Legislature(1995 - 1996)
03/15/1995 03:06 PM House L&C
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 15, 1995
3:06 p.m.
MEMBERS PRESENT
Representative Pete Kott, Chairman
Representative Norman Rokeberg, Vice Chairman
Representative Brian Porter
Representative Jerry Sanders
Representative Kim Elton
Representative Beverly Masek
Representative Gene Kubina
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HB 17: "An Act relating to the titles that describe the two
principal executive officers of electric and telephone
cooperatives."
PASSED CSHB 17(L&C) OUT OF COMMITTEE
HB 46: "An Act relating to the practice of architecture,
engineering, and land surveying."
PASSED OUT OF COMMITTEE
HB 180: "An Act relating to liquor licenses issued to a hotel,
motel, resort, or similar establishment; and providing
for an effective date."
PASSED OUT OF COMMITTEE
*HB 237: "An Act relating to workers' compensation insurance
rate filings; to second independent medical evaluations
for workers' compensation claims; to immunity for
third-party design professionals from civil actions by
recipients of workers' compensation benefits; to
workers' compensation death benefits; to computation of
workers' compensation benefits; to penalties for
fraudulent acts related to workers' compensation; to
immunity for employer workplace safety inspections
related to workers' compensation insurance; and
providing for an effective date."
PASSED OUT OF COMMITTEE
(* First public hearing)
PREVIOUS ACTION
BILL: HB 17
SHORT TITLE: OFFICERS OF UTILITY COOPERATIVES
SPONSOR(S): REPRESENTATIVE(S) GREEN
JRN-DATE JRN-PG ACTION
01/06/95 25 (H) PREFILE RELEASED
01/16/95 25 (H) READ THE FIRST TIME - REFERRAL(S)
01/16/95 25 (H) STATE AFFAIRS, LABOR & COMMERCE
02/07/95 (H) STA AT 08:00 AM CAPITOL 102
02/07/95 (H) MINUTE(STA)
02/10/95 293 (H) STA RPT CS(STA) NEW TITLE 6DP 1NR
02/10/95 294 (H) DP: JAMES, PORTER, GREEN, ROBINSON
02/10/95 294 (H) DP: WILLIS, OGAN
02/10/95 294 (H) NR: IVAN
02/10/95 294 (H) ZERO FISCAL NOTE (DCED)
03/01/95 (H) L&C AT 03:00 PM CAPITOL 17
03/01/95 (H) MINUTE(L&C)
03/06/95 (H) MINUTE(L&C)
03/15/95 (H) L&C AT 03:00 PM CAPITOL 17
BILL: HB 46
SHORT TITLE: ARCHITECT, ENGINEER & SURVEYOR REGULATION
SPONSOR(S): REPRESENTATIVE(S) GREEN
JRN-DATE JRN-PG ACTION
01/06/95 32 (H) PREFILE RELEASED
01/16/95 32 (H) READ THE FIRST TIME - REFERRAL(S)
01/16/95 33 (H) LABOR AND COMMERCE, STATE AFFAIRS
03/08/95 (H) L&C AT 03:00 PM CAPITOL 17
03/08/95 (H) MINUTE(L&C)
03/15/95 (H) L&C AT 03:00 PM CAPITOL 17
BILL: HB 180
SHORT TITLE: LIQUOR LICENSES FOR RESORT/LODGES
SPONSOR(S): REPRESENTATIVE(S) JAMES
JRN-DATE JRN-PG ACTION
02/15/95 369 (H) READ THE FIRST TIME - REFERRAL(S)
02/15/95 369 (H) ITT, CRA, L&C
02/21/95 (H) ITT AT 02:30 PM CAPITOL 408
02/21/95 (H) MINUTE(ITT)
02/22/95 446 (H) ITT RPT 2DP 5NR
02/22/95 446 (H) DP: JAMES, MASEK
02/22/95 446 (H) NR: KOTT, PORTER, ROBINSON, NICHOLIA
02/22/95 446 (H) NR: AUSTERMAN
02/22/95 446 (H) ZERO FISCAL NOTE (REV)
03/07/95 (H) CRA AT 01:00 PM CAPITOL 124
03/07/95 (H) MINUTE(CRA)
03/08/95 636 (H) CRA RPT 2DP 3NR
03/08/95 636 (H) DP: VEZEY, KOTT
03/08/95 636 (H) NR: ELTON, AUSTERMAN, IVAN
03/08/95 636 (H) ZERO FISCAL NOTE (REV) 2/22/95
03/15/95 (H) L&C AT 03:00 PM CAPITOL 17
BILL: HB 237
SHORT TITLE: WORKERS' COMPENSATION AMENDMENTS
SPONSOR(S): REPRESENTATIVE(S) MULDER BY REQUEST, Porter
JRN-DATE JRN-PG ACTION
03/06/95 597 (H) READ THE FIRST TIME - REFERRAL(S)
03/06/95 598 (H) LABOR & COMMERCE, JUDICIARY
03/08/95 630 (H) JOURNAL CORRECTION
03/15/95 (H) L&C AT 03:00 PM CAPITOL 17
WITNESS REGISTER
GEORGE DOZIER, Legislative Aide
to Representative Pete Kott
Alaska State Legislature
State Capitol, Room 432
Juneau, AK 99811
Telephone: (907) 465-3777
POSITION STATEMENT: Explained changes to HB 17
REPRESENTATIVE JOE GREEN
Alaska State Legislature
State Capitol Room 24
Juneau, AK 99801-1182
Telephone: (907) 465-4931
POSITION STATEMENT: Prime sponsor HB 17 and HB 46
WILLIS KIRKPATRICK, Director
Division Banking, Securities and Corporations
Department of Commerce and Economic Development
P.O. Box 110807
Juneau, AK 99811-0807
Telephone: (907) 465-2549
POSITION STATEMENT: Provided information on HB 17
DAVE HUTCHENS, Executive Director
Alaska Rural Electric Cooperative Assoc.
703 W. Tudor Suite 202
Anchorage, AK 99503
Telephone: (907) 561-6103
POSITION STATEMENT: Testified on HB 17
MIKE TAURIANINEN
P.O. Box 937
Soldotna, AK 99669
Telephone: (907) 262-4624
POSITION STATEMENT: Testified against HB 17
SHARON MACKLIN, Lobbyist
Alaska Design Professionals
315 5th Street, No. 8
Juneau, AK 99801
Telephone: (907) 586-9518
POSITION STATEMENT: Testified in favor of HB 46
JIM ROWE, Executive Director
Alaska Telephone Association
4341 B Street. No, 304
Anchorage, AK 99503
Telephone: (907) 563-4000
POSITION STATEMENT: Testified in favor of CSHB 46(L&C)
BARBARA KOTTING Legislative Assistant
to Representative Jeanette James
Alaska State Legislature
State Capitol, Room 102
Juneau, AK 99801-1182
Telephone: (907) 465-3743
POSITION STATEMENT: Provided sponsor statement HB 180
PAT SHARROCK, Director
Alaska Alcoholic Beverage Control Board
550 W. 7th Avenue
Anchorage, AK 9950
Telephone: (907) 277-8638
POSITION STATEMENT: Provide information on HB 180
REPRESENTATIVE ELDON MULDER
State Capitol Room 411
Juneau, AK 99811-1182
Telephone: (907) 465-2647
POSITION STATEMENT: Prime sponsor HB 237
DARIO NOTTI, Student Intern
to Senator Jim Duncan
Alaska State Legislature
State Capitol Room 119
Juneau, AK 99801-1182
Telephone: (907) 465-4766
POSITION STATEMENT: Testified on HB 237
MARIANNE BURKE, Director
Division of Insurance
Department of Commerce and Economic Development
P.O. Box 110805
Juneau, AK 99811-0808
Telephone: (907) 465-2515
POSITION STATEMENT: Provided information on HB 237
WILLY VAN HEMERT, Civil Engineer
Member, Ad Hoc Labor Management Committee
on Workers' Compensation Reform
3900 Arctic Blvd. No. 304
Anchorage, AK 99503
Telephone: (907) 562-3252
POSITION STATEMENT: Testified in favor of 237
KEVIN DOUGHERTY, General Council
Alaska Laborers
Co-Chair, Ad Hoc Labor Management Committee
on Workers' Compensation Reform
2501 Commercial Dr.
Anchorage, AK 99577
Telephone: (907) 276-1640
POSITION STATEMENT: Testified in favor of *HB 237
ACTION NARRATIVE
TAPE 95-17, SIDE A
Number 000
The House Labor & Commerce Standing Committee was called to order
by Chairman Pete Kott at 3:06 p.m. Members present at the call
to order were Representatives Kott, Sanders, Elton, Kubina, and
Porter. Members absent were Masek and Rokeberg.
CHAIRMAN PETE KOTT stated that there was a quorum present. He
stated that the order of business would be HB 17, HB 46, HB 180
and HB 237.
HL&C - 03/15/95
HB 17 - OFFICERS OF UTILITY COOPERATIVES
CHAIRMAN KOTT explained that HB 17 was back before the committee
because the drafting attorney had some concerns with the
committee substitute (CS) version G. He said that they now had a
new CS version K, dated March 6, 1995 before them.
Number 058
CHAIRMAN KOTT stated, for the record, Representative Masek joined
the meeting at 3:10 p.m.
Number 067
GEORGE DOZIER, LEGISLATIVE AIDE TO REPRESENTATIVE PETE KOTT, gave
the following explanation of the new CS for HB 17 version K. He
explained that the CS version G did not amend the title to
reflect the biannual report. The other concerns deal with
amendment two, which was proposed by the Division of Banking,
Securities and Corporations, Department of Commerce and Economic
Development. The draft, as passed out by committee, required
that biannual reports be due before July 2, of the reporting
year; however, the information contained in the reports was due
by June 30. The division felt this was not enough time for the
information to be gathered and the reports to be sent in. In the
new CS version K, this date was amended to July 15. Mr. Dozier
continued that the third concern addresses dissolution, this on
page 8, states, "the provisions of Alaska Statute 10.06 (Alaska
Corporations Code) relating to involuntary dissolution of
business corporations applied to telephone and electric
cooperatives." He said that the drafting attorney was concerned
that too much generality had been included since a number of
provision governing both voluntary and involuntary dissolution's
of corporations were affected. He explained that this focuses
upon when a biannual report is delinquent. This provision allows
the commissioner to involuntarily dissolve a corporation if it
hasn't filed its biannual reports. The language in the new CS,
version K, makes this clearer. The fourth concern was with
subsection (b), biannual reports, addresses when reports are do
but is not clear that it applies to cooperatives that already
exist. He stated that no changes were made to this language.
Therefore, it is his understanding that it will apply to existing
cooperatives, as well as new ones. Mr. Dozier stated that
finally, the drafting attorney's last concern was that the draft
provided and adopted by the committee (CS version G),
(indisc.--interrupted)
Number 202
REPRESENTATIVE GENE KUBINA asked if a motion to delete sections
17 and 18 would be a good way to deal with this. He stated that
the reason the Department of Commerce and Economic Development
wasn't receiving these reports was because they were already
going to the Alaska Public Utilities Commission (APUC). He
pointed out this would just be adding more bureaucracy.
CHAIRMAN KOTT said he would entertain that motion, once they had
adopted the new CS.
REPRESENTATIVE KUBINA asked Chairman Kott exactly where they were
at this point.
CHAIRMAN KOTT stated that they had passed out version G, but they
had not yet adopted version K.
Number 231
REPRESENTATIVE JERRY SANDERS made a motion to adopt version K of
the CS for HB 17.
CHAIRMAN KOTT asked if there were objections. Hearing none, the
CS was adopted.
REPRESENTATIVE KUBINA made a motion to delete sections 17 and 18,
and possibly make a title change. He said, "line 4 starting
with, `relating' through line 7 ending with `cooperatives'".
CHAIRMAN KOTT stated, "The title would be lines 1, 2 and 3, and
then providing for an effective date."
REPRESENTATIVE KUBINA interjected, "The first half of line 4,
`according to officers' and then `providing for an effective
date'."
REPRESENTATIVE ELTON stated that they may need to start on line
5, because Section 4 of the bill amends the articles of
incorporation. That may need to be noted in the title `relating
to the articles of incorporation' beginning after cooperatives;
deleting down `to effective date'."
REPRESENTATIVE KUBINA indicated the last two words on line five
is where it would start.
CHAIRMAN KOTT repeated `relating to' line 5 through `electric
cooperatives' on line 7.
Number 279
CHAIRMAN KOTT stated that the conceptual amendment is to delete
sections 17 and 18, and with that there will be a noted title
change. He asked Representative Green if he had a problem with
this amendment.
Number 288
REPRESENTATIVE JOE GREEN stated that he did not have a problem
with this.
Number 291
CHAIRMAN KOTT stated that they did have Amendment 1, the
conceptual amendment, deleting sections 17 and 18 with a title
change. He asked for any objections. Hearing none, Amendment 1
was adopted. He stated that the committee now had the CSHB
17(L&C) before them for debate.
Number 305
WILLIS KIRKPATRICK, DIRECTOR, BANKING, SECURITIES AND
CORPORATIONS, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT,
stated that every organization filing under Title 6, files a
biannual report. This provides the public with information as to
who the registered agents, officers and directors of
corporations are. He stated that only these 37 organizations,
under this chapter of Title 10, do not file biannual reports. He
stated, as far as bureaucracy is concerned, they are only asking
for the current names of the officers and directors of the
corporations and a biannual filing fee of $100. He pointed out
that when he was advised that this may be redundant filing with
the Department of Commerce, he called APUC for a current list of
officers and directors of Cook Inlet Rural Telephone Cooperative,
Incorporated; Glacier Valley Electric; and Unalaska Electric
Association, Incorporated. The APUC had no record of any of the
three. He explained that this was important. If they were to
have filed every other year as to their status of their
corporation, with the names and addresses of the officers and
directors, and if something had changed in that interim year, as
was the case with Unalaska, they would have written back and said
that they had been sold to the community. They would have told
the Department of Commerce to cross them off their list, and they
would have been out of their file. He reiterated that the
department only wants them to file every other year, whether they
are profit or non-profit, like every other corporation and
association under Title 10. Mr. Kirkpatrick said that the APUC
further stated that they did not know if they could supply him
with lists of officers and directors of corporations.
Number 416
REPRESENTATIVE ELTON asked why Glacier Valley was registered with
his department, and were they required to be.
MR. KIRKPATRICK stated that as an organization, they wanted to be
protected from liability as individuals. They then incorporated
under electrical cooperatives, which gives them liability from
personal acts, and puts responsibility on the corporate
structure.
DAVE HUTCHENS, EXECUTIVE DIRECTOR, ALASKA RURAL ELECTRIC
COOPERATIVE ASSOCIATION, stated that he had testified previously
on this legislation and his association does not have any strong
objection to filing these biannual reports. However, they do
feel that it would be far better if it were set aside and dealt
with that separately the next time there is legislation dealing
with the powers of the division. He stated that all of the
operating entities organized as electric and telephone
cooperatives do make annual reports to the APUC. He said the
division should have a note in their file that says, "Requests
for information should be forwarded to the APUC."
Number 454
REPRESENTATIVE ELTON pointed out that in the previous meeting Mr.
Hutchens had no objection to the legislation, the committee felt
that this might be a good idea. He stated that he would be
interested in hearing Mr. Hutchens reactions to the provision
relating to involuntary dissolution of a cooperative.
MR. HUTCHENS stated that this would be a very strong penalty for
failing to file a biannual report. He commented that perhaps
there could be an intermediate step, and if someone refused to
file, dissolution could be the ultimate sanction. He stated the
reason for that would be to have some systematic way of weeding
out the entities no longer in business.
Number 471
CHAIRMAN KOTT stated the committee members had the CSHB 17 before
them.
REPRESENTATIVE BRIAN PORTER asked if they had adopted the CS.
CHAIRMAN KOTT stated yes.
REPRESENTATIVE PORTER made a motion to move CSHB 17, as amended,
out of committee with individual recommendations.
REPRESENTATIVE ELTON commented that they wouldn't need the fiscal
note as amended.
CHAIRMAN KOTT concurred that there would be a zero fiscal note.
He stated that there was a motion to move CSHB 17(L&C) from
committee with individual recommendations. He asked if there was
an objection. Hearing none, the CSHB 17(L&C) was passed from
committee.
Number 483
REPRESENTATIVE KUBINA asked if the bill goes to Rules next.
CHAIRMAN KOTT stated that was correct.
HL&C - 03/15/95
HB 46 - ARCHITECT, ENGINEER & SURVEYOR REGULATION
The next order of business was HB 46 which the committee had
heard the previous week. CHAIRMAN KOTT said there were concerns
with the language being too liberal. He asked the prime sponsor
of HB 46 to come forward.
REPRESENTATIVE JOE GREEN, PRIME SPONSOR OF HB 46, stated that the
dialogue was now being centered around the exemption portion,
Section 3, of the bill. Under Article 10, the Architects,
Engineers and Land Surveyors (AE&LS) had objection to the way it
was written. They felt it was too broad and wouldn't adequately
protect the public. He stated that currently members of the
AE&LS and other factions would be governed by this legislation,
and they were meeting to work out some compromised language and
would have a resolution by March 20. He stated if a resolution
was not worked out, there was backup language that would make
Alaska like the 36 other states that have the same exemptions.
Number 536
MIKE TAURIANINEN testified via teleconference that he was opposed
to HB 46 as written, regarding Section 2, use of the term
"engineer." He stated this was contrary to terminology in
Section 3 referring to the practice of engineering. He stated
that it was open for anyone to practice engineering. Mr.
Taurianinen reiterated that compromise language needs to be
worked out so that some engineering work done by oil companies,
communications and utilities companies can be accomplished.
Number 550
CHAIRMAN KOTT stated that they had the CS before them.
REPRESENTATIVE GREEN commented that Mr. Taurianinen might not
understand Section 2. He explained that the AE&LS had requested
this language because they felt this tightens the language rather
than loosens it. He explained that when leaving the word
"registered" in, then a person could say, "I'm a professional
engineer, hire me." He's not professing to be a registered
engineer, he's just professing to being a professional engineer.
By dropping the word "registered," he is illegal.
REPRESENTATIVE ROKEBERG inquired if the AE&LS were meeting to
compromise on a solution for this bill.
REPRESENTATIVE GREEN responded that it was not a solution for the
bill, but a solution for the differences of opinion of subsection
10 of Section 3. To find language that would satisfy the
concerns of the AE&LS for public safety and still not burden
companies that employ large numbers of engineers that are not
subject to public domain was the problem.
REPRESENTATIVE ROKEBERG asked if the board was working on the
change or people from the various professions.
REPRESENTATIVE GREEN stated that a representative from the AE&LS,
Mr. Dave Adams, is working with a representative for the other
entities.
Number 619
REPRESENTATIVE ELTON wondered if he should be comfortable with an
existing exemption that allows a four-plex to be inhabited by
families that hasn't had a professional engineer or architect
involved in it.
REPRESENTATIVE GREEN concurred with Representative Elton. He
stated that his home is one of those and the only thing he's
relying on are building codes.
Number 640
TAPE 95-17, SIDE B
Number 000
SHARON MACKLIN, ALASKA PROFESSIONAL DESIGN COUNCIL (APDC),
clarified that the meeting on March 20, would be attended by a
representative from ARCO, the cable TV organization, two
representatives from APDC, and one from the telecommunications
industry.
Number 021
REPRESENTATIVE ROKEBERG asked if that would include an architect
and a land surveyor.
MS. MACKLIN replied architects, engineers and land surveyors
trust each other and they feel comfortable with the
representation.
Number 037
REPRESENTATIVE KUBINA asked what the Chairman's intention was.
CHAIRMAN KOTT answered that if it was the will of the committee,
they would move the bill to the House State Affairs Committee,
with a letter of transmittal indicating that they would expect
some movement in Section 3, subsection 10, that would take care
of the language problem.
REPRESENTATIVE KUBINA made the motion.
CHAIRMAN KOTT stated that there was one more person on
teleconference.
JIM ROWE, EXECUTIVE DIRECTOR, ALASKA TELEPHONE ASSOCIATION (ATA),
testified via teleconference in favor of CSHB 46.
Number 083
REPRESENTATIVE KUBINA made a motion to move CSHB 46(L&C) out of
committee with individual recommendations, and accompanying zero
fiscal note.
CHAIRMAN KOTT asked for any objections. Hearing none, CSHB
46(L&C) was passed out of committee.
HL&C - 03/15/95
HB 180 - LIQUOR LICENSES FOR RESORT/LODGES
CHAIRMAN KOTT stated that the next matter before committee is HB
180.
Number 113
BARBARA KOTTING, LEGISLATIVE ASSISTANT TO REPRESENTATIVE JEANETTE
JAMES, stated the sponsor, Representative James, had submitted
this bill as a request to cover a loophole in existing liquor
license laws. She explained that under current law, small lodges
located in large boroughs or unified population areas cannot get
liquor licenses because they do not have enough rooms. As an
example, if a person wanted to develop a small lodge or tourist
facility in a remote or inaccessible area of the Mat-su or Kenai
Borough, the lodge would be required to have 40 rooms to obtain a
full service liquor license. She stated that this was excessive
and unfair, and that this is not a liquor issue, it is a business
issue. She stated that Pat Sharrock was standing by to answer
any questions.
Number 145
REPRESENTATIVE PORTER stated that he supported the bill, but his
concern was that this could be used as a way around a dry village
or dry area.
PAT SHARROCK, DIRECTOR, ALCOHOLIC BEVERAGE CONTROL (ABC) BOARD,
responded that those dry villages probably reside in other
incorporated boroughs of the state. In those areas, separate
rules apply as to how or under what circumstances a liquor
license could be issued, and is governed by a five mile radius
rule.
REPRESENTATIVE PORTER noted that the ABC Board would be looking
at the proximity of the location for requests for these licenses
in relation to the dry areas.
MR. SHARROCK stated that the board looks closely at current
licenses issued in communities on the grounds of encouraging
tourism. If the board does not feel they're encouraging tourism,
they suggest that the licensee comply with that or look to losing
the license.
REPRESENTATIVE KUBINA asked what the rational was for excluding
road system places outside of towns.
MR. SHARROCK asked what he meant by "excluding road systems."
REPRESENTATIVE KUBINA asked what the rationale was for Glennallen
or Gakona not being able to do the same thing.
MR. SHARROCK stated that those communities exist in the
unincorporated areas of the state. In those areas, it's not the
aggregate population that determines the issuance of a license.
Number 206
REPRESENTATIVE ROKEBERG asked if any resort in Southeast could
apply for this if they had only ten rooms.
MR. SHARROCK responded that they could if they reside within a
unified municipality or borough, and were not accessible as
defined by the highway definition.
REPRESENTATIVE ROKEBERG asked if this included the ferry system.
MR. SHARROCK said that in Title 28, it does say "including but
not limited to every street, and the Alaska State Marine Highway
System."
REPRESENTATIVE ROKEBERG asked how many rental rooms you would
have to have in the Municipality of Anchorage.
MR. SHARROCK replied 50.
CHAIRMAN KOTT asked Mr. Sharrock to explain the process on
issuing the liquor licenses.
MR. SHARROCK explained that the applicant would advertise
publicly in the newspaper and post the copy at the proposed
premises. The applicant, after a period of time, would then file
the application with the ABC Board, who must forward a copy of
the application to the local governing body. During this time it
is assumed that if there is public objection, those people will
appear at the assembly meeting, or before the board, when it
takes up final review of the application. He concluded that if
the board felt this bill would promote the proliferation of
liquor licenses, they would withdraw their support immediately.
Number 275
REPRESENTATIVE ROKEBERG referred to the first section,
"encouraging tourist trade," and didn't feel this was a very high
standard. He asked if there was any case law to back this up and
how readily these licenses are granted.
MR. SHARROCK stated that the board hasn't or doesn't grant any
more than one or two per year. He stated that it's not that easy
for an applicant to come forward and say, "I'm building a
facility that has a dining room and I propose a bar." He
explained that even with a minimum of ten rooms, it would be hard
to find this economically viable if there is really no market for
it. He pointed out the board, over the years, has not had,
except in isolated cases, concern or objection about the way a
facility has operated.
REPRESENTATIVE ROKEBERG stated that in the first section, it
states, "The board may approve issuance or transfer". He asked
if this license, once it was issued and becomes personal property
and has value, can be transferred to someone else subject to
board approval. If this was the case, he asked if a prohibition
of transfer would be a help to the board.
MR. SHARROCK stated that the word "transfer" only applies as it
extends to the premises for which the license was issued. He
said that the license issued under this provision of the law is
not relocatable.
CHAIRMAN KOTT closed public testimony on HB 180.
REPRESENTATIVE PORTER stated that with assurances of Mr. Sharrock
and the additional coverage that these new licenses would only be
in the first class cities that have the ability to protest in and
among themselves, he made a motion to move HB 180 from committee,
with individual recommendations, and accompanying zero fiscal
notes.
CHAIRMAN KOTT asked if there were any objections.
REPRESENTATIVE ELTON interjected that this has a very narrow
application. He said that it was going to be difficult for the
legislature next year to say "no" to a resort or lodge in a
non-organized borough.
REPRESENTATIVE PORTER stated that the provisions under subsection
(a), line 14, page 1, through line 6 of page 2, are
qualifications that would apply in an unorganized borough. As
mentioned, the organized boroughs and cities are having problem
with the limitations on the numbers within those boundaries. He
stated that they wouldn't be asked to pass legislation on outside
areas because those would be dealt with by the ABC Board.
CHAIRMAN KOTT stated that there was a motion to move the bill, he
asked for objections. Hearing none, HB 180 was passed out of the
House Labor and Commerce Committee.
HL&C - 03/15/95
HB 237 - WORKERS' COMPENSATION AMENDMENTS
Number 397
CHAIRMAN KOTT announced the next order of business was HB 237.
REPRESENTATIVE ELDON MULDER, PRIME SPONSOR OF HB 237, stated that
HB 237 was a consensus piece of legislation. He explained that
for seven years they have been trying to come up with a consensus
package. This agreement was reached by members from the Ad Hoc
Labor Management Committee on Workers' Compensation Reform. He
stated Alaska was one of the few states, west of the Mississippi,
that has been able to realize a reduction in Workers'
Compensation Premiums. He said that there were six provisions
contained within the bill. Section 2 is the contracted premium
rate adjustment, which stipulates that workers' compensation
premium rates cannot be determined by the amount of money you pay
your employees. It's by the amount of risk. He said that
Section 3 pertains to design professional construction site
liability limits. This protects professional designers,
engineers and architects who may map out a plan, but through the
courts have been held liable through no fault of their own.
Section 4, he stated, contains an element pertaining to
determination of spendable weekly wages. This is in response to
the Gilmore decision which the Supreme Court threw out this
summer. He stated that the death benefit section is contained in
Section 6. Currently in Alaska statute, for an individual killed
on the job, their surviving spouse receives their benefits up to
ten years. However, after five years that benefit is diminished
by one-third. From five to eight years, it is diminished by
half. This legislation suggests that a more appropriate course
would be to extend the benefit through ten years.
Number 469
CHAIRMAN KOTT asked what the rationale was behind that.
REPRESENTATIVE MULDER stated that about the time the surviving
spouse is about to get on their feet, presumably by going back to
school to make up for the lost income, is about the time you're
going to cut back on their benefits and essentially hampering
their efforts.
Number 480
CHAIRMAN KOTT added that the cost would be spread out so the cost
to employers would be very small.
REPRESENTATIVE MULDER stated that the net increase to employers
would be .006 premium rate adjustment increase. He also added
that there was a very small section of the employee community
that is affected.
REPRESENTATIVE ROKEBERG asked why they were revising the law.
REPRESENTATIVE MULDER responded that when you do a workers'
compensation reform package, you seek a balance between the
benefits gained by management versus the benefits gained by
labor, seeking to provide a level playing field so that the net
impact to the rate payer will either be neutral or negative.
REPRESENTATIVE MULDER continued that there were two more
provisions. The Van Bene provision which provides immunity for
insurance companies that provide workplace safety inspection
programs. He said that the final element, contained in Section
8, is fraud. Currently, if an employer believes an employee is
guilty of fraud, their only recourse is to take it to court.
This would allow the employer to go before the board, which is
far simpler and less expensive.
Number 531
REPRESENTATIVE KUBINA asked if the department endorses the bill.
CHAIRMAN KOTT stated that the department did endorse the bill as
written.
Number 538
DARIO NOTTI, LEGISLATIVE INTERN TO SENATOR DUNCAN, explained he
was testifying on his own behalf, and asked if the employee had
the right to appeal to the courts in a fraud case.
REPRESENTATIVE MULDER responded they did.
Number 554
MARIANNE BURKE, DIRECTOR, DIVISION OF INSURANCE, DEPARTMENT OF
COMMERCE AND ECONOMIC DEVELOPMENT, testified that the Division
supports the legislation. However, Section 2 has potential
impact on overall premiums. Any additional administrative costs
that might be incurred would have to be shared by all of the
insured. She continued that if credits were received by a
portion of the group, based on an average salary and credit
scale, the difference in premiums will have to be made up by the
remaining group members.
Number 567
REPRESENTATIVE PORTER asked for a factual example of this.
MS. BURKE stated, that workers' compensation premiums start out
with a manual rate. Depending on different factors, you may pay
more than or less than that rate based on a percentage. If you
had a good record with very few claims, you would pay a smaller
percentage of the manual rates. If you had many claims, you
would pay a higher percentage of manual rates. She stated the
method currently structured is an open ended payroll base. The
starting point for developing this premium is your total payroll.
If an employer has a $10 million payroll, but you limit that
payroll to the average weekly salary, the total amount of money
needed to pay all claims remains the same so you must collect
premiums from the remaining participants.
Number 598
WILLY VAN HEMERT, CIVIL ENGINEER, MEMBER, AD HOC LABOR MANAGEMENT
COMMITTEE ON WORKERS' COMPENSATION REFORM, testified via
teleconference that the Ad Hoc Committee was a voluntary
consensus group of both labor and management. He stated that
they had attempted to eliminate third party providers, such as
insurance and medical providers. He pointed out that the
committee is structured through organized labor and the
management side is composed of members of Workers' Compensation
Committee of Alaska (WCCA). He concluded by saying that this was
a consensus bill that comes as a package.
TAPE 95-18, SIDE A
Number 000
MR. VAN HEMERT stated that not all costs related to workers'
compensation benefits are directly proportionate to wages, namely
medical benefits. He said that if someone breaks their arm, the
benefit cost for that arm is the same. It doesn't matter if they
are making $10 an hour or $25 an hour. In some cases, there is a
limit on the salary cap on benefits. He said as far as rate
making is concerned, the state of Alaska uses NCCI as their rate
maker.
Number 027
CHAIRMAN KOTT asked what Mr. Van Hemert's role was in putting the
package together.
MR. VAN HEMERT responded that he was a representative for WCCA,
and the co-chairperson to the Ad Hoc Committee.
Number 042
CHAIRMAN KOTT stated that this proposal seemed more expansive
than the original proposal that the Ad Hoc Committee had been
working on.
MR. VAN HEMERT responded that there were a couple of things the
drafters of the bill changed.
Number 068
KEVIN DOUGHERTY, General Council for Alaska Laborers, Co-Chair,
Ad Hoc Labor Management Committee on Workers' Compensation
Reform, testified via teleconference in support of HB 237.
Number 109
CHAIRMAN KOTT closed public testimony.
REPRESENTATIVE PORTER made a motion to move HB 237 from committee
with individual recommendations, and zero fiscal notes.
CHAIRMAN KOTT asked if there was an objection. Hearing none, HB
237 was moved out of the House Labor and Commerce Committee.
ADJOURNMENT
There being no further business to come before the House Labor
and Commerce Standing Committee, Chairman Kott adjourned the
meeting at 4:40 p.m.
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