Legislature(1995 - 1996)
02/06/1995 03:00 PM House L&C
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE LABOR AND COMMERCE COMMITTEE
February 6, 1995
3:00 p.m.
MEMBERS PRESENT
Representative Pete Kott, Chairman
Representative Norman Rokeberg, Vice Chairman
Representative Brian Porter
Representative Jerry Sanders
Representative Kim Elton
MEMBERS ABSENT
Representative Beverly Masek
Representative Gene Kubina
COMMITTEE CALENDAR
Departmental Overview by Tom Cashen, Commissioner, Department of
Labor
WITNESS REGISTER
TON CASHEN, Commissioner
Department of Labor
P.O. Box 21149
Juneau, AK 99802-1149
Telephone: (907) 465-2700
POSITION STATEMENT: Gave the Department of Labor Overview
ED FLANAGAN, Assistant Commissioner
Department of Labor
P.O. Box 21149
Juneau, AK 99802-1149
Telephone: (907) 465-2700
POSITION STATEMENT: Participated in the Department of Labor
Overview
JIM ARNOLDT, Program Budget Analyst
Employment Security Division
Department of Labor
P.O. Box 21149
Juneau, AK 99802-1149
Telephone: (907) 465-2700
POSITION STATEMENT: Participated in the Department of Labor
Overview
PREVIOUS ACTION
None
ACTION NARRATIVE
(DUE TO A TAPING MALFUNCTION, THIS MEETING WAS NOT RECORDED)
The House Labor and Commerce Committee was called to order by
Chairman Pete Kott at 3:00 p.m. Members present at the call to
order were Representatives Kott, Rokeberg, Porter, Sanders and
Elton. Members absent were Representatives Masek and Kubina.
CHAIRMAN PETE KOTT stated there is a quorum present. There was no
new business to be brought before the committee. Chairman Kott
introduced TOM CASHEN, COMMISSIONER, DEPARTMENT OF LABOR (DOL), and
asked him to give an overview of the Department of Labor.
COMMISSIONER CASHEN introduced ED FLANAGAN, DWIGHT PERKINS, ARBE
WILLIAMS, PAUL GRASSE, JOHN ABSHIRE, REBECCA NANCE, JIM ARNOLDT,
MIKE HOLMES, all, of the Department of Labor. Commissioner Cashen
passed out a report titled, "NONRESIDENTS WORKING IN ALASKA 1993."
Commissioner Cashen explained how, in terms of general funds, the
department ranked 18 out of 19. In 1993, more than 75,000
nonresidents were employed in the state. The total amount paid to
nonresidents, in 1993, was greater than all wages paid to state
government workers in the same year. Commissioner Cashen stated
that the department gets most of their funds from the federal
government, he went on to further explain what happens to the
budget in relationship to general funds that have been downsized
considerably. FY96 shows a $200,000 increase in program receipts
from Occupational Safety and Health Administration (OSHA);
basically this is the same as 1995. The Commissioner then
described the budget and makeup of the department and stated that
the general fund budget had gone down in the last four years, and
that this was with an increase in the number of employees.
CHAIRMAN KOTT asked if there were questions for Commissioner
Cashen.
VICE CHAIRMAN NORMAN ROKEBERG stated that he was from Spenard and,
therefore, wasn't familiar with the Fisherman's Fund within the
department.
COMMISSIONER CASHEN explained that this fund was not part of
worker's compensation. It is funded by licensing receipts, and it
provides benefits for injured fishermen.
REPRESENTATIVE BRIAN PORTER asked the Commissioner if he was
anticipating any concern that there would be a decrease in federal
funds to the department.
COMMISSIONER CASHEN replied that there's always that concern but
that they might turn to block grants.
JIM ARNOLDT, PROGRAM BUDGET ANALYST, DEPARTMENT OF LABOR, stated
that they had information that there would be a 5% reduction for
the employment services program and that they would try the block
grant approach to funding.
CHAIRMAN KOTT asked if the Department of Labor was going to propose
any legislation that would take care of the Gilmore decision of
last year.
COMMISSION CASHEN answered that yes, they would require some
legislation.
ED FLANAGAN, ASSISTANT COMMISSIONER,DEPARTMENT OF LABOR, commented
that the Gilmore decision caused some concern with the ad hoc
committee on Workman's Compensation. This was the primary vehicle
for reading the decision. The `88 reform is ahead of the majority
of states. Mr. Flanagan stated that the department's position was
to support any legislation coming out of the ad hoc committee.
CHAIRMAN KOTT stated that the courts had put them in a precarious
position, concerning the consistency between the ad hoc committee
and the Department of Labor. Chairman Kott then asked Commissioner
Cashen if he could foresee any important labor relations issues
requiring legislation.
COMMISSION CASHEN replied that they would hold to the status quo.
REPRESENTATIVE PORTER asked if the Governor had discussed the need
for consolidation of the job training programs.
COMMISSIONER CASHEN replied that they would coordinate out of the
Governor's Office. He stated that there were seven different
departments that had training offices, sometimes training for jobs
that no longer existed. He further stated that training was the
answer to Alaska's welfare problem.
VICE CHAIRMAN ROKEBERG, inquired as to which industries employed
the 75,000 nonresident workers.
COMMISSIONER CASHEN replied that the primary industries were the
seafood and logging industries.
REPRESENTATIVE KIM ELTON wanted to point out that 76 percent of the
people employed in the seafood industry were the harvesters, which
are all Alaska residents.
CHAIRMAN KOTT stated that Alaska is number one in occupational
accidents. He asked Commissioner Cashen if we are addressing that
and any potential solutions to this problem. Is it because of the
type of industry?
COMMISSIONER CASHEN explained that there were several factors we
could lump together. The high mortality rate in the fishing and
logging industries combined with fatalities from small aircraft,
which have gone down over the last few years, contribute to the
high mortality rate. He also stated that further cuts to OSHA,
combined with fewer safety inspections, causes the rates to go up.
CHAIRMAN KOTT stated that he had one final question concerning the
next five to ten years. What did the Commissioner feel the outlook
was for jobs and Alaska's growth potential.
COMMISSIONER CASHEN replied that certainly they have the dynamics
out there. He stated that with our Congressional Delegation we
have this year, we are in the best position we've ever been in to
affect legislation on the National level. He stated further that
he'd like to see action with the Arctic National wildlife Refuge
(ANWR), the mining Industry and of course within the oil and gas
industry.
VICE CHAIRMAN ROKEBERG asked how the outlook was for the next 12
months.
COMMISSIONER CASHEN explained that there were pressing problems
with the timber industry. He stated that we need to do something
with the Wrangell mill. He feels that the oil industry has a
better attitude about the state since the Governor traveled to
Texas. He stated that the feeling was that the oil industry people
were prepared to spend money in Alaska this year.
ADJOURNMENT
CHAIRMAN KOTT asked if there were any further questions for the
Commissioner. Hearing none, the House Labor and Commerce Committee
adjourned at 3:45 p.m.
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