workforce
Development.
3:36:23 PM
CLARK "CLICK" BISHOP, Acting Commissioner, Department of Labor &
Workforce Development (DLWD), began by giving a brief history of
his residency in Alaska. He then offered information regarding
his employment history as it relates to this position,
highlighting 17 years of experience working as an operating
engineer. He also shared information regarding his family and
interests. His interests include: dog mushing, boat racing,
and volunteer work. He explained that his love for volunteer
work led him to his most recent position with the Alaska
Operating Engineers Employers Training Trust. He shared his
experience working with apprentices, offering his belief that
this may be a "calling" for him. He said "[It] took a little
soul-searching and thought for me to come here, but ... finally,
... I made up my mind to ... take this challenge on." He stated
his desire to "pay it forward" to the people of Alaska.
CHAIR ELLIS thanked Acting Commissioner Bishop for his
willingness to serve the state in this capacity.
3:41:30 PM
REPRESENTATIVE GARDNER inquired as to what Acting Commissioner
Bishop considers to be the biggest problems facing the state,
and how he intends to deal with these problems.
ACTING COMMISSIONER BISHOP replied that he would like to see the
creation of more industry jobs. He opined that more entry-level
positions are needed. He shared his belief that there is room
for improvement in the Alaska resident hire rate throughout the
state. He has met with representatives from the fishing and oil
industries in order to move forward with this goal. He opined
that improving Alaska hire would create more job opportunities
for Alaskans. He offered to meet with members to discuss this
further, if so desired.
3:43:52 PM
ACTING COMMISSIONER BISHOP, in response to a question from
Representative Olson regarding the State Training Employment
Program (STEP), stated that he would like to create additional
funding for training entities to apply for grants.
REPRESENTATIVE OLSON questioned whether it would be a more
equitable split between union and non-union organizations.
ACTING COMMISSIONER BISHOP replied that the funds will be
available to everyone, and stated that he intends to maximize
this funding.
REPRESENTATIVE OLSON stated that historically, this has not been
the case.
ACTING COMMISSIONER BISHOP opined that it will be a competitive
grant process.
3:45:29 PM
REPRESENTATIVE NEUMAN in regard to private industry funding
education, stated that finding a way to allow this has been very
difficult. One of his goals has been to [create grade
appropriate programs that combine core subjects with "on the
job" education]. He opined that math and reading are learned
through applied sciences, and inquired as to how the
aforementioned programs may be created at the secondary level.
ACTING COMMISSIONER BISHOP replied that he has been working with
the Department of Education and Early Development (EED) to
create a vehicle for work readiness skills for high school
students. He offered to share the details of this at a later
date.
REPRESENTATIVE NEUMAN commented that it is important to allow
private industry to fund education.
3:49:47 PM
REPRESENTATIVE LEDOUX explained that she represents many small
communities where unemployment is a problem. She inquired as to
the ways by which the DLWD might get more work to these
villages.
ACTING COMMISSIONER BISHOP replied that more detail is needed
regarding the specific area, and the resources available. He
surmised that public works jobs come to small villages once
every 20 years. He stated that previously, he was responsible
for training rural residents for specific projects coming to the
community.
3:52:35 PM
ACTING COMMISSIONER BISHOP, in response to a question from
Representative Gatto, explained that a template is in place for
training pipeline workers. However, it would need to be
expanded to train a large amount of workers in a short period of
time. In response to an additional question, he stated that the
program is able to produce an entry-level worker in six weeks.
3:54:37 PM
REPRESENTATIVE RAMRAS stated that it can be difficult to find
entry level workers. He shared his hope that the DLWD would
take a "broad approach" in regard to the J-1 visa workers, which
he opined are an integral part of the seasonal workforce in the
hospitality industry. In regard to the state minimum wage, he
shared his hope that the DLWD would appoint someone to assist in
finding a resolution for both employers and employees. He
stressed the importance of a resolution that does not restrict
wage increases while trying to meet federal and state minimum
wage requirements. In regard to union versus non-union
facilities, he expressed hope that the DLWD would take an "even-
keeled approach" to the value of individuals that go through
either type of facility. Finally, he explained that there is a
need for a "just in time" delivery of entry-level workers for
state positions. He opined that the DLWD needs an individual
who can facilitate this.
3:59:11 PM
ACTING COMMISSIONER BISHOP assured members that he is able to
honestly distinguish between union and non-union workers.
REPRESENTATIVE NEUMAN inquired as to how the university system
and the DLWD might work together to facilitate the training that
is needed to fill new correctional facility jobs in certain
areas of the state. He pointed out that schools are offering
classes that are required, but these are not being recognized.
Therefore, students are not receiving credit for classes already
taken, and must take these again through the Division of
Corrections.
ACTING COMMISSIONER BISHOP replied that he has many ideas. One
idea involves bringing entry-level workers into state jobs, and
training within the department. He stated that he needs to meet
with the departments involved and the education system to
develop a vehicle to supply the aforementioned workforce.
4:03:02 PM
SENATOR BUNDE inquired as to how the recommendations put forth
by the governor's transition team might be implemented.
ACTING COMMISSIONER BISHOP replied that he issued a copy of the
transition report to each director within the DLWD. While a
number of the recommendations met with legal concerns, the DLWD
has taken action on several of the remaining recommendations.
In response to an additional question, he explained that the
Alaska Workforce Investment Board (AWIB) has a new director,
adding that it is his goal to make this the "voice" of workforce
development in Alaska.
SENATOR BUNDE thanked Acting Commissioner Bishop for his
willingness to serve.
4:07:29 PM
REPRESENTATIVE BUCH acknowledged that this position requires a
lot of work, and may result in a loss of income. He expressed
his appreciation for Acting Commissioner Bishop's willingness to
take this on. In regard to apprenticeship programs, he opined
that converting to a state program may be appropriate.
ACTING COMMISSIONER BISHOP replied that this is included in his
list of goals for the Department.
4:09:20 PM
CHAIR ELLIS stated that he has several concerns to discuss,
possibly at a future hearing of the Senate Labor and Commerce
Standing Committee. In regard to the DLWD decision on the
Anchorage Hockey Officials, Inc. qualifying as an employer, he
shared concerns regarding the possibility of creating additional
fees, and the effect this would have on youth and their
families. He stated that this could also be discussed at a
later time.
^Commissioner, Department of Commerce, Community, & Economic
Development
4:10:33 PM
CHAIR ELLIS announced that the next order of business would be
the confirmation hearing on the appointment of Emil Notti as
commissioner of the Department of Commerce, Community, &
Economic Development.
4:11:03 PM
EMIL NOTTI, Acting Commissioner, Department of Commerce,
Community, & Economic Development (DCCED), began by giving a
brief history of his residence in Alaska. He graduated from Mt.
Edgecumbe High School in Sitka and spent 4 years in the U.S.
Navy. Following this, he earned a bachelor's of science degree
(BS) in Aeronautical Engineering and Electronics Engineering.
He previously served as Commissioner of the Department of
Community and Regional Affairs. He stated that he did not seek
out the position of DCCED commissioner, adding that "it took
some consideration" to take it on. "I find it very interesting
- very challenging," he said. He commented that the Department
effects the lives of all Alaskans. Additionally, all state
agencies report to DCCED.
4:13:40 PM
REPRESENTATIVE NEUMAN in regard to the formation of boroughs in
Alaska, asked how the DCCED plans to move towards the
constitutional mandate to create more boroughs within the state.
ACTING COMMISSIONER NOTTI shared a recent situation regarding
the formation of a borough in Skagway. He explained that while
previously, he was able to get involved in discussions with the
local boundary commission, he is now unable to do so. He opined
that boroughs should be formed; however, they should cover
several communities. This would allow local resources to
support the various cities within the borough. He opined that
it is not in the states best interest to have enclaves that are
not taxed by a large group. He stated that DCCED will do what
is necessary to encourage borough development.
REPRESENTATIVE NEUMAN opined that this is important, especially
when the status of education funding is considered.
4:17:04 PM
REPRESENTATIVE GATTO observed that many Alaskan Native leaders
are graduates of Mt. Edgecumbe High School. He asked whether it
would be worthwhile to consider creating more schools like this.
ACTING COMMISSIONER NOTTI replied yes. He stated that this
would allow many children to be removed from unhealthy home
environments, although not all home situations are unhealthy.
He opined that this would have a positive effect on youth. He
shared details of his experience attending boarding schools,
beginning at age 11. He explained that the students
participated in the activities needed to maintain the
facilities. He stated that work ethic must be learned at an
early age, adding that high school is a good place to teach
this. In response to an additional question, he shared his
belief that 14 years old is a good age to begin attending
boarding school.
4:21:27 PM
REPRESENTATIVE RAMRAS inquired as to what steps would be taken
to assist in improving the Alaska Industrial Development and
Export Authority (AIDEA). Additionally, he questioned the
Department's position on the situation in Bristol Bay involving
Pebble Mine.
ACTING COMMISSIONER NOTTI replied that he needs to gather
additional information regarding AIDEA. He stated that he would
meet with the commissioners on the board and discuss this. In
regard to Pebble Mine, he stated that DCCED is responsible for
"responsible economic development." He pointed out that other
departments are responsible for environmental concerns. While
he is not taking a position on this issue, his job is to ensure
that the environment is "friendly to business."
CHAIR ELLIS, in regard to high-speed internet access statewide,
inquired as to whether the state might have a roll in making
this happen.
ACTING COMMISSIONER NOTTI replied that this would greatly
increase communication across the state. He then commented on
the various types of internet access and related costs.
CHAIR ELLIS requested that this be given further consideration.
SENATOR BUNDE stated that he shares concerns regarding urban and
rural youth and their work ethic. He then thanked Acting
Commissioner Notti for his willingness to serve.
4:27:16 PM
ACTING COMMISSIONER NOTTI replied that he looks forward to
working with the legislature.
^Regulatory Commission of Alaska
4:28:12 PM
CHAIR ELLIS announced that the final order of business would be
the confirmation hearing of Kate Giard, appointee to the
Regulatory Commission of Alaska.
KATE GIARD, Commissioner, Chair, Regulatory Commission of Alaska
(RCA), Department of Commerce, Community, & Economic Development
(DCCED), began by giving a brief history of her experience with
the RCA. She explained that she has been chairman of the RCA
for three years. Her goals as chairman have included increased
transparency, improved internal and external accountability, and
lifting the regulatory burden, in order to promote economic
development in the state of Alaska. She stated that she is a
certified public accountant (CPA) and offered details regarding
her work history. She said:
I have a great desire to serve the public good in
Alaska. It has been a state that has been good to me.
And I work very hard to try to give back to Alaska.
It has taken ... someone who has probably moderate
intellect and moderate skills, and ... given me an
opportunity to grow at a much higher level than I ever
thought I would be. So, I am humbled by the
opportunity to serve.
MS. GIARD went on to explain the reasons she is a candidate for
reappointment to the RCA. These include a knowledge of Alaska's
complex regulatory environment and the education time invested.
Additionally, she is known among the federal organizations, and
has worked with the Alaska Congressional Delegation. She opined
that she has a "fairly good" reputation, and the legislature is
aware of her good qualities, along with any character flaws.
4:31:50 PM
REPRESENTATIVE NEUMAN related a story of his positive experience
with the RCA and its assistance with the Talkeetna Water and
Sewer Project.
REPRESENTATIVE OLSON, in response to a question from
Representative Ramras, explained that the confirmations would
not be advanced at this time, thus allowing additional time for
questions.
REPRESENTATIVE RAMRAS stated that he has heard reports of the
RCA being controlled by a three-vote majority, of which Ms.
Giard is a member. Referring to specific RCA commissioners, he
explained that he had also heard reports that Ms. Giard
advocated the appointment of the aforementioned commissioners.
He stated that this is troubling, if the reports are accurate.
This makes individuals in the utility industry nervous, as a
voting pattern has emerged. He shared his understanding that
some utilities feel intimidated with regard to coming before the
RCA to level any criticism. He questioned whether it is
appropriate to advocate for the appointment of commissioners,
and inquired as to how concerned the utilities should be that
concerns will be dealt with fairly. He opined that the state
has "effectively intimidated the utilities."
MS. GIARD stated that these are important comments, and should
be thoroughly addressed. Therefore, she would attempt to answer
the questions, and would also supply further information. She
explained that the RCA retains records of all decisions made and
panels that are assigned. While she does not know how
frequently the aforementioned members are on panels together,
this data can be evaluated to see how often this occurs. She
stated that she did advocate for the appointment of certain
commissioners. She explained that the RCA needs high quality
individuals, and her goal is to find and promote the best
candidates possible. She said "I scoured around to find them.
I think I've done a good job at that. I think you have good
quality commissioners as a result of that." She shared her
belief that this is not an unusual practice. The control point,
she said, is that the governor ultimately selects the candidate,
which is then approved by the legislature. She detailed her
reasons for promoting Commissioner Anthony Price and
Commissioner Jan Wilson.
4:39:48 PM
MS. GIARD stated that the utilities have expressed concern about
discussing concerns with the commissioners. She said:
That intimidation factor, I think, exists because the
utilities are concerned that, whatever they say, we
will then go into adjudication and make a decision
based on an adjudicatory record opposed to them
because they don't like Kate Giard or they don't like
this last decision. ... I think that the Alaska
Legislature provides an extraordinarily positive
control point over the activities of the RCA. But
there is another control point over the activities of
the RCA, and that is superior court. So, if the RCA
is making decisions that are reactionary to the
unhappiness of utilities or pipeline carriers, those
decisions will be appealed to the superior court, and
they won't be based on a record, and they won't be
upheld. And what you will begin to see, is decision
... after decision, will be overturned. That's not
been the case. The RCA's decisions in some major
issues, such as the Trans-Alaska Pipeline System
(TAPS) issue ... have all been upheld recently ... by
the superior court.
MS. GIARD stated that she is sorry the utilities feel unable to
talk to the RCA, and expressed uncertainty as to whether this is
widely spread. There are utilities that make recommendations
for improvement through regulation and through the statutory
revision process, and several utilities have expressed that the
RCA has "never been more open."
4:43:53 PM
REPRESENTATIVE GARDNER questioned whether the RCA would benefit
from reinstating an executive director position.
MS. GIARD replied that this position was removed by the
legislature. She explained that the executive director had
complete control over the staff, which did not reflect the
adjudicatory decisions of the commissioners. The chairman of
the RCA is elected by the commissioners, for a term of one year.
She stated that if any of the commissioners on the RCA are
unhappy with the policy or administrative direction that the
agency is taking, the chair may be elected out. She opined that
current statute contains protections against the chairman moving
in a direction that the remaining commissioners are not
favorable to. She stated that she is unsure of the value the
executive director position would add.
REPRESENTATIVE GARDNER clarified that this would be a time-
management tool.
MS. GIARD explained that the utilities have expressed concern
regarding the executive director position. The RCA did consider
seeking legislation to provide greater support for the chair;
however, the chair currently bears the burden of administering
the agency.
CHAIR ELLIS pointed out that Ms. Giard has been the chairman for
three years, and inquired as to the process of electing the
chair.
MS. GIARD explained that the chairmanship is limited to three
years. The chairman is elected by his or her peers. She
explained that she is restricted from running for chairman
again, as she has reached the aforementioned limit. The
chairman makes $200 per month more than other commissioners on
the RCA.
CHAIR ELLIS questioned whether this limitation is wise, and
whether this should be changed.
MS. GIARD replied no. She stated that prior to being
reappointed as chair, she would have recommended that the
commissioners vote for the chair. If the chair is doing a good
job, and the feedback from the legislature and the utilities is
positive, the commissioners can be trusted to vote for
leadership. However, she opined that to state that changing
this law "is a good idea" would be a conflict of interest, as
she is reaching the end of her chairmanship. She expressed
confidence in the other commissioners' ability to act as
chairman of the RCA. She said "I have learned a lot serving as
chair. I have hoped to have made a positive impression. And I
have faith in my colleagues, that they will also lead well."
4:50:39 PM
CHAIR ELLIS pointed out that the legislature has heard criticism
regarding timelines and deadlines, and asked that Ms. Giard
address this.
MS. GIARD replied that the timelines followed by the RCA are set
in statute, and were put in place as a result of complaints from
the utility industry. At the time these complaints were
received, the RCA had 400-500 outstanding dockets, and currently
has 101 open dockets. She opined that the timelines should be
considered successful. The RCA has been in compliance with
these timelines with the exception of one mathematical
calculation error which resulted in a one-day violation of the
aforementioned timeline. She then explained that the RCA opened
a docket to discuss timelines with regulated utilities and
pipeline carriers. During this docket, the telecommunications
industry proposed a one-year timeline for everything that is not
covered by current statute. The RCA feels that this is a "fine
idea." The results of this docket have been submitted to the
governor's office for consideration. She stated that the RCA is
pro-timeline. She explained that the discovery process consumes
the majority of the timeline, which allows all parties to put
data on the record. The RCA must decide the case within 90 days
of the final hearing date on a "moderately complex" issue, and
120 days on a "highly complex" case. This deadline has been
placed by the RCA.
4:55:24 PM
MS. GIARD went on to say that the statutory deadlines set by the
legislature were originally intended to preserve due-process.
She explained this as it relates to a recent case involving
ENSTAR Natural Gas Company (ENSTAR). She stated that she does
not have a problem with new statutory timelines; however, she
would like to ensure that the due-process rights of all parties
wishing to participate are protected.
CHAIR ELLIS stated that this discussion would be continued
during separate meetings of the House Labor and Commerce
Standing Committee and Senate Labor and Commerce Standing
Committee.
MS. GIARD, in closing, expressed gratitude for the opportunity
to comment. She recognizes that the RCA is a challenging
agency. She opined that it is a good agency, and members
believe it can improve. She shared her belief that the RCA will
continue to move forward, along with her faith that the
legislature will reinstate the agency.
CHAIR ELLIS thanked Ms. Giard for her willingness to serve.
ADJOURNMENT
There being no further business before the committee, the joint
meeting of the Senate and House Labor and Commerce Standing
Committees was adjourned at 4:57:36 PM.
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