Legislature(1995 - 1996)

03/15/1995 03:06 PM L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                          
                         March 15, 1995                                        
                           3:06 p.m.                                           
 MEMBERS PRESENT                                                               
 Representative Pete Kott, Chairman                                            
 Representative Norman Rokeberg, Vice Chairman                                 
 Representative Brian Porter                                                   
 Representative Jerry Sanders                                                  
 Representative Kim Elton                                                      
 Representative Beverly Masek                                                  
 Representative Gene Kubina                                                    
 MEMBERS ABSENT                                                                
 All members present                                                           
 COMMITTEE CALENDAR                                                            
 HB 17:    "An Act relating to the titles that describe the two                
           principal executive officers of electric and telephone              
           PASSED CSHB 17(L&C) OUT OF COMMITTEE                                
 HB 46:    "An Act relating to the practice of architecture,                   
           engineering, and land surveying."                                   
           PASSED OUT OF COMMITTEE                                             
 HB 180:   "An Act relating to liquor licenses issued to a hotel,              
           motel, resort, or similar establishment; and providing              
           for an effective date."                                             
   PASSED OUT OF COMMITTEE                                                     
 *HB 237:  "An Act relating to workers' compensation insurance                 
           rate filings; to second independent medical evaluations             
           for workers' compensation claims; to immunity for                   
           third-party design professionals from civil actions by              
           recipients of workers' compensation benefits; to                    
           workers' compensation death benefits; to computation of             
           workers' compensation benefits; to penalties for                    
           fraudulent acts related to workers' compensation; to                
           immunity for employer workplace safety inspections                  
           related to workers' compensation insurance; and                     
           providing for an effective date."                                   
           PASSED OUT OF COMMITTEE                                             
 (* First public hearing)                                                      
 PREVIOUS ACTION                                                               
 BILL:  HB 17                                                                
 SHORT TITLE: OFFICERS OF UTILITY COOPERATIVES                                 
 SPONSOR(S): REPRESENTATIVE(S) GREEN                                           
 JRN-DATE     JRN-PG                  ACTION                                   
 01/06/95        25    (H)   PREFILE RELEASED                                  
 01/16/95        25    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 01/16/95        25    (H)   STATE AFFAIRS, LABOR & COMMERCE                   
 02/07/95              (H)   STA AT 08:00 AM CAPITOL 102                       
 02/07/95              (H)   MINUTE(STA)                                       
 02/10/95       293    (H)   STA RPT  CS(STA) NEW TITLE 6DP 1NR                
 02/10/95       294    (H)   DP: JAMES, PORTER, GREEN, ROBINSON                
 02/10/95       294    (H)   DP: WILLIS, OGAN                                  
 02/10/95       294    (H)   NR: IVAN                                          
 02/10/95       294    (H)   ZERO FISCAL NOTE (DCED)                           
 03/01/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 03/01/95              (H)   MINUTE(L&C)                                       
 03/06/95              (H)   MINUTE(L&C)                                       
 03/15/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 BILL:  HB 46                                                                
 SPONSOR(S): REPRESENTATIVE(S) GREEN                                           
 JRN-DATE     JRN-PG                  ACTION                                   
 01/06/95        32    (H)   PREFILE RELEASED                                  
 01/16/95        32    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 01/16/95        33    (H)   LABOR AND COMMERCE, STATE AFFAIRS                 
 03/08/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 03/08/95              (H)   MINUTE(L&C)                                       
 03/15/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 BILL:  HB 180                                                               
 SHORT TITLE: LIQUOR LICENSES FOR RESORT/LODGES                                
 SPONSOR(S): REPRESENTATIVE(S) JAMES                                           
 JRN-DATE     JRN-PG                  ACTION                                   
 02/15/95       369    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 02/15/95       369    (H)   ITT, CRA, L&C                                     
 02/21/95              (H)   ITT AT 02:30 PM CAPITOL 408                       
 02/21/95              (H)   MINUTE(ITT)                                       
 02/22/95       446    (H)   ITT RPT  2DP 5NR                                  
 02/22/95       446    (H)   DP: JAMES, MASEK                                  
 02/22/95       446    (H)   NR: KOTT, PORTER, ROBINSON, NICHOLIA              
 02/22/95       446    (H)   NR: AUSTERMAN                                     
 02/22/95       446    (H)   ZERO FISCAL NOTE (REV)                            
 03/07/95              (H)   CRA AT 01:00 PM CAPITOL 124                       
 03/07/95              (H)   MINUTE(CRA)                                       
 03/08/95       636    (H)   CRA RPT  2DP 3NR                                  
 03/08/95       636    (H)   DP: VEZEY, KOTT                                   
 03/08/95       636    (H)   NR: ELTON, AUSTERMAN, IVAN                        
 03/08/95       636    (H)   ZERO FISCAL NOTE (REV) 2/22/95                    
 03/15/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 BILL:  HB 237                                                               
 SHORT TITLE: WORKERS' COMPENSATION AMENDMENTS                                 
 SPONSOR(S): REPRESENTATIVE(S) MULDER BY REQUEST, Porter                       
 JRN-DATE     JRN-PG                  ACTION                                   
 03/06/95       597    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 03/06/95       598    (H)   LABOR & COMMERCE, JUDICIARY                       
 03/08/95       630    (H)   JOURNAL CORRECTION                                
 03/15/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 WITNESS REGISTER                                                              
 GEORGE DOZIER, Legislative Aide                                               
   to Representative Pete Kott                                                 
 Alaska State Legislature                                                      
 State Capitol, Room 432                                                       
 Juneau, AK 99811                                                              
 Telephone:  (907) 465-3777                                                    
 POSITION STATEMENT:  Explained changes to HB 17                               
 REPRESENTATIVE JOE GREEN                                                      
 Alaska State Legislature                                                      
 State Capitol Room 24                                                         
 Juneau, AK 99801-1182                                                         
 Telephone:  (907) 465-4931                                                    
 POSITION STATEMENT:  Prime sponsor HB 17 and HB 46                            
 WILLIS KIRKPATRICK, Director                                                  
 Division Banking, Securities and Corporations                                 
 Department of Commerce and Economic Development                               
 P.O. Box 110807                                                               
 Juneau, AK 99811-0807                                                         
 Telephone:  (907) 465-2549                                                    
 POSITION STATEMENT: Provided information on HB 17                             
 DAVE HUTCHENS, Executive Director                                             
 Alaska Rural Electric Cooperative Assoc.                                      
 703 W. Tudor Suite 202                                                        
 Anchorage, AK 99503                                                           
 Telephone:  (907) 561-6103                                                    
 POSITION STATEMENT:  Testified on HB 17                                       
 MIKE TAURIANINEN                                                              
 P.O. Box 937                                                                  
 Soldotna, AK 99669                                                            
 Telephone:  (907) 262-4624                                                    
 POSITION STATEMENT:  Testified against HB 17                                  
 SHARON MACKLIN, Lobbyist                                                      
 Alaska Design Professionals                                                   
 315 5th Street, No. 8                                                         
 Juneau, AK 99801                                                              
 Telephone:  (907) 586-9518                                                    
 POSITION STATEMENT:  Testified in favor of HB 46                              
 JIM ROWE, Executive Director                                                  
 Alaska Telephone Association                                                  
 4341 B Street. No, 304                                                        
 Anchorage, AK 99503                                                           
 Telephone:  (907) 563-4000                                                    
 POSITION STATEMENT:  Testified in favor of CSHB 46(L&C)                       
 BARBARA KOTTING Legislative Assistant                                         
   to Representative Jeanette James                                            
 Alaska State Legislature                                                      
 State Capitol, Room 102                                                       
 Juneau, AK 99801-1182                                                         
 Telephone:  (907) 465-3743                                                    
 POSITION STATEMENT:  Provided sponsor statement HB 180                        
 PAT SHARROCK, Director                                                        
 Alaska Alcoholic Beverage Control Board                                       
 550 W. 7th Avenue                                                             
 Anchorage, AK 9950                                                            
 Telephone:  (907) 277-8638                                                    
 POSITION STATEMENT:  Provide information on HB 180                            
 REPRESENTATIVE ELDON MULDER                                                   
 State Capitol Room 411                                                        
 Juneau, AK 99811-1182                                                         
 Telephone:  (907) 465-2647                                                    
 POSITION STATEMENT:  Prime sponsor HB 237                                     
 DARIO NOTTI, Student Intern                                                   
   to Senator Jim Duncan                                                       
 Alaska State Legislature                                                      
 State Capitol Room 119                                                        
 Juneau, AK 99801-1182                                                         
 Telephone:  (907) 465-4766                                                    
 POSITION STATEMENT:  Testified on HB 237                                      
 MARIANNE BURKE, Director                                                      
 Division of Insurance                                                         
 Department of Commerce and Economic Development                               
 P.O. Box 110805                                                               
 Juneau, AK 99811-0808                                                         
 Telephone:  (907) 465-2515                                                    
 POSITION STATEMENT:  Provided information on HB 237                           
 WILLY VAN HEMERT, Civil Engineer                                              
 Member, Ad Hoc Labor Management Committee                                     
   on Workers' Compensation Reform                                             
 3900 Arctic Blvd. No. 304                                                     
 Anchorage, AK 99503                                                           
 Telephone:  (907) 562-3252                                                    
 POSITION STATEMENT:  Testified in favor of 237                                
 KEVIN DOUGHERTY, General Council                                              
 Alaska Laborers                                                               
 Co-Chair, Ad Hoc Labor Management Committee                                   
   on Workers' Compensation Reform                                             
 2501 Commercial Dr.                                                           
 Anchorage, AK 99577                                                           
 Telephone:  (907) 276-1640                                                    
 POSITION STATEMENT: Testified in favor of *HB 237                             
 ACTION NARRATIVE                                                              
 TAPE 95-17, SIDE A                                                            
 Number 000                                                                    
 The House Labor & Commerce Standing Committee was called to order             
 by Chairman Pete Kott at 3:06 p.m.  Members present at the call               
 to order were Representatives Kott, Sanders, Elton, Kubina, and               
 Porter.  Members absent were Masek and Rokeberg.                              
 CHAIRMAN PETE KOTT stated that there was a quorum present.  He                
 stated that the order of business would be HB 17, HB 46, HB 180               
 and HB 237.                                                                   
 HL&C - 03/15/95                                                               
 HB 17 - OFFICERS OF UTILITY COOPERATIVES                                    
 CHAIRMAN KOTT explained that HB 17 was back before the committee              
 because the drafting attorney had some concerns with the                      
 committee substitute (CS) version G.  He said that they now had a             
 new CS version K, dated March 6, 1995 before them.                            
 Number 058                                                                    
 CHAIRMAN KOTT stated, for the record, Representative Masek joined             
 the meeting at 3:10 p.m.                                                      
 Number 067                                                                    
 the following explanation of the new CS for HB 17 version K.  He              
 explained that the CS version G did not amend the title to                    
 reflect the biannual report.  The other concerns deal with                    
 amendment two, which was proposed by the Division of Banking,                 
 Securities and Corporations, Department of Commerce and Economic              
 Development.  The draft, as passed out by committee, required                 
 that biannual reports be due before July 2, of the reporting                  
 year; however, the information contained in the reports was due               
 by June 30.  The  division felt this was not enough time for the              
 information to be gathered and the reports to be sent in.  In the             
 new CS version K, this date was amended to July 15.  Mr. Dozier               
 continued that the third concern addresses dissolution, this on               
 page 8, states, "the provisions of Alaska Statute 10.06 (Alaska               
 Corporations Code) relating to involuntary dissolution of                     
 business corporations applied to telephone and electric                       
 cooperatives."  He said that the drafting attorney was concerned              
 that too much generality had been included since a number of                  
 provision governing both voluntary and involuntary dissolution's              
 of corporations were affected.  He explained that this focuses                
 upon when a biannual report is delinquent.  This provision allows             
 the commissioner to involuntarily dissolve a corporation if it                
 hasn't filed its biannual reports.  The language in the new CS,               
 version K, makes this clearer.  The fourth concern was with                   
 subsection (b), biannual reports, addresses when reports are do               
 but is not clear that it applies to cooperatives that already                 
 exist.  He stated that no changes were made to this language.                 
 Therefore, it is his understanding that it will apply to existing             
 cooperatives, as well as new ones.  Mr. Dozier stated that                    
 finally, the drafting attorney's last concern was that the draft              
 provided and adopted by the committee (CS version G),                         
 Number 202                                                                    
 REPRESENTATIVE GENE KUBINA asked if a motion to delete sections               
 17 and 18 would be a good way to deal with this.  He stated that              
 the reason the Department of Commerce and Economic Development                
 wasn't receiving these reports was because they were already                  
 going to the Alaska Public Utilities Commission (APUC).  He                   
 pointed out this would just be adding more bureaucracy.                       
 CHAIRMAN KOTT said he would entertain that motion, once they had              
 adopted the new CS.                                                           
 REPRESENTATIVE KUBINA asked Chairman Kott exactly where they were             
 at this point.                                                                
 CHAIRMAN KOTT stated that they had passed out version G, but they             
 had not yet adopted version K.                                                
 Number 231                                                                    
 REPRESENTATIVE JERRY SANDERS made a motion to adopt version K of              
 the CS for HB 17.                                                             
 CHAIRMAN KOTT asked if there were objections.  Hearing none, the              
 CS was adopted.                                                               
 REPRESENTATIVE KUBINA made a motion to delete sections 17 and 18,             
 and possibly make a title change.  He said, "line 4 starting                  
 with, `relating' through line 7 ending with `cooperatives'".                  
 CHAIRMAN KOTT stated, "The title would be lines 1, 2 and 3, and               
 then providing for an effective date."                                        
 REPRESENTATIVE KUBINA interjected, "The first half of line 4,                 
 `according to officers' and then `providing for an effective                  
 REPRESENTATIVE ELTON stated that they may need to start on line               
 5, because Section 4 of the bill amends the articles of                       
 incorporation.  That may need to be noted in the title `relating              
 to the articles of incorporation' beginning after cooperatives;               
 deleting down `to effective date'."                                           
 REPRESENTATIVE KUBINA indicated the last two words on line five               
 is where it would start.                                                      
 CHAIRMAN KOTT repeated `relating to' line 5 through `electric                 
 cooperatives' on line 7.                                                      
 Number 279                                                                    
 CHAIRMAN KOTT stated that the conceptual amendment is to delete               
 sections 17 and 18, and with that there will be a noted title                 
 change.  He asked Representative Green if he had a problem with               
 this amendment.                                                               
 Number 288                                                                    
 REPRESENTATIVE JOE GREEN stated that he did not have a problem                
 with this.                                                                    
 Number 291                                                                    
 CHAIRMAN KOTT stated that they did have Amendment 1, the                      
 conceptual amendment, deleting sections 17 and 18 with a title                
 change.  He asked for any objections.  Hearing none, Amendment 1              
 was adopted.  He stated that the committee now had the CSHB                   
 17(L&C) before them for debate.                                               
 Number 305                                                                    
 stated that every organization filing under Title 6, files a                  
 biannual report.  This provides the public with information as to             
 who the registered agents, officers and directors  of                         
 corporations are.  He stated that only these 37 organizations,                
 under this chapter of Title 10, do not file biannual reports.  He             
 stated, as far as bureaucracy is concerned, they are only asking              
 for the current names of the officers and directors of the                    
 corporations and a biannual filing fee of $100.  He pointed out               
 that when he was advised that this may be redundant filing with               
 the Department of Commerce, he called APUC for a current list of              
 officers and directors of Cook Inlet Rural Telephone Cooperative,             
 Incorporated; Glacier Valley Electric; and Unalaska Electric                  
 Association, Incorporated.  The APUC had no record of any of the              
 three.  He explained that this was important.  If they were to                
 have filed every other year as to their status of their                       
 corporation, with the names and addresses of the officers and                 
 directors, and if something had changed in that interim year, as              
 was the case with Unalaska, they would have written back and said             
 that they had been sold to the community.  They would have told               
 the Department of Commerce to cross them off their list, and they             
 would have been out of their file.  He reiterated that the                    
 department only wants them to file every other year, whether they             
 are profit or non-profit, like every other corporation and                    
 association under Title 10.  Mr. Kirkpatrick said that the APUC               
 further stated that they did not know if they could supply him                
 with lists of officers and directors of corporations.                         
 Number 416                                                                    
 REPRESENTATIVE ELTON asked why Glacier Valley was registered with             
 his department, and were they required to be.                                 
 MR. KIRKPATRICK stated that as an organization, they wanted to be             
 protected from liability as individuals.  They then incorporated              
 under electrical cooperatives, which gives them liability from                
 personal acts, and puts responsibility on the corporate                       
 COOPERATIVE ASSOCIATION, stated that he had testified previously              
 on this legislation and his association does not have any strong              
 objection to filing these biannual reports.  However, they do                 
 feel that it would be far better if it were set aside and dealt               
 with that separately the next time there is legislation  dealing              
 with the powers of the division.  He stated that all of the                   
 operating entities organized as electric and telephone                        
 cooperatives do make annual reports to the APUC.  He said the                 
 division should have a note in their file that says, "Requests                
 for information should be forwarded to the APUC."                             
 Number 454                                                                    
 REPRESENTATIVE ELTON pointed out that in the previous meeting Mr.             
 Hutchens had no objection to the legislation, the committee felt              
 that this might be a good idea.  He stated that he would be                   
 interested in hearing Mr. Hutchens reactions to the provision                 
 relating to involuntary dissolution of a cooperative.                         
 MR. HUTCHENS stated that this would be a very strong penalty for              
 failing to file a biannual report.  He commented that perhaps                 
 there could be an intermediate step, and if someone refused to                
 file, dissolution could be the ultimate sanction.  He stated the              
 reason for that would be to have some systematic way of weeding               
 out the entities no longer in business.                                       
 Number 471                                                                    
 CHAIRMAN KOTT stated the committee members had the CSHB 17 before             
 REPRESENTATIVE BRIAN PORTER asked if they had adopted the CS.                 
 CHAIRMAN KOTT stated yes.                                                     
 REPRESENTATIVE PORTER made a motion to move CSHB 17, as amended,              
 out of committee with individual recommendations.                             
 REPRESENTATIVE ELTON commented that they wouldn't need the fiscal             
 note as amended.                                                              
 CHAIRMAN KOTT concurred that there would be a zero fiscal note.               
 He stated that there was a motion to move CSHB 17(L&C) from                   
 committee with individual recommendations.  He asked if there was             
 an objection.  Hearing none, the CSHB 17(L&C) was passed from                 
 Number 483                                                                    
 REPRESENTATIVE KUBINA asked if the bill goes to Rules next.                   
 CHAIRMAN KOTT stated that was correct.                                        
 HL&C - 03/15/95                                                               
 HB 46 - ARCHITECT, ENGINEER & SURVEYOR REGULATION                           
 The next order of business was HB 46 which the committee had                  
 heard the previous week.  CHAIRMAN KOTT said there were concerns              
 with the language being too liberal.  He asked the prime sponsor              
 of HB 46 to come forward.                                                     
 REPRESENTATIVE JOE GREEN, PRIME SPONSOR OF HB 46, stated that the             
 dialogue was now being centered around the exemption portion,                 
 Section 3, of the bill.  Under Article 10, the Architects,                    
 Engineers and Land Surveyors (AE&LS) had objection to the way it              
 was written.  They felt it was too broad and wouldn't adequately              
 protect the public.  He stated that currently members of the                  
 AE&LS and other factions would be governed by this legislation,               
 and they were meeting to work out some compromised language and               
 would have a resolution by March 20.  He stated if a resolution               
 was not worked out, there was backup language that would make                 
 Alaska like the 36 other states that have the same exemptions.                
 Number 536                                                                    
 MIKE TAURIANINEN testified via teleconference that he was opposed             
 to HB 46 as written, regarding Section 2, use of the term                     
 "engineer."  He stated this was contrary to terminology in                    
 Section 3 referring to the practice of engineering.  He stated                
 that it was open for anyone to practice engineering.  Mr.                     
 Taurianinen reiterated that compromise language needs to be                   
 worked out so that some engineering work done by oil companies,               
 communications and utilities companies can be accomplished.                   
 Number 550                                                                    
 CHAIRMAN KOTT stated that they had the CS before them.                        
 REPRESENTATIVE GREEN commented that Mr. Taurianinen might not                 
 understand Section 2.  He explained that the AE&LS had requested              
 this language because they felt this tightens the language rather             
 than loosens it.  He explained that when leaving the word                     
 "registered" in, then a person could say, "I'm a professional                 
 engineer, hire me."  He's not professing to be a registered                   
 engineer, he's just professing to being a professional engineer.              
 By dropping the word "registered," he is illegal.                             
 REPRESENTATIVE ROKEBERG inquired if the AE&LS were meeting to                 
 compromise on a solution for this bill.                                       
 REPRESENTATIVE GREEN responded that it was not a solution for the             
 bill, but a solution for the differences of opinion of subsection             
 10 of Section 3.  To find language that would satisfy the                     
 concerns of the AE&LS for public safety and still not burden                  
 companies that employ large numbers of engineers that are not                 
 subject to public domain was the problem.                                     
 REPRESENTATIVE ROKEBERG asked if the board was working on the                 
 change or people from the various professions.                                
 REPRESENTATIVE GREEN stated that a representative from the AE&LS,             
 Mr. Dave Adams, is working with a representative for the other                
 Number 619                                                                    
 REPRESENTATIVE ELTON wondered if he should be comfortable with an             
 existing exemption that allows a four-plex to be inhabited by                 
 families that hasn't had a professional engineer or architect                 
 involved in it.                                                               
 REPRESENTATIVE GREEN concurred with Representative Elton.  He                 
 stated that his home is one of those and the only thing he's                  
 relying on are building codes.                                                
 Number 640                                                                    
 TAPE 95-17, SIDE B                                                            
 Number 000                                                                    
 clarified that the meeting on March 20, would be attended by a                
 representative from ARCO, the cable TV organization, two                      
 representatives from APDC, and one from the telecommunications                
 Number 021                                                                    
 REPRESENTATIVE ROKEBERG asked if that would include an architect              
 and a land surveyor.                                                          
 MS. MACKLIN replied architects, engineers and land surveyors                  
 trust each other and they feel comfortable with the                           
 Number 037                                                                    
 REPRESENTATIVE KUBINA asked what the Chairman's intention was.                
 CHAIRMAN KOTT answered that if it was the will of the committee,              
 they would move the bill to the House State Affairs Committee,                
 with a letter of transmittal indicating that they would expect                
 some movement in Section 3, subsection 10, that would take care               
 of the language problem.                                                      
 REPRESENTATIVE KUBINA made the motion.                                        
 CHAIRMAN KOTT stated that there was one more person on                        
 testified via teleconference in favor of CSHB 46.                             
 Number 083                                                                    
 REPRESENTATIVE KUBINA made a motion to move CSHB 46(L&C) out of               
 committee with individual recommendations, and accompanying zero              
 fiscal note.                                                                  
 CHAIRMAN KOTT asked for any objections.  Hearing none, CSHB                   
 46(L&C) was passed out of committee.                                          
 HL&C - 03/15/95                                                               
 HB 180 - LIQUOR LICENSES FOR RESORT/LODGES                                  
 CHAIRMAN KOTT stated that the next matter before committee is HB              
 Number 113                                                                    
 JAMES, stated the sponsor, Representative James, had submitted                
 this bill as a request to cover a loophole in existing liquor                 
 license laws.  She explained that under current law, small lodges             
 located in large boroughs or unified population areas cannot get              
 liquor licenses because they do not have enough rooms.  As an                 
 example, if a person wanted to develop a small lodge or tourist               
 facility in a remote or inaccessible area of the Mat-su or Kenai              
 Borough, the lodge would be required to have 40 rooms to obtain a             
 full service liquor license.  She stated that this was excessive              
 and unfair, and that this is not a liquor issue, it is a business             
 issue.  She stated that Pat Sharrock was standing by to answer                
 any questions.                                                                
 Number 145                                                                    
 REPRESENTATIVE PORTER stated that he supported the bill, but his              
 concern was that this could be used as a way around a dry village             
 or dry area.                                                                  
 responded that those dry villages probably reside in  other                   
 incorporated boroughs of the state.  In those areas, separate                 
 rules apply as to how or under what circumstances a liquor                    
 license could be issued, and is governed by a five mile radius                
 REPRESENTATIVE PORTER noted that the ABC Board would be looking               
 at the proximity of the location for requests for these licenses              
 in relation to the dry areas.                                                 
 MR. SHARROCK stated that the board looks closely at current                   
 licenses issued in communities on the grounds of encouraging                  
 tourism.  If the board does not feel they're encouraging tourism,             
 they suggest that the licensee comply with that or look to losing             
 the license.                                                                  
 REPRESENTATIVE KUBINA asked what the rational was for excluding               
 road system places outside of towns.                                          
 MR. SHARROCK asked what he meant by "excluding road systems."                 
 REPRESENTATIVE KUBINA asked what the rationale was for Glennallen             
 or Gakona not being able to do the same thing.                                
 MR. SHARROCK stated that those communities exist in the                       
 unincorporated areas of the state.  In those areas, it's not the              
 aggregate population that determines the issuance of a license.               
 Number 206                                                                    
 REPRESENTATIVE ROKEBERG asked if any resort in Southeast could                
 apply for this if they had only ten rooms.                                    
 MR. SHARROCK responded that they could if they reside within a                
 unified municipality or borough, and were not accessible as                   
 defined by the highway definition.                                            
 REPRESENTATIVE ROKEBERG asked if this included the ferry system.              
 MR. SHARROCK said that in Title 28, it does say "including but                
 not limited to every street, and the Alaska State Marine Highway              
 REPRESENTATIVE ROKEBERG asked how many rental rooms you would                 
 have to have in the Municipality of Anchorage.                                
 MR. SHARROCK replied 50.                                                      
 CHAIRMAN KOTT asked Mr. Sharrock to explain the process on                    
 issuing the liquor licenses.                                                  
 MR. SHARROCK explained that the applicant would advertise                     
 publicly in the newspaper and post the copy at the proposed                   
 premises.  The applicant, after a period of time, would then file             
 the application with the ABC Board, who must forward a copy of                
 the application to the local governing body.  During this time it             
 is assumed that if there is public objection, those people will               
 appear at the assembly meeting, or before the board, when it                  
 takes up final review of the application.  He concluded that if               
 the board felt this bill would promote the proliferation of                   
 liquor licenses, they would withdraw their support immediately.               
 Number 275                                                                    
 REPRESENTATIVE ROKEBERG referred to the first section,                        
 "encouraging tourist trade," and didn't feel this was a very high             
 standard.  He asked if there was any case law to back this up and             
 how readily these licenses are granted.                                       
 MR. SHARROCK stated that the board hasn't or doesn't grant any                
 more than one or two per year.  He stated that it's not that easy             
 for an applicant to come forward and say, "I'm building a                     
 facility that has a dining room and I propose a bar."  He                     
 explained that even with a minimum of ten rooms, it would be hard             
 to find this economically viable if there is really no market for             
 it.  He pointed out the board, over the years, has not had,                   
 except in isolated cases, concern or objection about the way a                
 facility has operated.                                                        
 REPRESENTATIVE ROKEBERG stated that in the first section, it                  
 states, "The board may approve issuance or transfer".  He asked               
 if this license, once it was issued and becomes personal property             
 and has value, can be transferred to someone else subject to                  
 board approval.  If this was the case, he asked if a prohibition              
 of transfer would be a help to the board.                                     
 MR. SHARROCK stated that the word "transfer" only applies as it               
 extends to the premises for which the license was issued.  He                 
 said that the license issued under this provision of the law is               
 not relocatable.                                                              
 CHAIRMAN KOTT closed public testimony on HB 180.                              
 REPRESENTATIVE PORTER stated that with assurances of Mr. Sharrock             
 and the additional coverage that these new licenses would only be             
 in the first class cities that have the ability to protest in and             
 among themselves, he made a motion to move HB 180 from committee,             
 with individual recommendations, and accompanying zero fiscal                 
 CHAIRMAN KOTT asked if there were any objections.                             
 REPRESENTATIVE ELTON interjected that this has a very narrow                  
 application.  He said that it was going to be difficult for the               
 legislature next year to say "no" to a resort or lodge in a                   
 non-organized borough.                                                        
 REPRESENTATIVE PORTER stated that the provisions under subsection             
 (a), line 14, page 1, through line 6 of page 2, are                           
 qualifications that would apply in an unorganized borough.  As                
 mentioned, the organized boroughs and cities are having problem               
 with the limitations on the numbers within those boundaries.  He              
 stated that they wouldn't be asked to pass legislation on outside             
 areas because those would be dealt with by the ABC Board.                     
 CHAIRMAN KOTT stated that there was a motion to move the bill, he             
 asked for objections.  Hearing none, HB 180 was passed out of the             
 House Labor and Commerce Committee.                                           
 HL&C - 03/15/95                                                               
 HB 237 - WORKERS' COMPENSATION AMENDMENTS                                   
 Number 397                                                                    
 CHAIRMAN KOTT announced the next order of business was HB 237.                
 HB 237 was a consensus piece of legislation.  He explained that               
 for seven years they have been trying to come up with a consensus             
 package.  This agreement was reached by members from the Ad Hoc               
 Labor Management Committee on Workers' Compensation Reform.  He               
 stated Alaska was one of the few states, west of the Mississippi,             
 that has been able to realize a reduction in Workers'                         
 Compensation Premiums.  He said that there were six provisions                
 contained within the bill.  Section 2 is the contracted premium               
 rate adjustment, which stipulates that workers' compensation                  
 premium rates cannot be determined by the amount of money you pay             
 your employees.  It's by the amount of risk.  He said that                    
 Section 3 pertains to design professional construction site                   
 liability limits.  This protects professional designers,                      
 engineers and architects who may map out a plan, but through the              
 courts have been held liable through no fault of their own.                   
 Section 4, he stated, contains an element pertaining to                       
 determination of spendable weekly wages.  This is in response to              
 the Gilmore decision which the Supreme Court threw out this                   
 summer.  He stated that the death benefit section is contained in             
 Section 6.  Currently in Alaska statute, for an individual killed             
 on the job, their surviving spouse receives their benefits up to              
 ten years.  However, after five years that benefit is diminished              
 by one-third.  From five to eight years, it is diminished by                  
 half.  This legislation suggests that a more appropriate course               
 would be to extend the benefit through ten years.                             
 Number 469                                                                    
 CHAIRMAN KOTT asked what the rationale was behind that.                       
 REPRESENTATIVE MULDER stated that about the time the surviving                
 spouse is about to get on their feet, presumably by going back to             
 school to make up for the lost income, is about the time you're               
 going to cut back on their benefits and essentially hampering                 
 their efforts.                                                                
 Number 480                                                                    
 CHAIRMAN KOTT added that the cost would be spread out so the cost             
 to employers would be very small.                                             
 REPRESENTATIVE MULDER stated that the net increase to employers               
 would be .006 premium rate adjustment increase.  He also added                
 that there was a very small section of the employee community                 
 that is affected.                                                             
 REPRESENTATIVE ROKEBERG asked why they were revising the law.                 
 REPRESENTATIVE MULDER responded that when you do a workers'                   
 compensation reform package, you seek a balance between the                   
 benefits gained by management versus the benefits gained by                   
 labor, seeking to provide a level playing field so that the net               
 impact to the rate payer will either be neutral or negative.                  
 REPRESENTATIVE MULDER continued that there were two more                      
 provisions.  The Van Bene provision which provides immunity for               
 insurance companies that provide workplace safety inspection                  
 programs.  He said that the final element, contained in Section               
 8, is fraud.  Currently, if an employer believes an employee is               
 guilty of fraud, their only recourse is to take it to court.                  
 This would allow the employer to go before the board, which is                
 far simpler and less expensive.                                               
 Number 531                                                                    
 REPRESENTATIVE KUBINA asked if the department endorses the bill.              
 CHAIRMAN KOTT stated that the department did endorse the bill as              
 Number 538                                                                    
 was testifying on his own behalf, and asked if the employee had               
 the right to appeal to the courts in a fraud case.                            
 REPRESENTATIVE MULDER responded they did.                                     
 Number 554                                                                    
 COMMERCE AND ECONOMIC DEVELOPMENT, testified that the Division                
 supports the legislation.  However, Section 2 has potential                   
 impact on overall premiums.  Any additional administrative costs              
 that might be incurred would have to be shared by all of the                  
 insured.  She continued that if credits were received by a                    
 portion of the group, based on an average salary and credit                   
 scale, the difference in premiums will have to be made up by the              
 remaining group members.                                                      
 Number 567                                                                    
 REPRESENTATIVE PORTER asked for a factual example of this.                    
 MS. BURKE stated, that workers' compensation premiums start out               
 with a manual rate.  Depending on different factors, you may pay              
 more than or less than that rate based on a percentage.  If you               
 had a good record with very few claims, you would pay a smaller               
 percentage of the manual rates.  If you had many claims, you                  
 would pay a higher percentage of manual rates.  She stated the                
 method currently structured is an open ended payroll base.  The               
 starting point for developing this premium is your total payroll.             
 If an employer has a $10 million payroll, but you limit that                  
 payroll to the average weekly salary, the total amount of money               
 needed to pay all claims remains the same so you must collect                 
 premiums from the remaining participants.                                     
 Number 598                                                                    
 COMMITTEE ON WORKERS' COMPENSATION REFORM, testified via                      
 teleconference that the Ad Hoc Committee was a voluntary                      
 consensus group of both labor and management.  He stated that                 
 they had attempted to eliminate third party providers, such as                
 insurance and medical providers.  He pointed out that the                     
 committee is structured through organized labor and the                       
 management side is composed of members of Workers' Compensation               
 Committee of Alaska (WCCA).  He concluded by saying that this was             
 a consensus bill that comes as a package.                                     
 TAPE 95-18, SIDE A                                                            
 Number 000                                                                    
 MR. VAN HEMERT stated that not all costs related to workers'                  
 compensation benefits are directly proportionate to wages, namely             
 medical benefits.  He said that if someone breaks their arm, the              
 benefit cost for that arm is the same.  It doesn't matter if they             
 are making $10 an hour or $25 an hour.  In some cases, there is a             
 limit on the salary cap on benefits.  He said as far as rate                  
 making is concerned, the state of Alaska uses NCCI as their rate              
 Number 027                                                                    
 CHAIRMAN KOTT asked what Mr. Van Hemert's role was in putting the             
 package together.                                                             
 MR. VAN HEMERT responded that he was a representative for WCCA,               
 and the co-chairperson to the Ad Hoc Committee.                               
 Number 042                                                                    
 CHAIRMAN KOTT stated that this proposal seemed more expansive                 
 than the original proposal that the Ad Hoc Committee had been                 
 working on.                                                                   
 MR. VAN HEMERT responded that there were a couple of things the               
 drafters of the bill changed.                                                 
 Number 068                                                                    
 KEVIN DOUGHERTY, General Council for Alaska Laborers, Co-Chair,               
 Ad Hoc Labor Management Committee on Workers' Compensation                    
 Reform, testified via teleconference in support of HB 237.                    
 Number 109                                                                    
 CHAIRMAN KOTT closed public testimony.                                        
 REPRESENTATIVE PORTER made a motion to move HB 237 from committee             
 with individual recommendations, and zero fiscal notes.                       
 CHAIRMAN KOTT asked if there was an objection.  Hearing none, HB              
 237 was moved out of the House Labor and Commerce Committee.                  
 There being no further business to come before the House Labor                
 and Commerce Standing Committee, Chairman Kott adjourned the                  
 meeting at 4:40 p.m.                                                          

Document Name Date/Time Subjects