05/06/2002 03:25 PM House L&C
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ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
May 6, 2002
3:25 p.m.
MEMBERS PRESENT
Representative Lisa Murkowski, Chair
Representative Andrew Halcro, Vice Chair
Representative Kevin Meyer
Representative Norman Rokeberg
Representative Harry Crawford
Representative Joe Hayes
MEMBERS ABSENT
Representative Pete Kott
COMMITTEE CALENDAR
HOUSE BILL NO. 323
"An Act relating to emergency and disaster relief forces as
state employees for purposes of workers' compensation benefits;
relating to the Emergency Management Assistance Compact and the
implementation of the compact; and providing for an effective
date."
- MOVED HB 323 OUT OF COMMITTEE
CS FOR SENATE BILL NO. 215(FIN)
"An Act relating to licensing common carriers to dispense
alcoholic beverages; and providing for an effective date."
- HEARD AND HELD
PREVIOUS ACTION
BILL: HB 323
SHORT TITLE:EMERGENCY MANAGEMENT ASSISTANCE COMPACT
SPONSOR(S): RLS BY REQUEST OF THE GOVERNOR
Jrn-Date Jrn-Page Action
01/16/02 1970 (H) READ THE FIRST TIME -
REFERRALS
01/16/02 1970 (H) MLV, STA, L&C
01/16/02 1970 (H) FN1: ZERO(MVA)
01/16/02 1970 (H) GOVERNOR'S TRANSMITTAL LETTER
04/04/02 (H) MLV AT 3:00 PM CAPITOL 124
04/04/02 (H) Moved Out of Committee
MINUTE(MLV)
04/05/02 2814 (H) MLV RPT 4DP 1NR
04/05/02 2814 (H) DP: KOTT, MURKOWSKI, HAYES,
04/05/02 2814 (H) CHENAULT; NR: GREEN
04/05/02 2814 (H) FN1: ZERO(MVA)
04/25/02 (H) STA AT 8:00 AM CAPITOL 102
04/25/02 (H) Moved Out of Committee
04/25/02 (H) MINUTE(STA)
04/25/02 3127 (H) STA RPT 7DP
04/25/02 3127 (H) DP: WILSON, CRAWFORD,
STEVENS, JAMES,
04/25/02 3127 (H) FATE, HAYES, COGHILL
04/25/02 3127 (H) FN1: ZERO(MVA)
05/06/02 (H) L&C AT 3:15 PM CAPITOL 17
BILL: SB 215
SHORT TITLE:COMMON CARRIER LIQUOR LICENSE
SPONSOR(S): SENATOR(S) COWDERY
Jrn-Date Jrn-Page Action
04/30/01 1357 (S) READ THE FIRST TIME -
REFERRALS
04/30/01 1357 (S) TRA, FIN
01/22/02 (S) TRA AT 1:30 PM BUTROVICH 205
01/22/02 (S) Moved CS(TRA) Out of
Committee
MINUTE(TRA)
01/23/02 2017 (S) TRA RPT CS 3DP 2NR SAME TITLE
01/23/02 2017 (S) DP: COWDERY, WILKEN, TAYLOR;
01/23/02 2017 (S) NR: WARD, ELTON
01/23/02 2017 (S) FN1: (REV)
03/04/02 (S) FIN AT 9:00 AM SENATE FINANCE
532
03/04/02 (S) Scheduled But Not Heard
03/05/02 (S) FIN AT 9:00 AM SENATE FINANCE
532
03/05/02 (S) Moved CS(FIN) Out of
Committee
03/05/02 (S) MINUTE(FIN)
03/06/02 2382 (S) FIN RPT CS 5DP 3NR SAME TITLE
03/06/02 2382 (S) DP: KELLY, HOFFMAN, WILKEN,
WARD,
03/06/02 2382 (S) LEMAN; NR: DONLEY, GREEN,
OLSON
03/06/02 2383 (S) FN2: (REV)
03/26/02 (S) RLS AT 11:00 AM FAHRENKAMP
203
03/26/02 (S) MINUTE(RLS)
04/19/02 2858 (S) RULES TO CALENDAR 4/19/02
04/19/02 2859 (S) READ THE SECOND TIME
04/19/02 2859 (S) FIN CS ADOPTED UNAN CONSENT
04/19/02 2859 (S) ADVANCED TO THIRD READING
UNAN CONSENT
04/19/02 2860 (S) READ THE THIRD TIME CSSB
215(FIN)
04/19/02 2860 (S) PASSED Y14 N4 E1 A1
04/19/02 2860 (S) EFFECTIVE DATE(S) SAME AS
PASSAGE
04/19/02 2863 (S) TRANSMITTED TO (H)
04/19/02 2863 (S) VERSION: CSSB 215(FIN)
04/22/02 3058 (H) READ THE FIRST TIME -
REFERRALS
04/22/02 3058 (H) L&C, FIN
04/29/02 (H) L&C AT 3:15 PM CAPITOL 17
04/29/02 (H) Heard & Held
MINUTE(L&C)
05/06/02 (H) L&C AT 3:15 PM CAPITOL 17
WITNESS REGISTER
MG PHILLIP OATES, Adjutant General/Commissioner
Department of Military & Veterans' Affairs
PO Box 5800
Fort Richardson, Alaska 99505-0800
POSITION STATEMENT: Presented HB 323 on behalf of the
administration.
DON SMITH, Staff
to Senator John Cowdery
Alaska State Legislature
Capitol Building, Room 101
Juneau, Alaska 99801
POSITION STATEMENT: Testified on behalf of the sponsor of CSSB
215(FIN), Senator Cowdery.
ACTION NARRATIVE
TAPE 02-72, SIDE A
Number 0001
CHAIR LISA MURKOWSKI called the House Labor and Commerce
Standing Committee meeting to order at 3:25 p.m.
Representatives Murkowski, Halcro, Meyer, Crawford, and Hayes
were present at the call to order. Representative Rokeberg
arrived as the meeting was in progress.
HB 323 - EMERGENCY MANAGEMENT ASSISTANCE COMPACT
Number 0061
CHAIR MURKOWSKI announced that the first order of business would
be HOUSE BILL NO. 323, "An Act relating to emergency and
disaster relief forces as state employees for purposes of
workers' compensation benefits; relating to the Emergency
Management Assistance Compact and the implementation of the
compact; and providing for an effective date."
Number 0099
MG PHILLIP OATES, Adjutant General/Commissioner, Department of
Military & Veterans' Affairs (DMVA), presented HB 323 on behalf
of the administration. He said that the Emergency Management
Assistance Compact (EMAC) is very important because no state or
nation can have enough resources or wealth to deal with the
large contingencies of an attack with weapons of mass
destruction. Therefore, compacts with other states is very
important due to the need for rapid access to resources as well
as the ability to rapidly provide resources to those in need.
He explained that the EMAC is a duty roster of support in which
a state is prepared to provide a certain package of assistance.
The state is indemnified from providing the support and is
reimbursed for this support. The state can ultimately have
these resources returned, if need be. General Oates pointed out
that quick response to a weapons of mass destruction event can
result in great success. However, a slow response, especially
with a biological event, could result in no success. Therefore,
it's important to enter into the compact, he reiterated. He
estimated that only four states wouldn't be part of EMAC by the
end of this legislative session.
GENERAL OATES informed the committee of discussions with
Governor Tom Ridge, the Director of the Office of Homeland
Security and the Federal Emergency Management Agency (FEMA)
regarding the notion that states should have the availability to
have a soft match for the federal assistance. Because of the
country's economic recession, states are having difficulty
funding their existing programs. Therefore, a hard match to
obtain federal dollars will be difficult to achieve. Moreover,
most state legislative sessions have ended. General Oates noted
that the need for a procedural match and soft match have been
argued. [It has also been argued] that one of the most
important things for receiving federal assistance is having an
EMAC. General Oates related his belief that this legislation is
good and helps Alaska assist others, which is a long-standing
Alaskan trait. He requested that the committee move this
legislation forward this year.
Number 0424
CHAIR MURKOWSKI informed the committee that in the House Special
Committee on Military and Veterans' Affairs she had asked
whether it's necessary to include the language of the entire
compact to which the National Emergency Management Association
responded in the affirmative.
Number 0530
REPRESENTATIVE HAYES moved to report HB 323 out of committee
with individual recommendations and the accompanying zero fiscal
note. There being no objection, HB 323 was reported from the
House Labor and Commerce Standing Committee.
SB 215-COMMON CARRIER LIQUOR LICENSE
CHAIR MURKOWSKI announced that the next order of business would
be CS FOR SENATE BILL NO. 215(FIN), "An Act relating to
licensing common carriers to dispense alcoholic beverages; and
providing for an effective date."
REPRESENTATIVE HALCRO recalled that the public testimony was
closed on CSSB 215(FIN).
CHAIR MURKOWSKI informed the committee that she had concern that
there might have been some small [carriers] who, upon this
legislation coming into effect, would face higher [fees]. In
looking through the list of licensees in Alaska, almost all the
smaller entities with a common carrier license has a common
carrier seasonal license. This common carrier seasonal license
can be obtained for about half the price and thus they're not in
the same situation as Alaska Airlines and its multiple carrier
licenses.
Number 0708
REPRESENTATIVE ROKEBERG turned to the reference labeled "SB 215
- License Renewal Breakdown". He remarked that the "Others"
category seems significant in regard to the gains and losses.
CHAIR MURKOWSKI informed the committee that those entities
impacted by this [legislation are] ERA Aviation, Marriott,
Phillips Alaska, Inc., Revolution Airways, the State of Alaska,
United Airlines, and the White Pass and Yukon Route Railroad.
The others have seasonal common carrier licenses. She related
her feeling that the [smaller] seasonal operators are addressed.
In further response to Representative Rokeberg, Chair Murkowski
confirmed that the cruise ships have to sign up as well and
pointed out that they are seasonal as well. She noted that
these fees haven't increased since 1980. [This legislation]
would raise the fees for everyone and pass the discount to
Alaska Airlines.
CHAIR MURKOWSKI commented that she didn't how other states deal
with their licensure fees. The sponsor statement specifies that
what Alaska Airlines pays in Alaska is an inordinate amount
compared to what it pays in other states. Therefore, she
questioned whether there are other taxes that the other states
might impose in addition to the licensure fee, which would make
Alaska's licensure fee look incongruent with the licensure fees
of other states.
REPRESENTATIVE HALCRO related his belief that the difference may
have to do with landing fees.
Number 1050
CHAIR MURKOWSKI informed the committee that Texas charges a per
drink tax on alcohol consumed over the air in Texas. Chair
Murkowski announced that the bill could be held until answers to
the committee's questions are received.
REPRESENTATIVE ROKEBERG noted his preference to move the bill.
CHAIR MURKOWSKI restated her question regarding whether other
states charge other fees related to alcohol provided by an
airline that the state would recoup.
Number 1140
DON SMITH, Staff to Senator John Cowdery, Alaska State
Legislature, said that he didn't know. In further response to
Chair Murkowski, Mr. Smith answered that he didn't know how
Alaska has gotten so "out of whack" with the other states
because he wasn't familiar with how other states charge for
liquor licenses. Mr. Smith mentioned [Alaska Airlines'] growth
and [the fact] that in the aggregate about 40 percent of Alaska
Airlines' air time is spent in Alaska. Mr. Smith recalled that
there were problems each time an airplane was licensed when it
received a new start-up date.
CHAIR MURKOWSKI remarked that Section 1 seems important due to
making it easier to obtain the licensing.
MR. SMITH pointed out that eventually everything will be on a
two-year cycle.
CHAIR MURKOWSKI characterized this matter as a policy call and
noted that this would be a direct benefit to Alaska Airlines.
Number 1274
REPRESENTATIVE ROKEBERG expressed concern with regard to the
symmetry between the $1,000 fee for the first ten licenses and
the $100 fee for each thereafter, as it relates to the seasonal
fees.
MR. SMITH indicated that the [licenses] fall under the
applicable fee. He noted that some of the trains and cruise
ships purchase a half-year license, which is cheaper. He
related that someone had told him that West Tours would have to
have three more train cars before this legislation would make
economic sense for them. Although this legislation is written
as if it will impact everyone, it only impacts one carrier at
the moment.
REPRESENTATIVE ROKEBERG related his belief that this legislation
will increase the fees on everyone else until the entity reaches
the number of ten aircraft or train cars.
MR. SMITH said that his understanding is that those with less
than ten would stay under the current [license fees].
CHAIR MURKOWSKI interjected her belief that the reason the
smaller entities would be Okay under this is because most of the
smaller entities operate under a seasonal license.
MR. SMITH indicated agreement that such is the case and would be
the case unless the entity grew.
CHAIR MURKOWSKI directed attention to Section 3, which relates
that this legislation applies to a new common carrier dispensary
license or renewal occurring on or after the effective date.
Therefore, if the licenses are up for renewal every other year,
these entities will fall under these renewal fees [at that
time].
REPRESENTATIVE ROKEBERG noted that this has to do with Title 4.
Number 1407
CHAIR MURKOWSKI commented that it seems a bit ironic to provide
a break in the amount collected from a carrier on the carrier's
license to dispense alcoholic beverages when the legislature
just voted to increase the alcohol tax.
REPRESENTATIVE MEYER, after discussion, surmised that Alaska
Airlines would probably buy alcohol in Alaska because its
cheaper in Alaska when one considers the taxes in Seattle.
The committee took an at-ease from 3:50 p.m. to 3:52 p.m.
CHAIR MURKOWSKI recalled that one of the questions hasn't been
answered and thus this legislation would be held to Wednesday.
REPRESENTATIVE ROKEBERG remarked that it would be impossible to
sort out the landing fees that may be incorporated in the
[license fees] of other states.
CHAIR MURKOWSKI disagreed and remarked that someone in the
administration of Alaska Airlines should be able to specify
what, beyond the license fee, is paid in various states.
REPRESENTATIVE ROKEBERG suggested that a list of the common
carrier license fees in each state would probably be adequate.
CHAIR MURKOWSKI agreed that might be helpful. She reiterated
that the legislation would be held until Wednesday.
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
3:50 p.m.
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