Legislature(2011 - 2012)SENATE FINANCE 532
01/20/2012 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB51 | |
| SB53 | |
| SB103 | |
| SB68 | |
| SB30 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 51 | TELECONFERENCED | |
| + | SB 53 | TELECONFERENCED | |
| + | SB 103 | TELECONFERENCED | |
| + | SB 68 | TELECONFERENCED | |
| + | SB 30 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
January 20, 2012
9:01 a.m.
9:01:15 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:01 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lesil McGuire, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Senator Bettye Davis; Thomas Obermeyer, Staff, Senator
Bettye Davis; Katya Wassillie, Intern, Senator Bettye
Davis; Celeste Hodge, Staff, Senator Bettye Davis; Barbara
Belknap, Juneau; Marie Darlin, Alaska Association of
Retired Persons; Caren Robinson, Alaska Women's Lobby;
Senator Hollis French; Cindy Smith, Staff, Senator Hollis
French; Senator John Coghill; Lela Klingert, President,
Alaska Commercial Fishing and Agriculture Bank; Senator
Fred Dyson; Chuck Kopp, Staff, Senator Fred Dyson.
PRESENT VIA TELECONFERENCE
Lynne Koral, Alaska Independent Blind; James Swartz, Alaska
Independent Blind; Rose Stokes, Alpha Kappa Alpha Sorority;
Jane Angvik, Girls Scouts of Alaska; Doris Robbins, Self;
Tami Jerue, Alaska Native Women's Coalition; Rosalie
Nadeau, Self; Garen Tarr, Anchorage Women's Coalition;
Ouida Morrison, Anchorage; Arliss Sturgulewski, Anchorage;
Doug Schrage, University of Alaska Fairbanks; Tom Wescott,
Director, Alaska Professional Firefighters; Victor Kestor,
Alaska Office of Victims' Rights.
SUMMARY
SB 30 RETURN OF SEIZED PROPERTY
SB 30 was HEARD and HELD in Committee for further
consideration.
SB 51 STATE VENDING LICENSES
SB 51 was HEARD and HELD in Committee for further
consideration.
SB 53 COMMISSION ON THE STATUS OF WOMEN
SB 53 was HEARD and HELD in Committee for further
consideration.
SB 68 COMMERCIAL FISHING & AGRICULTURE BANK
SB 68 was HEARD and HELD in Committee for further
consideration.
SB 103 WORKERS' COMPENSATION FOR FIREFIGHTERS
SB 103 was HEARD and HELD in Committee for
further consideration.
SENATE BILL NO. 51
"An Act relating to the operation of vending
facilities on public property."
9:02:54 AM
SENATOR BETTYE DAVIS, introduced Thomas Obermeyer and
thanked the committee for the opportunity.
THOMAS OBERMEYER, STAFF, SENATOR BETTYE DAVIS, explained SB
51. He referred to the Sponsor Statement (copy on file). He
explained that SB 51 would restore to blind persons first
priority for a contract to operate a vending facility on
state and other public property. This bill would amend the
Alaska Chance Act of 1976 to require that the State
Division of Vocational Rehabilitation Business Enterprise
Program provide the same first priority to the blind on
state and other public property as it did on federal
property enforced under the Randolph-Sheppard Act of 1936.
The Alaska Chance Act for the first time added disabled
persons in addition to the blind in preference for vending
licenses on public facilities. This loss of first priority
and expansion of beneficiaries had thwarted the spirit and
letter of the Randolph-Sheppard Act. The resulting decrease
in vending opportunities for blind merchants in Alaska
exacerbated their already extraordinarily high unemployment
rates among all types and severities of the disabled and
the population in general.
Mr. Obermeyer stated that SB 51 recognized that the blind
were dissimilarly situated compared to other disabled
persons who did not suffer the same degree of impairment
and unemployment as an economic matter. Although the state
had combined management and training opportunities for both
the blind and other persons with disabilities under one
Business Enterprise Program of the Division of Vocational
Rehabilitation, this bill would require that it must give
first priority to the blind for vending contracts on state,
federal or other public property.
Mr. Obermeyer reported that SB 51 would comport with
original legislative intent and would give first priority
to the blind imposed under AS 23.15.100 prior to changes in
1974 and 2006 which added persons with disabilities and
severe disabilities who had currently competed with the
blind for licenses on vending facilities on public
property.
Mr. Obermeyer explained that blind individuals who receive
Randolph-Sheppard contracts acted as managers of large
vending or cafeteria facilities, subcontracting with food
service organizations to provide meals and/or vending
services on a day to day basis. They could independently
operate lobby concession stands, or vending machine banks.
In October, 2009 Alaska's Business Enterprise Program had
only six sites operating in federal facilities under
Randolph-Sheppard, and six sites operating in state
facilities under the Chance Act.
Senator Olsen wondered how many people would be affected by
SB 51. Mr. Obermeyer replied that he was told by an
Anchorage resident that there were approximately 12,000
blind people in Alaska.
Senator Olson referred to a legislative research report
that found that the United States Department of Education's
Rehabilitation Services Randolph-Sheppard Act programs were
often labeled as business enterprises. He wondered why
Wyoming was the only state that was not participating in
the programs. Mr. Obermeyer did not know why Wyoming was
considered an exception.
9:07:35 AM
Co-Chair Stedman noted there was a new zero fiscal note
from the Department of Labor and Workforce Development.
LYNNE KORAL, ALASKA INDEPENDENT BLIND (via teleconference),
spoke in support of SB 51. She pointed out that there was
low unemployment for people with disabilities. She stressed
that blind people were subject to learned helplessness, and
did not have many decision-making models. The blind were
subject to the butt of jokes and are often considered to be
the "worthy poor." In 1936 the Randolph-Sheppard Act was
initiated to address under-employment among the blind.
JAMES SWARTZ, ALASKA INDEPENDENT BLIND (via
teleconference), spoke in support of SB 51.
Co-Chair Stedman asked if there were any further comments
from the bill sponsor.
Tom Obermeyer commented that there were only two states
that included the disabled in the Randolph-Sheppard Act:
Georgia and Alaska. He felt that the original intent of the
Act was to include the severely disabled for those blind
people in Alaska who were impaired, but considered only
partially blind.
SB 51 was HEARD and HELD in Committee for further
consideration.
9:17:00 AM
AT EASE
9:17:08 AM
RECONVENED
SENATE BILL NO. 53
"An Act reestablishing the Alaska Commission on the
Status of Women; and relating to the purpose and
powers of the Alaska Human Relations Commission."
9:17:39 AM
KATYA WASSILLIE, INTERN, SENATOR BETTYE DAVIS, introduced
herself.
CELESTE HODGE, STAFF, SENATOR BETTYE DAVIS, explained the
intent of SB 53, and referred to the Sponsor Statement
(copy on file). She stated that SB 53 would re-establish
the Alaska Commission on the Status of Women. The Alaska
Legislature established the Alaska Commission on the Status
of Women in 1978. The Commission was tasked with
implementing the recommendations contained in the
preliminary study on the status of women. The Commission
aimed to improve the status of women in the state by
conducting research, serving as a referral service for
information and education on existing resources for women,
and making and implementing recommendations on the
opportunities, needs, problems, and contributions of women
in Alaska. The Commission was dedicated to the achievement
of equal legal, economic, social and political status
specifically for women in Alaska and was a statewide
network for study and action on a variety of issues. In
1983, the Commission was renewed and renamed the Alaska
Women's Commission.
Ms. Hodge stated that the Commission conducted many public
hearings and trainings, developed manuals on violence
against women, education and welfare, conducted research to
help women avail themselves of existing resources to meet
their needs and implemented recommendations on the
opportunities, needs, problems and contributions of women
in the areas of education, homemaking, civil and legal
rights, and labor and employment. The Commission developed
a comprehensive statewide plan that identified the needs of
children and youth and made recommendations to enhance the
quality of life for women and children, as well as produced
annual reports on the status of women and children in
Alaska. The Alaska Women's Commission merged with the
Alaska Human Relations Commission in 1993. The Alaska Human
Relations Commission was declared inactive in 1996.
Ms. Hodge declared that in the several decades prior, the
participation and roles of women in the workforce had
changed dramatically. Women were employed in more varied
occupations and were more likely to work year-round than
they had in the past. In addition, women had attained
higher levels of education, and received the majority of
bachelor degrees granted. More mothers were part of the
workforce, and thus, a women's contribution to family
incomes had increased and was often critical for families'
economic well-being. In 2008, working wives contributed 29
percent of their families' incomes, up from 24 percent in
1988. Nonetheless, even though more women were currently
in the workforce than ever before, the difference in wages
men and women received for their work remained substantial.
The gender wage gap persisted in Alaska, and across a wide
spectrum of occupations and industries.
Ms. Hodge stated that women and children continued to be
the most common victims of domestic abuse. Women in Alaska
lead the nation as victims of sexual assaults. Alaska had a
struggling foster child system and Alaska's high school
students, both male and female, were dropping out at
alarming rates. Alaska had one of the lowest percentages of
students entering and completing higher education programs
and Alaska had a significant economic divide between our
urban and rural communities, which negatively impacted all
of the state.
Ms. Hodge furthered that Alaska with its unique culture,
history and challenges, combined with its large size and
small population, called for innovative forward thinking to
deal with many of the difficult issues that faced women and
children throughout Alaska. Reestablishing the Alaska
Commission on the Status of Women would allow Alaskans to
focus attention on the critical issues that had negatively
impacted women and children.
Co-Chair Hoffman queried some of the highlights of the old
program before it was abolished. Ms. Hodge responded that
there were many major accomplishments such as various
events, conference sponsorships to address suicide, and it
dealt with many educational issues. Senator Davis furthered
that some of the testifiers would be able to address more
topics, because they had served on the Commission. She
pointed out that the Commission was abolished because it
was combined with another Commission that never received
the necessary funding. She stressed that there had always
been a need for the Commission on the Status of Women.
9:22:16 AM
Co-Chair Stedman pointed out a new fiscal note from the
Governor's Office that showed the cost to re-establish the
Commission was $515,400 in General Funds for travel, per
diem, and a three-person staff.
ROSE STOKES, ALPHA KAPPA ALPHA SORORITY (via
teleconference), spoke in favor of SB 53.
JANE ANGVIK, GIRLS SCOUTS OF ALASKA (via teleconference),
spoke in favor of SB 53.
DORIS ROBBINS, SELF (via teleconference), spoke in favor of
SB 53.
9:28:49 AM
AT EASE
9:30:15 AM
RECONVENED
9:30:37 AM
TAMI JERUE, ALASKA NATIVE WOMANS COALITION (via
teleconference), spoke in favor of SB 53.
ROSALIE NADEAU, SELF (via teleconference), spoke in favor
of SB 53. She noted the excessive rate of alcoholism and
its negative effects on woman.
GAREN TARR, ACHORAGE WOMENS COALITION (via teleconference),
spoke in favor of SB 53.
9:36:34 AM
BARBARA BELKNAP, JUNEAU, spoke in favor of SB 53. She
remembered when the Alaska Women's Commission shut its
doors during Governor Hickel's administration. Governor
Hickel replaced it with the Alaska Family Commission. A few
months later, in March 1996, there was a women's conference
in Centennial Hall and hundreds of women came from around
the state. Governor Parnell had made reducing violence
against Alaskan women one of his top priorities with the
Choose Respect Campaign. She pointed out that it was
against federal law to pay a woman less than a man for the
same job, but women all over Alaska made less money than
men in the same jobs. She hoped that military service was
the exception, but was unsure if that was the case. She
noted that the Juneau Economic Development Council's 2011
report on Juneau and Southeast Economic Indicators laid out
the wage disparity in every civilian field and every
education level. The report stated that nationally, men
earned 29 percent more than their female counterparts in
2009. In Alaska, men earned 37 percent more for full-time
year-round employment. In Juneau, men earned 42 percent
more than their female counterparts.
Ms. Belknap stressed that too many women earn less than men
for the same jobs in Alaska, which was illegal. She also
emphasized that Alaska led the country in violence by men
against women. The cost of living in Alaska was high, and
low income women could get stuck in dangerous relationships
because they might not afford to take care of themselves
and their children.
9:44:05 AM
MARIE DARLIN, ALASKA ASSOCIATION OF RETIRED PERSONS,
testified in support of SB 53. She referred to a letter of
support from the Alaska Association of Retired Persons
(copy on file). She agreed with Ms. Belknap's testimony
CAREN ROBINSON, ALASKA WOMEN'S LOBBY, spoke in strong
support of SB 53.
Senator Ellis Queried whether the re-establishment of the
Commission could be a complement to the governor's Choose
Respect Campaign. Ms. Robinson responded that the Council
on Domestic Violence would be part of the team, and would
be a complement the Commission.
9:50:55 AM
Senator McGuire asked about page 1 of the bill. She noticed
that the Commission would consist of two members of the
executive branch and seven public members. She noticed that
only one public member would be a person that manages their
own household that included a spouse and at least one child
and who is not otherwise employed. She remarked that the
data included in the bill highlighted that women who were
unmarried heads-of-household lived at 22.6 percent below
poverty level. She wondered why the bill did not state
specifically that there should be one of those types of
women on the commission. Ms. Robinson responded that she
would consider that addition to the Commission. She
stressed that the importance of representing those who
needed to be served. She added that the number Commission
members be kept to a minimum.
OUIDA MORRISON, ANCHORAGE (via teleconference), spoke in
favor of SB 53. She noted that diversity in Alaska had
changed since the 1980's, and it was important for current
issues to be addressed.
9:55:17 AM
ARLISS STURGULEWSKI, ANCHORAGE (via teleconference),
testified in favor of SB 53.
Co-Chair Stedman closed the public testimony portion of the
SB 53.
Senator Davis stressed that SB 53 was important, and was
willing to work with the Committee to address changes to
the bill.
Co-Chair Hoffman noted that the meeting locations of the
Commission were too generic, and requested more specific
language regarding the meeting places.
10:00:03 AM
Senator McGuire remarked that memberships were referenced
twice in bill, and she noticed that there was only one area
of a specific appointment: at least one public member would
essentially be a "housewife." She wondered why that person
is specific, when the data showed that the area with the
most concern was a "female head-of-household." She stressed
the importance of including a female head-of-household in
the Commission.
SB 53 was HEARD and HELD in Committee for further
consideration.
10:03:16 AM
AT EASE
10:04:02 AM
RECONVENED
SENATE BILL NO. 103
"An Act amending the medical examination requirements
for firefighters entitled to a presumption of
compensability for a disability resulting from certain
diseases."
10:04:08 AM
SENATOR HOLLIS FRENCH, introduced SB 103. He stated that in
2003, the Alaska Legislature passed statutory changes to
the Workers' Compensation program to provide firefighters
with the presumption of compensability for certain diseases
that were documented to occur as a result of occupational
exposures to smoke and chemicals in the performance of
their duties. It was the intent of the legislature that
this benefit be available to firefighters who had served
for seven years and who had received any required physical
examinations during that seven year period. However, a
wording change made by one committee had the unanticipated
effect of narrowing the scope of covered firefighters only
to those who had had an initial physical exam at the time
of hire. This effect was not intentional and was never
discussed in that committee or in any following committees.
Instead, it became an issue when the Workers' Compensation
Board established program regulations.
Senator French stated that in recognizing the problem, the
Workers' Compensation Board passed a resolution supporting
an amendment to the law to allow any firefighter who
entered active service as a firefighter prior to the
effective date of AS 23.30.121 the presumption of
compensability if during the years prior to enactment, the
firefighter received all required examinations and those
examinations did not show evidence of the diseases in the
first seven years of employment.
Senator French pointed out that the second change the bill
would make would be to clarify that the law applied to
state as well as municipal firefighting agencies.
Co-Chair Stedman stated that there were three new fiscal
notes from the Department of Labor and Workforce
Development, Administration, and the University of Alaska.
DOUG SCHRAGE, UNIVERSITY OF ALASKA FAIRBANKS (via
teleconference), spoke in favor SB 103. He said it was not
clear if the student firefighter would be covered in the
bill.
TOM WESCOTT, DIRECTOR, ALASKA PROFESSIONAL FIREFIGHTERS
(via teleconference), spoke in favor of SB 103.
Senator Thomas wondered if there was a regular sequence of
tests that were administered to firefighters, based on the
high risk of cancer and respiratory problems. Senator
French responded that firefighters were given regular
medical exams, but noted that the bill only included full-
time firefighters. He stressed that if the firefighters
attended the exams that were offered to them, they would be
given the presumption.
Senator Olson queried the cost to individual communities.
Senator French responded that the bill attempted to cover
any costs incurred to communities.
Senator Olson asked if emergency medical technicians (emts)
would be covered as well. CINDY SMITH, STAFF, SENATOR
HOLLIS FRENCH, responded that the emts were dropped from
the original bill in 2008.
Senator Egan asked if emts who step in as firefighters
would be covered. Senator French felt that the delineation
would fall to the municipalities when determining who would
be considered a fulltime firefighter.
10:18:42 AM
Co-Chair Stedman requested information regarding potential
impacts to the municipalities.
SB 103 was HEARD and HELD in Committee for further
consideration.
SENATE BILL NO. 68
"An Act relating to the examinations, board, loans,
records, and lobbying contracts of the Alaska
Commercial Fishing and Agriculture Bank; and providing
for an effective date."
10:19:10 AM
SENATOR JOHN COGHILL, introduced SB 68. He explained that
SB 68 would strengthen the Commercial Fishing and
Agriculture Bank (CFAB) and its ability to serve member-
owners. The CFAB was created by the legislature to fulfill
a need for financing the agricultural and fishing permit
industries. The bill would remove dollar limitations for
co-op members seeking loans for tourism-related activities
and the development or exploitation of natural resources.
He stated that SB 68 would also allow CFAB to make loans
for capital investment or operating capital to a shore-
based fish processor, a timber processor, or an
agricultural processor or harvester with facilities located
in Alaska. He furthered that SB 68 would extend this
allowance to tourism-related activities and the development
or exploitation of natural resources as outlined in
subsections 15 and 16 of the bill. He noted that the
legislature supplied $32 million in seed money to CFAB to
kick start it he cooperative and since the coop was using
dollars borrowed from the general fund, CFAB was prohibited
by law from hiring a lobbyist because it was thought of as
a quasi-governmental entity until it had paid the state
back the full amount of the loan with interest. He informed
the committee that CFAB had fulfilled that obligation and
was an independent business, so there was not need to
prohibit them from having a lobbyist. He explained that SB
68 required CFAB's financial records to be examined by the
Department of Commerce Division of Banking at 36-month
intervals and required CFAB to reimburse the state for the
cost of the audit.
10:23:40 AM
Senator Coghill reviewed the Sectional Analysis (copy on
file). He stated that Section 1 would remove the
requirement that one member of the CFAB board of the
directors be a resident farmer. He noted that there had
been some contention around the removal of the resident
farmer, because some people prefer the farm seat. He noted
that the removal did not preclude the board from having a
resident farmer, but it was occasionally a difficult
position to fill. He explained that Section 2 dealt with
sixteen subsections under the lending powers of the bank.
He noted that Section 2 subsections 5, 6, and 7 would
remove the dollar limitations. He remarked that in 2002,
the legislature added the limitations, but there was a
change to CFAB's authority. Removing the limitations would
allow CFAB to play a bigger role in industry. He reminded
the committee that CFAB was a private, membership-owner
based organization.
10:29:00 AM
He explained that Section 2 subsection 8 would clarified
that a person who received a loan for capital investment or
operating capital to a shore-based fish processor, a timber
processor, or an agricultural processor or harvester, must
meet all requirements except for residency and resident
ownership of company. He furthered that Section 2
subsection 10 would add new loans to non-residents for
capital investment or operating capital to operate tourism
activities under subsection 15 and development and
exploitation of natural resources under subsection 16, to
loans secured by liens subordinate to valid first liens and
security agreements granted to another creditor.
Senator Coghill stated that Section 2 subsection 12 would
add new loans to non-residents for capital investment or
operating capital to an operator of tourism-related
activities and facilities dedicated to the development or
exploitation of natural resources, to provisions for CFAB
to participate with another bank without the obligor being
a member of CFAB. He furthered that Section 2 subsection 13
would allow CFAB to purchase or participate in loans from
other lenders for loans to non-residents whether or not an
obligor is a member of the bank. He noted that Section 2
subsections 15 and 16 would add new subsections related to
non-residents to receive loans.
Senator Coghill pointed out that Section 3 would add an
audit by Department of Commerce, Community, and Economic
Development, Division of Banking and Securities, as an
exception to the confidentiality provision of CFAB's
financial record. He noted that Sections 4 and 5 related to
adding new statutes. He explained that Section 6 would
repeal the definition of "resident farmer" and would repeal
the prohibition of CFAB having a lobbyist. He stated that
Section 7 would establish a section prohibiting any bank
examination until one year after the effective date of this
act. He concluded that Section 8 would establish an
immediate-effective-date provision to this act.
10:31:17 AM
Co-Chair Hoffman queried the current available funds for
loans. Senator Coghill deferred to the CFAB ceo, but noted
that the bill would expand the capacity for the loans based
on the collateral.
Co-Chair Hoffman looked at page 4, areas 15 and 16 of SB 68
and felt "tourism related activities" was too broad a term.
He wondered what funds were available for tourism related
activities. Senator Coghill did not know what funds were
available. He added that he was not concerned with the
"tourism related activities", because applicants must be a
member with collateral, and maintain a brick and mortar
within the state.
Senator Olson wondered what the other major banks thought
of SB 68. Senator Coghill did not know of any negative
comments from the major banks.
Senator Thomas looked at page 1, line 7 and queried an
alternative to "nine natural persons." He was concerned
with some of the language related to the term "operator."
Senator Coghill agreed to provide that information at a
later date.
Co-Chair Stedman noted a new fiscal note from the
Department of Commerce, Community and Economic Development.
LELA KLINGERT, PRESIDENT, ALASKA COMMERCIAL FISHING AND
AGRICULTURE BANK, testified in support of SB 68.
10:39:46 AM
Co-Chair Hoffman asked if the bill would impact the funds
available to CFAB. Ms. Klingert responded that there were
no restrictions on the fund.
Senator Thomas queried some of the language in the bill,
specifically related to corporations versus natural people.
Ms. Klingert responded that she did not know. She furthered
that it was legal terminology.
Co-Chair Stedman requested that Ms. Klingert to come back
to the committee with more information regarding the
committee members' requests. Senator Coghill stated that he
would make sure the committee received the information.
SB 68 was HEARD and HELD in Committee for further
consideration.
SENATE BILL NO. 30
"An Act providing for the release of certain property
in the custody of a law enforcement agency to the
owner under certain conditions."
10:45:43 AM
SENATOR FRED DYSON, stated that SB 30 would establish
within the Alaska Code of Criminal Procedure, a process for
victims of property crime to petition the court for relief
in recovering their property held as evidence.
10:51:09 AM
CHUCK KOPP, STAFF, SENATOR FRED DYSON, stated that the bill
allowed the victim of property theft to request that the
agency return the property through the Office of Victims'
Rights. He furthered that the Office of Victims' Rights
would file a request with the agency after conducting an
initial investigation into the request, to determine if the
crime victim was entitled to the return of property under
the requirements of whether they show satisfactory proof of
ownership.
Co-Chair Stedman stated that there were two new fiscal
notes: Department of Public Safety, Alaska State Troopers;
and Department of Law, Criminal Division.
VICTOR KESTOR, ALASKA OFFICE OF VICTIMS RIGHTS (via
teleconference), spoke in strong support of SB 60.
SB 30 was HEARD and HELD in Committee for further
consideration.
ADJOURNMENT
10:57:24 AM
The meeting was adjourned at 10:57 AM.