Legislature(1993 - 1994)
02/02/1993 01:35 PM Senate L&C
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE LABOR AND COMMERCE COMMITTEE
February 2, 1993
1:35 p.m.
MEMBERS PRESENT
Senator Tim Kelly, Chairman
Senator Steve Rieger, Vice-Chairman
Senator Drue Pearce
Senator Judy Salo
MEMBERS ABSENT
Senator Georgianna Lincoln
COMMITTEE CALENDAR
CONFIRMATION HEARING: Commissioner Paul Fuhs
SENATE BILL NO. 57
"An Act relating to employment contributions and to
extending the pilot project for the state training and
employment program; and providing for an effective date."
SENATE BILL NO. 69
"An Act prohibiting employers from discriminating against
individuals who use legal products in a legal manner outside
of work."
PREVIOUS SENATE COMMITTEE ACTION
SB 57 - NONE
SB 69 - NONE
WITNESS REGISTER
Commissioner Paul Fuhs
Department of Commerce & Economic Development
P.O. Box 110800
Juneau, Alaska 99811-800
POSITION STATEMENT: Confirmation hearing.
Sally Saddler, Program Manager
Employment Services
Division of Employment Security
Department of Labor
P.O. Box 25509
Juneau, Alaska 99802-5509
POSITION STATEMENT: Supported SB 57.
Judy Knight, Director
Division of Employment Security
Department of Labor
P.O. Box 25509
Juneau, Alaska 99802-5509
POSITION STATEMENT: Supported SB 57.
Mike McMullen, Manager
System Services
Division of Personnel/EEO
Department of Administration
P.O. Box 110201
Juneau, Alaska 99811-0201
POSITION STATEMENT: Opposed SB 57.
ACTION NARRATIVE
TAPE 93-7, SIDE A
Number 001
CHAIRMAN TIM KELLY called the Labor and Commerce Committee
meeting to order at 1:35 p.m.
The first order of business was the confirmation hearing for
PAUL FUHS, presently acting Commissioner for the Department
of Commerce and Economic Development, and MR. FUHS was
invited to testify. He began by presenting his resume and
expanding on his experience in organizing deals with
municipalities and other industry groups to identify
opportunities for Alaska.
MR. FUHS stressed his ability to be fair in the development
of business regulations, not to play favorites among
business interests, and to foster cooperation within the
departments and with other agencies. He listed the many
departments in the Department of Commerce and Economic
Development and emphasized the ability of the departments to
work together on important projects. MR. FUHS offered as
his references businesses, trade associations, labor unions,
oil and gas industries, fishing organizations, native
corporations and municipalities.
SENATOR KELLY touted the publication, "Sustaining Alaska's
Economy," drafted by the Department of Commerce and Economic
Development and asked MR. FUHS where the premise was headed.
SENATOR KELLY asked how the legislature could help.
Number 062
MR. FUHS explained it was a specific project identification
manual for the department, and he said people were assigned
to projects in multi-agency work teams which helped to
promote accountability from the bureaucracy. He praised the
cooperation among the personnel at the Department of
Commerce and Economic Development and other agencies in
working on the projects.
SENATOR KELLY thought the publication should be required
reading.
SENATOR SALO was impressed with the team approach and asked
for the definition of multi-agency. MR. FUHS explained how
it would operate with other departments and agencies such as
the Alaska Railroad Corporation, the Alaska Energy
Authority, and some of the independent governmental entities
such as Alaska Industrial Development and Export Authority
organizations, which are run by boards.
Questions from SENATOR SALO on his approach during his first
six months on the job led to a general discussion with
committee members and MR. FUHS about his implementation of
the Northern Sea Route and the spruce beetle kill project on
the Kenai Peninsula.
SENATOR KELLY asked a follow-up question on the spruce
beetle problems, and MR. FUHS said the permitting process
was underway and other planning was being done, along with
the upgrading of auxiliary facilities in Homer.
SENATOR SALO asked about cutting the losses on the
peninsula, and MR. FUHS predicted a strong timber industry
would emerge from the beetle kill.
Number 015
SENATOR KELLY concluded the confirmation hearing, thanked
MR. FUHS, and moved on to the next bill.
SENATOR KELLY introduced SB 57 (EXTEND S.T.E.P. PROGRAM TO
1996) and invited SANDY SADDLER from the Department of Labor
to begin the testimony.
Number 143
MS SADDLER explained SB 57 was an act that would extend the
pilot project for the state training and employment program
known as S.T.E.P. She reviewed the bill packet which
contained three fiscal notes with the estimated revenues and
expenditures for the training grants.
MS SADDLER explained she was testifying on behalf of both
the Department of Labor and the Department of Community and
Regional Affairs. She began by giving background
information on the program, a request for an extension, and
the impact of the S.T.E.P. program on both departments
during its existence.
MS. SADDLER claimed the training program had broad based
support from both labor and industry but explained more time
was needed to evaluate the qualitative impact of the
project. She gave three reasons for requesting the three
year extension rather than a permanent program to allow for
more evaluation of the program.
Number 196
SENATOR RIEGER questioned the fiscal note and asked what
happened if more funds were collected than used. MS SADDLER
said she would need to check on his question. SENATOR
RIEGER wanted to know what happened if the program collected
less than used.
JUDY KNIGHT, Director of the Division of Employment
Security, explained the money was deposited into the general
fund. It was then put into their account by the Division of
Finance and the Department of Revenue. She said if more
money was collected, it remained in the general fund, and
only the appropriation could be spent.
SENATOR RIEGER moved to pass SB 57 from committee with
individual recommendations and the accompanying fiscal
notes. Without objections, so ordered.
SENATOR KELLY introduced SB 69 (RIGHT TO USE LAWFUL
PRODUCTS) and asked the prime sponsor, SENATOR TAYLOR, to
testify on the bill.
Number 229
SENATOR TAYLOR discussed the provisions of SB 69 which would
prohibit "employers from discriminating against individuals
who use legal products in a legal manner outside of work."
He claimed it would strengthen the constitutional guarantee
against discrimination by employers, and he reviewed the
results of a survey showing that Alaskans have a growing
concern about employer intrusion into their private lives.
SENATOR TAYLOR said it was wrong for employers to prohibit
the use of or deny employment to individuals using legal
products in their off work time. He reported a poll in
Alaska showing 91% of those polled thought it was
inappropriate for employers to deny jobs for conduct away
from the work place. SENATOR TAYLOR indicated SB 69 would
not prohibit employers from passing increased costs for
health benefits due to smoking or drinking on to their
employees. He concluded by reading an editorial supporting
the provisions of SB 69.
SENATOR KELLY asked for a progress report on similar
legislation in the last session. Several voices in the
audience offered information and said it had been stopped in
House Rules. SENATOR KELLY opened the bill to questions.
Number 276
SENATOR SALO referred to page 2, section (c) of SB 69 to
question the inclusion of "educational institution," which
could allow a school district in the State of Alaska to ask
teachers whether they smoke or drink off the job.
SENATOR TAYLOR explained the provision was primarily for
parochial schools.
SENATOR SALO asked how the legislation could be narrowed to
match the intent of private entities.
SENATOR RIEGER, in reference to page 1, lines 8 and 9, asked
for clarification of the language.
SENATOR KELLY asked the committee about SENATOR SALO'S
concerns, and SENATOR TAYLOR said the language had already
been modified. He suggested the drafter could give an
opinion, but as written the bill only included religious
schools.
SENATOR KELLY and SENATOR TAYLOR agreed the wording could be
resolved, if necessary, in the Judiciary Committee - the
next referral.
Number 333
Next to testify was MIKE MCMULLEN, representing the
Department of Administration, who expressed concern in cases
where there was a genuine connection between the off duty
conduct and the ability to perform successfully for the
employer. He gave examples of off duty activities which
have a connection to job performance, and he said the state
was most interested in alcohol consumption among personnel
who deal with alcohol related crimes. MR. MCMULLEN said the
Administration was looking for a nexus provision to be added
to the bill.
SENATOR KELLY asked for suggested language, and MR. MCMULLEN
direct attention to page 2, line 2 after standards, and
before the ; to add the language, "where there is a
demonstrable nexus with the individual's employment."
SENATOR KELLY asked why the word connection wasn't used, but
MR. MCMULLEN defended the use of nexus.
SENATOR KELLY asked for the opinion of the sponsor, and
SENATOR TAYLOR agreed there might be some cases where it
might be needed in law enforcement.
SENATOR KELLY discussed with MR. MCMULLEN the
Administration's problem with the legislation.
Number 388
SENATOR RIEGER thought off duty use of alcohol might better
be written into specific job descriptions, but he expressed
no problem with MR. MCMULLEN'S proposed amendment.
SENATOR SALO expressed a problem with the proposed language,
which she explained would substantially weaken the bill.
She discussed the subjective nature of "demonstrable nexus."
SENATOR RIEGER suggested the burden should be put on the
employer making it "demonstrated nexus." There was a
discussion among the committee members and MR. MCMULLEN
about the difference between demonstrable and demonstrated.
SENATOR KELLY asked for ideas, and SENATOR TAYLOR thought it
might be a large loophole and agreed with SENATOR SALO'S
point.
Number 422
SENATOR SALO said the bill's greatest application would be
in the protection against discriminatory hiring practices,
and she gave some examples of a preferable approach to
limiting off duty behavior. She didn't think the suggested
language would address the narrow intent of the
Administration.
MR. MCMULLEN defended the use of nexus as having a history
in arbitration and gave examples of its use.
SENATOR RIEGER thought both points of view should be debated
in the Judiciary Committee and suggested a change that would
satisfy him.
SENATOR SALO moved to pass SENATE BILL NO. 69 from committee
with individual recommendations. Without objections, so
ordered.
There being no further business to come before the
committee, the meeting was adjourned at 2:07 p.m.
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