Legislature(1995 - 1996)
03/07/1995 08:03 AM House STA
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE STATE AFFAIRS STANDING COMMITTEE
March 7, 1995
8:03 a.m.
MEMBERS PRESENT
Representative Jeannette James, Chair
Representative Scott Ogan, Vice-Chair
Representative Joe Green
Representative Ivan
Representative Brian Porter
Representative Caren Robinson
Representative Ed Willis
MEMBERS ABSENT
None
COMMITTEE CALENDAR
* HB 218: "An Act relating to the payment of certain trucking
owner-operators."
HEARD AND HELD
HB 59: "An Act relating to raffles and auctions of certain
permits to take big game; and providing for an
effective date."
PASSED OUT OF COMMITTEE
* HB 199: "An Act creating the crime of criminal transmission
of HIV."
HEARD AND HELD
HSTA - 03/07/95
* HB 201: "An Act relating to prisoner litigation,
post-conviction relief, sentence appeals, amending
Alaska Administrative Rule 10, Alaska Rules of
Appellate Procedure 204, 208, 209, 215, 521, 603,
and 604, and Alaska Rules of Criminal Procedure 11,
33, 35, and 35.1; and providing for an effective
date."
SCHEDULED BUT NOT HEARD
HSTA - 03/07/95
* HB 2: "An Act allowing courts to require certain offenders
as a special condition of probation to complete a
boot camp program provided by the Department of
Corrections; making prisoners who complete the boot
camp program eligible for discretionary parole;
providing for incarceration of certain nonviolent
offenders in boot camps operated by the Department
of Corrections; allowing the Department of
Corrections to contract with a person for an
alternative boot camp program; creating the Boot
Camp Advisory Board in the Department of
Corrections; and providing for an effective date."
SCHEDULED BUT NOT HEARD
HSTA - 03/07/95
* HB 96: "An Act increasing and requiring annual adjustment
of the tax on alcoholic beverages; and providing
for an effective date."
SCHEDULED BUT NOT HEARD
(* First public hearing)
WITNESS REGISTER
REPRESENTATIVE JEANNETTE JAMES
Alaska State Legislature
State Capitol, Room 102
Juneau, Alaska 99801-1182
Telephone: 465-3743
POSITION STATEMENT: Provided sponsor statement for HB 218
BOB EAKMAN, General Manager and Lobbyist
Alaska Independent Truckers Association of Anchorage
200 West 34th Ave, Suite 863
Anchorage, Alaska 99503
Telephone: 276-1934
POSITION STATEMENT: Supported HB 218
TERRY BANNISTER, Attorney
Legislative Legal Counsel
Legislative Affairs Agency
Goldstein Bldg., Rm 405
Juneau, Alaska 99801-1182
Telephone: 465-2450
POSITION STATEMENT: Provided background information on HB 218
JACK WIEGELE, Vice President
Alaska Independent Truckers Association of Anchorage
200 West 34th Ave, Suite 863
Anchorage, Alaska 99503
Telephone: 276-1934
POSITION STATEMENT: Supported HB 218
CHUCK HIGHT, Master at Arms
Alaska Independent Truckers Association of Anchorage
200 West 34th Ave., Suite 863
Anchorage, Alaska 99503
Telephone: 276-1934
POSITION STATEMENT: Supported HB 218
RANDY CARR, Chief
Wage and Hour Administration
Department of Labor
P.O. Box 107021
Anchorage, Alaska 99510-7021
Telephone: 269-4914
POSITION STATEMENT: Provided information of HB 218
MONTY MONTGOMERY, Assistant Executive Director
Associated General Contractors
4041 B Street
Anchorage, Alaska 99503
Telephone: 561-5354
POSITION STATEMENT: Opposed HB 218
STEVE TROSPER, Business Representative
Teamsters Local 959
4300 Boniface Parkway
Anchorage, Alaska 99504
Telephone: 269-4191
POSITION STATEMENT: Supported HB 218
JAY EVANS, Owner-Operator
Alaska Independent Truckers Association of Anchorage
200 West 34th Ave., Suite 863
Anchorage, Alaska 99503
Telephone: 276-1934
POSITION STATEMENT: Supported HB 218
BILL EVANS, Owner-Operator
Alaska Independent Truckers Association of Anchorage,
and Owner, Davis Transport, Ltd.
200 West 34th Ave., Suite 863
Anchorage, Alaska 99503
Telephone: 276-1934
POSITION STATEMENT: Supported HB 218
ROXANNA HORSCHEL, Vice Chair of the Legislative
Committee of the Associated General Contracts; and
Owner, ACME Fence Co.
243 E. 87th Ave.
Anchorage, Alaska 99515
Telephone: 522-1155
POSITION STATEMENT: Opposed HB 218
CHUCK DAVIS, Owner-Operator
Alaska Independent Truckers Association of Anchorage
and Owner, Davis Transport, Ltd.
200 West 34th Ave, Suite 863
Anchorage, Alaska 99503
Telephone: 276-1934
POSITION STATEMENT: Supported HB 218
MICHAEL SWALLING, Owner
Swalling Construction Co., Inc.
P.O. Box 101039
Anchorage, Alaska 99510
Telephone: 272-3461
POSITION STATEMENT: Opposed HB 218
REPRESENTATIVE CON BUNDE
Alaska State Legislature
State Capitol, Room 108
Juneau, Alaska 99801-1182
Telephone: 465-4843
POSITION STATEMENT: Provided sponsor statement for HB 59
GERON BRUCE, Legislative Liaison
Alaska Department of Fish and Game
P.O. Box 25526
Juneau, Alaska 99811-5526
Telephone: 465-6143
POSITION STATEMENT: Supported HB 59
CAM RADER, Board Member
Foundation for North American Wild Sheep
3313 Peace Court
Anchorage, Alaska 99501
Telephone: 333-1272
POSITION STATEMENT: Supported HB 59
ROD ARNO, President
Alaska Outdoor Council
P.O. Box 279
Palmer, Alaska 99645
Telephone: 376-2913
POSITION STATEMENT: Supported HB 59
EDDIE GRASSER, Legislative Director
Alaska Outdoor Council
P.O. Box 22394
Juneau, Alaska 99802
Telephone: 463-3830
POSITION STATEMENT: Supported HB 59
DUANE BUELL, Member
Alaska Wildlife Safeguard
9131 Glacier Ave
Juneau, Alaska 99801
Telephone: 789-9785
POSITION STATEMENT: Supported HB 59
BARBARA BRINK, Deputy Director
Alaska Public Defender Agency
900 West Fifth Avenue, Suite 200
Anchorage, Alaska 99501
Telephone: 264-4400
POSITION STATEMENT: Opposed HB 199
PREVIOUS ACTION
BILL: HB 218
SHORT TITLE: PROMPT PAYMENT OF TRUCKING SUBCONTRACTORS
SPONSOR(S): REPRESENTATIVE(S) JAMES BY REQUEST
JRN-DATE JRN-PG ACTION
03/01/95 531 (H) READ THE FIRST TIME - REFERRAL(S)
03/01/95 531 (H) STATE AFFAIRS, TRANSPORTATION,
JUDICIARY
03/07/95 (H) STA AT 08:00 AM CAPITOL 102
BILL: HB 59
SHORT TITLE: RAFFLE OR AUCTION OF BIG GAME PERMITS
SPONSOR(S): REPRESENTATIVE(S) BUNDE,Toohey
JRN-DATE JRN-PG ACTION
01/06/95 36 (H) PREFILE RELEASED
01/16/95 36 (H) READ THE FIRST TIME - REFERRAL(S)
01/16/95 36 (H) STATE AFFAIRS, RESOURCES, FINANCE
01/20/95 105 (H) COSPONSOR(S): TOOHEY
03/07/95 (H) STA AT 08:00 AM CAPITOL 102
BILL: HB 199
SHORT TITLE: CRIMINAL TRANSMISSION OF HIV
SPONSOR(S): REPRESENTATIVE(S) OGAN
JRN-DATE JRN-PG ACTION
02/27/95 487 (H) READ THE FIRST TIME - REFERRAL(S)
02/27/95 487 (H) STATE AFFAIRS, JUDICIARY, FINANCE
03/07/95 (H) STA AT 08:00 AM CAPITOL 102
BILL: HB 201
SHORT TITLE: PRISONER LITIGATION AND APPEALS
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR
JRN-DATE JRN-PG ACTION
02/27/95 488 (H) READ THE FIRST TIME - REFERRAL(S)
02/27/95 488 (H) STATE AFFAIRS, JUDICIARY, FINANCE
02/27/95 488 (H) 3 ZERO FISCAL NOTES (LAW, CORR, DPS)
02/27/95 488 (H) 2 ZERO FISCAL NOTES (ADM)
02/27/95 488 (H) GOVERNOR'S TRANSMITTAL LETTER
BILL: HB 2
SHORT TITLE: BOOT CAMP FOR NONVIOLENT OFFENDERS
SPONSOR(S): REPRESENTATIVE(S) WILLIS,Rokeberg
JRN-DATE JRN-PG ACTION
01/06/95 20 (H) PREFILE RELEASED
01/16/95 21 (H) READ THE FIRST TIME - REFERRAL(S)
01/16/95 21 (H) STA, JUD, FIN
03/07/95 (H) STA AT 08:00 AM CAPITOL 102
BILL: HB 96
SHORT TITLE: INCREASING TAX ON ALCOHOLIC BEVERAGES
SPONSOR(S): REPRESENTATIVE(S) BROWN,Davies,Elton
JRN-DATE JRN-PG ACTION
01/19/95 81 (H) READ THE FIRST TIME - REFERRAL(S)
01/19/95 81 (H) STATE AFFAIRS, JUDICIARY, FINANCE
01/20/95 106 (H) COSPONSOR(S): ELTON
03/07/95 (H) STA AT 08:00 AM CAPITOL 102
ACTION NARRATIVE
TAPE 95-23, SIDE A
Number 000
The House State Affairs Committee was called to order by Chair
Jeannette James at 8:03 a.m. Members present at roll call were
Representatives James, Ogan, Green, Porter, Robinson, and Willis.
Representative Ivan arrived shortly after roll call.
HSTA - 03/07/95
HB 218 - PROMPT PAYMENT OF TRUCKING SUBCONTRACTORS
CHAIR JEANNETTE JAMES, who introduced HB 218 at the request of
the Alaska Independent Truckers, read her sponsor statement:
"This bill was filed upon request for the Alaska Independent
Truckers, to provide for their prompt payment. However, HB 218
could fill a niche and open a door for an entire category of
service providers in Alaska.
"We claim we want to create jobs. Here is a way to do it.
"There is a group of skilled workers and professionals in our
state who fall between the cracks. They are not small
businesses. They are not employees. They are each individual
operators who provide their own tools, equipment, and expertise
for hire. They offer small businesses all the advantages of a
single temporary employee, available only when needed, without
the red tape and expense of hiring and firing employees, renting
or buying equipment, and training operators.
"Since these workers are just single independent operators, they
do not have a resource of working capitAl and they need to be
paid on a regular and prompt basis.
"Often these single independent operators do eventually raise
enough capital to create their own small businesses. They can be
the forerunners for a more healthy business environment in Alaska
if we clear their way. HB 218 could be the start."
Number 030
CHAIR JAMES added that, although this is a truckers bill, she has
talked to a number of other independent providers of services who
would like to see this bill passed so they can be paid promptly,
since "this is their pay check." The blank CS for HB 218, work
draft 9-LS0352/G, was the working draft for the committee
meeting.
Number 067
BOB EAKMAN, General Manager and Lobbyist for the Alaska
Independent Truckers Association of Anchorage, gave a history of
the independent owner-operators, stating they fell through the
cracks when laws were passed in 1986 requiring the prime
contractor and the subcontractor to be paid within seven days,
but failing to address or protect the independent owner-operator.
This means the independent trucker's credit is always in jeopardy
because he often is not paid in time to meet his own bills and
payments. It also means that sometimes safety considerations get
dropped if truckers cannot afford to keep their trucks in
compliance with safety requirements.
Number 161
REPRESENTATIVE JOE GREEN referred to lines 7 and 8 of page 2 of
the blank CS working draft and asked if a trucker could possibly
end up submitting three or four bills in a given month.
Number 180
MR. EAKMAN said this was possible, but they agree to not bill
more than twice a month on a given job. If a trucker has more
than one job, it is up to him to keep it straight.
Number 197
REPRESENTATIVE GREEN referred to lines 13 through 15, page 2 of
the working draft, asking whether the 1/2 percent per month
interest on the unpaid balance applies only to the actual days
which the payment is late.
Number 226
MR. EAKMAN answered normal practice must be followed, charging
1/2 percent per month or 18 percent per annum, not
fractionalizing it for partial months.
Number 245
TERRY BANNISTER, Attorney, Legislative Legal Council, Legislative
Affairs Agency and drafter of HB 218, agreed to answer questions.
REPRESENTATIVE BRIAN PORTER asked Ms. Bannister which statute
provides the mechanism for contractors and subcontractors to be
paid.
MS. BANNISTER replied it is AS 36.90.200 through 290, which
details contractual and payment requirements for public
construction contracts.
REPRESENTATIVE PORTER asked if it required a contract.
MS. BANNISTER replied she thought a written contract was
required. She added the provisions are different; it goes into
more detail than HB 218.
Number 297
REPRESENTATIVE PORTER observed an agreement is difficult to
enforce without a written contract.
Number 305
CHAIR JAMES noted one reason people would become independent
owner-operators is because they have not been able to get a job
elsewhere, and this would allow them to sell their skills for
short jobs and get a paycheck which wouldn't be available to them
as employees. She added if these people could be identified,
there would probably be a different category of business license
for them.
Number 347
REPRESENTATIVE GREEN inquired whether a small general contractor
could use a chit with blanks to fill in.
MR. EAKMAN said it could be done, using a "boiler-plate
contract." The problem occurs when a contractor calls with an
immediate need for the trucker's service and there is no
discussion of wages; this constitutes a verbal contract, which is
defensible in Alaska, yet almost impossible to enforce.
Number 383
CHAIR JAMES mentioned the requirement to fill out a W-9 form,
adding the general contractor should require the contract and
other information to be filled out at the same time.
Number 398
MR. EAKMAN said what happens is truckers end up on a certified
payroll, and they should not.
Number 409
REPRESENTATIVE SCOTT OGAN said he is an independent contractor
himself and has been one for 20 years. He does not want the
state making statutes which would require the contractors with
whom he does business to pay him in 14 days; he believes he has
enough business finesse of his own to be sure he has contracts
and doesn't want the state involved. It would set a dangerous
precedent and start other business people asking for the same
protection. There is a certain amount of risk in owning a
business, along with the rewards. He added he will not be able
to support the bill.
Number 442
REPRESENTATIVE CAREN ROBINSON asked if they were talking about
public or state contracts.
MS. BANNISTER said they were dealing with contracts in general.
CHAIR JAMES added that HB 218 as currently drafted does not just
relate to public contracts.
Number 455
JACK WIEGELE, Vice President, Alaska Independent Truckers
Association, testified via teleconference in favor of HB 218. He
stated he has been an owner-operator since 1979, hauling gravel,
and he helped draft HB 218. He said it is simple: they need to
be paid in a timely manner. The 30, 60, 90, and 120 day payments
are not adequate. The whole community should be behind this
bill.
Number 491
CHARLES HIGHT, Master at Arms, Alaska Independent Truckers
Association of Anchorage, testified via teleconference. He said
he had been in business since coming to Alaska, and this bill
will help truckers support their families by being paid promptly.
He added that truckers who ask for payment are afraid they will
be black-balled and not called for the next job, and they can't
stay in business being paid in this manner.
Number 516
RANDY CARR, Chief, Wage and Hour Administration, Alaska
Department of Labor, testified via teleconference. He said he
had no statement to make but was available to answer questions.
Number 527
MONTY MONTGOMERY, Assistant, Executive Director, Associated
General Contractors of Alaska, testified via teleconference in
opposition to HB 218, stating a prompt pay act is already in
effect requiring a contractor to pay within seven days after he
is paid. It is poor business practice to respond to a request to
work without discussing a commitment of money or time. He added
there is no reason a contract can't be sent by FAX machine and
signed in advance.
Number 553
CHAIR JAMES asked what are the options if a contractor does not
hire an independent owner-operator, stating it appears the only
choice is to rent a truck, which requires payment in advance, and
to hire a driver by payroll, who also gets paid regardless of
whether the contractor gets paid. She asked if this was correct.
MR. MONTGOMERY replied this was correct.
Number 565
STEVE TROSPER, Business Representative, Teamsters Local 959,
testified via teleconference. He stated Local 959 supports the
bill and also supports the independent truckers who generally are
not union members. He raised the issue of safety and noted that
when money isn't coming in, safety isn't given enough attention.
He added union owner-operators are routinely paid twice a month
on their truck expenses and twice a month on the payroll and the
independent operators should be given the same consideration.
Number 582
JAY EVANS, Owner-Operator, Alaska Independent Truckers
Association, testified via teleconference in support of HB 218,
saying that independent truckers fall between the cracks under
current law and they are just asking for a fair shake. The
general public expects the truckers to give them a fair shake, be
courteous on the road and have their equipment in safe operating
condition. The truckers are more likely to be able to do that if
they have received their money in a timely manner.
Number 598
BILL EVANS, Owner-Operator, Alaska Independent Truckers
Association of Anchorage, and with Eagle Equipment, testified via
teleconference in support of HB 218, stating he can't pay his
bills if he is operating with a credit situation, nor can he
operate safely if he can't get his money. He added this is a
real problem for many truckers besides himself. He said he is
100 percent in favor of HB 218.
Number 618
ROXANNA HORSCHEL, Vice-Chair of the Legislative Committee of the
Associated General Contractors (AGC), and owner of Acme Fence
Company in Anchorage, testified via teleconference in opposition
to HB 218, though she is absolutely in favor of everyone getting
paid in a proper amount of time. She stated she has problems
understanding how the state can regulate payment; would the state
have inspectors to insure contractors issue a pay check 14 days
after receiving an invoice? She said a legal document of some
sort needs to be used. She added independent truckers get paid
much more than an employee, to cover wages for possibly 30 or 60
days, money to pay their truck payments and insurance, as well as
money to support their families. As an independent business
person, she knows her capital is eaten up not just for 30 or 60
days but for the entire first year of being in business. She
would like to see a formal contract utilized rather than a
statute passed to clean up the situation.
Number 649
MS. HORSCHEL added that she was the one who put through the
prompt payment bill, and she is very sensitive to people who
don't get paid on time. In state contracts, the state makes sure
the language is appropriate in the contract before a
subcontractor is approved.
Number 669
CHAIR JAMES asked, if a subcontractor who is not approved under a
state contract is not allowed to be hired, how can the
independent truckers be hired without approval.
MS. HORSCHEL replied that was her point, because she did not know
how the state could approve or regulate an independent trucker
without a contract.
CHAIR JAMES said she did not ask the question to determine how
the state would regulate the contract, but as to whether the
independent truckers were approved to be on the job in the first
place.
MS. HORSCHEL replied this is done through brokers, who have a
contract with the prime contractor and in turn call out the
truckers. So the truckers are almost like employees because they
are told where to be and when to be there, though they do have to
have their own insurance and maintain their own trucks. She
added again that a formal contract, stating what and when they
will be paid, is needed between the truckers and their brokers or
their prime contractors.
Number 702
CHAIR JAMES said it appears to her, if the independent truckers
were identified by statute, the only leverage they would have
would be to write a letter to the contractor or to the state if
the 14 days came and went without their getting paid. This would
then be self-enforcing because the contractor would not want
these letters sent to the state.
TAPE 95-23, SIDE B
Number 000
MS. HORSCHEL agreed this could encourage prompt payment, but she
stated that option exists currently. She referred to a situation
where such letters were written and it still took a long time for
the trucker to get the money owed him. She reiterated that
without a contract any agreement would be almost impossible to
enforce. If a trucker wants to be independent and get more than
the hourly wage required in the Davis Bacon Act she thinks that
is wonderful, but a formal agreement is needed to allow them an
avenue with the state to insure payment.
Number 089
CHAIR JAMES asked Ms. Horschel if the brokers would qualify as
subcontractors on a state job.
MS. HORSCHEL said yes, they do fall under that category. The
truckers who now "fall between the cracks" can go to work for a
broker who can collect under the prompt payment bill, but the
truckers themselves cannot collect under the prompt payment bill.
Number 113
CHUCK DAVIS, Owner-Operator, Alaska Independent Truckers
Association of Anchorage, and Owner of Davis Transport Ltd.,
testified via teleconference, stating there is a lack of
understanding about how the owner-operators do business with the
contractors and subcontractors in Alaska. Truckers do not have
FAX machines in their trucks. They are called on cellular phones
in their trucks and respond sometimes four or five times in one
day without an opportunity to negotiate pay rates or pricing.
Their business is sporadic and volatile, and prime contractors
take advantage of this by stringing them out for three or four
weeks without paying them. Even if they do reach an
understanding for a pay rate, it sometimes changes during the
course of a job.
Number 174
CHAIR JAMES asked Mr. Davis if he hired out to a broker.
MR. DAVIS replied he did, even though he tried to avoid it
because of the difficulties of collecting payment.
CHAIR JAMES asked Mr. Davis to explain what a broker is. Does he
have his own trucks too? Is he paid by a percent of what the
trucker makes?
MR. DAVIS replied it is very complex. The idea is for a general
contractor to be able to make one phone call and get up to 50 or
60 trucks. Brokers exist mainly to assure fulfillment of
minority quotas on state jobs; a broker can exploit a minority
partner to fill the quota.
CHAIR JAMES asked if a special license is required to be a truck
broker.
MR. DAVIS said he was not aware of one.
Number 210
MICHAEL SWALLING, President of Swalling Construction, testified
via teleconference in opposition to HB 218. He is a private
subcontractor and has been in Alaska 30 years. He stated the
prompt payment bill eliminated a lot of problems with payment of
subcontractors. He can see where independent truckers fall into
a crack in the application of that law, but the bill could
require him as a subcontractor to pay the trucker before he
himself gets paid by the prime contractor. Though the
independent truckers have raised some valid issues, he does not
believe HB 218 is the mechanism to solve the problems. It is
clearly special interest legislation which creates more problems
than it solves.
Number 225
CHAIR JAMES commented again that if subcontractors were not
hiring independent truckers, their only other option would be to
rent trucks, paying cash in advance, and put the driver on
payroll which requires prompt payment. She said she is not
planning to move the bill out today, adding she has had
conversations with the Associated General Contractors who are
willing to help draft a bill which is more palatable to
everybody.
Number 244
REPRESENTATIVE PORTER said he could not support the bill in its
present form. He has problems with the idea of a different
standard for prompt payment for truckers versus contractors. If
a trucker wants to be in an independent business, then he or she
should expect the standard business practice of a "net 30." He
said he recognizes the safety issue but would like to solve that
situation within existing legislation pertaining to
subcontractors. He added that going beyond that amounts to
negotiating a labor contract or a business agreement through
statute, and he does not like to do that.
Number 269
CHAIR JAMES clarified that the prompt pay provision requires
payment seven days after the contractor gets paid, so it is not
"net 30."
Number 276
REPRESENTATIVE OGAN said he knows of no contractor who gets paid
earlier than 30 days.
MR. EAKMAN said it is his understanding that in the trucking
industry most prime contractors require payment every two weeks,
and the state generally prefers to pay every two weeks.
REPRESENTATIVE ED WILLIS inquired if this legislation plows new
ground, or are there statutes in other states to cover this.
MR. EAKMAN replied that some states have a Public Utilities
Commission to handle this; other states are not regulated at all.
MR. DAVIS suggested that owner-operators need to be recognized as
an entity; they could get a truck check once a month and a
regular payroll check as an employee, like the Teamsters do. If
they can't be listed as employees, maybe they could be listed as
subcontractors.
Number 349
CHAIR JAMES repeated that she will be working with the AGC and
will carry HB 218 over to next Tuesday's meeting. She added for
the record, a summary of a telephone call the day before from Ms.
Marie Wilson, 591 West 67th Avenue, Anchorage, objecting to HB
218 because of the difficulty in enforcing it.
Number 365
CHUCK DAVIS added that people don't realize owner-operators
operate on a very marginal percent of profit, 2 percent to be
exact, and it is very hard to have any working capital between
long payment periods. It is difficult to get contracts in
writing because each job is different; some are by the ton, some
are hourly, some are by the load. Some operators who complain
about this are asked to leave.
CHAIR JAMES said after 35 years in accounting she understands all
the problems experienced by owner-operators. She said they fall
through a crack, though they fill a niche and provide a valuable
service not available any other way. She added she does not have
an answer but is willing to work with everyone involved to find a
solution which addresses safety while allowing people with "the
American Dream" to get started with a small initial investment.
She recognized they must be careful not to change any existing
labor laws. She held the bill over until next Tuesday.
HSTA - 03/07/95
HB 59 - RAFFLE OR AUCTION OF BIG GAME PERMITS
Number 430
REPRESENTATIVE CON BUNDE, Sponsor, said HB 59 is a "win-win easy
decision" for the committee. It extends the program to raise
money to promote fish and wildlife enforcement by raffling or
auctioning big game tags to include any qualified nonprofit
organization that promotes wise use of Alaska's "huntable"
resources. The organization would get 10 percent of the proceeds
and the rest would go to the fish and game fund, thus generating
increased income for the fund. He hopes the positive fiscal note
is a modest projection, based on what has been raised in other
states with similar auctions and raffles. For example, $415,000
was raised in Nevada in the last ten years, and $170,000 was
raised in Wyoming with sheep and moose permits in the last two
years.
Number 463
GERON BRUCE, Legislative Liaison, Alaska Department of Fish and
Game, testified in support of HB 59. It would allow the
department to raise funds and promote Alaska's wildlife resources
without affecting the hunting opportunities for Alaskans. This
is done successfully by most of the other western states.
Number 475
REPRESENTATIVE PORTER asked Mr. Bruce how many organizations in
Alaska would qualify.
MR. BRUCE said "a handful."
REPRESENTATIVE BUNDE named some: Rocky Mountain Elks, Safari
Club, Foundation for North American Wild Sheep (FNAWS), Ducks
Unlimited, Alaska Bow Hunters, Alaska Outdoor Council. He added
it could include numerous other state organizations.
Number 489
REPRESENTATIVE GREEN inquired if a hunter from "outside" winning
one of the permits would require a guide.
MR. BRUCE said yes, he would have to comply with all other laws
governing hunting in Alaska.
REPRESENTATIVE GREEN asked if the department or the state would
be involved in determining what guide to use.
MR. BRUCE answered no, the Department of Fish and Game would not
be involved in that.
Number 505
REPRESENTATIVE BUNDE added it would be a great public relations
opportunity for guides, and a way for more prominent guides to
donate their services with future referrals in mind. People
bidding on the tags are philanthropists who can afford to
contribute large sums of money.
Number 517
REPRESENTATIVE GREEN asked if the income to other states were
gross figures or net after the 10 percent is deducted.
REPRESENTATIVE BUNDE answered he is speculating the figure is
gross and reiterated he believes the $25,000 positive fiscal note
is conservative.
Number 517
REPRESENTATIVE ROBINSON asked to be quickly "walked through the
process."
REPRESENTATIVE BUNDE replied tags become available to
organizations, then the tag can either be raffled by selling
tickets over a period of time or auctioned at an event such as an
annual banquet, whichever will yield the most income. The winner
is granted the prestigious "Governor's Tag" and then follows the
normal process for getting a license and a guide.
Number 553
REPRESENTATIVE GREEN said in another bill there is a problem with
out-of-state people getting licenses and affecting federal
contributions. In HB 59, it appears the license is donated.
Will the income generated cause the federal government to cut its
contribution?
REPRESENTATIVE BUNDE said he had no information that this has
happened in other states.
MR. BRUCE concurred, adding that one approach is used for
management protection of the resource and the other is not.
Number 576
CAM RADER, Board Member of the Foundation for North American Wild
Sheep (FNAWS), and member of the Alaska Outdoor Council, the
Isaac Walton League, and Ducks Unlimited, testified via
teleconference. He is a practicing attorney in Anchorage and
holds an assistant guide's license. He echoed the previous
testimony in support of HB 59, both for consumptive and
nonconsumptive hunters. Recently FNAWS raised $26,000 with an
auction; typically they use the money to assist with surveys of
hunting areas, which benefits all users. He said he is aware of
at least eight organizations which would qualify under the
definition as currently drafted. In 1993, Arizona raised
$303,000, so Representative Bunde's estimate of $25,000 is
"substantially conservative." He believes local guides would be
eager to contribute their time to participate in the program. He
listed large amounts of money raised in other states for Big Horn
Sheep permits, and repeated this bill offers a "win-win"
situation.
Number 670
ROD ARNO, President, Alaska Outdoor Council, testified via
teleconference in support of HB 59, saying it would provide
direct revenue to the fish and game fund, increase emphasis on
hunting education in Alaska, and increase federal funding in
matching funds for licenses by increasing the number of licenses
sold.
MR. ARNO continued, saying the program would promote the hunting
segment of the tourism industry without requiring any additional
state funding for advertising.
TAPE 95-24, SIDE A
Number 043
EDDIE GRASSER, Legislative Director for Alaska Outdoor Council,
testified in support of HB 59, saying he is a retired
professional guide and has donated many hunts. He agreed
significant amounts of money could be raised, and suggested a
raffle for a multi-species hunt rather than a single-species
permit, throughout clubs in North America. He thought $100,000
could be raised that way. He expressed concern that such money
given to the fish and game fund should be earmarked and used by
the department to benefit hunters, not nonhunters, since the
money will come from hunters.
Number 144
DUANE BUELL, representing Alaska Wildlife Safeguard, testified in
support of HB 59. He stated that since Alaska Wildlife Safeguard
was founded in 1984, there have been over 2000 phone calls to
their toll free number in Anchorage, reporting fish and game
violations. These callers can be anonymous, and the calls often
lead to convictions. Fifty percent of the callers refuse the
rewards they are offered, and 60 percent are willing to testify
without anonymity. Funds are raised through raffles, and HB 59
would greatly assist those fund-raising efforts. He suggested
the bill could include a multi-species raffle provision.
Number 230
CHAIR JAMES noted the arrival of Representative Ivan earlier.
REPRESENTATIVE ROBINSON asked if there could be a designation as
to where the funds go, and expressed concern that general fund
allotments would decrease if the bill raises more money.
REPRESENTATIVE BUNDE replied the designated fish and game fund is
already in existence, and said it is possible general fund money
could decrease, but it will decrease anyway as the budget is cut.
He added that line 3, page 3, establishes types of organizations
that qualify, and promotes "ethical use of game populations for
hunting."
REPRESENTATIVE PORTER noted that one ethical use for hunting
could include nonhunting.
CHAIR JAMES agreed the definition of qualifying organizations is
not very clear.
REPRESENTATIVE BUNDE said Department of Law came up with that
wording to address that exact problem.
REPRESENTATIVE IVAN inquired what "ethical use" means.
REPRESENTATIVE BUNDE replied it means legal, accepted hunting
practices.
REPRESENTATIVE IVAN asked if it included "subsistence taking."
REPRESENTATIVE BUNDE said subsistence would be included, since it
involves "killing cleanly and humanely."
Number 279
REPRESENTATIVE GREEN moved to pass HB 59 from committee with
individual recommendations and accompanying positive fiscal note.
There were no objections, so the motion passed.
STA - 03/07/95
HB 199 - CRIMINAL TRANSMISSION OF HIV
Number 296
REPRESENTATIVE OGAN said the intent of HB 199 is simple: A
person who knowingly has HIV and commits an act that is known to
transmit HIV to others is guilty of a Class A felony.
Number 320
BARBARA BRINK, Deputy Director, Alaska Public Defender Agency,
testified via teleconference, stating the Alaska Public Defender
Agency is concerned about the broad language of HB 199. Though
the agency agrees with the goal of protecting the public's
health, the prohibited behavior must be described more precisely
to assure due process notice. The bill does not define "intimate
sexual contact" and thus may not be constitutional. The bill
lacks a definition of "reasonable efforts" and criminalizes
conduct such as that of transmission of HIV from a mother to her
fetus. It also includes organ donors who are already governed by
stringent medical standards. It shifts the burden of proof, and
only applies to people who are legally married at the time.
Number 355
MS. BRINK reiterated she believes the intent of the bill is
excellent, but use of the criminal code may not be the best way
to achieve this goal. This bill makes it a Class A felony and
may discourage people from getting tested for HIV so they won't
know what their HIV status is and cannot be held liable; her
agency wants to encourage voluntary testing. The spread of
communicable disease is a serious issue in Alaska, but laws do
not exist to punish people for spreading tuberculosis or
hepatitis.
Number 380
MS. BRINK continued she believes there are already laws in Alaska
which could be utilized for punishing a person who deliberately
and recklessly infect other people; for example, assault in the
first degree if there was an intention to inflict injury, which
would include intentionally transmitting the virus. Recklessly
engaging in a harmful behavior is also punishable as assault in
the second degree and carries a jail sentence of up to ten years.
Given these concerns, she urged this bill not be passed from
committee.
Number 407
CHAIR JAMES said she "thought we were quite sure what behavior
spreads HIV," contrary to Ms. Brink's statement. She also
wondered if assault included rape, and whether there had ever
been a penalty in the past for people failing to submit to
quarantines for such things as smallpox.
MS. BRINK replied she was unaware of any penalty for refusal to
obey or stay in quarantine status. The assault charges she was
speaking of were separate from rape charges; Alaska's assault
charges are written so broadly, they in fact could cover
consentual activity if that activity recklessly endangered
another person. If a person engaged in brutal behavior which
could result in HIV transmission, that would be an additional
charge. Reckless behavior occurs when a person is aware that his
or her behavior could injure another person and does it anyway.
Number 454
MS. BRINK continued she did not see a definition of "intimate
sexual contact" in the bill, though a companion senate bill does
have the definition. In fact, there is still a lot of discussion
among health care professionals as to exactly how the HIV virus
can be transmitted, via which bodily fluids and via what bodily
contact. Medical science is not clear on this; there is even a
strong school of thought which doubts whether HIV causes AIDS at
all.
Number 465
CHAIR JAMES stated HB 59 will be put onto next Tuesday's
calendar. She adjourned the meeting at 10:05 a.m.
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