Legislature(2007 - 2008)SENATE FINANCE 532

04/10/2008 09:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
= HB 2 VOCATIONAL EDUC ACCOUNT
Scheduled But Not Heard
+ HJR 28 CONST. AM:BUDGET RES.FUND/OIL& GAS TAX TELECONFERENCED
Heard & Held
+ HB 226 REPEAL TERMINATION OF STEP PROGRAM TELECONFERENCED
Scheduled But Not Heard
+ HB 373 SCHOOL BOND DEBT REIMBURSEMENT TELECONFERENCED
Scheduled But Not Heard
+ HB 281 CAMPAIGN FINANCE COMPLAINTS/DISCLOSURE TELECONFERENCED
Moved SCS CSHB 281(FIN) Out of Committee
+ HB 320 SEARCH & RESCUE: CERTIFICATION/WORK.COMP TELECONFERENCED
Scheduled But Not Heard
+ HB 200 WORKERS' COMP: DISEASE PRESUMPTION TELECONFERENCED
Moved HB 200 Out of Committee
+ HB 325 TEACHERS/HEALTH CARE PROFESS HOUSING LOAN TELECONFERENCED
Scheduled But Not Heard
+ HB 50 CHILD PLACEMENT COMPACT TELECONFERENCED
Scheduled But Not Heard
+ HB 332 PRE-ELEMENTARY SCHOOL PROGRAMS TELECONFERENCED
Scheduled But Not Heard
+ HB 44 VETERAN INFO ON PFD APPLICATIONS TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
= HB 147 TOURISM CONTRACT: STATE FUNDS AND MATCH
Moved CSHB 147(RLS) Out of Committee
                  SENATE FINANCE COMMITTEE                                                                                      
                       April 10, 2008                                                                                           
                         9:12 a.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stedman called the Senate  Finance Committee meeting                                                                   
to order at 9:12:56 AM.                                                                                                       
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Charlie Huggins, Vice-Chair                                                                                             
Senator Kim Elton                                                                                                               
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
Senator Fred Dyson                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative  Ralph   Samuels;  Representative   Bob  Lynn;                                                                   
Michael  Sica,  Staff,  Representative   Bob  Lynn;  Jennifer                                                                   
Baxter,  Staff,   Senator  Nancy   Dahlstrom;  Jeff   Briggs,                                                                   
Firefighter,  Alaska  Professional  Firefighters  Association                                                                   
Jerry   Burnett,   Director,   Division   of   Administrative                                                                   
Services, Department of Revenue                                                                                                 
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Tam Cook,  Director, Legislative Legal Services,  Legislative                                                                   
Affairs Agency;  Mark Drygas, President,  Alaska Professional                                                                   
Fire Fighters  Association; Kevin Smith,  Executive Director,                                                                   
Alaska Municipal League Joint Insurance Association                                                                             
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 2      "An Act relating to the vocational education                                                                          
          account and appropriations from that account; and                                                                     
          providing for an effective date."                                                                                     
                                                                                                                                
          HB 2 was SCHEDULED but not HEARD.                                                                                     
                                                                                                                                
CS HJR 28(FIN)                                                                                                                  
                                                                                                                                
          Proposing  amendments  to the  Constitution of  the                                                                   
          State  of Alaska  relating  to  the budget  reserve                                                                   
          fund, and  to appropriations to and  transfers from                                                                   
          the   fund;  and  dedicating   a  portion   of  the                                                                   
          petroleum production tax to the fund.                                                                                 
                                                                                                                                
          CS  HJR 28 (FIN)  was HEARD  and HELD in  Committee                                                                   
          for further consideration.                                                                                            
                                                                                                                                
SCS CSHB 226(L&C)                                                                                                               
                                                                                                                                
          "An  Act extending  the  termination  of the  state                                                                   
          training   and  employment  program;   requiring  a                                                                   
          review  of  the  program;   and  providing  for  an                                                                   
          effective date."                                                                                                      
                                                                                                                                
          SCS CSHB 226 (L&C) was SCHEDULED but not HEARD.                                                                       
                                                                                                                                
CS HB 147(RLS)                                                                                                                  
                                                                                                                                
          "An Act relating to  matching funds and state money                                                                   
          for  state tourism marketing  contracts with  trade                                                                   
          associations;   and  providing  for   an  effective                                                                   
          date."                                                                                                                
                                                                                                                                
          CSHB 147  (RLS) was REPORTED out of  Committee with                                                                   
          no  recommendations   and  a  previously  published                                                                   
          fiscal note from Department  of Commerce, Community                                                                   
          and Economic Development.                                                                                             
                                                                                                                                
HB 373    "An Act extending specified public school bond                                                                        
          debt reimbursement;  and providing for an effective                                                                   
          date."                                                                                                                
                                                                                                                                
          HB 373 was SCHEDULED but not HEARD.                                                                                   
                                                                                                                                
CS HB 281(RLS) am                                                                                                               
                                                                                                                                
          "An  Act requiring candidates  to disclose  certain                                                                   
          information about all  contributors under AS 15.13;                                                                   
          relating  to the preservation  of records  required                                                                   
          to   be  kept  by   candidates,  groups,   nongroup                                                                   
          entities,  or persons under  AS 15.13;  relating to                                                                   
          records  required to be  kept by certain  lobbyists                                                                   
          and  persons who  employ, retain,  or contract  for                                                                   
          the services  of lobbyists; relating  to complaints                                                                   
          filed  with  the Select  Committee  on  Legislative                                                                   
          Ethics;   relating  to  administrative   complaints                                                                   
          filed  with the Alaska  Public Offices  Commission;                                                                   
          relating  to the statute  of limitations  for civil                                                                   
          actions  brought  under  AS  39.50;  extending  the                                                                   
          statute   of   limitations  for   prosecutions   of                                                                   
          violations   of  the  Alaska  Election   Code;  and                                                                   
          providing for an effective date."                                                                                     
                                                                                                                                
          SCS CSHB  281 (FIN)  was REPORTED out  of Committee                                                                   
          with  a "do pass"  recommendation and  accompanying                                                                   
          previously   published   fiscal   notes  from   the                                                                   
          Legislative  Affairs   Agency,  the  Department  of                                                                   
          Administration, and the Department of Law.                                                                            
                                                                                                                                
CS HB 320(FIN)                                                                                                                  
                                                                                                                                
          "An Act relating to  search and rescue training and                                                                   
          search   and  rescue  parties;  requiring   certain                                                                   
          search  and  rescue  volunteers  to  be  considered                                                                   
          state   employees    for   purposes   of   workers'                                                                   
          compensation   coverage;  and  allowing   political                                                                   
          subdivisions   to   elect   to   provide   workers'                                                                   
          compensation  insurance  coverage  for  search  and                                                                   
          rescue personnel."                                                                                                    
                                                                                                                                
          CS HB 320 (FIN) was SCHEDULED but not HEARD.                                                                          
                                                                                                                                
CS HB. 200(FIN)                                                                                                                 
                                                                                                                                
          "An  Act relating  to the  presumption of  coverage                                                                   
          for  a workers' compensation  claim for  disability                                                                   
          as a  result of certain  diseases for  certain fire                                                                   
          fighters."                                                                                                            
                                                                                                                                
          CS HB 200 (FIN) was  REPORTED out of Committee with                                                                   
          no  recommendations   and  accompanying  previously                                                                   
          published  fiscal  notes  from  the  Department  of                                                                   
          Administration  and  the  Department of  Labor  and                                                                   
          Workforce Development.                                                                                                
                                                                                                                                
CS HB325(FIN)                                                                                                                   
                                                                                                                                
          "An Act  relating to the teachers'  and health care                                                                   
          professionals'  housing loan program in  the Alaska                                                                   
          Housing Finance  Corporation; and providing  for an                                                                   
          effective date."                                                                                                      
                                                                                                                                
          CS HB 325 was SCHEDULED but not HEARD.                                                                                
                                                                                                                                
CS HB 50(JUD)                                                                                                                   
                                                                                                                                
          "An Act relating to  the Interstate Compact for the                                                                   
          Placement  of Children; establishing  an interstate                                                                   
          commission for the placement  of children; amending                                                                   
          Rules   4  and   24(b),  Alaska   Rules  of   Civil                                                                   
          Procedure; and providing for an effective date."                                                                      
                                                                                                                                
          CS HB 50 (JUD) was SCHEDULED but not HEARD.                                                                           
                                                                                                                                
                                                                                                                                
CS HB 332(FIN)(title am)                                                                                                        
                                                                                                                                
          "An  Act defining an  elementary school  to include                                                                   
          certain  pre-elementary  programs  and relating  to                                                                   
          counting pre-elementary students in a school's                                                                        
          average daily membership."                                                                                            
                                                                                                                                
          CSHB 332 (FIN) (title am) was SCHEDULED but not                                                                       
          HEARD.                                                                                                                
                                                                                                                                
CS HB 44(FIN)                                                                                                                   
                                                                                                                                
          "An Act relating to information from veterans on                                                                      
          the permanent fund dividend application form."                                                                        
                                                                                                                                
          CS HB 44 was SCHEDULED but not HEARD.                                                                                 
                                                                                                                                
9:13:13 AM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 2                                                                                                              
                                                                                                                                
     "An Act relating to the vocational education account                                                                       
     and appropriations from that account; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
9:13:16 AM                                                                                                                    
                                                                                                                                
CS FOR HOUSE JOINT RESOLUTION NO. 28(FIN)                                                                                     
                                                                                                                                
     Proposing  amendments to the  Constitution of  the State                                                                   
     of Alaska  relating to the  budget reserve fund,  and to                                                                   
     appropriations  to  and  transfers  from the  fund;  and                                                                   
     dedicating a portion of the  petroleum production tax to                                                                   
     the fund.                                                                                                                  
                                                                                                                                
Co-Chair Hoffman  MOVED to ADOPT Senate  Committee Substitute                                                                   
for  CS  HJR  28,  work  draft  25-LS1217\N  as  the  working                                                                   
document  before this  Committee. There  being NO  OBJECTION,                                                                   
work draft 25-LS1217\N was adopted.                                                                                             
                                                                                                                                
REPRESENTATIVE RALPH  SAMUELS presented the bill  history. He                                                                   
reported that the original bill  introduced the creation of a                                                                   
separate  funding  account  apart   from  any  other  current                                                                   
account.  This account  would  take the  progressivity  money                                                                   
from  the  petroleum   tax  and  for  five   years  force  it                                                                   
constitutionally  into   this  new  account  to   provide  an                                                                   
endowment  style  payout  between  4.5 and  5  percent.  This                                                                   
account would  consist of  money from  today's oil  and would                                                                   
not  allow this  or  the next  generation  of legislators  to                                                                   
spend  it.  Representative  Samuels   declared  that  as  oil                                                                   
production declines  in the future,  this account  would help                                                                   
share the wealth for future generations.                                                                                        
                                                                                                                                
9:18:07 AM                                                                                                                    
                                                                                                                                
Representative  Samuels continued  that the  bill evolved  by                                                                   
taking more  of the today's  money and incorporating  it into                                                                   
the Constitutional  Budget Reserve  to also share  the wealth                                                                   
generationally. He  stressed that as production  continues to                                                                   
decline and  the budget  continues to  rise, the easiest  way                                                                   
out is  to take the Constitutional  Budget Reserve  money and                                                                   
not make any fundamental changes.   He warned that the longer                                                                   
the state waits  to discuss fiscal responsibility  the harder                                                                   
the choices will be. He noted  that the House took the entire                                                                   
Constitutional  Budget Reserve and  put it into  an endowment                                                                   
program.  A solution  arrived at  between the  House and  the                                                                   
Senate  is reflected in  the new  Committee Substitute.  This                                                                   
would  split the  Constitutional  Budget  Reserve where  half                                                                   
would be remaining with the three-quarter  vote money and the                                                                   
other  half would  be  the endowment  money  concept of  this                                                                   
bill. The  payout of  the endowment money  would still  be at                                                                   
five percent with a five year  rolling average that would not                                                                   
start  until the  three-quarter money  was spent  down to  $1                                                                   
billion. He  reiterated that the  point was to make  sure the                                                                   
endowment keeps gaining as much  money as possible before the                                                                   
five percent is taken.                                                                                                          
                                                                                                                                
9:21:25 AM                                                                                                                    
                                                                                                                                
Representative  Samuels defended the  idea of saving  as much                                                                   
money as  possible to let the  interest accrue. The  point of                                                                   
having a trigger  at $1 billion is that the  Legislature will                                                                   
spend the money  down in the three-quarter vote  money before                                                                   
the payout starts  at the five percent of whatever  is in the                                                                   
endowment. The Legislature would  have the prerogative to add                                                                   
money  to either  account each  year. He  noted that  another                                                                   
part  of  the Committee  Substitute  changes  the  vote  from                                                                   
three-quarter  to two-thirds.  Also  there is  no longer  any                                                                   
constitutionally   forced   progressivity   money  into   the                                                                   
account; it  would be  Legislative prerogative. Every  future                                                                   
Legislature and Administration  would determine what would be                                                                   
done with the surplus funds.                                                                                                    
                                                                                                                                
9:24:48 AM                                                                                                                    
                                                                                                                                
Representative Samuels referred  to Tam Cook online to review                                                                   
the sectionals.                                                                                                                 
                                                                                                                                
9:25:32 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman reviewed the fiscal notes.                                                                                     
                                                                                                                                
AT EASE:  9:26:01 AM                                                                                                          
RECONVENED: 9:26:15 AM                                                                                                        
                                                                                                                                
Co-Chair  Stedman expressed  his  concern running  with a  $4                                                                   
billion general fund  operation which has been  growing at an                                                                   
unsustainable  rate  of  about  ten percent  which  they  are                                                                   
trying to  rein back  to three or  four percent.  He stressed                                                                   
that the  state's operating  expenses  will continue  to grow                                                                   
with  time and  it is  unrealistic to  think it  will be  cut                                                                   
back.  Co-Chair Stedman  believed that  by tying  up all  the                                                                   
savings would put the state in  the position, should there be                                                                   
a volume disruption or price decline,  of having to go to the                                                                   
earning reserves of the Permanent  Fund to make a substantial                                                                   
withdrawal for the operating side  of the state. He cautioned                                                                   
that keeping  some liquidity in  the money was  necessary for                                                                   
the Legislature to address these concerns.                                                                                      
                                                                                                                                
9:29:18 AM                                                                                                                    
                                                                                                                                
Senator Elton questioned  if Section 1 states  that all money                                                                   
received  by  the  state  after July  1,  1990,  not  already                                                                   
deposited in the Permanent Fund,  would go into the endowment                                                                   
account of the Constitutional Budget Reserve.                                                                                   
                                                                                                                                
Representative  Samuels   replied  that  this   provision  or                                                                   
litigation  money  was  put into  the  Constitutional  Budget                                                                   
Reserve.                                                                                                                        
                                                                                                                                
Co-Chair Stedman requested a breakdown  of the Constitutional                                                                   
Budget Reserve.                                                                                                                 
                                                                                                                                
9:30:54 AM                                                                                                                    
                                                                                                                                
Senator Thomas  asked for an  explanation of the  language on                                                                   
page 2, line 7 "except as invested for."                                                                                        
                                                                                                                                
9:31:32 AM                                                                                                                    
                                                                                                                                
TAM COOK,  DIRECTOR, LEGISLATIVE LEGAL SERVICES,  LEGISLATIVE                                                                   
AFFAIRS  AGENCY testified  via  teleconference and  responded                                                                   
that the  language is intended to  say that money can  not be                                                                   
transferred  from the  primary account  except to the  extent                                                                   
that money  is transferred  for investment  in that  account.                                                                   
They  would  pay money  to  buy  investments such  as  mutual                                                                   
funds.                                                                                                                          
                                                                                                                                
9:33:06 AM                                                                                                                    
                                                                                                                                
Senator Dyson  remarked that part  of his enthusiasm  for the                                                                   
bill concerned a  forced discussion of what to  do about more                                                                   
revenues. He  assumed that part  of the discussion  should or                                                                   
could  be if  they were  going to  use part  of the  earnings                                                                   
reserve account for the purpose  it was originally created to                                                                   
produce income  that could be  used to sustain some  level of                                                                   
government  after  the  oil revenues  were  gone  or  greatly                                                                   
diminished.                                                                                                                     
                                                                                                                                
9:34:16 AM                                                                                                                    
                                                                                                                                
Representative Samuels remarked  that many groups have worked                                                                   
on  this discussion  including  himself, Representative  Mike                                                                   
Doogan  and Representative  Harry  Crawford.  They all  agree                                                                   
that  the   longer  the  Legislature   waits  to   have  this                                                                   
discussion the higher the budget  and the deeper the debt. He                                                                   
believed that saving the money  now will benefit the state in                                                                   
the long run. He  noted that debates on income  tax and sales                                                                   
tax  are frequent,  but  unpopular discussions.  He  believed                                                                   
budget cuts would  affect rural community more  than a broad-                                                                   
based tax.                                                                                                                      
                                                                                                                                
9:38:15 AM                                                                                                                    
                                                                                                                                
Representative  Samuels stressed  again that  the longer  the                                                                   
Legislature  waits to make  a decision with  what to  do with                                                                   
the  oil  reserve  money,  the  worse  the  economic  reality                                                                   
becomes.                                                                                                                        
                                                                                                                                
9:38:49 AM                                                                                                                    
                                                                                                                                
Senator Dyson agreed that Alaska  needs to have a "rainy day"                                                                   
account accessible  without the politics but is  now in favor                                                                   
of the  previous version of the  bill because it  would force                                                                   
the government to have the discussions.                                                                                         
                                                                                                                                
Representative  Samuels concluded  that money  could also  be                                                                   
taken off the table by having a spending limit.                                                                                 
                                                                                                                                
9:40:52 AM                                                                                                                    
                                                                                                                                
JERRY   BURNETT,   DIRECTOR,   DIVISION   OF   ADMINISTRATIVE                                                                   
SERVICES, DEPARTMENT OF REVENUE  talked with the Commissioner                                                                   
and agrees that this Committee  Substitute takes care of most                                                                   
concerns and the lack of liquidity in managing the money.                                                                       
                                                                                                                                
Co-Chair Stedman  inquired if  the Department has  any dollar                                                                   
estimates of what they would like set aside in cash.                                                                            
                                                                                                                                
9:42:23 AM                                                                                                                    
                                                                                                                                
Mr. Burnett  remarked that  the department manages  currently                                                                   
to  have an  average  of  $1 billion  in  the  Constitutional                                                                   
Budget Reserve for cash flow purposes.  This amount will grow                                                                   
and is  reasonable. He believed  that setting the  $4 billion                                                                   
in each account would provide a lot of comfort.                                                                                 
                                                                                                                                
9:43:35 AM                                                                                                                    
                                                                                                                                
Senator  Elton wondered  what other  concerns the  department                                                                   
might have.                                                                                                                     
                                                                                                                                
Mr. Burnett remarked that they  would return to the Committee                                                                   
if they see any new concerns.                                                                                                   
                                                                                                                                
9:44:03 AM                                                                                                                    
                                                                                                                                
Mr. Burnett reported that the  new spring forecasts should be                                                                   
out soon.                                                                                                                       
                                                                                                                                
9:45:02 AM                                                                                                                    
                                                                                                                                
CS HJR 28 (FIN)  was HEARD and HELD in Committee  for further                                                                   
consideration.                                                                                                                  
                                                                                                                                
AT EASE: 9:45:35 AM                                                                                                           
RECONVENED: 9:57:32 AM                                                                                                        
                                                                                                                                
CS FOR HOUSE BILL NO. 147(FIN)                                                                                                
                                                                                                                                
     "An Act relating  to matching funds and  state money for                                                                   
     state   tourism    marketing   contracts    with   trade                                                                   
    associations; and providing for an effective date."                                                                         
                                                                                                                                
Co-Chair Stedman  remarked this is the bill's  second hearing                                                                   
to  clear  up  concerns  expressed  by  Senator  Hoffman  and                                                                   
Senator Elton. The concerns have been resolved.                                                                                 
                                                                                                                                
Co-Chair Stedman reviewed the fiscal note.                                                                                      
                                                                                                                                
Senator Hoffman  MOVED to  REPORT out  of Committee  CSHB 147                                                                   
(RLS)  with   individual  recommendations   and  accompanying                                                                   
fiscal note. There being NO OBJECTION, it was so ordered.                                                                       
                                                                                                                                
CS  HB  147 (RLS)  was  REPORTED  out  of Committee  with  no                                                                   
recommendations and  a previously published fiscal  note from                                                                   
Department of Commerce, Community and Economic Development.                                                                     
                                                                                                                                
AT EASE: 9:59:50 AM                                                                                                           
RECONVENED: 10:00:48 AM                                                                                                       
                                                                                                                                
CS FOR HOUSE BILL NO. 281(RLS) am                                                                                             
                                                                                                                                
     "An  Act   requiring  candidates  to   disclose  certain                                                                   
     information  about  all  contributors  under  AS  15.13;                                                                   
     relating to  the preservation of records  required to be                                                                   
     kept  by  candidates,  groups,   nongroup  entities,  or                                                                   
     persons under AS 15.13; relating  to records required to                                                                   
     be  kept by certain  lobbyists and  persons who  employ,                                                                   
     retain,  or  contract  for the  services  of  lobbyists;                                                                   
     relating to  complaints filed with the  Select Committee                                                                   
     on  Legislative   Ethics;  relating  to   administrative                                                                   
     complaints   filed  with   the  Alaska  Public   Offices                                                                   
     Commission; relating  to the statute of  limitations for                                                                   
     civil  actions brought  under  AS  39.50; extending  the                                                                   
     statute  of limitations for  prosecutions of  violations                                                                   
     of  the  Alaska  Election  Code; and  providing  for  an                                                                   
     effective date."                                                                                                           
                                                                                                                                
10:01:17 AM                                                                                                                   
                                                                                                                                
Co-Chair   Hoffman  MOVED   to  ADOPT   a  Senate   Committee                                                                   
Substitute for CSHB 281 (FIN),  work draft 25-LS1115\D as the                                                                   
working  document  before  this  committee.  There  being  NO                                                                   
OBJECTION, work draft 25-LS1115\D was adopted.                                                                                  
                                                                                                                                
AT EASE: 10:01:32 AM                                                                                                          
RECONVENED: 10:02:58 AM                                                                                                       
                                                                                                                                
REPRESENTATIVE BOB LYNN presented  an overview of the Sponsor                                                                   
Statement:                                                                                                                      
                                                                                                                               
   House Bill 281  strengthens oversight  of Alaska's  ethics                                                                   
   laws by allowing the  state's watchdog agencies  more time                                                                   
   to receive  complaints  and properly  investigate  alleged                                                                   
   violations. It  also establishes  an adequate time  period                                                                   
   for the retention of records related  to those complaints.                                                                   
                                                                                                                                
   This act covers  the four areas  of oversight  assigned to                                                                   
   the  Alaska  Public  Offices  Commission  and  the  Select                                                                   
   Committee on Legislative Ethics: campaign  disclosures (AS                                                                 
   15.13),  lobbying   (AS  24.45),   legislative   financial                                                               
   disclosure  (AS  24.60)  and  public   official  financial                                                                 
   disclosure (AS 39.50)                                                                                                        
                                                                                                                                
   HB 281 creates a  standard statute of limitations  of five                                                                   
   years for complaints that  can be filed with APOC  and the                                                                   
   Select Committee. It also  codifies a period of  six years                                                                   
   for  the  retention   of  records  required   under  these                                                                   
   sections.                                                                                                                    
                                                                                                                                
   By  allowing  a  reasonable  amount  of  time  to  receive                                                                   
   complaints and conduct  investigations, HB 281  helps APOC                                                                   
   and the  Select  Committee  accomplish their  missions  of                                                                   
   ensuring the public's confidence in elected  and appointed                                                                   
   officials,   and   preserving   the   integrity   of   the                                                                   
   legislative                                       process.                                                                   
                                                                                                                                
   This bill is an important follow-up to  the recent efforts                                                                   
   to shore up the Foundation  of Trust between  Alaskans and                                                                   
   their government, which took a big step  forward last year                                                                   
   when the governor  and the  legislature passed  a landmark                                                                   
   ethics bill.                                                                                                                 
                                                                                                                                
10:04:23 AM                                                                                                                   
                                                                                                                                
Senator  Elton  referred  to  Section  4, page  3,  where  it                                                                   
changed  the  requirement for  a  lobbyist  or a  person  who                                                                   
contracts for  a lobbyist. He  inquired why it was  six years                                                                   
there and five years elsewhere in the bill.                                                                                     
                                                                                                                                
10:04:51 AM                                                                                                                   
                                                                                                                                
MICHAEL SICA,  STAFF, REPRESENTATIVE BOB LYNN  explained that                                                                   
in the  past APOC  when having a  statute of limitations  for                                                                   
one year  through regulations would  then have two  years for                                                                   
retention of records.  The additional year for  records to be                                                                   
retained   would  help   with  the   associated  statute   of                                                                   
limitations. The  six years of  retention dovetails  with the                                                                   
five  years   allowed  for  the   complaint  of   an  alleged                                                                   
violation.                                                                                                                      
                                                                                                                                
10:05:49 AM                                                                                                                   
                                                                                                                                
Senator  Huggins inquired  if  there were  any violations  or                                                                   
concerns that made the two year requirement inadequate.                                                                         
                                                                                                                                
Representative Lynn  responded that although he  did not have                                                                   
the actual numbers it did cause some concern.                                                                                   
                                                                                                                                
Mr. Sica  remarked that  there has  been past testimony  that                                                                   
the  two years  was  inadequate. He  remarked  that the  five                                                                   
years seemed like  a standard uniform statute  of limitations                                                                   
for all codes overseen by the agencies.                                                                                         
                                                                                                                                
10:06:54 AM                                                                                                                   
                                                                                                                                
Senator Olson questioned  if this was a comparable  time with                                                                   
other complaints related to non-elected  officials throughout                                                                   
the state.                                                                                                                      
                                                                                                                                
10:07:11 AM                                                                                                                   
                                                                                                                                
Mr. Sica  responded he could not  think of any  similar codes                                                                   
but some  alleged violations  do have  five year statutes  of                                                                   
limitations.                                                                                                                    
                                                                                                                                
Senator Olson inquired  how other states deal  with APOC type                                                                   
complaints.                                                                                                                     
                                                                                                                                
Mr. Sica responded that the time  varies from state to state.                                                                   
                                                                                                                                
10:08:17 AM                                                                                                                   
                                                                                                                                
Senator Elton MOVED  TO REPORT out of Committee  SCS CSHB 281                                                                   
(FIN)  from  Committee with  individual  recommendations  and                                                                   
accompanying fiscal notes.                                                                                                      
                                                                                                                                
SCS CSHB  281 (FIN)  was REPORTED  out Committee  with  a "do                                                                   
pass" recommendation,  and accompanying previously  published                                                                   
fiscal  notes  from  the  Legislative   Affairs  Agency,  the                                                                   
Department of Administration, and the Department of Law.                                                                        
                                                                                                                                
AT EASE: 10:09:00 AM                                                                                                          
RECONVENED: 10:25:11 AM                                                                                                       
                                                                                                                                
                                                                                                                                
CS FOR HOUSE BILL NO. 200(FIN)                                                                                                
                                                                                                                                
     "An Act  relating to the  presumption of coverage  for a                                                                   
     workers' compensation  claim for disability  as a result                                                                   
     of certain diseases for certain fire fighters."                                                                            
                                                                                                                                
Co-Chair Stedman signified that  the was the first hearing of                                                                   
the  bill  with  the  intention  of  hearing  from  the  bill                                                                   
sponsor, take  public testimony  and act on  the will  of the                                                                   
Committee.                                                                                                                      
                                                                                                                                
10:25:35 AM                                                                                                                   
                                                                                                                                
JENNIFER BAXTER, STAFF, SENATOR NANCY DAHLSTROM, presented                                                                      
an overview of the sponsor statement:                                                                                           
                                                                                                                                
     House Bill  200, "An Act relating to the  presumption of                                                                   
     coverage   for  a   workers'   compensation  claim   for                                                                   
     disability as  a result of certain diseases  for certain                                                                   
     occupations," establishes  a presumption in the Worker's                                                                   
     Compensation  program  for  professional  and  volunteer                                                                   
     firefighters who have had  a qualifying medical exam and                                                                   
     have   been   on  the   job   at  least   seven   years.                                                                   
                                                                                                                                
     It  grants   benefits  to  firefighters   stricken  with                                                                   
     certain types  of cancer and heart disease  due to their                                                                   
     exposure to  toxic chemicals, and high levels  of carbon                                                                   
     monoxide. Silent  killers like asbestos and  benzene can                                                                   
     appear  after they  leave the job.  The requirements  of                                                                   
     this bill are  that the claims must be  made within five                                                                   
     years    after    the   last    day    of    employment.                                                                   
                                                                                                                                
     In addition  to firefighters,  first responders  deserve                                                                   
     protection  for the  health and  safety risks they  live                                                                   
     with in  order to keep us  safe. HB 200 also  includes a                                                                   
     presumption that  compensation for certain  disabilities                                                                   
     resulting   from  blood   born  pathogens  be   covered.                                                                   
                                                                                                                                
     Arguments  have been  made that  this coverage  would be                                                                   
     exorbitantly  expensive; however this  has not  been the                                                                   
     case  in  other  states.   For  example,  the  state  of                                                                   
     California  has over 30,000  paid firefighters  and more                                                                   
     than  30,000  volunteers,  but the  addition  of  cancer                                                                   
     presumptive benefits has  had no impact on the actuarial                                                                   
     assumptions   system   for    its   retirement   system.                                                                   
                                                                                                                                
     Firefighters  and  first  responders  take  great  risks                                                                   
     every  day to  protect our  lives and  the lives of  our                                                                   
     loved  ones. They  are  regularly  exposed to  dangerous                                                                   
     elements   such  as   carcinogenic  substances,   carbon                                                                   
     monoxide  and  contaminated   blood  that  can  lead  to                                                                   
     chronic and debilitating  illnesses later in their life.                                                                   
                                                                                                                                
     A great deal of thought has been put into this                                                                             
     legislation in order to create defined parameters of                                                                       
     who qualifies for these benefits.                                                                                          
                                                                                                                                
                                                                                                                                
10:26:49 AM                                                                                                                   
                                                                                                                                
Senator  Huggins requested  further  explanation of  negative                                                                   
lifestyle habits.                                                                                                               
                                                                                                                                
Ms. Baxter described  that if a firefighter is  a smoker this                                                                   
might  be   considered  a   negative  lifestyle   for  cancer                                                                   
coverage.                                                                                                                       
                                                                                                                                
Senator  Huggins inquired  if  a firefighter  gained a  great                                                                   
deal of  weight over the  years could this  be a factor  in a                                                                   
negative lifestyle.                                                                                                             
                                                                                                                                
Ms.  Baxter responded  that physical  fitness  and weight  is                                                                   
listed in the bill as a preponderance  of evidence that could                                                                   
be rebutted.                                                                                                                    
                                                                                                                                
10:28:37 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman wondered  how  prostate  cancer, listed  on                                                                   
page 2, line 13 fits into the cancer list.                                                                                      
                                                                                                                                
Ms.  Baxter  responded  that fire  fighters  have  a  greater                                                                   
number of cases than the national average.                                                                                      
                                                                                                                                
Co-Chair Stedman noted that the  theory is that most males if                                                                   
they live long enough might develop prostrate cancer.                                                                           
                                                                                                                                
10:29:27 AM                                                                                                                   
                                                                                                                                
Ms. Baxter pointed  out that could probably be  rebutted in a                                                                   
claim case.                                                                                                                     
                                                                                                                                
Senator Olson  questioned how a firefighter's  family history                                                                   
of diseases would fit into the rebuttal for non-coverage.                                                                       
                                                                                                                                
10:30:01 AM                                                                                                                   
                                                                                                                                
Ms.  Baxter  responded  that  this  bill  takes  it  off  the                                                                   
employees  and  puts it  on  the  employer  to prove  but  an                                                                   
employee's family  history could be taken  into consideration                                                                   
before a claim is settled.                                                                                                      
                                                                                                                                
Co-Chair  Stedman  reviewed  the   two  indeterminate  fiscal                                                                   
notes.                                                                                                                          
                                                                                                                                
10:30:37 AM                                                                                                                   
                                                                                                                                
Senator   Thomas   mentioned   that  heredity   factors   are                                                                   
referenced in the bill.                                                                                                         
                                                                                                                                
10:30:51 AM                                                                                                                   
                                                                                                                                
MARK  DRYGAS, PRESIDENT,  ALASKA  PROFESSIONAL FIRE  FIGHTERS                                                                   
ASSOCIATION  testified   via  teleconference  and   spoke  in                                                                   
support  of the  bill.  He  reiterated the  firefighters  are                                                                   
subject  to various  cancers and  respiratory  diseases at  a                                                                   
higher rate than the general public.                                                                                            
                                                                                                                                
10:32:23 AM                                                                                                                   
                                                                                                                                
Senator  Huggins suggested  that more  than fifty percent  of                                                                   
males in the  general public will get prostrate  cancer so he                                                                   
wondered   how   much   higher   are   the   statistics   for                                                                   
firefighters.                                                                                                                   
                                                                                                                                
Mr. Drygas responded  that prostrate cancer in  fire fighters                                                                   
occurs  at a  higher  rate  and at  a  younger  age than  the                                                                   
general public.                                                                                                                 
                                                                                                                                
10:33:18 AM                                                                                                                   
                                                                                                                                
Senator Huggins requested the statistics of a higher rate.                                                                      
                                                                                                                                
Mr. Drygas replied he did not  have the numbers available. He                                                                   
remarked   that   the  information   was   received   through                                                                   
researching other state's disability coverages.                                                                                 
                                                                                                                                
10:34:19 AM                                                                                                                   
                                                                                                                                
Senator Olson agreed  with the Co-Chair Stedman  that all men                                                                   
risk prostrate cancer if they  live long enough but did agree                                                                   
that  among  firefighters  the   numbers  were  significantly                                                                   
higher at a younger age.                                                                                                        
                                                                                                                                
10:34:55 AM                                                                                                                   
                                                                                                                                
Ms. Baxter  informed the Committee  that the cancer  list was                                                                   
developed because  studies showed firefighters had  a one and                                                                   
one-half to four  times greater risk than the  general public                                                                   
at a  much younger age.  It is written  in the bill  that the                                                                   
firefighter must  have been on  the job at least  seven years                                                                   
and  the coverage  only  extends for  five  years after  they                                                                   
leave the job.                                                                                                                  
                                                                                                                                
10:35:57 AM                                                                                                                   
AT EASE: 10:36:07 AM                                                                                                          
RECONVENED: 10:36:33 AM                                                                                                       
                                                                                                                                
10:36:35 AM                                                                                                                   
                                                                                                                                
KEVIN  SMITH,  EXECUTIVE DIRECTOR,  ALASKA  MUNICIPAL  LEAGUE                                                                   
JOINT INSURANCE ASSOCIATION testified  via teleconference. He                                                                   
explained  that the  members  of this  insurance  association                                                                   
pool  together to  cover the  first half  million dollars  of                                                                   
each worker's compensation claim  and purchase reinsurance to                                                                   
statutory  limits above  that  amount. In  his opinion,  this                                                                   
bill is about  asking municipalities to pay  extra by placing                                                                   
firefighters in a special category  separate from other state                                                                   
workers.  He  believed this  is  bad  public policy  and  the                                                                   
health  statistics are  not supported  by science. He  argued                                                                   
that the  costs of  the bill  are difficult  to determine  as                                                                   
many diseases and cancers are  treated at different costs. He                                                                   
stressed this  bill would be  a significant cost  increase to                                                                   
municipalities.                                                                                                                 
                                                                                                                                
10:40:21 AM                                                                                                                   
                                                                                                                                
Mr.  Smith  related  that  many  communities  in  Alaska  use                                                                   
volunteer firefighters because  they can not afford full time                                                                   
paid  staff  but  they  still   need  to  purchase  workman's                                                                   
compensation for  their volunteers. The rates  for volunteers                                                                   
will have to increase to cover  presumptions in this bill. He                                                                   
warned that  if small  municipalities can  not afford  to pay                                                                   
full time firefighters,  they would find it  difficult to pay                                                                   
the additional  costs  this bill would  incur. He  emphasized                                                                   
that  the  bill  should  be  restricted  to  full  time  fire                                                                   
fighters and not volunteers.                                                                                                    
                                                                                                                                
10:42:38 AM                                                                                                                   
                                                                                                                                
Senator  Huggins asked  Mr. Smith about  the gender  specific                                                                   
prostrate cancer  when more women are entering  the field. He                                                                   
questioned  if  there  was any  statistics  concerning  women                                                                   
firefighters.                                                                                                                   
                                                                                                                                
Mr.  Smith  replied that  he  was  not  aware of  any  gender                                                                   
specific health studies for female firefighters.                                                                                
                                                                                                                                
10:43:53 AM                                                                                                                   
                                                                                                                                
Senator  Huggins  requested  the information  from  the  bill                                                                   
sponsor.                                                                                                                        
                                                                                                                                
Ms. Baxter agreed  that this has been a male  dominated field                                                                   
in  the past  and she  was  not aware  of  any direct  female                                                                   
studies.                                                                                                                        
                                                                                                                                
10:45:12 AM                                                                                                                   
                                                                                                                                
Senator Huggins  reminded the Committee that  diseases do not                                                                   
recognize  the difference  between  full-time and  volunteers                                                                   
employees  so  he  would  not  be  in  favor  of  eliminating                                                                   
volunteers from the bill.                                                                                                       
                                                                                                                                
10:45:45 AM                                                                                                                   
                                                                                                                                
JEFF BRIGGS,  FIREFIGHTER,  ALASKA PROFESSIONAL  FIREFIGHTERS                                                                   
ASSOCIATION spoke in support of  the bill. He referred to the                                                                   
written  testimony   from  firefighters   available   to  the                                                                   
Committee. He  reported that no  Alaska citizen, not  tied to                                                                   
the insurance  industry or  government agency, had  testified                                                                   
against this  bill in the  past two  years. Alaska is  one of                                                                   
nine  states  who  do  not  have  some  sort  of  presumptive                                                                   
legislation.                                                                                                                    
                                                                                                                                
10:47:56 AM                                                                                                                   
                                                                                                                                
Senator Olson inquired  if the Alaska Municipal  League had a                                                                   
position on  the question of  smaller communities  being able                                                                   
to afford this additional worker compensation.                                                                                  
                                                                                                                                
Ms. Baxter responded they have been opposed to the bill.                                                                        
                                                                                                                                
Mr. Briggs interjected  that the Alaska Municipal  League has                                                                   
taken a neutral position on this bill.                                                                                          
                                                                                                                                
10:49:36 AM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman  MOVED to  REPORT  CSHB  200 (FIN)  out  of                                                                   
Committee  with individual  recommendations and  accompanying                                                                   
fiscal   notes.  There   being  no   OBJECTION  passed   from                                                                   
Committee.                                                                                                                      
                                                                                                                                
CS  HB  200 (FIN)  was  REPORTED  out  of Committee  with  no                                                                   
recommendations and accompanying  previously published fiscal                                                                   
notes  from   the  Department   of  Administration   and  the                                                                   
Department of Labor and Workforce Development.                                                                                  
                                                                                                                                
                                                                                                                                
SENATE CS FOR CS FOR HOUSE BILL NO. 226(L&C)                                                                                  
                                                                                                                                
     "An Act extending the termination of the state training                                                                    
     and employment program; requiring a review of the                                                                          
     program; and providing for an effective date."                                                                             
                                                                                                                                
HOUSE BILL NO. 373                                                                                                            
                                                                                                                                
     "An Act extending specified public school bond debt                                                                        
     reimbursement; and providing for an effective date."                                                                       
                                                                                                                                
HB 373 was SCHEDULED but not HEARD.                                                                                             
                                                                                                                                
CS FOR HOUSE BILL NO. 320(FIN)                                                                                                
                                                                                                                                
     "An  Act  relating to  search  and rescue  training  and                                                                   
     search and rescue parties;  requiring certain search and                                                                   
     rescue volunteers  to be considered state  employees for                                                                   
     purposes   of   workers'  compensation   coverage;   and                                                                   
     allowing  political  subdivisions  to elect  to  provide                                                                   
     workers' compensation insurance  coverage for search and                                                                   
     rescue personnel."                                                                                                         
                                                                                                                                
CSHB 373 was SCHEDULED but not HEARD.                                                                                           
                                                                                                                                
CS FOR HOUSE BILL NO. 325(FIN)                                                                                                
                                                                                                                                
     "An  Act  relating  to the  teachers'  and  health  care                                                                   
     professionals'  housing   loan  program  in  the  Alaska                                                                   
     Housing  Finance  Corporation;   and  providing  for  an                                                                   
     effective date."                                                                                                           
                                                                                                                                
CSHB 325 was SCHEDULED but not HEARD.                                                                                           
                                                                                                                                
CS FOR HOUSE BILL NO. 50(JUD)                                                                                                 
                                                                                                                                
     "An  Act  relating to  the  Interstate Compact  for  the                                                                   
     Placement  of   Children;  establishing   an  interstate                                                                   
     commission  for  the  placement  of  children;  amending                                                                   
     Rules 4 and 24(b), Alaska  Rules of Civil Procedure; and                                                                   
     providing for an effective date."                                                                                          
                                                                                                                                
CSHB 50 (JUD) was SCHEDULED but not HEARD.                                                                                      
                                                                                                                                
Hb #332                                                                                                                         
CS FOR HOUSE BILL NO. 332(FIN)(title am)                                                                                      
                                                                                                                                
     "An  Act  defining  an  elementary   school  to  include                                                                   
     certain   pre-elementary   programs  and   relating   to                                                                   
     counting pre-elementary  students in a  school's average                                                                   
     daily membership."                                                                                                         
                                                                                                                                
CSHB 332 (FIN) was SCHEDULED but not HEARD.                                                                                     
                                                                                                                                
CS FOR HOUSE BILL NO. 44(FIN)                                                                                                 
                                                                                                                                
     "An  Act relating  to information  from veterans  on the                                                                   
     permanent fund dividend application form."                                                                                 
                                                                                                                                
CSHB 44 (FIN) was SCHEDULED but not HEARD.                                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:49                                                                                              
                                                                                                                                
                                                                                                                                

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