Legislature(1993 - 1994)
04/03/1993 08:00 AM House STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE STATE AFFAIRS STANDING COMMITTEE
April 3, 1993
8:00 a.m.
MEMBERS PRESENT
Representative Al Vezey, Chairman
Representative Pete Kott, Vice Chairman
Representative Harley Olberg
Representative Gary Davis
Representative Fran Ulmer
Representative Bettye Davis
MEMBERS ABSENT
Representative Jerry Sanders
COMMITTEE CALENDAR
*HB 226 "An Act relating to interest rates and calculation
of interest under certain judgments and decrees
and on refunds of certain taxes, royalties, or net
profit shares; and providing for an effective
date."
HELD IN COMMITTEE FOR FURTHER CONSIDERATION
HB 206 "An Act relating to the regulation of election
campaigns, and providing for regulation by the
Alaska Public Offices Commission of elections by
electrical cooperatives."
CSHB 206 (CRA) MOVED FROM COMMITTEE WITH DO PASS
RECOMMENDATION
*SSHB 192 "An Act relating to construction contractors."
CSSSHB 192 (STA) MOVED FROM COMMITTEE WITH DO PASS
RECOMMENDATION
*HCR 18 Relating to Federal Public Land Week.
MOVED FROM COMMITTEE WITH DO PASS RECOMMENDATION
HB 46 "An Act relating to frequent traveler credit for
state-paid travel."
CSHB 46 (STA) MOVED FROM COMMITTEE WITH NO
RECOMMENDATION
(* first public hearing)
WITNESS REGISTER
Representative Eldon Mulder
Room 116, State Capitol
Juneau, Alaska 99801-1182
465-2647
Position Statement: Prime Sponsor, HB 206 and HB 192
Brooke Miles, Branch Administrator
Alaska Public Offices Commission
P.O. Box 110222
Juneau, Alaska 99811
465-4864
Position Statement: Neutral on HB 206
Joe Geldhof, Assistant Attorney General
Department of Law
P.O. Box 6728
Juneau, Alaska 99811
465-6728
Position Statement: Outlined HB 226
Larry Meyers, Director
Income and Excise Audit Division
Department of Revenue
P.O. Box 110420
Juneau, Alaska 99811-0420
465-2320
Position Statement: Provided information on HB 226
Charles E. "Chris" Christensen, III, Staff Counsel
Alaska Court System
303 K Street
Anchorage, Alaska 99501
264-8228
Position Statement: Opposed HB 226
Ken Reither
Exxon, USA
3301 C Street
Anchorage, Alaska 99503
564-3776
Position Statement: Opposed HB 226
Karl Luck, Director
Division of Occupational Licensing
Department of Commerce and Economic Development
P.O. Box 110806
Juneau, Alaska 99811-0806
465-2538
Position Statement: Supported HB 192 with suggested
amendments
PREVIOUS ACTION
BILL: HB 226
SHORT TITLE: INTEREST RATES: JUDGMENTS/TAXES/ROYALTIES
BILL VERSION:
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR
TITLE: "An Act relating to interest rates and calculation of
interest under certain judgments and decrees and on refunds
of certain taxes, royalties, or net profit shares; and
providing for an effective date."
JRN-DATE JRN-PG ACTION
03/12/93 620 (H) READ THE FIRST TIME/REFERRAL(S)
03/12/93 620 (H) STATE AFFAIRS, JUDICIARY,
FINANCE
03/12/93 620 (H) -4 ZERO FNS(ADM, ADM, REV, DOT)
3/12/93
03/12/93 621 (H) GOVERNOR'S TRANSMITTAL LETTER
04/03/93 (H) STA AT 08:00 AM CAPITOL 102
BILL: HB 206
SHORT TITLE: ELECTIONS AND ELECTRIC COOP ELECTIONS
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) MULDER
TITLE: "An Act relating to the regulation of election
campaigns, and providing for regulation by the Alaska Public
Offices Commission of elections by electrical cooperatives."
JRN-DATE JRN-PG ACTION
03/05/93 553 (H) READ THE FIRST TIME/REFERRAL(S)
03/05/93 553 (H) CRA, STATE AFFAIRS
03/16/93 (H) CRA AT 01:00 PM CAPITOL 124
03/17/93 (H) CRA AT 01:00 PM CAPITOL 124
03/17/93 (H) MINUTE(CRA)
03/23/93 (H) MINUTE(CRA)
03/24/93 757 (H) CRA RPT CS(CRA) NEW TITLE 4DP
1DNP 1NR
03/24/93 757 (H) DP: SANDERS, BUNDE, WILLIAMS,
TOOHEY
03/24/93 757 (H) DNP: DAVIES
03/24/93 757 (H) NR: OLBERG
03/24/93 758 (H) -FISCAL NOTE (ADM) 3/24/93
04/03/93 (H) STA AT 08:00 AM CAPITOL 102
BILL: HB 192
SHORT TITLE: ADVERTISING BY UNREGISTERED CONTRACTORS
BILL VERSION: SSHB 192
SPONSOR(S): REPRESENTATIVE(S) MULDER
TITLE: "An Act relating to construction contractors."
JRN-DATE JRN-PG ACTION
03/02/93 505 (H) READ THE FIRST TIME/REFERRAL(S)
03/02/93 505 (H) STATE AFFAIRS, JUDICIARY,
FINANCE
03/20/93 (H) STA AT 08:00 AM CAPITOL 102
03/24/93 760 (H) SPONSOR SUBSTITUTE INTRODUCED-
REFERRALS
03/24/93 760 (H) STATE AFFAIRS, JUDICIARY,
FINANCE
03/26/93 (H) JUD AT 01:30 PM CAPITOL 120
04/03/93 (H) STA AT 08:00 AM CAPITOL 102
BILL: HCR 18
SHORT TITLE: DECLARE FEDERAL PUBLIC LAND WEEK
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) GREEN
TITLE: Relating to Federal Public Land Week.
JRN-DATE JRN-PG ACTION
03/26/93 793 (H) READ THE FIRST TIME/REFERRAL(S)
03/26/93 793 (H) STATE AFFAIRS
04/03/93 (H) STA AT 08:00 AM CAPITOL 102
BILL: HB 46
SHORT TITLE: STATE-PAID TRAVEL MILEAGE CREDITS
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) MARTIN
TITLE: "An Act relating to frequent traveler credit for
state-paid travel."
JRN-DATE JRN-PG ACTION
01/12/93 43 (H) READ THE FIRST TIME/REFERRAL(S)
01/12/93 43 (H) STATE AFFAIRS, TRANSPORTATION,
FINANCE
03/20/93 (H) STA AT 08:00 AM CAPITOL 102
03/20/93 (H) MINUTE(STA)
03/30/93 (H) STA AT 08:00 AM CAPITOL 102
03/30/93 (H) MINUTE(STA)
ACTION NARRATIVE
TAPE 93-37, SIDE A
Number 000
CHAIRMAN AL VEZEY called the House State Affairs Committee
to order at 8:04 a.m., on April 3, 1993. Members present
were Representatives Kott, Olberg, B. Davis, G. Davis, and
Ulmer, representing a quorum.
HCR 18: DECLARE FEDERAL PUBLIC LAND WEEK
Number 016
CHAIRMAN VEZEY read the title to HCR 18 and called for a
sponsor statement. After seeing no one present to present
the statement, he read the resolution, outlined its contents
and called for comments.
Number 072
REPRESENTATIVE HARLEY OLBERG noted HCR 18's reference to 95%
of the land in Alaska being controlled by the federal
government, and asked rhetorically who decided that was such
a good idea.
Number 084
REPRESENTATIVE FRAN ULMER felt HCR 18 did not make much of a
statement and asked if it was a national trend to adopt such
a resolution.
REPRESENTATIVE OLBERG stated it was a trend among
Northwestern states to adopt the statements made in HCR 18.
Number 107
CHAIRMAN VEZEY MOVED PASSAGE of HCR 18. There being no
objections, IT SO MOVED.
HB 206: ELECTIONS AND ELECTRIC COOP ELECTIONS
Number 129
CHAIRMAN VEZEY read the title to HB 206 and called for its
sponsor to deliver his statement.
Number 135
REPRESENTATIVE ELDON MULDER, PRIME SPONSOR OF HB 206,
summarized HB 206 and its intent to regulate utility
cooperative board elections under the Alaska Public Offices
Commission (APOC). He stated telephone and electric
cooperative elections have changed dramatically in the past
few years, from a time in which candidates spent money
directly from their pockets, and in smaller amounts, to the
present in which thousands of dollars are spent without
accountability to the public. He noted the lack of a
monitor or tracking mechanism for election to a board that
controls policy for literally thousands of Alaskans.
REPRESENTATIVE MULDER stated HB 206 would waive monitoring
of cooperatives of ten thousand customers or less, and asked
the committee to pass the bill.
REPRESENTATIVE ULMER noted the existence of three versions
of HB 206, including a State Affairs Committee Substitute,
and asked the sponsor what the differences were.
Number 182
REPRESENTATIVE MULDER stated the first version had no
threshold for monitoring, where version 2, drawn up in the
Community and Regional Affairs Committee, created the ten
thousand customer threshold, and the latest version of HB
206 further tightened the qualifications of identifying a
candidate for office.
Number 208
CHAIRMAN VEZEY asked how the latest version of HB 206 was
drawn up.
Number 215
REPRESENTATIVE OLBERG stated the previous committee noted a
lack of a provision for identifying a candidate, and asked
that such a provision be drawn in.
Number 228
CHAIRMAN VEZEY asked the sponsor for a clarification between
versions "R" and "U" of HB 206. He noted the arrival of
Representative Bettye Davis at 8:17 a.m., 13 minutes after
the meeting was called to order.
Number 232
REPRESENTATIVE MULDER outlined the qualifications for a
candidate that included filing paperwork with APOC.
Number 248
REPRESENTATIVE ULMER wanted to hear more from other
witnesses.
Number 262
BROOKE MILES, JUNEAU BRANCH ADMINISTRATOR, ALASKA PUBLIC
OFFICES COMMISSION (APOC), stated the APOC is neutral on
HB 206, but did provide information to the sponsor during
its creation. She stated HB 206 provided an avenue to
monitor contributions to co-op candidates by specifying how
and where candidates would file campaign finance reports.
Under current finance laws, candidates file statements with
municipal clerks. House Bill 206 provides language for co-
op candidates to provide their statements to APOC.
Number 284
REPRESENTATIVE ULMER MOVED for ADOPTION of CSHB 206 (STA).
There was no objection, and CSHB 206 WAS ADOPTED.
Number 294
REPRESENTATIVE ULMER MOVED PASSAGE of CSHB 206 (STA) from
committee and asked for unanimous consent. There was no
objection, and IT SO MOVED.
HB 226: INTEREST RATES: JUDGMENTS/TAXES/ROYALTIES
CHAIRMAN VEZEY read the title to HB 226, noted its
introduction at the request of the Governor, and invited a
representative of the Attorney General's office to explain
the intent of HB 226.
Number 313
JOE GELDHOF, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW,
outlined HB 226. He noted Section one dealt with pre and
post judgment interest rates prior to and after court cases
involving either state funds or money owed the state, and
Section two dealt with oil royalties and tax repayment and
the interest to be paid on them. He stated the provisions
of Section one would create a statutory interest rate as
opposed to the arbitrary 10.5% rate now being paid. He
stated the advantage to setting a statutory rate would be
that it would not be at the mercy of the market, and that
would in turn save the state money.
MR. GELDHOF added the administration wished to set a market
based rate, which in HB 226 would be dependant on the
Treasury bill rate for each successive week.
Number 400
CHAIRMAN VEZEY agreed the interest rate statutes must be
rewritten, but felt HB 226, as written, was nothing more
than giving the state license to steal. He noted the state
payment of simple interest on overpaid taxes over a period
of years was unfair, since the debt of the common person is
compounded over that time. He also noted the rate would
favor guilty parties who underpaid their taxes, and asked if
anyone knew how to borrow money at the Treasury bill rate
except for the government.
Number 435
MR. GELDHOF replied the Treasury bill rate was chosen
because it is used by the federal government.
Number 440
CHAIRMAN VEZEY's experience was that the rate used is
actually the cost of money to the government.
Number 445
MR. GELDHOF stated the administration was not married to the
Treasury bill rate, as long as the rate finally chosen was
market based.
Number 450
CHAIRMAN VEZEY stated under the scenario presented, the
state could whittle away at a debt by applying simple
interest to a compounded debt it owes while stalling a case
in court.
Number 460
MR. GELDHOF explained it would be difficult for clerks to
deal with compound interest rates, and that was why the
administration chose a simple interest solution.
Number 470
CHAIRMAN VEZEY perceived the state was only asking for a
change in the system because of a poor choice earlier. He
noted under an old system, the state paid seven percent,
then paid 10.8% when the rest of the market was at 12%, and
now that the money market has dropped interest rates, the
state wants to address compound interest debts with simple
interest rates.
Number 485
MR. GELDHOF advised people could build compounded interest
rates into contracts with the state if they wished.
Number 490
CHAIRMAN VEZEY had additional objections to HB 226 as drawn
up, noting the state could condemn someone's property, then
be taken to court, and while the case was pending, the debt
on the property would outstrip the amount owed on the
property even if the state lost its case.
Number 499
REPRESENTATIVE OLBERG noted the two percent add-on to the
Treasury bill rate in court and tax settlements under HB
226, and stated he would like that deal himself, since he
was paying 12.5% on his land. He favored a market based
rate.
Number 524
CHAIRMAN VEZEY agreed with the concept of a market based
interest rate that would be fair to both sides of any
disagreement, but objected to the use of the 52-week
Treasury bill rate as the base interest rate. He stated the
Treasury bill rate was not consistent with what an average
citizen could expect in the "real world."
Number 534
MR. GELDHOF said if there was an objection to the Treasury
bill rate, he felt the administration would not object to
another market based rate instead.
Number 540
CHAIRMAN VEZEY saw two options: Either the administration
could come up with a new proposal, or work with the
committee on a committee substitute version.
MR. GELDHOF expressed a willingness to work on a new version
of HB 226.
Number 570
REPRESENTATIVE OLBERG volunteered for a subcommittee to work
on the bill, saying he saw a need to find a fair interest
base.
CHAIRMAN VEZEY stated he would appoint a subcommittee later.
Number 595
LARRY MEYERS, DIRECTOR OF INCOME AND EXCISE AUDIT DIVISION,
DEPARTMENT OF REVENUE, testified on one section of HB 226,
Section three. He said there was a great difference paid
out by the state in case of overpayment under current law
and that provided by HB 226, but there was actually no
difference if such an overpayment was treated as a
correction in the tax return.
Number 636
CHAIRMAN VEZEY asked if under the old law it would be an
advantage to overpay one's taxes because the government's
interest rate was better than most banks.
Number 650
MR. MEYERS thought that was a distinct possibility.
Number 655
CHAIRMAN VEZEY asked the difference in the interest rates
for under- and overpayments under current law.
MR. MEYERS stated under current law, there was none.
Number 663
CHAIRMAN VEZEY preferred to see a difference of some kind
for those who underpaid their taxes, saying there should be
some sort of penalty. He stated there should not be an
incentive for anyone to overpay their taxes as well.
Number 681
REPRESENTATIVE OLBERG inquired into the current rates being
paid.
Number 685
MR. MEYERS advised the rate for overpayments, corrections
and earnings is currently the short-term discount rate plus
three percent, or 11%, whichever is greater. Under HB 226,
that would change to the discount rate plus two percent, or
11%, whichever was greater, he added.
TAPE 93-37, SIDE B
Number 004
REPRESENTATIVE OLBERG perceived the state was trying to
build a spread for the interest rates, with the five percent
add-on charged going for administrative costs.
Number 030
CHAIRMAN VEZEY felt it would be at least a week before HB
226 would see any further discussion in committee, and asked
Mr. Meyers if he could provide the figure the federal
government used in over and underpayment of taxes.
Number 048
MR. MEYERS stated the federal government charged a one
percent penalty for those who underpaid their taxes.
Number 069
CHARLES "CHRIS" CHRISTENSEN III, STAFF COUNSEL FOR THE
ALASKA COURT SYSTEM, opposed HB 226, which he said was
unusual for the court system to do, but necessary. He
stated there was a series of technical problems with HB 226
and the court could not support the bill because it would
place undue strain on the system's clerical staff with no
increase in personnel. He stated the work load to track
down and then distribute the interest rate to 58 court sites
and 2,500 lawyers in the state would be enormous. He noted
the court handles close to 15,000 cases a year, and stated
providing the financial information for each case would be
unfair to expect.
Number 228
CHAIRMAN VEZEY perceived the creation of a miniature Federal
Reserve in Alaska.
Number 258
REPRESENTATIVE OLBERG thought the idea was good, and the
interest rate itself was not the problem, but how it was
created.
MR. CHRISTENSEN stated it was the creation of the rate, and
more importantly, how it was to be distributed through the
system.
Number 268
CHAIRMAN VEZEY called for testimony via teleconference.
Number 278
KEN REITHER, AN EMPLOYEE OF EXXON USA, testified by
teleconference from Anchorage in opposition to the disparity
in the interest rates applied to the under- and overpayment
of royalties. It appeared to him to be a six percent
spread.
Number 292
CHAIRMAN VEZEY expressed interest in hearing the business
community's point of view, and announced the committee would
defer action on HB 226. He then called a short at ease at
8:47 a.m.
HB 192: ADVERTISING BY UNREGISTERED CONTRACTORS
Number 319
CHAIRMAN VEZEY called the committee back to order at 8:54
a.m., read the title to SSHB 192, and called for its
sponsor's statement.
Number 325
REPRESENTATIVE ELDON MULDER, PRIME SPONSOR OF SSHB 192,
stated past regulations prevented unregistered contractors
from advertising their services unless they were certified
tradesmen, but a subsequent court ruling struck those
regulations down. He stated further that HB 192 would put
the former regulations into statute, which would protect
consumers from unscrupulous contractors. He advised SSHB
192 also tightens the "handyman" provisions in the
regulation, which he said accounts for 50% of all unlicensed
contractors' violations.
REPRESENTATIVE MULDER explained the latest version also was
amended to exclude publications from penalties because of
periodicals like USA Today and the Wall Street Journal that
are brought in from outside.
Number 417
REPRESENTATIVE ULMER perceived the law would be
unenforceable without the advertising restrictions.
Number 440
CHAIRMAN VEZEY declared it did not matter if the state could
penalize publishers, because the industry would police
itself. He felt it would be in the best interest of
licensed contractors to clean up the business, and that they
would. He pointed out the latest version of SSHB 192 raised
the maximum fine for violations from $1,000 to $10,000.
Number 464
REPRESENTATIVE ULMER stated the industry might police itself
better if the person turning in a violator was given part of
the fine amount.
Number 470
CHAIRMAN VEZEY was not adverse to that idea, but would not
suggest it himself.
Number 473
VICE CHAIRMAN PETE KOTT expressed concern about the $10,000
maximum fines, saying similar violations usually carried an
average fine of $300. He was concerned such a high fine
would constitute criminality and lead to full jury trials.
Number 485
CHAIRMAN VEZEY pointed out it is standard procedure in most
commercial law cases to impose large fines, often in the
$10,000 range, and felt the state would be able to do so
under HB 192.
Number 503
REPRESENTATIVE GARY DAVIS had concerns about HB 192, but
supported the larger fine.
Number 505
CHAIRMAN VEZEY said the $10,000 level ought to be the
minimum.
Number 510
REPRESENTATIVE OLBERG MOVED ADOPTION of CSHB 192 (STA).
There was no objection, and CSHB 192 (STA) WAS ADOPTED.
Number 519
KARL LUCK, DIRECTOR, DIVISION OF OCCUPATIONAL LICENSING,
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT (DCED), said
the DCED supported HB 192, but noted the need for several
changes. He suggested changing Section one to include the
possibility of municipal licenses being issued, and
tightening the use of advertising in the yellow pages, since
there was an exemption for directories in the latest
version.
Number 570
CHAIRMAN VEZEY had no problem with deleting lines five and
six of section one.
Number 587
REPRESENTATIVE OLBERG agreed with the deletion. He could
envision the Yellow Pages with several listings after the
exemption was given.
Number 592
REPRESENTATIVE G. DAVIS concurred, saying the Yellow Pages
would be a key area for small contractors to draw business
from.
Number 600
MR. LUCK also had concerns about the maximum fine amount,
saying an opinion from state attorneys said any fine above
the $3,000 amount might be determined as criminal instead of
a misdemeanor.
Number 620
CHAIRMAN VEZEY felt the legislature is moving toward stiffer
penalties and incarceration standards of this magnitude, and
the maximum fine is within the guidelines of that
philosophy.
Number 630
REPRESENTATIVE ULMER agreed with the Chairman, but asked for
either a court opinion or an Attorney General's opinion to
backup Mr. Luck's statements.
Number 640
MR. LUCK stated there was no written opinion, but rather
verbal comments from staff lawyers that led him to believe
the large fine might be a problem. He went on to detail his
concerns with Line 25 on page two of HB 192, in which the
sale of non-permanent parts of a structure are permitted.
He did not know what that meant.
Number 657
CHAIRMAN VEZEY believed that referred to tools and
equipment.
Number 660
MR. LUCK asked the committee to define those terms in the
final version of CSHB 192. He then took issue with
paragraph eight of page two, saying the qualification of
"handymen" would be hard to define without a contract. He
asked for a definition of "minor, inconsequential, or
casual" labor as mentioned in CSHB 192.
Number 693
CHAIRMAN VEZEY felt it would be hard to legislate common
sense of what "minor, inconsequential or casual" labor might
be. He stated the idea was to allow small businessmen to
get started while maintaining some control over the
industry.
Number 698
REPRESENTATIVE OLBERG stated if the department sought only
minor changes, perhaps the committee should hold HB 192.
TAPE 93-38, SIDE A
Number 000
MR. LUCK felt the "handyman" work threshold of $2,500 to
$5,000 would be hard for the state to enforce with current
personnel levels.
CHAIRMAN VEZEY felt the state should not be trying to
enforce that anyway, because the industry would probably do
the enforcement.
Number 050
MR. LUCK stated it would still require more people even if
the industry policed itself, because complaints would still
have to be handled by state commerce officers. He estimated
it would take at least 12 people statewide to handle the
investigation of complaints.
Number 092
CHAIRMAN VEZEY noted Mr. Luck's suggestions, summarized the
amendments the committee might want to make, then
entertained a motion to formalize the latest version of CSHB
192. (A copy of the amendments may be found in the House
State Affairs Committee Room, Capitol Room 102, and after
the adjournment of the second session of the 18th Alaska
State Legislature, in the Legislative Reference Library.)
Number 111
REPRESENTATIVE OLBERG MOVED ADOPTION of the AMENDMENTS.
Members took some moments to familiarize themselves with the
language changes.
Number 182
CHAIRMAN VEZEY MOVED the PROPOSED AMENDMENTS. There were no
objections; the AMENDMENTS to CSHB 192 (STA) WERE ADOPTED.
REPRESENTATIVE OLBERG MOVED PASSAGE of CSHB 192 (STA) from
committee, and asked for unanimous consent. Without
objections, THE MOTION CARRIED.
HB 46: STATE-PAID TRAVEL MILEAGE CREDITS
Number 205
CHAIRMAN VEZEY introduced a new CSHB 46, and asked its
acceptance for purposes of discussion.
REPRESENTATIVE OLBERG MOVED ADOPTION of CSHB 46 (STA).
There was no objection, and CSHB 46 (STA) WAS ADOPTED.
CHAIRMAN VEZEY explained the changes in CSHB 46 (STA), which
included the deletion of jail terms for those who violate
the law; the recognition that federal law codifies the
airlines frequent flier programs as property of the
airlines; and the deletion of section two and its subsequent
replacement with a section that says state employees are no
longer allowed to accept frequent flier mileage.
Number 244
REPRESENTATIVE G. DAVIS noted the last time HB 46 was
discussed, a union official claimed the mileage program was
included in a formal labor agreement, and asked for
verification that was true.
Number 254
CHAIRMAN VEZEY noted the papers provided the committee were
unsigned, and subsequent discussions with the Department of
Administration led to the realization no such agreement
occurred.
Number 262
REPRESENTATIVE G. DAVIS was concerned about the unsigned
document and wondered if other members were concerned about
the veracity of the union official's testimony.
CHAIRMAN VEZEY stated there was no evidence the agreement
was ever made.
Number 277
REPRESENTATIVE ULMER wanted the point clarified for the
record, and wanted to know from the Department of
Administration's Commissioner, Nancy Usera, if such an
agreement ever existed, rather than depend on a single phone
call. It seemed to her CSHB 46 (STA) simply ruled employees
could not claim credit for mileage, with no provision for
the state getting that credit, which seemed to contradict
the original intent of HB 46.
Number 312
CHAIRMAN VEZEY stated the committee staff requested any
documentation that might prove the existence of frequent
flier mileage being included in labor agreements with the
state, and none was produced by the Department of
Administration. He went on to state CSHB 46 (STA) simply
paved the way for state agencies to collect frequent flier
mileage because of the incentive provided the airlines.
Number 340
REPRESENTATIVE OLBERG stated that since Juneau is down to
one major airline serving the city, and if employees not
getting the mileage would help that one airline
economically, he would opt for helping the airline.
Number 356
REPRESENTATIVE ULMER understood Representative Olberg's
point, but says with the prices Alaska Airlines charges in
Southeast Alaska, she feels the community has done enough
economically for the airline.
REPRESENTATIVE G. DAVIS shared Representative Ulmer's
concerns, and stated CSHB 46 (STA) needed a statement of
intent that the state should eventually collect the frequent
flier mileage.
Number 393
REPRESENTATIVE OLBERG stated it was appropriate to include a
statement saying CSHB 46 (STA) was the first step for the
state collecting the mileage.
Number 400
CHAIRMAN VEZEY felt it would be a simple matter for the
Department of Administration to find a way to collect the
mileage, and was not opposed to an amendment for intent
language.
Number 416
REPRESENTATIVE G. DAVIS replied he would get another chance
at CSHB 46 (STA) in the House Transportation Committee, and
would address his concerns there. He then MOVED PASSAGE of
CSHB 46 (STA).
Number 423
VICE CHAIR KOTT hoped the House Transportation Committee
would also look at ways to claim travel mileage from both
hotel and car rentals during its deliberations.
Number 448
The House State Affairs Committee Substitute to HB 46 was
PASSED from committee by a 5-1 vote, with Representative
Ulmer voting NO.
ADJOURNMENT
Number 460
CHAIRMAN VEZEY adjourned the committee at 10:05 a.m.
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