Legislature(1995 - 1996)

05/01/1995 03:08 PM L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
           HOUSE LABOR & COMMERCE STANDING COMMITTEE                           
                          May 1, 1995                                          
                           3:08 p.m.                                           
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Representative Pete Kott, Chairman                                            
 Representative Norman Rokeberg, Vice Chairman                                 
 Representative Beverly Masek                                                  
 Representative Jerry Sanders                                                  
 Representative Brian Porter                                                   
 Representative Kim Elton                                                      
 Representative Gene Kubina                                                    
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 All members present                                                           
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
  HB 288:       "An Act relating to procurement preferences for                
                corporations and partnerships owned by persons                 
                with disabilities."                                            
                                                                               
                PASSED OUT OF COMMITTEE                                        
                                                                               
  HB 249:       "An Act authorizing the McGrath Kuskokwim River                
                Ice Classic."                                                  
                                                                               
                PASSED OUT OF COMMITTEE                                        
                                                                               
 CSSB 53(JUD):  "An Act relating to regulation of risk retention               
                or purchasing groups; to preemption of the                     
                regulation of insurance agents and insurance                   
                producers; to the general powers of the director               
                of the division of insurance; to insurance                     
                examination hearings; to insurer certificates of               
                authority; to annual and quarterly statements,                 
                taxes, and prohibited acts of insurers; to                     
                reinsurance credit allowed a domestic insurer; to              
                risk based capital for insurers; to insurer assets             
                and liabilities; to insurer investments; to                    
                insurance holding companies; to regulation,                    
                licensing, examination, and trade practices of                 
                insurance producers, managing general agents,                  
                third-party administrators, brokers, independent               
                adjusters, and reinsurance intermediary managers;              
                to surplus lines insurance; to criminal insurance              
                acts; to premium increases in automobile                       
                insurance; to insurance rating; to assigned risk               
                pools; to filing and approval of certain insurance             
                policy forms; to required insurance coverage for               
                acupuncture, nurse midwives' services,                         
                mammography, and phenylketonuria; to health                    
                insurance provided by small employers; to transfer             
                of an insurer's status as a domestic insurer; to               
                quarterly statements of benevolent associations,               
                fraternal benefit societies, and health                        
                maintenance organizations; to reciprocal insurers;             
                to the definition of `member insurer' for purposes             
                of the Alaska Life and Disability Insurance                    
                Guaranty Association; to electronic insurance data             
                transfer and insurance funds transfer; to the                  
                definitions of `managing general agent' and                    
                `person' applicable to insurance law; to                       
                automobile assigned risk plans; placing a person               
                employed by the division of insurance as an                    
                actuary or assistant actuary into the exempt                   
                service; amending Alaska Rule of Civil Procedure               
                45; and providing for an effective date."                      
                                                                               
                HEARD AND HELD                                                 
                                                                               
  HB 270:       "An Act relating to retirement incentive programs              
                for the public employees' retirement system and                
                the teachers' retirement system; relating to                   
                separation incentives for certain state employees;             
                and providing for an effective date."                          
                                                                               
                PASSED OUT OF COMMITTEE                                        
                                                                               
  HB 109:       "An Act relating to telephone directory listings               
                and solicitations."                                            
                                                                               
                PASSED OUT OF COMMITTEE                                        
  HB 263:       "An Act relating to certification of workers who               
                handle hazardous waste; and providing for an                   
                effective date."                                               
                                                                               
                SCHEDULED BUT NOT HEARD                                        
 WITNESS REGISTER                                                              
                                                                               
 REPRESENTATIVE JEANNETTE JAMES                                                
 Alaska State Legislature                                                      
 State Capital, Room 102                                                       
 Juneau, AK 99801-1182                                                         
 Telephone:  (907) 465-3743                                                    
 POSITION STATEMENT:  Prime sponsor of HB 88                                   
                                                                               
 DUGAN PETTY, Director                                                         
 Division of General Services                                                  
 Department of Administration                                                  
 P.O. Box 110210                                                               
 Juneau, AK 99811-0120                                                         
 Telephone:  (907) 465-2250                                                    
 POSITION STATEMENT:  Testified on HB 288                                      
                                                                               
 STAN RIDGEWAY, Deputy Director                                                
 Division of Vocational Rehabilitation                                         
 Department of Education                                                       
 801 West Tenth Street, Suite 200                                              
 Juneau, AK 99801                                                              
 Telephone:  (907) 465-6932                                                    
 POSITION STATEMENT:  Testified on HB 288                                      
                                                                               
 DEBORAH OSTENDORF, Legislative Secretary                                      
   to Representative Irene Nicholia                                            
 State Capitol, Room 501                                                       
 Juneau, AK 99801-1182                                                         
 Telephone:  (907) 465-4527                                                    
 POSITION STATEMENT:  Gave sponsor statement on HB 249                         
                                                                               
 DENNIS BOCHARD, Director,                                                     
 Division of Charitable Gaming                                                 
 Department of Revenue                                                         
 P.O. Box 110440                                                               
 Juneau, AK 99811-0400                                                         
 Telephone:  (907) 465-2229                                                    
 POSITION STATEMENT:  Testified on HB 249                                      
                                                                               
 GEORGE DOZIER, Legislative Assistant                                          
   to Representative Pete Kott                                                 
 Alaska State Legislature                                                      
 State Capitol, Room 432                                                       
 Telephone:  (907) 465-3777                                                    
 POSITION STATEMENT:  Testified on HB 263                                      
                                                                               
 BEVERLY WARD, Director                                                        
 Southeast Government Relations                                                
 ARCO Alaska, Incorporated                                                     
 134 N. Franklin                                                               
 Juneau, AK 99801                                                              
 Telephone:  (907) 586-3680                                                    
 POSITION STATEMENT:  Testified against HB 263                                 
                                                                               
 BLAKE JOHNSON                                                                 
 Laborers Local 341                                                            
 HCO A, Box 1580                                                               
 Kenai, AK 99611                                                               
 Telephone:  (907) 776-5217                                                    
 POSITION STATEMENT:  Testified on HB 270                                      
                                                                               
 MARIANNE BURKE, Director                                                      
 Division of Insurance                                                         
 Department of Commerce                                                        
   and Economic Development                                                    
 P.O. Box 110805                                                               
 Juneau, AK 99811-0805                                                         
 Telephone:  (907) 465-2515                                                    
 POSITION STATEMENT:  Testified in favor of SB 53                              
                                                                               
 ANNALEE MCCONNELL, Director                                                   
 Office of Management and Budget                                               
 Office of the Governor                                                        
 P.O. 110020                                                                   
 Juneau, AK 99811-0020                                                         
 Telephone:  (907) 465-4660                                                    
 POSITION STATEMENT:  Testified in favor of HB 270                             
                                                                               
 PHYLLIS OLSTA, Steward                                                        
 Alaska Marine Highway System                                                  
 Department of Transportation                                                  
   and Public Facilities                                                       
 411 Seventh Street                                                            
 Juneau, AK 99801                                                              
 Telephone:  (907) 586-2058                                                    
 POSITION STATEMENT:  Testified on HB 270                                      
                                                                               
 JIM TEDFORD, Parent                                                           
 9367 Rivercourt Way                                                           
 Juneau, AK 9980                                                               
 Telephone:  (907) 789-0976                                                    
 POSITION STATEMENT:  Testified on HB 270                                      
                                                                               
 BOB STALNAKER, Director                                                       
 Division of Retirement and Benefits,                                          
 Department of Administration                                                  
 P.O. Box 110203                                                               
 Juneau, AK 99811-0203                                                         
 Telephone:  (907) 465-4460                                                    
 POSITION STATEMENT:  Testified on HB 270                                      
                                                                               
 JACK KREINHEDER, Senior Policy Analyst                                        
 Office of Management and Budget                                               
 Office of the Governor                                                        
 P.O. Box 110020                                                               
 Juneau, AK 99811-0200                                                         
 Telephone:  (907) 465-4676                                                    
 POSITION STATEMENT:  Testified in favor of HB 270                             
                                                                               
 MARK LIVINGSTON                                                               
 832 Warren                                                                    
 Ketchikan, AK 99901                                                           
 Telephone:  (907) 247-0166                                                    
 POSITION STATEMENT:  Testified on HB 270                                      
                                                                               
 GARY BLOOMQUIST, City Manager                                                 
 City of Kodiak                                                                
 P.O. Box 1397                                                                 
 Kodiak, AK 99615                                                              
 Telephone:  (907) 486-8640                                                    
 POSITION STATEMENT:  Testified in favor of HB 270                             
                                                                               
 ART SNOWDEN, Administrative Director                                          
 Alaska Court System                                                           
 303 "K" Street                                                                
 Anchorage, AK 99501-2084                                                      
 Telephone:  (907) 264-0547                                                    
 POSITION STATEMENT:  Testified in favor of HB 270                             
                                                                               
 REPRESENTATIVE KAY BROWN                                                      
 Alaska State Legislature                                                      
 State Capitol, Room 517                                                       
 Juneau, AK 99801-1182                                                         
 Telephone:  (907) 465-4998                                                    
 POSITION STATEMENT:  Prime sponsor HB 109                                     
                                                                               
 PREVIOUS ACTION                                                               
                                                                               
 BILL:  HB 288                                                                 
 SHORT TITLE: PROCUREMENT PREFERENCES/STATE LEASES                             
 SPONSOR(S): REPRESENTATIVE(S) JAMES                                           
                                                                               
 JRN-DATE     JRN-PG                  ACTION                                   
 03/29/95       979    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 03/29/95       979    (H)   LABOR & COMMERCE                                  
 04/03/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 04/03/95              (H)   MINUTE(L&C)                                       
 04/07/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 04/21/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 04/24/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 04/24/95              (H)   MINUTE(L&C)                                       
 04/28/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 05/01/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
                                                                               
 BILL:  HB 249                                                               
 SHORT TITLE: MCGRATH KUSKOKWIM RIVER ICE CLASSIC                              
 SPONSOR(S): REPRESENTATIVE(S) NICHOLIA                                        
                                                                               
 JRN-DATE     JRN-PG                  ACTION                                   
 03/10/95       701    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 03/10/95       701    (H)   LABOR & COMMERCE                                  
 04/28/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 05/01/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
                                                                               
 BILL:  SB 53                                                                
 SPONSOR(S): LABOR & COMMERCE                                                  
                                                                               
 JRN-DATE     JRN-PG                  ACTION                                   
 01/25/95        83    (S)   READ THE FIRST TIME - REFERRAL(S)                 
 01/25/95        84    (S)   L&C, JUD                                          
 02/28/95              (S)   L&C AT 01:30 PM FAHRENKAMP RM 203                 
 03/02/95              (S)   L&C AT 01:30 PM FAHRENKAMP RM 203                 
 03/02/95              (S)   MINUTE(L&C)                                       
 03/07/95       515    (S)   L&C RPT  CS  1DP 4NR  NEW TITLE                   
 03/07/95       516    (S)   ZERO FISCAL NOTE (DCED)                           
 03/27/95              (S)   JUD AT 01:30 PM BELTZ ROOM 211                    
 03/27/95              (S)   MINUTE(JUD)                                       
 04/05/95              (S)   JUD AT 01:30 PM BELTZ ROOM 211                    
 04/05/95              (S)   MINUTE(JUD)                                       
 04/06/95       891    (S)   JUD RPT  CS  2DP 3NR  NEW TITLE                   
 04/06/95       892    (S)   PREVIOUS ZERO FN (DCED)                           
 04/10/95              (S)   RLS AT 01:00 PM FAHRENKAMP RM 203                 
 04/10/95              (S)   MINUTE(RLS)                                       
 04/18/95      1058    (S)   RULES TO CALENDAR  4/18/95                        
 04/18/95      1065    (S)   READ THE SECOND TIME                              
 04/18/95      1065    (S)   JUD  CS ADOPTED UNAN CONSENT                      
 04/18/95      1066    (S)   ADVANCED TO THIRD READING UNAN                    
                             CONSENT                                           
 04/18/95      1066    (S)   READ THE THIRD TIME  CSSB 53(JUD)                 
 04/18/95      1067    (S)   PASSED Y16 N3 E1                                  
 04/18/95      1067    (S)   EFFECTIVE DATE(S) SAME AS PASSAGE                 
 04/18/95      1068    (S)   COURT RULE(S) FAILED  Y12 N7 E1                   
 04/18/95      1068    (S)   TAYLOR  NOTICE OF RECONSIDERATION                 
 04/19/95      1088    (S)   HELD ON RECONSIDERATION TO 4/20                   
 04/20/95      1122    (S)   RECON TAKEN UP - IN THIRD READING                 
 04/20/95      1123    (S)   PASSED ON RECONSIDERATION Y17 N3                  
 04/20/95      1123    (S)   EFFECTIVE DATE(S) SAME AS PASSAGE                 
 04/20/95      1123    (S)   COURT RULE(S) SAME AS PASSAGE                     
 04/20/95      1126    (S)   TRANSMITTED TO (H)                                
 04/21/95      1417    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 04/21/95      1417    (H)   LABOR & COMMERCE, JUDICIARY                       
 04/28/95              (H)   JUD AT 01:00 PM CAPITOL 120                       
 04/28/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 05/01/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
                                                                               
 BILL:  HB 270                                                               
 SHORT TITLE: RETIREMENT INCENTIVE PROGRAM                                     
 SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR                                  
                                                                               
 JRN-DATE     JRN-PG                  ACTION                                   
 03/20/95       813    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 03/20/95       814    (H)   STA, L&C, FINANCE                                 
 03/20/95       814    (H)   2 FISCAL NOTES (ADM)                              
 03/20/95       814    (H)   INDETERMINATE FN (GOV/ALL DEPTS)                  
 03/20/95       814    (H)   GOVERNOR'S TRANSMITTAL LETTER                     
 03/30/95              (H)   STA AT 08:00 AM CAPITOL 102                       
 04/01/95              (H)   STA AT 10:00 AM CAPITOL 102                       
 04/01/95              (H)   MINUTE(STA)                                       
 04/04/95              (H)   STA AT 03:00 PM CAPITOL 120                       
 04/20/95              (H)   STA AT 08:00 AM CAPITOL 102                       
 04/20/95              (H)   MINUTE(STA)                                       
 04/25/95              (H)   STA AT 08:00 AM CAPITOL 102                       
 04/25/95              (H)   MINUTE(STA)                                       
 04/27/95              (H)   STA AT 08:00 AM CAPITOL 102                       
 04/27/95              (H)   MINUTE(STA)                                       
 04/28/95      1623    (H)   STA RPT  CS(STA) 2DP 5NR                          
 04/28/95      1624    (H)   DP: ROBINSON, WILLIS                              
 04/28/95      1624    (H)   NR: JAMES, PORTER, GREEN, IVAN, OGAN              
 04/28/95      1624    (H)   2 FISCAL NOTES (ADM)                              
 04/28/95      1624    (H)   INDETERMINATE FN (GOV/ALL DEPTS)                  
                             3/20/95                                           
 05/01/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
                                                                               
 BILL:  HB 109                                                               
 SHORT TITLE: TELEPHONE DIRECTORY LISTING/SOLICITATIONS                        
 SPONSOR(S): REPRESENTATIVE(S) BROWN, Navarre, B.Davis                         
                                                                               
 JRN-DATE     JRN-PG                  ACTION                                   
 01/23/95       115    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 01/23/95       116    (H)   LABOR & COMMERCE, JUDICIARY                       
 01/26/95       148    (H)   COSPONSOR(S): B.DAVIS                             
 04/28/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 05/01/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
                                                                               
 BILL:  HB 263                                                               
 SHORT TITLE: CERTIF. OF HAZARDOUS WASTE WORKERS                               
 SPONSOR(S): LABOR & COMMERCE                                                  
                                                                               
 JRN-DATE     JRN-PG                  ACTION                                   
 03/17/95       778    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 03/17/95       778    (H)   LABOR & COMMERCE, FINANCE                         
 03/29/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 03/29/95              (H)   MINUTE(L&C)                                       
 03/31/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 03/31/95              (H)   MINUTE(L&C)                                       
 04/28/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
 05/01/95              (H)   L&C AT 03:00 PM CAPITOL 17                        
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 95-54, SIDE A                                                            
 Number 000                                                                    
                                                                               
 The House Labor and Commerce Committee was called to order by                 
 Chairman Pete Kott at 3:08 p.m.  Members present at the call to               
 order were Representatives Kott, Masek, Sanders and Rokeberg.                 
 Members absent at the call to order were Representatives Elton,               
 Kubina and Porter.                                                            
                                                                               
 Number 008                                                                    
                                                                               
 CHAIRMAN PETE KOTT announced that a quorum was present.  The                  
 order of business would be HB 249, HB 288, HB 263, HB 109, SB 53              
 and HB 270.  Chairman Kott noted Representative Kim Elton arrived             
 directly after the call to order.                                             
 HB 288 - PROCUREMENT PREFERENCE/DISABLED PERSONS                             
                                                                               
 Number 029                                                                   
                                                                               
 REPRESENTATIVE JEANNETTE JAMES, PRIME SPONSOR OF HB 288, said HB              
 288 provides for people to qualify for a bidder preference                    
 granted to disabled people.  It does so by extending the                      
 preference to include corporations where 100 percent of the                   
 shareholders are disabled and to disabled partnerships where 100              
 percent of the partners are disabled.  The law currently states               
 that only people who are sole proprietors are able to qualify.                
 Dugan Petty was in attendance to explain the changes to the bill.             
 She said she has a letter from the Legislative Legal Services                 
 Division stating that there still may be a problem with the                   
 existing bill as opposed to the new language relating to who                  
 qualifies for a bidder preference.  The addition to this language             
 is that in order to qualify for a bidder preference, the company              
 has to have maintained for a period of six months immediately                 
 preceding the date of the sale, a place of business within the                
 state that offers the supply, services or construction of the                 
 general nature solicited by the agency.  Also it is required that             
 it be staffed by the bidder or an employee of the bidder.  She                
 reiterated Dugan Petty was present to answer any questions.                   
                                                                               
 CHAIRMAN KOTT noted for the record that Representative Gene                   
 Kubina had joined the committee at 3:12 p.m.                                  
                                                                               
 Number 017                                                                    
                                                                               
 REPRESENTATIVE BEVERLY MASEK asked if they were working off the               
 work draft G, dated 4-10-95, or the work draft that had been                  
 faxed to her office dated 4-28-95.                                            
                                                                               
 Number 086                                                                    
                                                                               
 REPRESENTATIVE JAMES answered that she was looking at the                     
 proposed committee substitute (CS) (L&C) Version G.  She                      
 explained the changes to the old Version F.  Section 1 in Version             
 F becomes Section 2 in Version G.  The new Section 1 has the new              
 language, which she had just read.  The old Section 2 was                     
 deleted, and Section 3 remains the same in both versions.                     
                                                                               
 Number 104                                                                    
                                                                               
 REPRESENTATIVE NORMAN ROKEBERG inquired if there was an Alaska                
 Statute with the definition of "disabled persons."                            
                                                                               
 Number 109                                                                    
                                                                               
 REPRESENTATIVE JAMES said these people must be severely disabled.             
 The people would have to be certified by Vocational                           
 Rehabilitation as qualified.  That would be the same                          
 qualifications for this bill.                                                 
                                                                               
 Number 130                                                                    
                                                                               
 REPRESENTATIVE ROKEBERG asked where that is stated in the bill.               
                                                                               
 REPRESENTATIVE JAMES said it was in existing statute.  There                  
 wasn't a reference to that in this bill.  She said they were                  
 allowing corporations to qualify as long as the owners are 100                
 percent disabled, sank as the existing law with respect to sole               
 proprietors.                                                                  
                                                                               
 REPRESENTATIVE JAMES said the current statute reads:  "A person               
 with a disability means a person who has a permanent mental or                
 physical impairment that substantially limits one or more major               
 life activity.  Major life activities include caring for oneself,             
 performing manual tasks, walking, hearing, speaking, breathing,               
 learning, and working.  Mental impairment means a physiological               
 disorder or condition, cosmetic disfigurement or anatomical loss              
 affecting one or more of body systems such as neurological,                   
 muscular skeletal, special sense organs, respiratory including                
 speech organs, cardiovascular, reproductive, digestive, genital               
 urinary, (indisc.) lymphatic, skin and endocrine, or mental or                
 physical disorder including mental retardation, organic brain                 
 syndrome, emotional or mental illness and specific learning                   
 disabilities."                                                                
                                                                               
 REPRESENTATIVE ROKEBERG said he would like a copy of this.                    
                                                                               
 Number 172                                                                    
                                                                               
 REPRESENTATIVE KIM ELTON said this applies to nonprofits also,                
 and a nonprofit would be any kind of a corporation not for                    
 profit.                                                                       
                                                                               
 Number 176                                                                    
                                                                               
 REPRESENTATIVE JAMES said the ownership has to be 100 percent                 
 disabled.  Nonprofit may not necessarily have an identified                   
 ownership.  She would defer the question to Dugan Petty.                      
                                                                               
 Number 181                                                                    
                                                                               
 DUGAN PETTY, DIRECTOR, DIVISION OF GENERAL SERVICES, DEPARTMENT               
 OF ADMINISTRATION, stated that employment programs receive a 15               
 percent Alaska preference.  When this law was established, it set             
 out a separate preference for employment programs.  They can't                
 double on the preference, but they do receive a 15 percent                    
 preference in addition to the Alaska bidders preference.                      
                                                                               
 Number 190                                                                    
                                                                               
 REPRESENTATIVE ELTON asked if it would be appropriate to move the             
 work draft for committee's consideration.                                     
                                                                               
 CHAIRMAN KOTT said he would entertain a motion.                               
                                                                               
 Number 194                                                                    
                                                                               
 REPRESENTATIVE ELTON made a motion to adopt work draft 9LSO992\G.             
                                                                               
 Number 196                                                                    
                                                                              
 CHAIRMAN KOTT asked if there were any objections in adopting the             
 work draft version G, dated 4-10-95.  Hearing none, the work                  
 draft was adopted.  He asked Mr. Petty if he had any comments.                
                                                                               
 Number 202                                                                    
                                                                               
 MR. PETTY said he had nothing more to add.                                    
                                                                               
 Number 208                                                                    
                                                                               
 STAN RIDGEWAY, DEPUTY DIRECTOR, DIVISION OF VOCATIONAL                        
 REHABILITATION, DEPARTMENT OF EDUCATION (DOE), stated that the                
 division supports HB 288.  The division added the fiscal note                 
 because, over the past few months, they have had many inquiries               
 from people who have just found the law on the books.  People                 
 have tried hiring employees as brokers in order to receive a                  
 bidder preference.  While they support corporations that are                  
 wholly owned, receiving a bidder preference they feel they would              
 be dealing with other companies or corporations trying to get                 
 their foot in the door.  This will require a lot of screening on              
 the division's part.  Since the division doesn't know for certain             
 how much time this screening would take, they would go on record              
 that if the committee moves HB 288 without the fiscal note, the               
 division might come back next year and tell the committee how                 
 much time it has taken.                                                       
                                                                               
 Number 231                                                                    
                                                                               
 REPRESENTATIVE MASEK asked what Mr. Ridgeway thought the amount               
 might be, and would it be used for full-time employees.                       
                                                                               
 Number 234                                                                    
                                                                               
 MR. RIDGEWAY said the amount was $23,000, for a half time                     
 clerical person to do the screening and follow-up on the                      
 preferences.                                                                  
 Number 239                                                                    
                                                                               
 REPRESENTATIVE ELTON inquired if a fiscal note had been prepared              
 but not yet submitted.                                                        
                                                                               
 MR. RIDGEWAY replied it has been submitted.                                   
                                                                               
 REPRESENTATIVE ELTON asked if there was a House Finance Committee             
 referral.                                                                     
                                                                               
 CHAIRMAN KOTT said it would need a House Finance Committee                    
 referral.                                                                     
                                                                               
 REPRESENTATIVE ELTON said he didn't have a copy of the fiscal                 
 note.                                                                         
                                                                               
 CHAIRMAN KOTT took a brief at ease at 3:20 p.m., while copies                 
 were made.                                                                    
                                                                               
 Number 256                                                                    
                                                                               
 REPRESENTATIVE ROKEBERG asked if the 15 percent preference was                
 added onto the 10 percent.                                                    
                                                                               
 Number 266                                                                    
                                                                               
 MR. PETTY said the question was, "What about nonprofits or                    
 employment programs, previously called shelter workshops?"                    
                                                                               
 REPRESENTATIVE ROKEBERG said that wasn't his question.                        
                                                                               
 Number 270                                                                    
                                                                               
 MR. PETTY said the question he was responding to was regarding                
 the 15 percent.  There is a separate preference in statute that               
 allows employment programs to receive a 15 percent preference, in             
 addition to the Alaska bidders preference, if they compete on                 
 bids issued by the state.                                                     
                                                                               
 Number 273                                                                    
                                                                               
 REPRESENTATIVE ROKEBERG said he had asked the question because it             
 wasn't entirely clear.                                                        
                                                                               
 Number 277                                                                    
                                                                               
 MR. PETTY explained that it wasn't clear from the CS because                  
 there wasn't any reference to the employment program preference.              
                                                                               
 Number 279                                                                    
                                                                               
 REPRESENTATIVE ROKEBERG noted for the record that this was 10                 
 percent plus 5 percent for a total of 15 percent.                             
                                                                               
 Number 283                                                                    
                                                                               
 MR. PETTY said it first applies the 5 percent Alaska bidder                   
 preference.  Then, if the qualified bidder is no more than 15                 
 percent above the lowest bidder, after applying the Alaskan                   
 bidder preference, they would win the bid.  He commented that it              
 doesn't necessarily work out to exactly 15 percent.                           
                                                                               
 REPRESENTATIVE ROKEBERG said it was 10 percent in the draft.                  
                                                                               
 MR. PETTY said that was correct.  He restated it was 5 percent                
 with the Alaska bidders preference.  If that bid is within 10                 
 percent of the lowest bid after application of the 5 percent                  
 bidder preference, they would receive the bid.                                
                                                                               
 REPRESENTATIVE ROKEBERG said he was glad he asked the question.               
                                                                               
 CHAIRMAN KOTT asked if that had addressed his concerns.                       
                                                                               
 REPRESENTATIVE ROKEBERG replied yes, and it was also on the                   
 record.                                                                       
                                                                               
 Number 297                                                                    
                                                                               
 CHAIRMAN KOTT asked Representative James if she had further                   
 comments.                                                                     
                                                                               
 Number 300                                                                    
                                                                               
 REPRESENTATIVE JAMES stated she would like to dispute the fiscal              
 note.  She thought perhaps the department could be persuaded to               
 withdraw it.  The statute hasn't had much activity since it has               
 been on the books from 1991.  It is true there may be more                    
 activity now, but she hesitates to say its because of this bill.              
 The number of people having 100 percent disabled owned                        
 corporations and partnerships might be limited.  She suggested                
 that it not have a fiscal note; it could be absorbed by existing              
 staff and Vocational Rehabilitation.  She asked of the DOE would              
 consider withdrawing the note.                                                
                                                                               
 CHAIRMAN KOTT asked Mr. Ridgeway to explain the fiscal note                   
 again.                                                                        
                                                                               
 Number 314                                                                    
                                                                               
 MR. RIDGEWAY replied they had prepared the fiscal note prior to               
 the current language change, which states a person must be in                 
 business for six months.  The department anticipated they would               
 have people brokering, which is the hiring of people with                     
 disabilities as brokers, who then bid state contracts.  The                   
 disabled wouldn't be full-time employees.  He stated that the new             
 language prevents that.  Therefore, they would have a smaller                 
 number applying for the contract because the loop hole has been               
 tightened.  They would withdraw the fiscal note at this time.                 
                                                                               
 Number 333                                                                    
                                                                               
 REPRESENTATIVE ELTON had a procedural question on how the                     
 committee would dismiss the fiscal note.                                      
                                                                               
 Number 340                                                                    
                                                                               
 CHAIRMAN KOTT said he wasn't sure, having never gone through                  
 this.  He thought it should be sufficient to have the fiscal note             
 withdrawn on the record.                                                      
                                                                               
 Number 342                                                                    
                                                                               
 REPRESENTATIVE MASEK made a motion to remove the fiscal note on               
 HB 288 and to move the bill without the note.                                 
                                                                               
 Number 345                                                                    
                                                                               
 CHAIRMAN KOTT asked if there were objections.  Hearing none, the              
 note was withdrawn.                                                           
                                                                               
 Number 348                                                                    
                                                                               
 REPRESENTATIVE ELTON made a motion to move CSHB 288(L&C) with                 
 attached zero fiscal note from the Department of Administration               
 with individual recommendations.                                              
                                                                               
 Number 358                                                                    
                                                                               
 CHAIRMAN KOTT asked if there were objections.  Hearing none, CSHB             
 288(L&C) passed from committee.                                               
 HB 249 - MCGRATH KUSKOKWIM RIVER ICE CLASSIC                                 
                                                                              
 Number 364                                                                    
                                                                               
 CHAIRMAN KOTT stated the next order of business would be HB 249.              
                                                                               
 Number 366                                                                    
                                                                               
 DEBORAH OSTENDORF, LEGISLATIVE SECRETARY TO REPRESENTATIVE IRENE              
 NICHOLIA, PRIME SPONSOR OF HB 249, testified that HB 249 changes              
 AS 05.15.690 to add the McGrath Ice Classic.  She said she had                
 received a call from someone in the Bethel area concerning use of             
 the name Kuskokwim River included in the bill.  She asked the                 
 committee to adopt the committee substitute which would take out              
 the "Kuskokwim River" and rename it "The McGrath River Ice                    
 Classic."                                                                     
                                                                               
 Number 379                                                                    
                                                                               
 The committee took a brief at ease at 3:30 p.m. and was back at               
 3:35 p.m.                                                                     
                                                                               
 Number 384                                                                    
                                                                               
 CHAIRMAN KOTT would entertain a motion to adopt the proposed CS.              
                                                                               
 Number 384                                                                    
                                                                               
 REPRESENTATIVE MASEK made a motion to adopt the proposed CSHB                 
 249(L&C), 9L-S0658/F, Luckhaupt, dated 4-28-95.                               
                                                                               
 Number 386                                                                    
                                                                               
 CHAIRMAN KOTT asked if there were any objections.  Hearing none,              
 CSHB 249(L&C) was adopted.  He asked Ms. Ostendorf to explain the             
 differences.                                                                  
                                                                               
 Number 389                                                                    
                                                                               
 MS. OSTENDORF stated that it removes the name "Kuskokwim River"               
 from the title, renaming it the "McGrath Ice Classic."                        
                                                                               
 CHAIRMAN KOTT asked why the change was needed.                                
                                                                               
 Number 393                                                                    
                                                                               
 MS. OSTENDORF replied there was a similar ice classic out of                  
 Bethel, named the "Kuskokwim River Ice Classic."  People in                   
 Bethel didn't want there to be any confusion.                                 
                                                                               
 Number  400                                                                   
                                                                               
 REPRESENTATIVE ROKEBERG commented that in reading the sponsor                 
 statement, he could see where the proceeds are intended to go.                
 He asked whether there was anything in statute to mandate them                
 changing where the beneficiary or profits would go.                           
                                                                               
 Number 405                                                                    
                                                                               
 MS. OSTENDORF said the permit holder could have the proceeds go               
 to any organization.  In this case, KSKO Radio had opted to keep              
 half of the proceeds and to share the other half with the McGrath             
 Emergency Services.  Once they have a permit, they can change                 
 that.  There is nothing in statute prohibiting them from sharing              
 the money with whomever they want.                                            
 Number 412                                                                    
                                                                               
 CHAIRMAN KOTT asked if the Kuskokwim Public Broadcasting Company              
 was also responsible for the Bethel Kuskokwim Classic.                        
                                                                               
 Number 413                                                                    
                                                                               
 MS. OSTENDORF replied no.  They do not currently hold the permit              
 for this.  She wasn't sure who was responsible for that.                      
                                                                               
 Number 415                                                                    
                                                                               
 REPRESENTATIVE KUBINA said Bethel Social Services.                            
                                                                               
 Number 419                                                                    
                                                                               
 DENNIS BOCHARD, DIRECTOR, DIVISION OF CHARITABLE GAMING,                      
 DEPARTMENT OF REVENUE, stated that he was in attendance to answer             
 any questions the committee might have.  The division is neutral              
 on the bill as there are several other ice classics, and this                 
 would be no different than those they currently oversee.                      
                                                                               
 Number 428                                                                    
                                                                               
 REPRESENTATIVE MASEK commented that with the state being in the               
 situation it's in, they were going to have to have an "Alaskan                
 Classic Day."  She made a motion to move CSHB 249(L&C) with                   
 individual recommendations and accompanying zero fiscal note out              
 of committee.                                                                 
                                                                               
 Number 434                                                                    
                                                                               
 CHAIRMAN KOTT asked if there were any objections.  Hearing none,              
 CSHB 249(L&C) was passed out of the House Labor and Commerce                  
 Committee.                                                                    
 HB 263 - CERTIFICATION OF HAZARDOUS WASTE WORKERS                            
                                                                              
 Number 446                                                                    
                                                                               
 CHAIRMAN KOTT stated the next matter to come before the committee             
 would be HB 263.                                                              
                                                                               
 Number 449                                                                    
                                                                               
 GEORGE DOZIER, LEGISLATIVE ASSISTANT TO REPRESENTATIVE PETE KOTT,             
 ALASKA STATE LEGISLATURE, stated that the original bill amended               
 Title 46 and granted the Department of Labor (DOL) the authority              
 to promulgate regulations which would establish standards for                 
 hazardous waste worker certification.  Authority is also granted              
 to review and approve certification programs.  The programs would             
 not be operated by the DOL.  Instead, they will be operated by                
 employers, unions, colleges, and other organizations.  The bill               
 required workers to be certified before they undertake work at                
 hazardous waste sites.  The employers would propose certification             
 programs to the department, which would review the programs and               
 grant approval if appropriate.  The employer would also have to               
 certify that each worker was adequately trained to safely handle              
 the waste.  The bill establishes a civil penalty of $1,000 and                
 two levels of criminal penalties at the class A and B misdemeanor             
 levels.  The CS, Version K, dated 4-27-95, makes changes proposed             
 by the DOL.  The most significant being that it removes the                   
 statute from Title 46 and places it in Title 18.  The language in             
 the original version concerning the handling of hazardous waste               
 has been replaced with reference to working at hazardous waste                
 sites.  Section G expands the department's authority to                       
 promulgate regulations.  The department is granted authorization              
 to implement this section.  The department has submitted a                    
 reduced fiscal note.                                                          
                                                                               
 Number 487                                                                    
                                                                               
 REPRESENTATIVE MASEK said she didn't have a copy of the new CS or             
 the new fiscal note.                                                          
                                                                               
 Number 492                                                                    
                                                                               
 REPRESENTATIVE ROKEBERG asked the date of the fiscal note.                    
                                                                               
 MR. DOZIER responded the new fiscal note was dated 4-6-95; the                
 old fiscal note is dated 3-28-95.                                             
                                                                               
 Number 502                                                                    
                                                                               
 BEVERLY WARD, DIRECTOR, SOUTHEAST GOVERNMENT RELATIONS, ARCO                  
 ALASKA, INCORPORATED, stated that the changes made in the                     
 proposed CS were an improvement to the bill.  The statutory                   
 references and the use of the phrase "hazardous waste site" are               
 consistent with the intent.  However, ARCO Alaska opposes HB 263.             
 They believe it duplicates existing laws and regulations and will             
 create more bureaucracy.                                                      
                                                                               
 MS. WARD described the hazardous waste operations and emergency               
 response training requirements known as HAZWHOPPER.                           
 HAZWHOPPER is the name given to a Federal Occupational Safety                 
 Health Administration (OSHA) regulation 29.CFR 19.10.120, and it              
 was adopted by the state of Alaska, OSHA, Subchapter 10.01.01.                
 The regulation was designed to protect employees involved in                  
 three aspects of hazardous chemical exposure.  First, those                   
 cleaning hazardous waste sites, as defined in regulation;                     
 second, those handling wastes at a specially designed treatment               
 storage and disposal facility; and third, those responding to                 
 chemical spills.  HB 263 addresses those who are employed in                  
 cleaning hazardous waste sites.  The general site workers                     
 involved in most operations at a hazardous waste cleanup site are             
 presently required to have a 40 hour training class.  The content             
 of the class is specifically described in regulation.  "The                   
 content of the class must include the names of personnel and all              
 (indisc.) responsible for site safety and health; safety and                  
 other hazards present on site; use of personal protective                     
 equipment; work practices by which the employee can minimize                  
 risks from hazards; safe use of engineering controls and                      
 equipment on site; medical surveillance requirements including                
 recognition of symptoms and signs which might indicate                        
 overexposure to hazards; contents of the site safety and health               
 plan required by other sections of the regulation."                           
                                                                               
 MS. WARD continued that these workers were also required to have              
 three days of actual field experience under the direct                        
 supervision of a trained experienced supervisor.  Other workers               
 who may only occasionally be on the site or who are located in                
 areas away from the main hazardous work are required to have 24               
 hours of training similar to the training listed above.  If they              
 become general site workers, they have to obtain the extra 16                 
 hours of training.  The workers need eight hours of annual                    
 refresher training each year.  The training group must provide a              
 certificate to the employee acknowledging that the employee has               
 completed the course.                                                         
                                                                               
 Number 539                                                                    
                                                                               
 MS. WARD stated that because of the 40 hour training already                  
 required under HAZWHOPPER, they believe the bill to be redundant.             
 She based this assessment on the following considerations:  The               
 fact that employees already receive initial classroom training;               
 the requirement of three days of supervised, on the job training;             
 the required eight hours of refresher training and the fact that              
 regulations specifically address what information must be                     
 presented; and the fact that employees already receive                        
 certificates.  She said HB 263 will have an impact on the state.              
 The fiscal note shows two additional employees.  The training                 
 providers will have to pay for the course review, thus raising                
 their training rates to defer costs.  She noted that the                      
 department had been talking with them in the past few days to                 
 address some of ARCO's concerns and are willing to continue                   
 dialogue on specific language.  She said if the bill is moved,                
 they would continue to work with DOL and the next committee of                
 referral.                                                                     
                                                                               
 Number 553                                                                    
                                                                               
 REPRESENTATIVE ELTON noted the testimony Ms. Ward gave speaks to              
 HAZWHOPPER which speaks to chemical exposure.  He asked, "Is that             
 narrower than what this bill would do?"                                       
                                                                               
 MS. WARD responded no.                                                        
                                                                               
 REPRESENTATIVE ELTON asked, "@What about radioactivity, asbestos              
 or (indisc)?"                                                                 
                                                                               
 Number 558                                                                    
                                                                               
 MS. WARD replied that radioactive materials may have their own                
 regulations because of the problems with the nuclear industry.                
 She could not address that.  HB 263 would include crude oil and               
 things of that nature.  She did not believe it was "narrower" in              
 any sense.  The HAZWHOPPER training can be narrowed.  For                     
 example, if you had a spill and knew exactly what exposure                    
 employees would have, HAZWHOPPER training could be for those who              
 hadn't had training already.  It could be very specific and                   
 directed towards deficiencies.                                                
                                                                               
 Number 568                                                                    
                                                                               
 REPRESENTATIVE ELTON surmised that HAZWHOPPER was not just                    
 chemical, it could apply to...                                                
                                                                               
 MS. WARD interjected that it applied to a broad spectrum of                   
 hazardous substances.                                                         
                                                                               
 CHAIRMAN KOTT turned to the teleconference line.                              
                                                                               
 Number 575                                                                    
                                                                               
 BLAKE JOHNSON, LABORERS LOCAL 341, testified from Anchorage, via              
 teleconference.  He stated he would like to see HB 263 passed out             
 of committee, and would also encourage continued work on it so                
 the language would suit everyone.  One of his concerns when                   
 working out in the field is if the person next to him was                     
 adequately trained.  If a person carries certification from                   
 another state, how do we know that program was adequate.  As this             
 work becomes more prevalent, it might be easy to counterfeit                  
 certificates, because there is a cost for the training.  The                  
 costs could run anywhere from $500 to $700.  Someone might not                
 hesitate to sell counterfeit cards for $100.  This program would              
 be similar to the asbestos certification program and,                         
 consequently, they would know they had trained people.  There is              
 going to be $50 million to $100 million worth of work per year in             
 Alaska, at a minimum.  He asked the committee to pass the bill                
 out so that it could continue through the process.  Laborers                  
 Local 341 would continue to look at anything that would help to               
 "fine tune" the bill.                                                         
                                                                               
 Number 594                                                                    
                                                                               
 CHAIRMAN KOTT asked if there was anyone else wishing to testify               
 on HB 263.  Seeing none, he stated HB 263 was sponsored by the                
 Labor and Commerce Committee.  They had received a lot of written             
 testimony in support of the bill, with little opposition.  There              
 were comments from both sides regarding a few small problems.                 
 His intent was to keep the bill in committee to work with DOL to              
 find some solutions.  They would hold the bill in committee.                  
 SB 53 - OMNIBUS INSURANCE REFORM                                            
                                                                               
 Number 610                                                                    
                                                                               
 CHAIRMAN KOTT stated that SB 53 was introduced by the Senate                  
 Judiciary Committee.  Having no one present from that committee,              
 he asked Marianne Burke to give the committee an overview.                    
                                                                               
 MARIANNE BURKE, DIRECTOR, DIVISION OF INSURANCE, DEPARTMENT OF                
 COMMERCE AND ECONOMIC DEVELOPMENT, testified that CSSB 53(JUD)                
 was a successor bill to SB 362 and HB (indisc.--end of tape)                  
                                                                               
 TAPE 95-54, SIDE B                                                            
 Number 000                                                                    
                                                                               
 MS. BURKE continued that these were not passed.  SB 53 includes               
 language to address new areas of insurance regulation, it adopts              
 new accreditation standards added by the National Association of              
 Insurance Commissioners (NAIC) and makes needed corrections to                
 the insurance statutes.  These changes will bring statutes up to              
 date with the insurance market and allow the division to maintain             
 its NAIC accreditation, granted in  December of 1992.  A zero                 
 fiscal note was submitted.                                                    
                                                                               
 MS. BURKE explained that the changes to the bill made between                 
 legislative sessions were minor.  These include language cleanup              
 to include the 1992 change in license classes from agent and                  
 broker to producer, and general agent to managing general agent.              
 It contains the revision of language pertaining to the standard               
 valuation law.  The cleanup language replaces a reference to the              
 Federal Savings and Loan Insurance Corporation, which no longer               
 exists, with the Federal Deposit Insurance Corporation.  It adds              
 to acts considered fraudulent insurance acts.  The additions                  
 include:  Falsely altering an insurance document; knowingly                   
 possessing a forged insurance document; knowingly issuing a                   
 forged insurance document; and establishes penalties for these                
 acts.                                                                         
                                                                               
 Number 147                                                                    
                                                                               
 MS. BURKE stated that the bill clarifies that a reciprocal                    
 insurer, insuring municipalities or nonprofit utilities or                    
 providing marine insurance, do not have to participate in the                 
 assigned risk plan for motor risk coverage.  It includes the                  
 division's actuary and assistant actuary as exempt employees.                 
 The bill includes 22 sections related to the NAIC accreditation,              
 such as:  Regulation of risk retention groups and purchasing                  
 groups as allowed by federal law; modifying the examination                   
 hearing provision to allow for closing it to the public under                 
 certain circumstances; requiring insurer financial statement                  
 filing to the NAIC on electronic media; requiring disclosure by               
 an insurer of material transactions of purchase, disposal of                  
 assets or reinsurance; (Indisc). reinsurance; risk based capital              
 provisions; reserve calculations; actuarial opinions; and holding             
 company reporting requirements.  It allows the Director to file               
 civil actions for damages caused by violations of statutes by                 
 managing general agents, reinsurance and mediary brokers,  and                
 reinsurance and mediary managers.  It also cleans up the                      
 definition of "member insurer" of the Life and Disability                     
 Guarantee Association.                                                       
                                                                              
 MS. BURKE continued that some other key provisions include:                   
 Authority to respond to catastrophic situations; the ability to               
 suspend the certificate of authority of an insurer for                        
 non-renewal; providing for voluntary relinquishment of an Alaska              
 Certificate of Authority by an insurer domiciled in another                   
 state; authority to refund or grant credits for overpayment of                
 premium taxes by an insurer due to an error or misinterpretation;             
 provides requirements for licensing of U.S. branches of alien,                
 non U.S. domiciled insurers, to allow these insurers to use                   
 Alaska as a base of operation for business written within the                 
 United States.  It provides authority to require continuing                   
 education for licensed insurance (indisc.--coughing); it requires             
 the insurance premium fiduciary accounts of resident insurance                
 licensees to be located in Alaska; it provides that a single                  
 fiduciary bond can cover multiple producer office locations; it               
 adds incorporated insurers to the definition of a group to                    
 reflect the recent changes at Lloyd's of London; it clarifies                 
 when rate changes may be made to outstanding policies; it                     
 provides that false statements made in regard to a claim may                  
 result in prosecution under Alaska law; it allows the director to             
 specify the format and content of rate and policy form filings                
 made to the Division;   it clarifies health insurance coverage                
 for new born and adoptive children; it provides for re-                       
 domestication of insurers domiciled in Alaska and moving to                   
 another state or, requesting to move their domicile from another              
 state to Alaska; it provides for the voluntary surrender of an                
 Alaska Certificate of Authority by a domestic insurer; it                     
 provides the authority to request quarterly financial statements              
 from all entities regulated by the Division; it allows insurers               
 to pay claims by electronic wire transfer; it provides authority              
 to the director to specify requirements for the electronic data;              
 and, it otherwise makes corrections and clarifies statutory                   
 provisions.                                                                   
                                                                               
 MS. BURKE said the bill also incorporates amendments suggested by             
 the division.  A new section was added giving the director                    
 discretion to accept an insurers examination report from a                    
 nonaccredited state, and it gives the director clear authority to             
 require extra examination supervision if a state was performing               
 substandard examination.  She said revisions were made to the                 
 section pertaining to risk retention groups to avoid conflicts                
 with federal law.  Section 35, dealing with continuing education              
 requirements for insurance licensees, was amended to include                  
 language agreed to by the division and the Alaska Independent                 
 Agents and Brokers Association.  The fraudulent insurance acts                
 provision was modified to reflect recommendations by the DOL.                 
 Language was added to various health insurance contracts statutes             
 to make them applicable to health maintenance organizations.  The             
 section of (indisc.) independent counsel, conflicts of interest               
 counsel was deleted.  This provision was not authored by the                  
 division, and legal counsel advised them that it was neither                  
 necessary or consistent with the Alaska Supreme Court decision                
 Chi of Alaska, Incorporated versus Employers Reinsurance.  The                
 bill was also amended by the Senate Judiciary Committee to remove             
 the Consumer Credit provisions.  Senator Taylor agreed to sponsor             
 a separate piece of legislation on consumer credit which would                
 incorporate some of the amendments suggested during the Senate                
 Judiciary Committee hearing process.  That bill is currently                  
 being drafted.                                                                
                                                                               
 MS. BURKE continued that minor wording changes were made in                   
 Section 15, changing the reference to a Canadian or British                   
 chartered accountant, to make the reference more global.  Section             
 32 was amended to include the wording, "or the aggregate of a                 
 series of related transactions", to close a potential holding                 
 company reporting loop hole.  In Section 82 there was a typo                  
 correction, changing the word "and" to "or".                                  
                                                                               
 Number 191                                                                    
                                                                               
 REPRESENTATIVE ELTON referred to the Chi (indisc.) reference and              
 said the back-up material says page 63.  He asked what section                
 was it in?                                                                    
                                                                               
 MS. BURKE responded the section had been removed.                             
                                                                               
 Number 207                                                                    
                                                                               
 REPRESENTATIVE KUBINA asked Chairman Kott what his intentions for             
 the bill were.                                                                
                                                                               
 Number 209                                                                    
                                                                               
 CHAIRMAN KOTT commented that it was his intent, as always, to                 
 have a good understanding of the bill before taking action.                   
                                                                               
 Number 232                                                                    
                                                                               
 REPRESENTATIVE MASEK asked if there were other committee                      
 referrals.                                                                    
                                                                               
 Number 233                                                                    
                                                                               
 CHAIRMAN KOTT answered no.                                                    
                                                                               
 Number 237                                                                    
                                                                               
 REPRESENTATIVE ROKEBERG observed this was a very complex bill                 
 that needed to be closely looked at.                                          
                                                                               
 Number 242                                                                    
                                                                               
 REPRESENTATIVE ELTON had a concern about slowing things down on               
 what is purported to be technical changes.  He referred to when               
 accreditation comes up and asked what happens if this gets                    
 stalled this session.                                                         
                                                                               
 Number 250                                                                    
                                                                               
 MS. BURKE said many of the 22 items listed must be in place by                
 January 1, 1996.                                                              
                                                                               
 Number 254                                                                    
                                                                               
 REPRESENTATIVE ELTON stated he had asked the question because he              
 was in the Department of Commerce at the time the program became              
 accredited.  It eased the ability of a state to work with other               
 states on cross jurisdictional matters.  It meant that a lot of               
 duplicative things did not need to be done because the program                
 was nationally accredited.  He pointed out if this was not done               
 prior to accreditation, it would complicate matters not only for              
 the division but also for insurers who want to do business in the             
 state.                                                                        
                                                                               
 REPRESENTATIVE BRIAN PORTER joined the meeting at 4:13 p.m.                   
                                                                               
 Number 268                                                                    
                                                                               
 CHAIRMAN KOTT asked Ms. Ward if the provisions were not                       
 implemented, was it her interpretation they would lose                        
 accreditation or was it that they "may" lose accreditation.                   
                                                                               
 MS. BURKE responded "may."                                                    
                                                                               
 CHAIRMAN KOTT stated that it should be on the record that there               
 is no guarantee we would lose accreditation.                                  
                                                                               
 Number 280                                                                    
                                                                               
 REPRESENTATIVE KUBINA stated he had never looked at a bill like               
 this on the insurance industry.  If they were to have a                       
 subcommittee on the bill, he would volunteer to be on it.  He                 
 said he wouldn't feel comfortable at this time to pass the bill               
 out of committee.                                                             
                                                                               
 Number 287                                                                    
                                                                               
 MS. BURKE pointed out SB 53 had also been referred to the House               
 Judiciary Committee; however, there is a memorandum with all                  
 members agreeing to waive it from committee.                                  
                                                                               
 Number 291                                                                    
                                                                               
 REPRESENTATIVE PORTER noted that this was the same bill that had              
 made it through the system last year; however, for some reason it             
 wasn't passed.  There is no one who doesn't like the bill.                    
                                                                               
 Number 301                                                                    
                                                                               
 CHAIRMAN KOTT said he did not want to send the bill to                        
 subcommittee but would hold the bill over to Wednesday's                      
 calendar.  He asked committee members to look at any important                
 sections and contact the Division of Insurance if they had                    
 questions.                                                                    
 HB 270 - RETIREMENT INCENTIVE PROGRAM                                        
                                                                               
 Number 312                                                                   
                                                                               
 CHAIRMAN KOTT asked the director from the Office of Management                
 and Budget (OMB) to give her comments on HB 270.                              
                                                                               
 ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,                 
 OFFICE OF THE GOVERNOR, testified that HB 270 was one of the key              
 management tools the Administration was seeking to help OMB deal              
 with the state's current fiscal situation.  It also addresses the             
 downsizing of state government, not only in as financially                    
 effective way as possible, but to also address the needs of                   
 employees.  She said they have structured the program differently             
 than previous retirement incentive programs (RIP).  It is their               
 intention to use it in areas where the position would be not only             
 vacated but eliminated.                                                       
                                                                               
 MS. MCCONNELL said the same sort of program could be used by                  
 local governments and school districts, both of which have                    
 expressed interest in having the same kind of management tool                 
 available to them.  The initial plan was to restrict the RIP bill             
 only to those areas where the positions would be eliminated.                  
 However, they decided it was a good idea to leave open the                    
 possibility of replacing employees in certain situations where                
 they could demonstrate, within a three year time frame,                       
 significant savings.  This would be implemented in the area of 24             
 hour institutions, such as pioneer homes or corrections.  They                
 would be replacing the employees who are very high on the pay                 
 scale with employees at a lower range and step.  For example, a               
 guard currently at a 15J level would be replaced by an 11A, for a             
 savings of nearly half the total cost.  They shorten the period               
 during which the savings must be demonstrated to three years.                 
 They would also insist all costs be taken into account.                       
                                                                               
 MS. MCCONNELL pointed out there would be a need for substantial               
 reduction in positions over the next few years.  They have                    
 recommended a three year window and set it up so this would be                
 applied strategically.  She said this was the largest difference              
 between past RIP programs.  It is not an across the board RIP,                
 and it would only be used where it could be demonstrated to yield             
 a savings.  Departments would have to show this fit not only the              
 financial need for cost savings, but also their operational                   
 plans, so services would not be disrupted in order to grant                   
 RIP's.  It would not be at the discretion of the employee.  She               
 would be pleased to address questions the committee might have.               
                                                                               
 Number 384                                                                    
                                                                               
 REPRESENTATIVE ELTON asked if she was comfortable with the CS.                
                                                                               
 MS. MCCONNELL answered yes.  It was done as a result of inquiries             
 from local government.  The Administration surveyed and found                 
 they could handle the expected work load.                                     
                                                                               
 Number 388                                                                    
                                                                               
 REPRESENTATIVE KUBINA asked if she would object to adding the                 
 Judicial System.                                                              
                                                                               
 Number 390                                                                    
                                                                               
 MS. MCCONNELL said she would prefer that Mr. Bob Stalnaker speak              
 to the Judicial System question.                                              
                                                                               
 Number 393                                                                    
                                                                               
 REPRESENTATIVE KUBINA observed that on page 7, the window for the             
 school distinct plan was shorter than the window for the state                
 plan.  He asked if there was any reason not to expand the window              
 for school districts.                                                         
                                                                               
 Number 397                                                                    
                                                                               
 MS. MCCONNELL explained that they had problems with the                       
 mechanics.  Since Mr. Stalnaker was the administrator of this,                
 they had worked out the windows so not only would they fit some               
 over all purposes for downsizing, but also they could be sure the             
 Administration could meet its commitments on the administrative               
 end.  She said Mr. Stalnaker could speak best to that aspect.                 
                                                                               
 Number 403                                                                    
                                                                               
 REPRESENTATIVE ROKEBERG asked which sections held the provisions              
 for eliminating positions.                                                    
                                                                               
 Number 408                                                                    
                                                                               
 MS. MCCONNELL stated they didn't require that the position be                 
 eliminated, although that was their initial intent.  This was                 
 because of situations like correctional institutions, pioneer                 
 homes, and health and human services facilities which require 24              
 hour care.  They realized a substantial savings could still be                
 made even if they replaced those positions.  She noted they had               
 submitted a diagram to the State Affairs Committee which outlined             
 the steps they would go through to ensure a cost savings over the             
 three year time period.                                                       
                                                                               
 Number 433                                                                    
                                                                               
 REPRESENTATIVE MASEK asked if the Administration worked with                  
 State Affairs on the changes in the CS.                                       
                                                                               
 Number 438                                                                    
                                                                               
 MS. MCCONNELL answered yes.  The changes came from the hearing in             
 State Affairs where a number of communities testified they were               
 interested in having a wider window so they could use the RIP.                
 The initial reason for not having a wider window was they were                
 skeptical about being able to handle all of the administrative                
 work that would be required to do the RIP not only for state                  
 employees but also the political subdivisions.  As a result of                
 that hearing, the Department of Administration did a quick survey             
 of local communities to find out the work load they could expect.             
 They found they would be able to handle it.                                   
                                                                               
 Number 451                                                                    
                                                                               
 REPRESENTATIVE KUBINA asked if in Section 10 where the separation             
 incentive program was added, would those positions remain                     
 unfilled.  He also asked if there were positions that people                  
 wouldn't be retiring from, but just eliminating the position.                 
                                                                               
 Number 457                                                                    
                                                                               
 MS. MCCONNELL replied yes.  She said this was a provision she was             
 resistant about initially.  However, she spoke to private                     
 employers who pointed out that separation incentives are                      
 important because often it is the case that the places in need of             
 downsizing, or which present the greatest opportunity for                     
 savings, aren't necessarily the places where you have the oldest              
 employees.  There are situations where the separation incentive               
 can end up being less expensive for the state than the retirement             
 incentive.                                                                    
                                                                               
 Number 477                                                                    
                                                                               
 CHAIRMAN KOTT inquired whether that the Administration had a goal             
 as to where they wanted to be in three to five years, as far as               
 downsizing.                                                                   
                                                                               
 Number 479                                                                    
                                                                               
 MS. MCCONNELL responded that the Administration had not yet                   
 pegged a specific dollar amount.  The long-range fiscal planning              
 commission which is now underway would help look at the issue.                
 She said coming in as a new Administration, they have not yet had             
 a chance to have the commissioners take a look at all the                     
 services out there and where the greatest opportunities for                   
 savings were located.  They also have not had a chance to look at             
 the statutory and regulatory requirements that they might want to             
 propose changing.  They plan on having an outline ready with the              
 next budget what addressing what they think makes sense                       
 concerning expenditures in the out years.                                     
                                                                               
 Number 510                                                                    
                                                                               
 REPRESENTATIVE SANDERS inquired if the example she used of level              
 15J being replaced by an 11A was a normal situation.  He thought              
 perhaps they would need to replace them with someone closer to                
 experience and longevity.                                                     
                                                                               
 Number 517                                                                    
                                                                               
 MS. MCCONNELL explained that people were moving up the career                 
 ladder with greater experience and training.  So, although the                
 person leaving would be at a 15J, the new person replacing him                
 would be at the bottom.  Other employees already would have gone              
 through those steps.  They wouldn't be replacing a large chunk of             
 experience with inexperienced people.  In the case of                         
 corrections, for example, you would still maintain the experience             
 and training in the work force to continue to get the job done                
 right.                                                                        
                                                                               
 Number 531                                                                    
                                                                               
 CHAIRMAN KOTT commented on having sat through another session of              
 budget hearings, and most of the departments which testified                  
 commented they were stretching themselves thin.  The personnel                
 cuts, over the years, have gotten to the point where they can't               
 fulfill their statutorily required actions.  Without making                   
 substantial cuts in programs, he doesn't think the departments                
 can absorb any more personnel losses.                                         
                                                                               
 Number 546                                                                    
                                                                               
 MS. MCCONNELL concurred this was the general feeling among the                
 commissioners.  They've gotten to the point where they need to                
 address which functions are no longer as necessary as they have               
 been in the past.  She said the effort has begun, and in some                 
 area proposals are coming forward, such as with the Department of             
 Environmental Conservation (DEC).                                             
                                                                               
 Number 560                                                                    
                                                                               
 CHAIRMAN KOTT said this was commendable.  He added that with over             
 20,000 employees out there, he hoped the people advocating and                
 pushing this legislation wouldn't think for an instant they would             
 cut 5000 employees without wholesale changes in the way business              
 is conducted in the state.  The RIP will satisfy some                         
 requirements; however, they won't see a 20 percent reduction in               
 the state work force.                                                         
                                                                               
 MS. MCCONNELL agreed and added it was important not to have                   
 expectations out of line.  They want them to be challenging                   
 expectations, not unrealistic.                                                
                                                                               
 Number 568                                                                    
                                                                               
 REPRESENTATIVE SANDERS inquired if there were more state                      
 employees today than in May, 1994.                                            
                                                                               
 Number 569                                                                    
                                                                               
 MS. MCCONNELL replied she wasn't sure about the number for 1994.              
 There are places where there have been increases, such as in                  
 Child Support Enforcement.  There were 31 enforcement officers                
 added during the course of last year and many of those were added             
 with federal funds.  She said as the federal government changes               
 its requirements, they still don't know where these changes will              
 come.  However, they may affect areas of state government.  They              
 need to be prepared to address those.                                         
                                                                               
 Number 584                                                                    
                                                                               
 REPRESENTATIVE SANDERS asked if there were any significant areas              
 that were downsized.                                                          
                                                                               
 MS. MCCONNELL said she wasn't aware of one particular area where              
 the number went down.  There were more positions in this year's               
 budget than in last year's budget, attributable to a combination              
 of child support enforcement, totally revenue supported                       
 positions, and capital funded positions.                                      
 CHAIRMAN KOTT asked if there were more questions for Ms.                      
 McConnell.  Hearing none, he asked the representative from the                
 Alaska Marine Highway to join them at the table.                              
                                                                               
 Number 594                                                                    
                                                                               
 PHYLLIS OLSTA, STEWARD, ALASKA MARINE HIGHWAY SYSTEM, DEPARTMENT              
 OF TRANSPORTATION AND PUBLIC FACILITIES, testified that all                   
 employees of the ferry system were members of the union.  The                 
 terms of the new contract are not as generous as the contracts                
 prior to 1986.  Her vacation benefit is $3,100 a year more than               
 employees hired at this time.  She said she is at the age where               
 she could continue working for another five or six years.  The                
 person replacing her would receive no more than 35 hours a month              
 vacation.  The employees working in this system would be younger,             
 receiving less benefits, supporting the economy, building homes,              
 sending their children to school and other things that would be               
 much more cost effective than older employees, who are not                    
 stimulating the Alaskan economy in such a manner.                             
                                                                               
 Number 611                                                                    
                                                                               
 JIM TEDFORD, PARENT, read the following statement:  "To whom it               
 may concern:  Alaska is no longer the land of plenty.  We all                 
 have to learn to get by with less, but we should try to minimize              
 the impact on our children.  Today most school districts are in a             
 financial bind.  Class sizes are growing and education is                     
 suffering.  HB 270 offers a partial solution to this crisis in                
 funding.  A retirement incentive program would free up thousands              
 of dollars that school districts could use to better educate our              
 children.  Please move HB 270 expeditiously through the                       
 legislative process so RIP can be in place before the end of the              
 school year.  Thank you."                                                     
                                                                               
 Number 624                                                                    
                                                                               
 REPRESENTATIVE KUBINA asked Mr. Bob Stalnaker, Director, Division             
 of Retirement and Benefits, Department of Administration, why on              
 page 7, lines 4 and 5, the time span for school districts was so              
 short.                                                                        
                                                                               
 Number 629                                                                    
                                                                               
 BOB STALNAKER, DIRECTOR, DIVISION OF RETIREMENT AND BENEFITS,                 
 DEPARTMENT OF ADMINISTRATION, answered that the time window is                
 the same as in the previous two RIPs.  It is designed to cover                
 two school years.                                                             
                                                                               
 TAPE 95-55, SIDE A                                                            
 Number 000                                                                    
                                                                               
 REPRESENTATIVE KUBINA asked if their plan had to be submitted                 
 between the end of June, and the end of the year, they then could             
 then retire at the end of this school year and the end of the                 
 next school year.                                                             
                                                                               
 MR. STALNAKER said this was correct.  By having a June 30, as the             
 application date, a person can apply and then be retired on July              
 1, for this school year.  By having it in July, they can apply                
 June 30 next year to be retired by July 1 of the following year,              
 which would give them the latitude of two school years.                       
                                                                               
 Number 018                                                                    
                                                                               
 REPRESENTATIVE KUBINA said he was thinking specifically of Delta              
 Junction, currently in the process of base closure over the next              
 three years.  Because they have the three year closure plan, he               
 asked if it would be objectionable to extend the date of August               
 1, 1996 to 1997.                                                              
                                                                               
 Number 034                                                                    
                                                                               
 MR. STALNAKER responded that first and foremost they have always              
 looked at this as a tool.  They have been diligent in making it               
 revenue neutral to the systems, by identifying the full cost up               
 front.  If the employer can better utilize the tool by extending              
 it another year for school districts, the retirement system                   
 wouldn't have an objection.  It would expand the number of                    
 teachers for all school districts which would qualify, giving                 
 them more latitude in phasing it through.                                     
                                                                               
 Number 048                                                                    
                                                                               
 REPRESENTATIVE KUBINA stated they would still have to file their              
 plan before the end of this calendar year.                                    
                                                                               
 MR. STALNAKER said this was correct.                                          
                                                                               
 Number 051                                                                    
                                                                               
 JACK KREINHEDER, SENIOR POLICY ANALYST, OFFICE OF MANAGEMENT AND              
 BUDGET, OFFICE OF THE GOVERNOR, stated that when the bill was                 
 being drafted, they discussed it with representatives from the                
 education community.  The concerns some school districts have                 
 with extending the window are that they have problems they need               
 to address now.  They want as many teachers who might be able to              
 participate now to do so, but teachers, given the option of                   
 another year, may stay on the payroll for another two years.                  
 School districts could address this by saying if they are                     
 eligible for the program they must use it now.  Only teachers not             
 eligible will be able to use it down the road.                                
                                                                               
 Number 074                                                                    
 MR. STALNAKER concurred with Mr. Kreinheder.  In previous RIPs,               
 some school districts have offered cash incentives to entice                  
 teachers to retire during the first year instead of the second.               
 He said they haven't heard from school districts that they don't              
 like the window.  They have heard from the employees that they                
 would like the longer window period in which to strategically use             
 it themselves.                                                                
                                                                               
 Number 091                                                                    
                                                                               
 REPRESENTATIVE KUBINA asked if he had an objection in including               
 the Judicial System in this bill.  He asked, "Are they under your             
 purview or are they a separate retirement system?"                            
                                                                               
 MR. STALNAKER responded that it was a separate retirement system,             
 but felt this would be fine.                                                  
                                                                               
 Number 101                                                                    
                                                                               
 MARK LIVINGSTON, testified from Ketchikan via teleconference in               
 support of HB 270.  He read the following statement:  "Recently               
 Ketchikan School District has had to cut many educational                     
 programs.   The school district is looking at a $200,000 plus                 
 deficit.  Next year, the funding unit will be at $61,000, and                 
 they're talking about a funding unit cut to $59,000.  Because                 
 classroom teaching positions are based on school enrollment,                  
 teaching positions cannot be eliminated or reduced much, at least             
 hopefully, more than it already has been.  If retiring teachers               
 are replaced with teachers at the low end of the pay scale,                   
 school districts will save a substantial amount of money.                     
 According to the Ketchikan School District business manager there             
 are approximately 40 teachers eligible to retire now.  If a                   
 retirement incentive program were passed, Ketchikan School                    
 District could save from $67,452 to $85,716 for each retiring                 
 teacher over a three year period.  Within the last decade, 75                 
 percent of the largest U.S. companies have offered early                      
 retirement options.  This comes out of U.S. News and World                    
 Report, dated November, 1991.  I think that's a pretty good                   
 endorsement considering corporate America's search for a better               
 bottom line.  The retirement incentive bill is one of the more                
 viable options available to save money.  Thank you."                          
                                                                               
 Number 139                                                                    
                                                                               
 GARY BLOOMQUIST, CITY MANAGER, CITY OF KODIAK, testified from                 
 Kodiak via teleconference.  He stated that in 1992, they made                 
 efforts to gear their budgeting and personnel policies to                     
 accomplish significant savings in the long term.  He said anyone              
 being replaced in Kodiak would be replaced at a step A rather                 
 than a step I.  In 1992, they eliminated longevity pay for all                
 new hires, expecting to get the benefit of the elimination of                 
 longevity pay over a seven to ten year period.  All new employees             
 would be hired with nine days less vacation per year.  In order               
 to budget and maintain minimal staffing levels they use overtime.             
 Beginning April 1, 1992, they established part payment for                    
 dependent medical coverage.  They have 32 people that would be                
 eligible out of a total employment force of 107.  The estimates               
 show that 16 of those would leave.  He said they would hate to                
 lose them all at one time.  He said he very much appreciates the              
 effort that has gone on in the House to extend the period and                 
 move the date to an earlier date.  It appears the savings for                 
 Kodiak in the first year would conservatively exceed $200,000.                
 They would like to take advantage of this as soon as possible.                
 The major concern they have is the Senate has merged SB 137 into              
 SB 148, and the savings could be denied to them if the retirement             
 bill alone isn't allowed to proceed as the retirement bill.  He               
 said they would appreciate any advice the committee might have,               
 and thanked them for their time.                                              
                                                                               
 Number 175                                                                    
                                                                               
 CHAIRMAN KOTT inquired how the two Senate bills were intertwined.             
                                                                               
 Number 177                                                                    
                                                                               
 MR. BLOOMQUIST replied, "As of this morning SB 137, which is the              
 House's HB 270 as was amended in the House and moved onto this                
 committee, was merged into SB 148 which, in effect, is a new                  
 retirement program.  There is now a single SB 148 and SB 137 has              
 gone no where.                                                                
                                                                               
 REPRESENTATIVES KOTT and Kubina both commented: "The plot                     
 thickens."                                                                    
                                                                               
 Number 187                                                                    
                                                                               
 CHAIRMAN KOTT believed that bill to be in the Senate Finance                  
 Committee.                                                                    
                                                                               
 Number 191                                                                    
                                                                               
 MR. BLOOMQUIST believed the bill passed out of the Finance                    
 Committee this morning.  He said their understanding was that SB              
 148 is controversial enough and hasn't had the full discussion                
 that HB 270 has had and could possibly cause the demise of the                
 RIP bill.                                                                     
                                                                               
 Number 207                                                                    
                                                                               
 CHAIRMAN KOTT added that very seldom do they follow what's going              
 on in "the Dark Side".  He asked Representative Porter to                     
 comment, having chaired the subcommittee on HB 270.                           
                                                                               
 Number 213                                                                    
 REPRESENTATIVE PORTER stated the subcommittee of the State                    
 Affairs Committee came away with the impression that HB 270 was               
 designed to do exactly what they were touting it to do.  The                  
 mechanism is in place to review and make sure it does that.  The              
 bill doesn't guarantee the budgets of affected divisions and                  
 departments would go down.  That is the function of the                       
 legislature in the years to come, to take the reports HB 270                  
 requires to be submitted and find out if the budgets don't come               
 down, and what the cause is.                                                  
                                                                               
 Number 234                                                                    
                                                                               
 REPRESENTATIVE KUBINA offered Amendment 1, to include the                     
 Judiciary System.                                                             
                                                                               
 Number 247                                                                    
                                                                               
 CHAIRMAN KOTT objected for the purpose of discussion.                         
                                                                               
 REPRESENTATIVE KUBINA told the committee it would be the entire               
 Section 9.  This is the same language that was in the Senate                  
 version.                                                                      
                                                                               
 Number 266                                                                    
                                                                               
 CHAIRMAN KOTT inquired if he was removing Section 9.                          
                                                                               
 REPRESENTATIVE KUBINA replied no.  He would be inserting in the               
 title the words:  "The Judicial Retirement System", and on page               
 7, line 20, adding the entire Section 9 of his amendment,  It                 
 would be adding a new Section 9, and renumbering the subsequent               
 sections.                                                                     
                                                                               
 Number 278                                                                    
                                                                               
 CHAIRMAN KOTT  asked if he was adding a new Section 8.                        
                                                                               
 REPRESENTATIVE KUBINA replied, a new Section 9.                               
                                                                               
 CHAIRMAN KOTT commented that starting at line 20 would be a new               
 Section 8.                                                                    
                                                                               
 Number 279                                                                    
                                                                               
 REPRESENTATIVE KUBINA apologized and said it would be a new                   
 Section 8 and 9.  However, he just wanted a new Section 9.                    
                                                                               
 Numb 290                                                                      
                                                                               
 CHAIRMAN KOTT said he could amend the amendment starting on page              
 1, line 27, insert the amendment of Section 9, and renumber the               
 subsequent sections.  He asked if this was the intent of the                  
 amendment.                                                                    
                                                                               
 Number 297                                                                    
                                                                               
 REPRESENTATIVE KUBINA said this was correct.                                  
                                                                               
 CHAIRMAN KOTT asked if there was someone present from the Court               
 System who would like to comment on this.                                     
                                                                               
 Number 302                                                                    
                                                                               
 ART SNOWDEN, ADMINISTRATIVE DIRECTOR, ALASKA COURT SYSTEM, said               
 he hadn't yet seen the language in this amendment.  However, if               
 it was the same language as is contained in the Senate bill, it               
 would allow the administrative director of courts to participate              
 in the RIP if there is a savings to the state.  This language was             
 in the past two or three RIPs that had been introduced in the                 
 legislature.  If there isn't a monetary savings, the                          
 administrative director wouldn't be allowed to use the RIP.  This             
 has to be approved by the Chief Justice.  It doesn't give the                 
 administrative director anymore years towards retirement.  It                 
 just lets him get older.  This has been in the previous two RIP               
 bills, and the Senate put it in their version.  The Supreme Court             
 supports this.                                                                
                                                                               
 Number 319                                                                    
                                                                               
 CHAIRMAN KOTT asked if there were questions for Mr. Snowden and               
 added that it was Mr. Snowden's birthday.                                     
                                                                               
 Number 328                                                                    
                                                                               
 REPRESENTATIVE ROKEBERG asked if the rest of the Judicial System              
 was involved in this.                                                         
                                                                               
 MR. SNOWDEN replied no.  There would be no savings.  All other                
 court employees are in the bill under the Public Employees                    
 Retirement System (PERS).  There is an Administrative Director's              
 Retirement Act in the state.  To allow himself to participate in              
 the RIP, there has to be specific reference to that act.  It has              
 the same mandate as every other part of the bill.  If there's no              
 savings, it cannot be done.                                                   
                                                                               
 Number 337                                                                    
                                                                               
 CHAIRMAN KOTT asked if there was an objection to Amendment 1.                 
                                                                               
 Number 340                                                                    
                                                                               
 REPRESENTATIVE PORTER commented that it was his birthday tomorrow             
 and wondered what he was going to get.                                        
 Number 347                                                                    
                                                                               
 CHAIRMAN KOTT replied there would be no Labor and Commerce                    
 Committee meeting.  Hearing no objections to Amendment 1, it was              
 adopted.  He added that he planned on ordering a CS and bringing              
 it back before the committee on Wednesday.                                    
                                                                               
 Number 348                                                                    
                                                                               
 REPRESENTATIVE PORTER stated that he wouldn't resist moving HB                
 270, as amended.                                                              
                                                                               
 Number 350                                                                    
                                                                               
 CHAIRMAN KOTT asked the committee members if they were                        
 comfortable with the incorporated language.                                   
                                                                               
 Number 353                                                                    
                                                                               
 REPRESENTATIVE ELTON said this was a straight forward amendment.              
 It comes from the "other side."  He didn't have a problem with                
 it.                                                                           
                                                                               
 Number 355                                                                    
                                                                               
 REPRESENTATIVE KUBINA wondered what games were being played with              
 them changing the amendment.  He would like to see this make it               
 to the Finance Committee.                                                     
                                                                               
 Number 360                                                                    
                                                                               
 REPRESENTATIVE PORTER made a motion to move the CSHB 270(STA) as              
 amended, with accompanying fiscal notes.                                      
                                                                               
 Number 362                                                                    
                                                                               
 CHAIRMAN KOTT asked if there was an objection to moving the CSHB              
 270(STA) as amended.  He noted the House Labor and Commerce                   
 Committee will work on a new CS in incorporating Amendment 1.  I              
 would then become CSHB 270(L&C).  Hearing no objection, the CSHB              
 270(L&C) was moved.                                                           
 HB 109 - TELEPHONE DIRECTORY LISTING/SOLICITATION                            
                                                                              
 Number 369                                                                    
                                                                               
 CHAIRMAN KOTT said the committee would now readdress HB 109.                  
                                                                               
 Number 373                                                                    
                                                                               
 REPRESENTATIVE KAY BROWN testified that HB 109 would address                  
 telephone solicitations which are often an annoyance and                      
 intrusive.  She feels the legislature has broad direction to be               
 concerned about the privacy of Alaskans and to take proactive                 
 actions to implement that provision of the constitution.  HB 109              
 provides that a local exchange telephone company would be                     
 required to offer the opportunity to identify oneself in the                  
 phone book as not wishing to receive solicitations.  She said on              
 page 2, line 13, there is a list of actions which would not be                
 covered.  This includes:  Calls made in response to a request or              
 inquiry by the customer who was called; calls made by a                       
 charitable organization, public agency or volunteer; calls                    
 limited to polling or soliciting the expression of ideas,                     
 opinions or votes; and business to business calls or people                   
 seeking business from prior customers.  The penalty for a                     
 violation would be a finding of an unfair trade practice, covered             
 under Title 45.50, which would only come about should the                     
 Attorney General get enough complaints to bring an action.  The               
 law would then provide for a civil fine of $5,000 per violation.              
                                                                               
 REPRESENTATIVE BROWN distributed an amendment suggested by                    
 General Communications, Incorporated (GCI) which would address                
 concerns telemarketers have expressed.  She said if they had a                
 computerized list of people not interested in being called, it                
 could be sorted against the other computerized list they're                   
 working with.  If implemented, this system would not only benefit             
 the privacy of people not wishing to be contacted, but it also                
 would benefit the sellers because they wouldn't be wasting their              
 time calling people who don't intend to purchase in this manner.              
                                                                               
 Number 416                                                                    
                                                                               
 REPRESENTATIVE BROWN pointed out there was a federal law passed               
 in 1991 or 1992, implemented by the Federal Communication                     
 Commission (FCC) in 1992.  She does not feel this federal law has             
 cut down on the amount of uninvited solicitations.  She has asked             
 phone solicitors who have contacted her, and found several to be              
 unaware of the federal law.  They couldn't respond to items                   
 required by that law.                                                         
                                                                               
 Number 428                                                                    
                                                                               
 REPRESENTATIVE KUBINA asked how telemarketers currently obtain                
 lists of numbers, and if it was just from telephone books.                    
                                                                               
 Number 430                                                                    
                                                                               
 REPRESENTATIVE BROWN responded she was not certain of all sources             
 where such lists might be generated.                                          
                                                                               
 Number 437                                                                    
                                                                               
 REPRESENTATIVE KUBINA wondered what happened if you distributed               
 numbers of people who didn't want to be solicited.  Could those               
 be private numbers?                                                           
                                                                               
 Number 441                                                                    
                                                                               
 REPRESENTATIVE BROWN stated it would not affect private or                    
 unlisted numbers.  This was intended to be a kind of compromise               
 so that you could still have a public number listed in the                    
 directory, however, it would have a "dot" by the name saying                  
 "solicitors, don't call me."  People who chose to have unlisted               
 numbers would be relying on the federal law.                                  
                                                                               
 Number 452                                                                    
                                                                               
 CHAIRMAN KOTT asked if this affected pollsters.                               
                                                                               
 Number 453                                                                    
                                                                               
 REPRESENTATIVE BROWN said it did not.  They are specifically                  
 exempted on page 2, lines 21 and 22.                                          
                                                                               
 Number 458                                                                    
                                                                               
 CHAIRMAN KOTT commented that he seldom watches TV.  However,                  
 there was a show regarding telemarketers that caught his eye.  If             
 you are solicited, you may ask to be placed on the non call list.             
 As long as you have the person's name, what time it was, and a                
 brief summary of what took place, it would be a violation if they             
 call you again.                                                               
                                                                               
 Number 467                                                                    
                                                                               
 REPRESENTATIVE BROWN said that is the Telephone Consumer                      
 Protection Act.  The difficulty there is that every telemarketer              
 in the country could call, each one keeping a separate list.                  
 With HB 109 you would be putting people on notice that you don't              
 want these calls and it would be their burden to obtain the                   
 lists.                                                                        
                                                                               
 Number 475                                                                    
                                                                               
 CHAIRMAN KOTT said he didn't know anyone who liked to be                      
 solicited.  He asked if it would be advantageous to have the                  
 telephone companies put the dot next to the people who wanted to              
 be called.                                                                    
                                                                               
 Number 480                                                                    
                                                                               
 REPRESENTATIVE BROWN commented this was probably more of a                    
 problem in urban areas where there is a big enough market to show             
 up on some computer sorting where they do it by zip code.                     
 "You're paying for a little bit of privacy protection."                       
                                                                               
 Number 485                                                                    
                                                                               
 CHAIRMAN KOTT noted the staff had advised him he may have                     
 problems with the first amendment on this idea; so, he would                  
 withdraw that idea.                                                           
                                                                               
 Number 490                                                                    
                                                                               
 REPRESENTATIVE ROKEBERG asked if she considered expanding the                 
 bill to include mail catalogs.  He said he had two trees a month              
 arriving at his home.                                                         
                                                                               
 Number 496                                                                    
                                                                               
 REPRESENTATIVE ELTON asked if a religious organization was a                  
 charitable organization.  He would hope they were not.                        
                                                                               
 Number 505                                                                    
                                                                               
 REPRESENTATIVE BROWN replied that the things prohibited if you                
 had the "do not call me dot," includes people who are trying to               
 get you to buy something or to make a donation.  She said if the              
 religious organization were soliciting donations, this would not              
 be allowed.  However, they could ask you to attend services.                  
                                                                               
 Number 511                                                                    
                                                                               
 REPRESENTATIVE PORTER interjected there were additional                       
 qualifications.  This doesn't allow charitable organizations to               
 call out of hand.  You have to be a member of the organization or             
 have made a previous donation or expressed an interest.                       
                                                                               
 Number 514                                                                    
                                                                               
 CHAIRMAN KOTT said he had an amendment distributed by                         
 Representative Brown.  He would move Amendment 1.  He asked if                
 there were any objections.  Hearing none, Amendment 1 was                     
 adopted.   He said this would be adopted in the form of a CS at               
 some point.                                                                   
                                                                               
 Number 520                                                                    
                                                                               
 REPRESENTATIVE PORTER stated he had heard the bill last year and              
 wouldn't feel uncomfortable moving it, as amended.                            
                                                                               
 Number 526                                                                    
                                                                               
 CHAIRMAN KOTT said they had a scheduling problem.  In accordance              
 with AS 24.08.035, they could not move the bill without a fiscal              
 note.                                                                         
                                                                               
 Number 527                                                                    
                                                                               
 REPRESENTATIVE BROWN responded they were not informed until                   
 Thursday afternoon the bill was going to be heard Friday.  This               
 was the reason they had not requested it.  They do have a fiscal              
 note for last year's version of the legislation of HB 54.  That               
 fiscal note was zero.                                                         
                                                                               
 CHAIRMAN KOTT stated he wouldn't have a problem moving HB 109                 
 from committee and holding it in committee until they had                     
 received the fiscal note.  If it is other than zero he would                  
 bring the bill back before the committee.                                     
                                                                               
 Number 530                                                                    
                                                                               
 REPRESENTATIVE PORTER made the motion to move CSHB 109(L&C) out               
 of committee                                                                  
                                                                               
 Number 533                                                                    
                                                                               
 CHAIRMAN KOTT asked if there were any objections to moving CSHB               
 109(L&C) with the understanding it would be held in committee                 
 until a fiscal note was received.  It would then be transmitted               
 to the Chief Clerk.  Hearing no objection, the motion carried.                
 Number 537                                                                    
                                                                               
 ADJOURNMENT                                                                   
                                                                               
 There being no further business to come before the House Labor                
 and Commerce Committee, Chairman Kott adjourned the meeting at                
 5:20 p.m.                                                                     
                                                                               

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