Legislature(1995 - 1996)
03/20/1996 01:15 PM House TRA
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE TRANSPORTATION STANDING COMMITTEE
March 20, 1996
1:15 p.m.
MEMBERS PRESENT
Representative Gary Davis, Chairman
Representative Beverly Masek, Vice Chair
Representative Jerry Sanders
Representative Bill Williams
Representative Don Long
MEMBERS ABSENT
Representative Jeanette James
Representative Tom Brice
OTHER HOUSE MEMBERS PRESENT
Representative Norman Rokeberg
COMMITTEE CALENDAR
*HOUSE BILL NO. 496
"An Act relating to transportation of members of the Alaska
National Guard by the Alaska marine highway system."
- MOVED OUT OF COMMITTEE
*HOUSE BILL NO. 518
"An Act exempting certain persons engaged in selling or servicing
certain vehicles from overtime wage requirements."
- HEARD AND HELD
*HOUSE BILL NO. 543
"An Act establishing a preference when entering into state airport
land leases."
- HEARD AND HELD
*HOUSE BILL NO. 24
"An Act relating to the offense of operating a motor vehicle,
aircraft, or watercraft while intoxicated; relating to presumptions
arising from the amount of alcohol in a person's breath or blood;
and providing for an effective date."
- HEARD AND HELD
*HOUSE BILL NO. 436
"An Act relating to purchase and sale of mobile homes by mobile
home dealers or agents; to mobile home titles; and providing for an
effective date."
- BILL POSTPONED
(* First public hearing)
PREVIOUS ACTION
BILL: HB 496
SHORT TITLE: FERRY TRANSPORTATION FOR NAT GUARD MEMBER
SPONSOR(S): SP CMTE MILITARY & VETERANS AFFAIRS
JRN-DATE JRN-PG ACTION
02/12/96 2723 (H) READ THE FIRST TIME - REFERRAL(S)
02/12/96 2723 (H) MLV, TRANSPORTATION
03/06/96 (H) MLV AT 5:00 PM CAPITOL 17
03/11/96 3060 (H) MLV RPT 4DP 1AM
03/11/96 3060 (H) DP: MULDER, KOTT, IVAN, FOSTER
03/11/96 3060 (H) AM: DAVIES
03/11/96 3060 (H) FISCAL NOTE (DOT)
03/20/96 (H) TRA AT 1:00 PM CAPITOL 17
BILL: HB 518
SHORT TITLE: OVERTIME COMP FOR VEHICLE SALES PEOPLE
SPONSOR(S): LABOR & COMMERCE
JRN-DATE JRN-PG ACTION
02/15/96 2776 (H) READ THE FIRST TIME - REFERRAL(S)
02/15/96 2776 (H) TRANSPORTATION, LABOR & COMMERCE
02/28/96 (H) TRA AT 1:00 PM CAPITOL 17
02/28/96 (H) MINUTE(TRA)
03/20/96 (H) TRA AT 1:00 PM CAPITOL 17
BILL: HB 543
SHORT TITLE: STATE AIRPORT LAND LEASE PREFERENCE
SPONSOR(S): TRANSPORTATION
JRN-DATE JRN-PG ACTION
03/14/96 3149 (H) READ THE FIRST TIME - REFERRAL(S)
03/14/96 3149 (H) TRANSPORTATION
03/20/96 (H) TRA AT 1:00 PM CAPITOL 17
BILL: HB 24
SHORT TITLE: LOWER ALCOHOL LIMIT TO 0.08 FOR OMVI'S
SPONSOR(S): REPRESENTATIVE(S) THERRIAULT,ELTON,Davies,Bunde
JRN-DATE JRN-PG ACTION
01/06/95 26 (H) PREFILE RELEASED
01/16/95 26 (H) READ THE FIRST TIME - REFERRAL(S)
01/16/95 27 (H) TRA, JUD, FIN
01/18/95 74 (H) COSPONSOR(S): DAVIES
01/19/95 88 (H) COSPONSOR(S): BUNDE
03/20/96 (H) TRA AT 1:00 PM CAPITOL 17
BILL: HB 436
SHORT TITLE: MOBILE HOME DEALERS & TITLES
SPONSOR(S): REPRESENTATIVE(S) MARTIN
JRN-DATE JRN-PG ACTION
01/19/96 2489 (H) READ THE FIRST TIME - REFERRAL(S)
01/19/96 2489 (H) TRANSPORTATION, L&C, FINANCE
03/20/96 (H) TRA AT 1:00 PM CAPITOL 17
03/27/96 (H) TRA AT 1:00 PM CAPITOL 17
WITNESS REGISTER
GEORGE DOZIER, Junior, Legislative Aide
for Representative Kott
Alaska State Legislature
State Capitol, Room 432
Juneau, AK 99801
Telephone: (907) 465-6882
POSITION STATEMENT: Testified on HB 496 and HB 518
STEVE ALLWINE, Representative
Alaska Auto Dealers
8725 Mallard Street
Juneau, Alaska 99803
Telephone: (907) 789-1386
POSITION STATEMENT: Testified on HB 518
DEAN BAKER, Apprentice
Alaska Auto Dealers
8725 Mallard Street
Juneau, Alaska 99803
Telephone: (907) 789-1386
POSITION STATEMENT: Testified on HB 518
JAMES D. HINES, Technician
Alaska Auto Dealer Association
8725 Mallard Street
Juneau, Alaska 99803
Telephone: (907) 789-1386
POSITION STATEMENT: Testified on HB 518
ED FLANAGAN, Deputy Commissioner
Office of the Commissioner
Department of Labor
P.O. Box 21149
Juneau, Alaska 99802-1149
Telephone: (907) 465-2700
POSITION STATEMENT: Testified on HB 518
JOSHUA DONALDSON, Legislative Aide
To Representative Therrriault
Alaska State Legislature
State Capitol, Room 421
Juneau, AK 99801
Telephone: (907) 465-4797
POSITION STATEMENT: Testified on HB 24
JUANITA HENSLEY, Chief
Driver Services
Division of Motor Vehicles
Department of Public Safety
P.O. Box 20020
Juneau, Alaska 99811-0020
POSITION STATEMENT: Testified on HB 24
LENNI GORSUH, Lobbyist
Miller Brewing Company
213 3rd Street
Juneau, Alaska 99801
Telephone: (907) 463-3531
POSITION STATEMENT: Testified on HB 24
KURT PARKAN, Deputy Commissioner
Office of the Commissioner
Department of Transportation and Public Facilities
3132 Channel Drive
Juneau, Alaska 99801-7898
Telephone: (907) 465-6977
POSITION STATEMENT: Testified on HB 543
HOWARD FOWLER, General Manager
NATAK Aviation
P.O. Box 190022
Anchorage, Alaska 99507
Telephone: (907) 277-4703
POSITION STATEMENT: Testified on HB 543
RICHARD JENSEN, Former Airport Manager
2020 Abbott Road, Number 3
Anchorage, Alaska 99507
Telephone: (907) 349-7191
POSITION STATEMENT: Testified on HB 543
CHARLES COLE, Attorney
Representing Fairbanks Air Taxi Charters
406 Cushman Street
Fairbanks, Alaska 99701
Telephone: (907) 452-1124
POSITION STATEMENT: Testified on HB 543
JACK BIRMINGHAM
6160 South Airpack Drive
Anchorage, Alaska 99502
Telephone: (907) 248-4422
POSITION STATEMENT: Testified on HB 543
PHIL LIVINGSTON, Chair
Legislative Committee
Vice-President
Alaska Airmen's Association
P.O. Box 580
Girwood, Alaska 99587
Telephone: (907) 783-3163
POSITION STATEMENT: Testified on HB 543
BILL INGALDSON, Attorney
711 H Street, Suite 500
Anchorage, Alaska 99501
Telephone: (907) 258-8750
POSITION STATEMENT: Testified on HB 543
DAVE KLOSTERMAN, Member
Lake Hood Leaseholders Association
4501 Aircraft Drive
Anchorage, Alaska 99502
Telephone: (907) 243-3127
POSITION STATEMENT: Testified on HB 543
ACTION NARRATIVE
TAPE 96-12, SIDE A
Number 000
The House Transportation Standing Committee was called to order by
Chairman Gary Davis at 1:15 p.m. Members present at the call to
order were Representatives G. Davis, Masek, Long, and Williams.
A quorum was present. This meeting was teleconferenced to
Anchorage and Fairbanks.
CHAIRMAN GARY DAVIS announced that the agenda was HB 496, HB 518,
HB 24 and HB 543. He said HB 436 would be rescheduled.
HB 496 - FERRY TRANSPORTATION FOR NAT GUARD MEMBER
CHAIRMAN GARY DAVIS announced that the first item was HB 496, an
act relating to transportation of members of the Alaska National
Guard by the Alaska marine highway system.
Number 0100
GEORGE DOZIER, Junior, Legislative Aide for Representative Kott,
said HB 496 provides free transportation to Alaska National Guard
members when traveling to and from their duties as guard members on
a space available basis. He said this is seen as one way of
assisting individual who are assisting the state of Alaska as well
as being a recruitment tool. He said there are a lot of
individuals, who are not on the surface highway, but on the marine
highway, who have no way of getting to and from National Guard
drills. He said HB 496 would allow them to participate in these
exercises.
Number 0199
CHAIRMAN GARY DAVIS said HB 496 appears to be a small part in which
the legislature can assist Alaska National Guard members.
Number 0223
REPRESENTATIVE BILL WILLIAMS made a motion to move HB 496 out of
committee with attached fiscal note and individual recommendations.
Hearing no objections HB 496 was moved from the House Standing
Committee on Transportation.
HB 518 - OVERTIME COMP FOR VEHICLE SALES PEOPLE
Number 0286
CHAIRMAN GARY DAVIS announced that the next item on the agenda was
HB 518, an act exempting certain persons engaged in selling or
servicing certain vehicles from overtime wage requirements.
GEORGE DOZIER, Junior, Legislative Aide for Representative Kott,
said that HB 518 modifies the Alaska Wage and Hour Act,
specifically those provisions which mandate the payment of
overtime. He said the overtime requirement has a number of
exemptions already in place and HB 518 adds another one. He said
this exemption would apply to employers that operate non-
manufacturing establishments which are primarily engaged in the
business of selling vehicles to purchasers. He said the affected
employees would be salesmen, partsmen or mechanics who primarily
engage in selling or servicing automobiles, trucks or farm
implements.
Number 0384
STEVE ALLWINE, Representing, Alaska Auto Dealers, said HB 518 will
bring the state of Alaska in line with the federal overtime
exemption for the automotive industry, this makes HB 518 a narrow
piece of legislation which his organization feels is appropriate.
He said his organization's interest in HB 518 is in the area of
technicians and whether they should be paid as hourly employees or
as flat rate personnel. He said the industry standard for
technicians, whether body or mechanical, is dependent on the flat
rate. He said this means that a specific repair is based on a
published time, determined by the time it would take to complete
the repair under normal circumstances. The technician performs the
specific repair and is either faster or slower than the published
time. In either situation the employee is compensated at the
published time.
MR. ALLWINE said as the employee's skills increase his or her
efficiency also increases and the result is a significant increase
in income. Efficiency is also increased because technicians know
that by improving their education and skills they become more
effective and are rewarded for those efforts. In Alaska,
technicians are rewarded for improving their skills but never reach
the income potential of their counterparts, in other states,
because the hours are limited to an eight hour day. He said the
employees do not have the opportunity to pick up more time because
of the overtime situation. He said, in other states, employees
have the opportunity to dictate and work additional hours if they
choose.
MR. ALLWINE said at the national and state level there is a
shortage of qualified technicians. He said the shortage offers an
excellent opportunity for local employment. He said opportunities
for training are limited and his organization is forced to "home
grow" most of the personnel. He said current employees express
opposition to the current overtime laws because they restrict that
additional earning opportunity. He said, in other areas of the
country, technicians have the opportunity to earn as much income as
they desire by flexibility in hours. He said, in the state, the
current circumstances hinder the ability to attract and retain
qualified technicians. He said, due to the significant training
and investment, it is in everyone's best interest to retain
personnel.
Number 0661
MR. ALLWINE said HB 518 will help reduce the loss of quality
employees to employers outside of Alaska. He said, to the
customers, the benefits of using publishing times and paying for
repairs based on flat rate, a more accurate estimation can be made
of the repair. He said HB 518 will allow the technicians to
complete a job that otherwise would be carried over into the next
days business. He said HB 518 also provides continuity. If there
is a dealer or a service facility that works two shifts of
technicians, a technician might start the job with the second
technician completing the job.
MR. ALLWINE said HB 518 takes the pressure off the work for the
quick completion of jobs within the eight hour work period. The
bill allows flexibility in scheduling work loads, eliminates peaks
and valleys and increases employee moral by giving the employees an
opportunity to enjoy a higher earning capacity. He said his
organization would appreciate positive legislative support for HB
518.
Number 0693
CHAIRMAN GARY DAVIS said HB 518 brings the state in line with other
federal law and asked how many other sections of regulated
employment are still out of line with federal law in the Alaska
statutes.
Number 0716
MR. ALLWINE said he did not know.
Number 0750
DEAN BAKER, Alaska Auto Dealers, said he is in an apprenticeship
with a local car dealer. He said he would be able to make more
money by putting more effort into it. He said being limited to 40
hours per week would not give him the incentive to learn additional
skills. He said he currently works on an hourly rate, but when he
goes flat rate, he wants the opportunity to make more money.
Number 0800
CHAIRMAN GARY DAVIS clarified that Mr. Baker currently works an
eight hour shift and then asked how often Mr. Baker had to leave
work uncompleted.
Number 0819
MR. BAKER said he frequently has to leave work unfinished. He said
that if he had the opportunity to make more money he would stay
longer and complete the job.
Number 0844
JAMES D HINES, Technician, Alaska Auto Dealer Association, was next
to testify. He said he supported HB 518 because if it does not
pass his overtime will be cut, his wages will decrease and he
prefers earning more money.
Number 0881
REPRESENTATIVE BEVERLY MASEK asked what the situation has been in
the past and what the present situation is.
Number 0893
MR. HINES said his work place does not force him to work overtime,
he has chosen to work extra hours on his own. He said, he is
afraid that if HB 518 passes, his overtime will be cut when they
hire more help in order to get jobs done in the eight hour time
frame.
Number 0930
REPRESENTATIVE MASEK asked if needing to get the job done in eight
hours affected his quality of work.
MR. HINES said it did not affect his quality of work because if a
job is done in an unsatisfactory manner he needs to redo it. He
said he would not get paid for that work. He said he must do the
job correctly the first time or else he is in trouble.
Number 0962
REPRESENTATIVE WILLIAMS clarified that if HB 518 goes through it
would hurt Mr. Hines.
MR. HINES said if HB 518 cuts the overtime by making an eight hour
day, it would hurt him.
REPRESENTATIVE WILLIAMS said, it was his understanding, that HB 518
cut overtime compensation.
MR. HINES said he wants HB 518 to pass so that he can get his
overtime.
REPRESENTATIVE WILLIAMS clarified that Mr. Hines supported HB 518.
Number 1006
REPRESENTATIVE DON LONG referred to Alaska Statute 23.10.060
regarding the payment of overtime. He said HB 518 will no longer
allow certain employees the right to receive overtime.
MR. HINES said he would support straight time with no overtime.
Number 1043
REPRESENTATIVE LONG said HB 518 does not address flat rate, it just
exempts overtime for automotive partsmen and mechanics, et cetera,
by putting them in a supervisory category which exempts them from
overtime.
Number 1090
ED FLANAGAN, Deputy Commissioner, Office of the Commissioner,
Department of Labor (DOL), was next to testify. He said the DOL is
opposed to HB 518, as they are opposed to most exemptions which
take away the very basic protection of overtime after 40 hours. He
said the long-standing, pre-statehood policy, the state Wage and
Hour Act, which protects these basic rights. He said the state act
is not congruent with federal Fair Labor Standards Act, but added
that the federal government is not necessarily the repository of
all wisdom on what is a proper law.
MR. FLANAGAN said it is true as Mr. Allwine said, that a similar or
verbatim exemption is in the federal law. He said this exemption
is not consistent throughout the nation and added that only four
states have specific exemptions for the class of worker who are
service advisors. He said 16 states, "Washington D.C., the Virgin
Islands, and Puerto Rico don't." He clarified that HB 518 applies
to partsmen as well as service advisors. He said there is a
current lawsuit where several of "those workers" have come forward
to receive their overtime pay and added that DOL has ruled that it
is their right under the law. He said the suit probably has
something to do with support for HB 518.
Number 1179
MR. FLANAGAN clarified that HB 518 only grants this exemption to
auto dealers, to sellers and non-manufacturing industries, giving
them a competitive advantage over the service stations who are not
affiliated with an auto sales arrangement.
Number 1205
MR. FLANAGAN said there are current flat rate situations despite
the legal issue of flat rates. He said employers require mechanics
to be available, without pay, at the work site for hours in excess
of the hours they are compensated, if there is no work to be done.
He said this is not always the case, but it is not uncommon. He
said diagnostic and warranty work may require mechanics to work
without pay and said auto dealers promote "freebies" that are not
covered under the book rate. He said a difficult repair, not as a
result of the mechanic, might require excess hours of work without
compensation and in a case where something comes back and needs to
be redone, the mechanic works for free. He said a flat rate could
be structured which would have the basic guarantees of minimum wage
and overtime. He said this illegal flat rate used by service
stations includes other work, such as pumping gas and cleaning
vehicles, which is not compensated under the flat rate.
Number 1270
MR. FLANAGAN said the basic public policy in the state of Alaska is
that time worked is time paid. He said individual workers should
not be able to abrogate the state's Wage and Hour Act.
Number 1288
CHAIRMAN GARY DAVIS asked if HB 518 specifically brings the state
law in line with federal law.
Number 1297
MR. FLANAGAN said there is a provision in the federal Fair Labor
Standards Act, the federal counterpart to the Alaska Wage and Hour
Act which has, virtually verbatim, the same exception.
Number 1311
REPRESENTATIVE LONG asked for more information regarding the
illegal use of the flat rate.
MR. FLANAGAN said the flat rate can occur within the law if
employees are properly compensated for eight hours. He said, in
the service advisor's lawsuit under the Wage and Hour Act, the
employees worked 50 hour per week for a flat salary. He said these
service advisors are not properly salaried employees. The three
provisions for salaried employees include executive, administrative
and supervisory.
Number 1356
REPRESENTATIVE LONG asked if HB 518 would put the flat rate into
place.
Number 1380
MR. FLANAGAN said the flat rate would no longer violate the law if
HB 518 went into affect. He said the employees, classified under
HB 518, could work as much as they wanted to, paid or unpaid, if
the employer charged by the book rate. He said the employees would
be removed from the overtime protection. He said, he believed,
that there were more employers favoring HB 518, than employees.
Number 1391
CHAIRMAN GARY DAVIS asked if those, working on a book rate, were
salaried employees. He also asked, if it was the employer or the
employee who sets the book rate and if it takes longer than the
listed hours to do a job, would the employee be compensated for
this time.
Number 1422
MR. FLANAGAN said the book rate lists the amount of hours the
repair will take and then the shop rate is totalled into that many
hours were the mechanics portion of the shop rate calculated by
shop policy.
Number 1445
REPRESENTATIVE WILLIAMS referred to the testimony and the letters
in support of HB 518. He expressed confusion over this support
when people would lose their ability to receive overtime.
CHAIRMAN GARY DAVIS asked Mr. Allwine to explain the situation
where employees would be putting in extra time.
Number 1514
MR. ALLWINE said the employees would put in extra time by personal
choice. He said if you bring your car in for a specific repair, in
most cases the shop will go to a published manual such as Milton or
Chilton which will list a time for the repair for example, two
hours for the job. If the certified or journeyman technician can
do the job in less than two hours he is still paid for two hours
according to this flat rate. He said someone who doesn't have a
lot of experience might take two and half hours, but he is only
paid for two hours. He said there are ways around that
circumstance, such as paying apprentices on a flat, hourly wage.
If those apprentices work extended hours they are paid overtime for
that time.
Number 1710
MR. ALLWINE referred to the lawsuit regarding service advisors, and
he said that his organization has no interest in the service
advisor's interest in HB 518. He said the personnel and the
dealers were concerned because the federal exemption also includes
parts people and they don't feel that exemption is appropriate. He
said their only interest in HB 518 is the technician issue and flat
rate versus an hourly rate with the overtime provision.
MR. ALLWINE said if a journeyman technician makes his living as a
journeyman technician he works through the day, putting in his
eight hours. He said the objective, during those eight hours, is
to bill out as many hours as is humanly possible. If the
journeyman technician can bill out 16 hours, he makes 16 hours. He
said, the problem is, if the journeyman technician wants to come in
early and pick up a couple of extra hours, he cannot do that
without the employer approving this extra time and paying him the
overtime.
MR. ALLWINE said if HB 518 is enacted or modified so that it
specifically deals with the technicians, you are giving them the
ability to work according to the schedule that they want. He said,
if there is no work, people will not stay at the shop. He said
journeyman technicians do not sweep floors, and added that they
have thousands of dollars in tools. He said HB 518 does not
address service stations and other places. He said his association
is not trying to do something which creates a problem for their
employees.
Number 1710
MR. ALLWINE referred to his experience and said that if he worked
hard and did the job right, he could make more money. He said this
incentive is good and an incentive that you don't get on time and
a half. He said the income flat rate technicians are able to get
cannot be matched.
Number 1732
REPRESENTATIVE JERRY SANDERS asked how many people work 8 hours and
get 16 hours of book rate done.
Number 1746
MR. ALLWINE said journeyman technicians will be able to receive
over eight hours of pay 90 percent of the time for eight hours of
work.
REPRESENTATIVE SANDERS asked if it was for 16 hours of pay.
MR. ALLWINE said it was true some of the time.
REPRESENTATIVE SANDERS said, in an overtime situation, an employee
is going to get $120 worth of work done and asked what the problem
was with paying that employee time and a half. He said it appeared
that the journeyman technician would be earning beyond that amount.
Number 1782
MR. ALLWINE said the interpretation by the DOL is not consistent
and has created a guessing game by what that overtime calculation
would be. He heard that a technician is paid $25 an hour if he
works his eight hours. He said that if he produces ten hours worth
of work within that eight hours then that lump sum, divided by
eight hours becomes the figure used for overtime calculation. He
said, as an employer, this overtime figure becomes significant when
the customer is not being charged extra to compensate for the
associated overtime costs.
Number 1851
CHAIRMAN GARY DAVIS asked if the employer was restricted from
charging more than the book rate.
Number 1858
MR. ALLWINE said automotive repair shops are ethically required to
charge the book rate. He said that there might be people who
charge more, but most don't. He said you are at the mercy of the
customer who might not return if you overcharge.
Number 1878
MR. FLANAGAN said the book rate just lists the numbers of hours, he
said the shop rate will vary from dealer to dealer. He said the
shop rate throughout the community will probably be consistent. He
said, it has been his experience, that the employee receives a
third of the shop rate. He said it seems like there would be room
for an overtime multiplier if they did get overtime.
Number 1920
REPRESENTATIVE WILLIAMS asked for details about the book rate and
how it is set up.
Number 1923
MR. ALLWINE said all the manufacturer's have published specific
repair book times, in addition there are other book rates which
include Motor's and Chilton's. He said these book rates are pretty
consistent. He said there was a comment about doing work and not
being compensated for it and said this is not an accurate
statement. He said, if the technician is working on electrical or
diagnostic time, the industry standard cost is time and materials.
He said there are specific rules which compensate the employees for
that time which is compensated even if the technician says there is
no problem.
Number 1981
REPRESENTATIVE SANDERS repeated his question as to the work
technicians perform in an eight hour day.
Number 1996
MR. ALLWINE said he could not give concrete numbers, but did say
that a significant majority of the journeymen technicians bill out
more than eight hours in a given eight hour day.
REPRESENTATIVE SANDERS asked him to guess an average as 50 percent,
100 percent more.
Number 2019
MR. ALLWINE said he did not know how to respond to the question and
be accurate.
Number 2028
MR. FLANAGAN referred to Mr. Allwine's comment that the
manufacturers allow some payment for diagnostic time on warrantee
work. He said there is a lot of non-warrantee work that is done in
the shops. He said the possession of thousands of dollars of tools
does not put them on an independent contractor status. He said the
technician might get a tool allowance, but they provide their own
tools. He said these technicians are entitled to the very basic
protection of overtime pay over 40 hours of work.
Number 2051
CHAIRMAN GARY DAVIS said HB 518 was a House Labor and Commerce bill
and asked Mr. Allwine if his organization requested this bill.
MR. ALLWINE said his organization did not.
MR. DOZIER said that he didn't know who had made the request for HB
518.
Number 2069
CHAIRMAN GARY DAVIS referred to the many letters of support for HB
518 and said it might be possible to narrow the scope and the way
in which the employee is paid, whether by a book rate or hourly.
He said HB 518 will be held over until the sponsor, the Labor and
Commerce Committee, could address some of the House Transportation
Committee questions.
HB 24 - LOWER ALCOHOL LIMIT TO 0.08 FOR OMVI'S
Number 2174
CHAIRMAN GARY DAVIS said the next item on the agenda was HB 24, an
act relating to the offense of operating a motor vehicle, aircraft,
or watercraft while intoxicated; relating to presumptions arising
from the amount of alcohol in a person's breath or blood; and
providing for an effective date. He said the committee would only
hear testimony on this bill today due to a request from the
sponsor, Representative Therriault.
JOSHUA DONALDSON, Legislative Aide to Representative Therrriault,
read from the sponsor statement, "HB 24 lowers the legal definition
of intoxication for the crime of driving while intoxicated from .10
percent to .08 percent blood alcohol level. This initiative would
make it illegal to operate a motor vehicle, aircraft, or watercraft
with a blood alcohol level of greater than .08 percent. Several
studies have demonstrated that measurable impairment to operate a
motor vehicle begins in most drivers at or below .05 percent blood
alcohol level, at that all drivers are impaired at a blood alcohol
level of .08 percent.
Number 2211
Similar legislation has been passed in several other states and is
being considered by many others. A blood alcohol threshold of .08
percent already exists throughout Canada, as in all of Europe.
With alcoholism and alcohol related fatalities already taking a
tremendous toll in Alaska, a reduced threshold will not only
increase the odds of obtaining convictions for drunk driving, but
will also increase driving safety. A study by the state of
California showed that traffic fatalities were reduced by 12
percent after the implementation of .08 DWI laws.
Number 2234
In December of 1993, the Supreme Court ruled in Haynes versus the
Department of Public Safety that due to the margin of error
inherent to the Intoximeter 3000 of .01, the actual level at which
an operator of a motor vehicle should be convicted of drunk driving
is .11. This clearly suggests an even greater need for .08 percent
legislation."
Number 2253
CHAIRMAN GARY DAVIS asked if all the fiscal notes have been
collected and asked specifically if there was a fiscal note from
the Department of Corrections.
Number 2264
MR. DONALDSON said a fiscal note has not been received from the
Department of Corrections. He said the sponsor could request one.
CHAIRMAN GARY DAVIS said perhaps the department did not see a need
for one.
Number 2279
JUANITA HENSLEY, Chief, Driver Services, Division of Motor Vehicles
(DMV), Department of Public Safety (DPS), said that HB 24 is the
type of legislation that the DPS has supported for a number of
years. She said it is felt that anytime you can reduce the number
of drunk driving fatalities and injury accidents it benefits the
state from a societal standpoint as well as reducing associated
costs.
Number 2319
MS. HENSLEY referred to a packet titled, "Strategies for Dealing
with Persistent Drinking Driver," which was a report done in
February 1995, by the Transportation Research Board. She said it
was an independent research report including various specialists
and their recommendations. She said the .08 percent blood alcohol
level is supported by the Alaska Peace Officers Association,
Transportation Research Board, the National Highway Traffic Safety
Administration, the Mothers Against Drunk Drivers, et cetera.
Number 2362
REPRESENTATIVE SANDERS asked if she had any figures to show what
percentage of car accidents involve people who are between .08
percent and .1 percent.
Number 2373
MS. HENSLEY said she did not have those figures on hand, but would
get them and make them available to him. She said there are
Alaskan figures for all types of accidents that occur in the state.
She said there is a data base, called the Fatal Accident Reporting
System (FARS), which has all the fatal accidents that occur in
states throughout the nation. She said all the factors are
measured and put into that data base. She said all accident
reports are sent to the Department of Transportation (DOT) and are
statistics that are kept through the Highway Analysis System (HAS)
system.
Number 2404
REPRESENTATIVE WILLIAMS referred to a time when the state did "move
it down once." He said if you watched the police reports,
throughout the state, DWIs did not stop. He asked if DPS was
thinking of increasing the fine. He said, currently, people are
fined, they get out and the next weekend they are driving under the
influence again. He said these people are not afraid of the laws.
He suggested that the penalty be increased.
Number 2458
MS. HENSLEY said that last year the legislature passed a felony
drunk driving law which makes the third offense, within a five year
period, a felony.
TAPE 96-12, SIDE B
Number 0000
MS. HENSLEY said, in 1983, the legal limit was set at .10 percent
or greater. She said in 1983, the legislature proposed the
Administrative License Revocation Act which has an inherent
deterrent affect. She said in 1984 there was a total of, a little
over, 7,700 arrest statewide whereas last year there was barely
5,000. She said these changes have made an impact. She said
decreases have occurred in the size of the State Trooper force, but
added that the municipality and cities have increased in their
force in some areas, particularly in Juneau and Anchorage. She
said driving under the influence is an issue that the state has
tried to address. She said the DPS supports stronger measures to
help the public. She said society, as a whole, must realize that
alcohol and a car does not mix.
Number 0060
MS. HENSLEY said in the United States, on an average, there is over
56,000 people killed per year in automobile accidents a majority of
which are alcohol related.
Number 0068
REPRESENTATIVE SANDERS said he agreed that alcohol and driving do
not mix. He said he was not in the legislature when they voted for
the .10 percent but he did vote for making the third conviction a
felony. He said he would be glad to vote for stiffer penalties. He
questioned the inconvenience to the overall public, who never has
had a car accident and has two or three drinks falling between the
.08 percent and .10 percent. He wondered if the inconvenience is
offset by the savings the state will receive. He said the people
who fall between .08 percent and .10 percent are the real problem.
He said the problem is the people who fall between 1.7 percent and
2.4 percent. He said that problem should be addressed and the
focus should be away from social drinkers.
Number 0117
MS. HENSLEY said, as part of her work, she has had to deal with
this issue for 16 years. She said, during that time, she has seen
many of the same names coming across her desk. She said there are
a lot of alcohol problems and many people lose their license as a
result. She said some individuals have lost their license until
the year 2060 because they continue to drive. She said the average
blood alcohol in Alaska is .19, which is nearly twice the limit.
Number 0157
MS. HENSLEY mentioned the Supreme Court case, Haynes versus the
state of Alaska, which determined that the state must consider the
margin of error of the Intoximeter instrument. She said that
margin of error has been placed at .01 percent. If the state has
an arrest that is a .10, the person is not considered intoxicated
until that person is .11 percent. She said this issue must be
addressed and asked that HB 24 be amended to allow the inherent
margin of error to be taken into consideration. She said the test
at the time should be valid, as long as the machine is calibrated
according to the standard criteria set in the law.
Number 0193
REPRESENTATIVE SANDERS clarified that the margin of error worked
both ways. He then asked if someone with a blood alcohol level of
.07 percent, with a reading of .08 percent, could be in as much
trouble as someone with a blood alcohol level of 3.6 percent.
Number 0215
CHAIRMAN GARY DAVIS said that would be true if the margin of error
was .01 percent. He then asked how long the .10 percent has been
in effect and how long the .04 percent for commercial drivers has
been in effect.
Number 0224
MS. HENSLEY said the effective date of the .10 percent in law was
October 18, 1983 and the effect date of the .04 percent in law was
April 1, 1992.
Number 0261
LENNI GORSUH, Lobbyist, Miller Brewing Company, was next to
testify. She said most of the concern, her company has, was
expressed by Representatives Williams and Sanders. She said the
company believes that most of the fatal crashes are most often
caused by people well above .10 percent and that it is the problem
drinkers which legislation must address, rather than the social
drinkers. She referred to a chart which gives an indication of
where the fatal crashes occur depending on the blood alcohol
content. She said the figures listed on the chart would concur
with the figures by Ms. Hensley.
Number 0301
MS. GORSUH said her company thinks the most effective deterrent to
drunk driving consists of stricter law enforcement, expanded
consumer awareness and increased severity of the penalties levied
for drunk driving. She said her company has supported this type of
activity. She said people need to know that if they drive drunk,
they will be caught, arrested and prosecuted.
HB 543 - STATE AIRPORT LAND LEASE PREFERENCE
Number 0330
CHAIRMAN GARY DAVIS said the next item on the agenda was HB 543, an
act establishing a preference when entering into state airport land
leases, sponsored by the House Transportation Committee.
CHAIRMAN GARY DAVIS said HB 543 said this bill was requested
because current regulations, as well as amended regulations, which
have a detrimental affect on those people leasing airport lands.
He said HB 543 gives a preference to those people who have leased
airport lands and have made a substantial investment in those
leases. He said those assets might be in jeopardy when a lease
comes up for renewal. He said, currently, at the end of a 25 year
lease where assets have been added to that lease, for example the
construction of a $100,000 hangar, the lease is put out to bid and
the person who invested in that lease might stand to lose their
investment. He concluded that HB 543 gives preference in renewing
the lease and said there is a constitutional issue related to HB
543.
Number 0448
REPRESENTATIVE NORMAN ROKEBERG proposed three separate amendments
to HB 543. He said he had spent over 25 years as a commercial real
estate broker, primarily leasing commercial office space and ground
in the Anchorage area as well as in the rest of the state. He said
the airport land lease has been an issue for a long time and that
it was brought to his attention again by the Alaska Air Carriers
Association (AACA) who have asked for some statutory changes.
Number 0526
REPRESENTATIVE ROKEBERG said HB 543 would apply to both rural and
international airports and that his amendments would only apply to
existing leases, not for future leases. He said there is one
exception to this, a revisionary interest clause for improvements
in any future leases. He said this clause has to do with leasehold
improvements which include the buildings, the tarmac pavement, the
understructure subsurface area, field distributions and storage
tanks, essentially any improvement made by a lessee or tenant on
the land. He said there have been substantial problems in the past
because there has been either a failure on the state to include a
reversionary clause in the lease document or there has been a lack
of clarity within the document. He said the disposition of
improvements, at the expiration of the lease, is in question.
He said there are regulations that currently exist, but they are
not administered evenly.
Number 0613
CHAIRMAN GARY DAVIS clarified that a revisionary interest clause
means that the improvements revert back to the owner at the end of
the lease.
Number 0619
REPRESENTATIVE ROKEBERG said improvements can revert back to the
owner and said this relates to Amendment 2. He said this amendment
states that "leases made prior to the effective date the lessees
shall have the right to elect to abandon, remove, or sell to a
succeeding tenant all or some of the leasehold improvements
installed and paid for by the lessee." He said Amendment 2 would
occur in a bargain for a leasehold situation, the improvements
would either revert to the tenant or revert back to the landholder
depending on the agreement. He said the bureaucracy is not working
with the private sector of this state to promote and foster
aviation in the business community.
Number 0716
REPRESENTATIVE ROKEBERG said the renewal provisions, which are
located in Section 1 of HB 543, relates to Amendment 1 which grants
a right of renewal to the existing tenants only. He said the state
should be in a position to bargain for new tenants and new business
coming in to the airport. He said new statutes will have some
bearing on future negotiations, and added that the bureaucracy is
having an affect on the business community. He said the renewal
option only affects current leases and stipulates that the terms,
conditions and rents of the new extended period have to be mutually
agreed upon in a reasonable amount of time. He said if the terms,
conditions and rents are not agreed upon within a reasonable amount
of time, there is a provision for a three member arbitration panel
which would determine the fair market value rent and other terms or
additions for that particular lease in order to resolve the
conflict between the state and tenant.
REPRESENTATIVE ROKEBERG said additional language was added at the
bottom of Amendment 1, which allows the state to deny renewal or
extension of the lease if the state can prove that it is in its
best interest or consistent with the airport master plan that they
don't renew it.
Number 0778
REPRESENTATIVE ROKEBERG said Amendment 1 and HB 543 both include
language, "offering under a long term lease scenario." He said he
felt five years or longer is a long term lease. He said a person
with a 35 year lease should have the right to extend that lease for
five years. He said, currently, the statute limits the length of
a ground lease or land lease in the state of Alaska to 55 years and
added that he supports this concept. He said it is his intention
that the lease term and extension periods be limited to 55 years.
He said an additional amendment might be needed to add this
provision.
Number 0854
REPRESENTATIVE ROKEBERG repeated that his intent was to ameliorate
business problems that are occurring in industry and affecting the
state's business community.
Number 0865
REPRESENTATIVE ROKEBERG said Amendment 3 provides findings and a
statement of purpose for HB 543. He said the sections need to be
renumbered, he said subsection 2 includes (c) and should include
(d) below. He said he would amend this amendment. He said the
findings are intended to overcome any potential constitutional
challenge to this legislation by laying out the reason for the
statutory change.
Number 0926
KURT PARKAN, Deputy Commissioner, Office of the Commissioner,
Department of Transportation and Public Facilities, (DOT/PF) was
next to testify. He said the Administration supports changing the
language in the statute to allow the right of first refusal for an
existing tenant to enter into a new lease. He said the biggest
concern is making HB 543 legally defensible. He said DOT/PF has
drafted up a bill which addresses the same concerns and adequately
addresses the legal concerns as well. He said in reviewing HB 543
and the comments that Terry Banister (ph.) had submitted, findings
were included in the Administration's legislation to meet the
constitutional challenges.
Number 1042
MR. PARKAN said the state wants to create an environment that is
good for the aviation business and that the state wants to do what
they can to assist the current tenants. He said he just received
the amendments proposed by Representative Rokeberg so he could not
comment on them. He said the expert on statewide aviation leasing
policy is in Washington D.C. trying to put together a state
position opposing proposed Federal Aviation Administration (FAA)
regulation regarding a ten seat rule for certified airports.
Number 1096
CHAIRMAN GARY DAVIS referred to the right to refusal provision and
asked him about the legalities in including this provision.
Number 1116
MR. PARKAN said the state would prefer to give the existing tenant
the right for refusal, giving a preference to a new lease.
CHAIRMAN GARY DAVIS said it appeared the Administration's bill and
HB 543 looked at the same thing.
Number 1146
REPRESENTATIVE ROKEBERG said he chose not to use the concept of the
first right of refusal in his amendments because this concept in
law requires a bonified third party to come forward for the lease.
He said if an existing tenant wanted to renew his lease and the
state replied that the lease needed to be put up for bid, another
bid was put up which the existing tenant could match. He said if
there is knowledge that a first right of refusal exists, a bonified
third party might not come forward. He said first right of
refusals are not currently in practice, they have been replaced
with first rights of offer. He said his amendment gives the
existing tenant the first right of offer and does not require a
third party to come forward.
Number 1249
REPRESENTATIVE WILLIAMS asked if the committee members have
received a copy of the Administration bill draft.
Number 1256
CHAIRMAN GARY DAVIS said it was located in the committee packet.
He added that he had no pride of authorship, but felt the best
version should go forward for the protection and passage by
everyone.
Number 1280
MR. PARKAN echoed Chairman Davis' comment. He said the
Administration bill is a draft of a transmittal letter as well as
the legislation itself. He said it include sections of which are
also included in the proposed amendments.
CHAIRMAN GARY DAVIS said he wanted to hear testimony on HB 543 and
was not sure it would be moved today as there might need to be
additional work done on this bill.
Number 1309
REPRESENTATIVE WILLIAMS asked about the proposed Amendment 1, page
one, line five, after the word, "lease" and asked him to explain
this section. He asked how this proposed amendment would affect
him if he wanted to build a building that would last 55 years and
only a five year lease would be granted.
Number 1374
REPRESENTATIVE ROKEBERG said that part of Amendment 1 is only
addressing renewals of leases. He said the language could be
clarified in Amendment 1 and added that most of the airport leases
are 30 to 35 years. He said this provision was added so that if
you were close to retirement and only wanted to extend it by five
years you could do so. He said the 55 year limit is a statutory
limit.
CHAIRMAN GARY DAVIS said the 55 year maximum limit might be the
intent of some of the parties.
Number 1445
HOWARD FOWLER, Alaskan Air Carriers Association (AACA), said he has
been dealing with the issues of dispositions of improvements on
expiring leases and the requirement in the lease contract of
investments on a sliding scale for the length of the lease. He
said if a lease is renewed and there is an operating business which
doesn't need any more capital improvements, the requirement that
more money should be invested is unnecessary.
Number 1520
CHAIRMAN GARY DAVIS asked him if the lease was located at the
Anchorage International Airport.
MR. FOWLER said his company is called Natak Aviation and they have
a 200 by 200 foot lot with a helicopter hangar on it at Lake Hood.
He said the lease expired last July and he requested that either
the lease be extended on the basis of additional improvements
exceeding those initially required or that he lease on a month by
month basis until "sane" policy is involved and he can sign a
longer lease contract.
Number 1571
CHAIRMAN GARY DAVIS said it appeared that the people who write the
leases have the authority to add and subtract different provisions
of the leases. He said the committee would contact him regarding
this issue.
Number 1609
REPRESENTATIVE ROKEBERG said, in terms of Mr. Fowler's situation,
the language in HB 543 and the amendments do not speak to the
investment, but the arbitration amendment would be able to help him
resolve his differences. He said, currently, Mr. Fowler is at the
mercy of the state, and added that to have someone invest over the
course of a 25 year lease is ridiculous.
CHAIRMAN GARY DAVIS asked Mr. Fowler what he had done regarding his
lease issue.
MR. FOWLER said he wrote a letter, dated November 29, 1995, to the
local leasing officer with letters sent to Commissioner Perkins,
the Governor and some other interested people. He said he has
received no reply on this issue other than receiving an invitation
to bid on a neighboring lease.
Number 1741
RICHARD JENSEN said he was the former airport manager 20 years ago
when most of the leases, which are now currently expiring, were
made. He said, at the time, the state was happy to have those
entrepreneurs, who were willing to risk their resources and offer
services to both the traveling public and the tourists. He said
the comment on revisionist provisions made by Representative
Rokeberg is pertinent to current and future leases and that the
bureaucracy involved was a morass. He commented that there was and
is no leasing criteria and policy.
Number 1851
MR. JENSEN said it was a "jake legged" operation in that when he
was the airport manager, the division was doing the leasing and he
did the enforcing. He said the airport had little input as to who
or where people were getting their leases.
Number 1887
MR. JENSEN said in reviewing some of these charges and the basis
for them, there are two separated classes of airports in Alaska and
that HB 543 doesn't differentiate between these two income sources.
He said the two international airports, in Anchorage and Fairbanks,
operate separately from all other airports in the state. He said
the international airports are a separate entity created by an
early statute and are self supporting. He said these airports have
their own bond rating and its own bonding authority. He said the
revenue from these two airports requires these bonds. He said, by
grouping all these same airports under the same leasing regulations
might need to be reviewed in context of ownership lease, use and
operation airports and facilities will provide revenues sufficient
to comply with all the covenants of the bond revenues. He said
there must be more than one bond resolution because the
international enterprise fund is separate. He said lease terms and
lease charges there might be a basis for a differential in those
regulations and or charges.
Number 2070
CHAIRMAN GARY DAVIS said the DOT/PF has been struggling with
regulations that will affect the international and the rural
airports.
Number 2100
CHARLES COLE said that several years ago he was asked by the Lake
Hood airport lessees to represent them in connection with problems
that are currently being addressed in HB 543. He said some of
these operators had their leases expiring and they were concerned
about their renewal rights. He said Governor Knowles appointed a
well-balanced, multi-member committee to conduct hearings on the
problems raised by the airport lessees. He said this committee
made recommendations in the form of a majority and minority report
through the commissioner about addressing and resolving these
problems. He said the AACA, generally, accepted the
recommendations made by the majority members of that committee. He
said no action has been taken by the commissioner on those
recommendations. He said, as a result, those concerns are now
being raised to the legislature.
Number 2231
MR. JENSEN said he did not have a copy of the proposed amendments
to HB 543. He said it is important that the legislature make
findings in connection with HB 543 in order to support legal issues
which might be raised in connection with the constitutionality of
the bill. He said he has not reviewed the findings included in the
proposed amendment or in the Administration bill, but he said both
of those are probably satisfactory.
Number 2313
MR. JENSEN said he would agree with Representative Rokeberg that
existing lessees should be given the opportunity to renew their
leases. He said it would be a mistake to have a right of refusal
for the reasons Representative Rokeberg mentioned.
Number 2369
MR. JENSEN said the Lake Hood operators and many other airport
lessees favor a reversionary clause, so that they can continue to
own the improvements which they made on the property during the
lease. He said most of these existing tenants, 25 years ago, were
told that they would have the right to renew these leases. He said
these leases were signed in good faith and the lessees accepted the
word of the state. He said these leases are now expiring without
any statutory rights to extend the leases.
Number 2452
MR. JENSEN said the problem is more than simply just losing
property, constructed on the lease premise, but loss of an entire
business.
TAPE 96-13, SIDE A
Number 0000
MR. JENSEN said the loss of a business is a serious problem. He
referred to the concept of not allowing lessees to renew the lease
because of it not being in the states best interest. He said he
was hesitant about giving too much discretion to the state
regarding airport leasing and questioned what construed the state's
best interest and also questioned airport policy. He said those
provisions, in addition to the one mentioned by Representative
Rokeberg should be eliminated.
Number 0131
MR. JENSEN said, in regards to comments by Mr. Fowler regarding the
leasing as shown in some proposed notice of lease option, if
someone makes an improvement of $125,000 plus then they can have
the lease for 25 years. He cited an example where someone put a
$4.5 million hangar and said that person would have to pay one-
twenty-fifth of the $4.5 million improvement to the state every
year as opposed to someone putting $200,000 improvement would only
have to pay one-twenty-fifth of that.
Number 0312
MR. JENSEN said another state policy is to require, for lease
renewal or extension, improvements on the premises. He said some
of these premises are mature and have been there for 25 years and
there is no more room for improvements or the company might not
have economic justification for improvements. He said he had
concerns in new leases where the improvements would revert to the
state. He said the state should get the full value of what it
gives to the lessee which would be raw land located on state ground
near an airport.
CHAIRMAN GARY DAVIS said he would send him information regarding
the proposed Administration bill.
Number 0447
JACK BIRMINGHAM, employee, Air Aviation, and member of the AACA,
said he agreed with the testimony by Mr. Cole. He said, in one
form or another, commercial airport tenants have been in hearing
after hearing occurring before 1986, trying to resolve many of
these same issues and that now legislative help has been requested.
He said the short answer is located in a Michael Barton memorandum
dated August 26, 1994.
MR. BIRMINGHAM suggested the committee move HB 543. He said the
Administration's bill has two faults, the findings provision only
includes commercial properties and does not include non-commercial
tenants and added that the worst experiences involve these non-
commercial tenants. He said the other issue is the rights of first
refusal on new terms and conditions and said this could be
anything.
Number 0571
MR. BIRMINGHAM said most of these constitutional concerns have been
highly overstated and said the legislature should draft a bill that
makes sense and fits the circumstances. He said only two
leaseholds have gone to bid at the insistence of the state and most
people have justifiably assumed that there was a reasonable renewal
preference and a reasonable right of extension which is true and
can be found in historical records. He mentioned that the DOT/PF
changed this policy in 1990 or 1991. He said the government could
grant extensions if, during the middle of your 25 year lease term,
you wanted to extend the lease out.
Number 0653
MR. BIRMINGHAM said the proposed Amendments 1 and 2 appear to be in
the right vein. He said he would like a working group to be formed
on HB 543 so that it can be done correctly. He said value of new
improvements does not include the value of maintenance on existing
improvements. He said these structures are well maintained. He
said if you tell the tenant that ten years down the road, his lease
is going to terminate or that there will be uncertainty regarding
its renewal, the maintenance level will decline.
Number 0734
PHIL LIVINGSTON, Chair, Legislative Committee, Vice-President of
Alaska Airlines Association, was next to testify. He said he
agreed with the testimony of Mr. Birmingham and Mr. Cole. He said
this has been a long standing problem and nothing has been
resolved. He said he just received the proposed amendments and
said Representative Rokeberg knows about leasing. He said the
Administration's bill does not refer directly to private hangars,
or private ownership. He said a solid bankable renewal preference
is needed in order for businesses to continue with certainty over
a long period of time. He said HB 543 should handle all leases,
not just existing leases, because the same problems will exist for
new leases. He said his organization is trying to encourage the
aviation industry and said that lack of certainty and short term
leases will not do this.
Number 0827
MR. LIVINGSTON said, as far as improvements are concerned, people
need to have a long term assurance that they won't have their
investments confiscated at the end of that term. He said transfer
of private ownership is done through a sale. He said, under a
first right of refusal and/or a bid process, the state takes the
leverage the owner will have to make a successful sale.
Number 0859
MR. LIVINGSTON said the state is in the business of land leasing
and they should value the ground rents and leave the improvements
on the property (indiscernible) as opposed to a matter of state
policy. He said some of the improvements on Lake Hood are simply
not substantial because the businesses do not require substantial
improvements. He said the businesses are substantial and are not
considered in the real estate question. He said some of the
businesses are worth millions of dollars whereas their investments
only total $10,000.
Number 0910
MR. PARKAN said DOT/PF had sent a draft copy of their bill to the
AACA, Airmen's Association and had received Mr. Livingston's
comments on it today. He said DOT/PF has no problem with the
commercial or non-commercial and said it was not their intention to
exclude it. He said the Administration has altered their draft to
include language which refers to the non-commercial and commercial.
He said he would share this with the committee and with all
interested parties.
Number 0952
BILL INGALDSON, Attorney, representing the neighbor of Mr. Fowler,
was next to testify. He said his client has been trying to renew
his lease for two years and it is currently in a hold over status.
He echoed the comments of Mr. Cole. He said in regards to the
proposed Amendment 1, the last section on page one, line 9, after
"land" it refers to the "terms, conditions and rents shall be
agreed upon prior to the expiration of the lease". He requested
additional language be added to the proposed amendment, "present
lessees who are in a holdover status". He said his client will not
be affected by HB 543.
Number 1043
REPRESENTATIVE ROKEBERG noted that Amendment 1 would now include,
"in a holdover periodic tendency".
Number 1043
DAVE KLOSTERMAN said everyone is interested in achieving solutions
to these problems. He echoed Mr. Ingaldson's comments that people
in holdover status be included until policy is derived from
legislative efforts. He mentioned that there is a growing group
of lessees who are in a holdover position. He said he would be
interested in being part of the group to help work on this issue.
Number 1190
CHAIRMAN GARY DAVIS agreed that everyone would like to solve this
problem.
MR. INGALDSON said his clients have received notice that his lease
is being put up for public bid, he asked that the commissioner
postpone this public bid as legislation will change his client's
interest.
CHAIRMAN GARY DAVIS said due notice has been given and said that he
will work on a committee substitute.
Number 1200
REPRESENTATIVE MASEK said she has been involved with this issue
since October of 1995. She said it is unfortunate that it has
taken until this point for the Administration to come forward.
ADJOURNMENT
As there was no further business to come before the House
Transportation Standing Committee, Chairman Gary Davis adjourned
the meeting at 3:10 p.m.
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