Legislature(1993 - 1994)

03/22/1993 01:50 PM Senate JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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               SENATE LABOR AND COMMERCE COMMITTEE                             
                          March 4, 1993                                        
                            1:47 p.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Senator Tim Kelly, Chairman                                                  
  Senator Steve Rieger, Vice-Chairman                                          
  Senator Drue Pearce                                                          
  Senator Georgianna Lincoln                                                   
                                                                               
  OTHERS PRESENT                                                               
                                                                               
  Senator Bert Sharp                                                           
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Senator Judy Salo                                                            
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  SENATE BILL NO. 76                                                           
  "An  Act preventing  persons  with  felony convictions  from                 
  being  involved   in  charitable  gaming   activities  as  a                 
  permittee,  licensee,   or  employee  in  a   managerial  or                 
  supervisory capacity; and  relating to `political  uses' and                 
  `political organizations'  as those  terms are  used in  the                 
  charitable gaming statutes."                                                 
                                                                               
  SENATE BILL NO. 122                                                          
  "An Act  relating to  the disclosure  of  information by  an                 
  employer about the job performance  of an employee or former                 
  employee."                                                                   
                                                                               
  SENATE BILL NO. 112                                                          
  "An Act relating  to the  Uniform Commercial Code;  amending                 
  Alaska Rules of Civil Procedure 8 and 82, and Alaska Rule of                 
  Evidence 402; and providing for an effective date."                          
                                                                               
  PREVIOUS SENATE COMMITTEE ACTION                                             
                                                                               
  SB 76 -  See Labor & Commerce minutes dated 2/11/93, and                     
           2/25/93.                                                            
                                                                               
  SB 122 - NONE.                                                               
                                                                               
  SB 112 - See Labor and Commerce minutes dated 3/2/93.                        
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Ken Erickson, Aide                                                           
  Senator Drue Pearce                                                          
  State Capitol                                                                
                                                                               
                                                                               
  Juneau, AK 99801-1182                                                        
    POSITION STATEMENT: Testified on SB 76.                                    
                                                                               
  Chip Thoma                                                                   
  Juneau, Alaska 99801                                                         
    POSITION STATEMENT: Opposed SB 76.                                         
                                                                               
  Jamie Parsons, President                                                     
  Alaska State Chamber of Commerce                                             
  217 Second Street #201                                                       
  Juneau, Alaska 99801                                                         
    POSITION STATEMENT: Supported SB 122.                                      
                                                                               
  Resa Jerrel, President                                                       
  National Federation of Independent Business                                  
  9159 Skywood Lane                                                            
  Juneau, Alaska 99801                                                         
    POSITION STATEMENT: Supported SB 122.                                      
                                                                               
  Jerry Kurtz, Attorney                                                        
  testified off-net                                                            
  from Anchorage, Alaska                                                       
    POSITION STATEMENT: Supported SB 112.                                      
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-17, SIDE                                                             
  Number 001                                                                   
                                                                               
  CHAIRMAN TIM KELLY  called the Labor and  Commerce Committee                 
  meeting to order at 1:47 p.m.                                                
                                                                               
  SENATOR KELLY returned SS FOR SENATE BILL NO. 76 (CHARITABLE                 
  GAMING  RESTRICTIONS) sponsored  by SENATOR  DRUE  PEARCE to                 
  committee.                                                                   
                                                                               
  SENATOR PEARCE asked KEN ERICKSON  from her staff and  JERRY                 
  LUCKHAUPT  from Legislative  Legal Counsel,  to address  the                 
  comparisons in the original bill and the sponsor substitute.                 
                                                                               
  MR. ERICKSON explained  SB 76 contained two  basic concepts,                 
  beginning  with the  first  half of  the  bill which  denies                 
  felons  from activity in charitable gaming.  The second half                 
  of  the  bill  would prohibit  direct  contributions  of net                 
  proceeds from charitable gaming to political candidates.                     
                                                                               
  MR.  ERICKSON  explained  the  sponsor substitute  aimed  to                 
  achieve  the  same  ends, with  the  first  half  of the  SS                 
  combining  all  of  the  felony  exclusions  into  a  single                 
  section, AS  05.15.105.   He described  these exclusions  as                 
  being scattered throughout Title 5.  The SS would delete the                 
  scattered sections and combine their intent into one section                 
                                                                               
                                                                               
  for the sake of clarity.                                                     
                                                                               
  MR. ERICKSON explained the second part of the SSSB 76 limits                 
  direct  political   contributions  from   net  proceeds   to                 
  activities other than bingo and pull-tabs.                                   
                                                                               
  SENATOR PEARCE said there was presently  a ban on classified                 
  and class A felons for life, and she explained the pertinent                 
  points.   She said  there had  always  been a  ban on  those                 
  convicted of "theft and dishonesty,"  but those convicted of                 
  a felony might be considered  for resumption of gaming after                 
  10 years.                                                                    
                                                                               
  Number 054                                                                   
                                                                               
  SENATOR  KELLY  offered  CHIP  THOMA  time  for  some  quick                 
  testimony.                                                                   
                                                                               
  MR.  THOMA expressed his pleasure  at the inclusion of white                 
  collar crime as a preclusion  for being involved in gambling                 
  activities,  since  white   collar  crimes   are  those   of                 
  dishonesty and  theft.  He protested, to  his knowledge, any                 
  instance  of  a  political  party  being  involved  with  an                 
  operator who stole  the proceeds from that  political party,                 
  as has happen to many  of the other charities.  He continued                 
  to argue  for allowing political parties  full participation                 
  in gaming.                                                                   
                                                                               
  SENATOR  KELLY  noted  he  had a  list  of  occupations  and                 
  licenses affected by felony convictions,  and he thought the                 
  list prevented a person from getting a real job.                             
                                                                               
  SENATOR PEARCE moved to adopt CS FOR SENATE BILL NO. 76(L&C)                 
  (CHARITABLE GAMING  RESTRICTIONS).   Without objections,  so                 
  ordered.                                                                     
                                                                               
  SENATOR PEARCE moved to pass CS  FOR SENATE BILL NO. 76(L&C)                 
  (CHARITABLE   GAMING   RESTRICTIONS)  from   committee  with                 
  individual recommendations and  the appropriate fiscal note.                 
  Without objections, so ordered.                                              
                                                                               
  SENATOR  KELLY introduced SB  122 (EMPLOYER'S  LIABILITY FOR                 
  REFERENCE INFORMATION) and invited the sponsor, SENATOR BERT                 
  SHARP, to testify.                                                           
                                                                               
  SENATOR SHARP  said SB 122 was  similar to a  bill passed by                 
  the Senate  last session,  and is  "An act  relating to  the                 
  disclosure  of  information  by an  employer  about  the job                 
  performance  of  an  employee  or   former  employee."    He                 
  explained it would  protect employers from liability  in the                 
  disclosure of job performance information regarding a former                 
  employee  to  a   prospective  employer.     He  gave   some                 
                                                                               
                                                                               
  statistical background on  the increase of such suits in the                 
  last few years,  and out of  fear from these lawsuits,  many                 
  employers  are  refusing to  give  honest or  meaningful job                 
  performance information to prospective employers.                            
                                                                               
  Number 150                                                                   
                                                                               
  SENATOR SHARP explained SB 122 would free up the exchange of                 
  information in the work place, assure  reasonable protection                 
  to employers, and  protect only  employers who give  honest,                 
  well-intentioned references.  He urged support for SB 122.                   
                                                                               
  SENATOR LINCOLN asked  SENATOR SHARP if the  words, employer                 
  and employee, could be  defined in the legislation, and  she                 
  gave examples from her district.  SENATOR SHARP explained an                 
  employer is a person who engages  the services of any number                 
  of  persons, documented  in  a personnel  file,  and paid  a                 
  remuneration.                                                                
                                                                               
  Number 214                                                                   
                                                                               
  SENATOR LINCOLN  said she  didn't  have a  problem with  the                 
  intent  of the  legislation, but  she described a  number of                 
  problems faced by employees who do not know what rights they                 
  have in relation to their personnel file.  She claimed there                 
  was  false information in some employee files that shouldn't                 
  be   there,  and  she  asked  how  the  employees  could  be                 
  protected.                                                                   
                                                                               
  SENATOR SHARP suggested  the business people could  speak to                 
  the problem she outlined.  He also suggested some  available                 
  documents on the subject.                                                    
                                                                               
  SENATOR LINCOLN asked for assurances that individuals in the                 
  villages were protected, too, because the turn-over is quite                 
  rapid.  She asked for a correction within the legislation to                 
  protect the employees in her district.                                       
                                                                               
  SENATOR KELLY invited JAMIE PARSONS, President of the Alaska                 
  State Chamber of Commerce, to testify.                                       
                                                                               
  MR. PARSONS  read the  position paper  from the  ASCC, which                 
  supports  SB  122  because  of  the protection  it  provides                 
  employers.   He read "While ASCC  fully recognizes the value                 
  of good employees, it is important that employers be able to                 
  share   all   pertinent   information    without   fear   of                 
  repercussion, providing they are acting in good faith."                      
                                                                               
  MR. PARSONS had no statistics on defamation cases that  have                 
  been tried, won,  or settled out of court.   He concluded by                 
  explaining SB  122 was the  #1 legislative priority  for the                 
  State Chamber of Commerce, and he described how the decision                 
  was reached.                                                                 
                                                                               
                                                                               
  Number 284                                                                   
                                                                               
  SENATOR  RIEGER   asked  MR.   PARSONS  whether   there  was                 
  information  in  a  personnel  file  any  of  the  data  was                 
  confidential.  MR. PARSONS thought  there were standards and                 
  rules, and he suggested to SENATOR  LINCOLN, that in a small                 
  business,  the  employee should  discuss the  personnel file                 
  with the  owner  or  manager.   MR.  PARSONS  explained  the                 
  legislation would involve the state, the private sector, and                 
  non-profit organizations.                                                    
  SENATOR RIEGER said he  liked the bill and referred  to line                 
  10 and suggested the Judiciary Committee resolve the type of                 
  disclosures.                                                                 
                                                                               
  SENATOR  KELLY  gave  a  personal  experience  of  being  an                 
  employer   where   negative  employment   might   have  been                 
  furnished, by  wasn't because of  the skidish nature  of the                 
  disclosure.                                                                  
                                                                               
  SENATOR LINCOLN  suggested the  bill might  be amendment  to                 
  include  "that  any   written  documentation  given  to   an                 
  employer, should also be given to the former employee,"  and                 
  she expanded on her request in  relation to companies in her                 
  district.                                                                    
                                                                               
  SENATOR LINCOLN,  in reference to  line 5, thought  this was                 
  and area where  "information" is defined as to  telephone or                 
  written.    She also  referred  to  line 8  to  question the                 
  meaning of the sentence.                                                     
                                                                               
  Number 359                                                                   
                                                                               
  SENATOR LINCOLN asked  MR. PARSONS if he  had any objections                 
  to language added  to share  the written  document with  the                 
  former employee.  MR. PARSONS didn't think this would pose a                 
  problem, except  if  it  impacted  the  paper  work  of  the                 
  employer.  He explained, in his case, most of the references                 
  were verbal.                                                                 
                                                                               
  SENATOR  KELLY  wondered  aloud   the  solution  to  SENATOR                 
  LINCOLN'S  request  and  suggested  the  reference  be  made                 
  available if  the employee wish  to look at  it after it  is                 
  made available to the former employee.                                       
                                                                               
  SENATOR  SHARP explained,  from  his  past experience,  most                 
  reference requests were by phone on  a past employee, but he                 
  thought a hard copy could be sent to the last known address.                 
                                                                               
                                                                               
  SENATOR LINCOLN described  a procedure for getting  the most                 
  current address.   SENATOR KELLY thought the  easiest method                 
  would be to have the reference information be available upon                 
  request by the former employee.                                              
                                                                               
                                                                               
  SENATOR  SHARP  gave  what  he  considered  the  most  often                 
  scenario.                                                                    
                                                                               
  Number 411                                                                   
                                                                               
  SENATOR KELLY invited RESA JERREL, President of the National                 
  Federation of Independent Businesses, to testify.                            
                                                                               
  SENATOR  LINCOLN asked for  a response from  her question on                 
  line 8 to explain the phrase relating to current or departed                 
  employees.  She discussed the response with SENATOR SHARP.                   
                                                                               
  MS. JERREL explained  the support  of SB 122  came from  her                 
  organization in the form  of a ballot question where  86% of                 
  the NFIB/Alaska  members voted  to support the  legislation.                 
  She reviewed the problems of small business people in Alaska                 
  who spend a great  deal of time hiring and  firing employees                 
  because  of drugs, alcohol, and thievery.  She discussed her                 
  research on giving  a written  reference to employers  which                 
  she offered to share with SENATOR SHARP.                                     
                                                                               
  SENATOR  LINCOLN  asked  SENATOR SHARP  if  he  recalled the                 
  Colorado  regulations, and SENATOR  SHARP had  just received                 
  them.   He said they  would be  made available  to the  next                 
  committee,  and  he  disclosed  the  regulations  dealt with                 
  giving a copy  of the  reference to the  employee.   SENATOR                 
  KELLY  asked that the regulation information be given to the                 
  Judiciary Committee.                                                         
                                                                               
  SENATOR PEARCE move to pass SENATE BILL  NO. 122 (EMPLOYER'S                 
  LIABILITY  FOR  REFERENCE INFORMATION)  from  committee with                 
  individual  recommendations and  no  fiscal note.    Without                 
  objections, so ordered.                                                      
                                                                               
  SENATOR  KELLY  returned  SB  112  (UNIFORM COMMERCIAL  CODE                 
  REVISIONS) to committee and noted JERRY KURTZ was off-net in                 
  Anchorage to testify.                                                        
                                                                               
  Number 458                                                                   
                                                                               
  SENATOR KELLY affirmed from MR. KURTZ  he had a copy of  the                 
  MUNICIPALITY OF  ANCHORAGE 1993 LEGISLATIVE  PROGRAM dealing                 
  with the Uniform  Commercial Code, but thought  the proposed                 
  amendment  should  be  made  more  specific.  He  gave  some                 
  background information on problems to the municipality .                     
                                                                               
  SENATOR  KELLY  asked  for  the   wording  on  the  proposed                 
  amendment, and MR. KURTZ said the "s" should be removed from                 
  the word, liens, in the phrase  "municipal tax liens" and he                 
  said there was only one tax  lien described in AS 29.45.300.                 
  He explained it was the tax lien for  municipalities against                 
  all  personal  property as  assessed,  and he  explained the                 
                                                                               
                                                                               
  value of the proposed amendment to the municipality.                         
                                                                               
  SENATOR KELLY moved the adoption  of the following amendment                 
  to SB  112:  Nothing in these sections shall be construed to                 
  defeat the prior and paramount position of the municipal tax                 
  lien established in  AS 29.45.300.   Without objections,  so                 
  ordered.                                                                     
                                                                               
  Number 494                                                                   
                                                                               
  There  was some  general  discussion about  the legislation,                 
  which will go to Judiciary and Finance committees.                           
                                                                               
  SENATOR LINCOLN had a question about the bill in relation to                 
  the impact on state funded loan and investment programs.                     
                                                                               
  MR.  KURTZ explained  the  first place  it would  impact the                 
  state  loans and  investments is  in  Article 9  on security                 
  interests, and  he referred  members to  page 5  of SB  112,                 
  where the Article 9 amendments begin.  He gave some specific                 
  examples as his explanation on clarity.                                      
                                                                               
  SENATOR PEARCE moved  to adopt the new  committee substitute                 
  for SB 112 (UNIFORM COMMERCIAL CODE REVISIONS) incorporating                 
  the new amendment.  Without objections, so ordered.                          
                                                                               
  SENATOR PEARCE moved to pass CS FOR SENATE BILL NO. 112(L&C)                 
  (UNIFORM  COMMERCIAL  CODE  REVISIONS)  from committee  with                 
  individual  recommendations   and  a  proper   fiscal  note.                 
  Without objections, so ordered.                                              
                                                                               
  There  being  no   further  business  to  come   before  the                 
  committee, the meeting was adjourned at 2:30 p.m.                            
                                                                               
                                                                               

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