Legislature(1993 - 1994)
04/19/1994 02:47 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
April 19, 1994
2:47 P.M.
MEMBERS PRESENT
Senator Tim Kelly, Chairman
Senator Steve Rieger, Vice Chairman
Senator Bert Sharp
Senator Georgianna Lincoln
Senator Judith Salo
MEMBERS ABSENT
None
OTHER MEMBERS PRESENT
Senator Johnny Ellis
COMMITTEE CALENDAR
CS FOR SENATE BILL NO. 244(STA)
"An Act relating to equity investments of the permanent fund; and
providing for an effective date."
CS FOR HOUSE BILL NO. 300(L&C)
"An Act relating to civil liability for commercial recreational
activities; and providing for an effective date."
CS FOR SENATE BILL NO. 298(HES)
"An Act relating to licensure by the State Medical Board and
temporary permits for certain optometrists."
SENATE BILL NO. 320
"An Act relating to occupational licensing boards and commissions;
and relating to architects, engineers, and land surveyors."
CS FOR SENATE BILL NO. 358(STA)
"An Act relating to the existence and functions of certain
multimember state bodies, including boards, councils, commissions,
associations, or authorities; and providing for an effective date."
Confirmation Hearings: ABC
PREVIOUS ACTION
SB 244 - See State Affairs minutes dated 1/28/94 and 4/13/94. See
Labor and Commerce minutes dated 4/19/94 and 4/28/94.
HB 300 - See Labor & Commerce minutes dated 4/14/94 and 4/19/94.
SB 298 - See Health, Education & Social Services minutes dated
3/9/94 and 4/11/94. See Labor and Commerce minutes dated
4/19/94.
SB 320 - See Labor & Commerce minutes dated 3/22/94 and 4/19/94.
SB 358 - See State Affairs minutes dated 3/30/94 and 4/6/94. See
Labor and Commerce minutes dated 4/19/94.
WITNESS REGISTER
David Gottstein, President
Dynamic Research Group
Anchorage, Ak.
POSITION STATEMENT: Supported SB 244.
Ed Rasmussen, Chairman
Board of The National Bank of Alaska
Anchorage, Ak.
POSITION STATEMENT: Supported SB 244.
Carl Brady
Anchorage, Ak.
POSITION STATEMENT: Supported SB 244.
Don Leman, President
Alaska State Medical Association
Sitka, Ak. 99801
POSITION STATEMENT: Supported SB 298.
Kristi Leaf
Juneau, Ak. 99801
POSITION STATEMENT: Commented on SB 358.
Jan DeYoung
Alaska Labor Relations Association
P.O. Box 107026
Anchorage, Ak. 99510
POSITION STATEMENT: Commented on SB 358.
Senator Johnny Ellis
State Capitol
Juneau, Ak. 99801
POSITION STATEMENT: Questioned Jim McNamee.
Jim McNamee
P.O. Box 1308
Fairbanks, Ak. 99707
POSITION STATEMENT: Nominee for Alcoholic Beverage Control (ABC)
Board.
Jim Elkins
177 Cranberry Rd., North
Ketchikan, Ak. 99901
POSITION STATEMENT: Nominee for ABC Board.
Dwight D. Ornquist
HCR-2, Box 7813-G
Palmer, Ak. 99645
POSITION STATEMENT: Nominee for the Alaska Public Utilities
Commission.
Dr. Roger Eichman
9342 Glacier Hwy
Juneau, Ak. 99801
POSITION STATEMENT: Nominee for Board of Dentistry
ACTION NARRATIVE
TAPE 94-29, SIDE A
Number 001
CHAIRMAN KELLY called the Senate Labor and Commerce Committee
meeting to order at 2:47 p.m. and announced SB 244 (PERMANENT FUND D
INVESTMENTS - LTD PARTNERS) to be up for consideration.
DAVID GOTTSTEIN, President, Dynamic Research Group, said he does
research on the stock market and he supported SB 244. He felt it
is critical in the evolutionary process of the Permanent Fund to,
as part of their investment arsenal, be able to invest in
"alternative investments," because over time, this is the logical
next step to keep up with competitors with capital flow.
ED RASMUSSEN, Chairman, Board of The National Bank of Alaska,
supported SB 244. He said he didn't know of a fund in America that
doesn't have some sort of authority for alternative investments.
Without it, our ability to compete in the international markets is
hamstrung.
SENATOR SALO asked what "alternative investments" means. MR.
GOTTSTEIN said that it means the ability to enter an investment
class that is not restricted. It's important to include these
types of investments or we won't be able to get the incremental
returns that we need.
CARL BRADY, Anchorage, said that alternative investment is a
strategy.
SENATOR SHARP said the original bill had mentioned not having an
aggregate of over 5% of the total PF being in alternative
investments. He asked someone to explain "ownership in a
collective investment vehicle."
MR. BRADY explained that the vehicle would be an institutional
investor in a fund or pool with other investors. It could be a
partnership or any number of things; it's investing with other
investors.
SENATOR SHARP asked if they were looking at a mutual fund for the
big boys. MR. RASMUSSEN said it is not a mutual fund concept. It
is co-investing based on recommendations of the institutional
management.
Number 214
SENATOR LINCOLN asked if they wouldn't meet more regularly than
once a year to review the policies and investments. MR. BRADY
answered that they would meet more, but once is the minimum.
SENATOR LINCOLN thought the wording should be amended to say "at a
minimum" before "annually."
SENATOR LINCOLN asked why there was such a major rewrite of the
original bill.
JIM KELLY, Research and Liaison Officer, Permanent Fund Corp.,
explained the reason for the changes was there was a lot of
confusion when it was first introduced because of the way it was
written and the CS accomplishes the same thing in either case.
SENATOR LINCOLN asked what the gate keeper fee is. MR. KELLY
explained that it was an outside disinterested third party hired to
give them expert advise on purchases.
SENATOR RIEGER asked if there were any particular investments the
Permanent Fund had in mind. MR. BRADY said they were a long ways
away from any specific investment although they have received
testimony from several advisors.
Number 330
SENATOR RIEGER suggested amending page 1, line 7 to add
"nonrecourse" in front of "partnership" and "collective investment
vehicle"; on page 2, line 1 delete "oil and gas"; on page 2, line
3 insert "at least" in front of "annually"; and delete the letter
(l).
MR. BRADY said it wouldn't make any difference to him to have "at
least" in front of "annually", but he couldn't speak for the Board.
He had no problem with deleting "oil and gas". He didn't have a
problem with inserting "nonrecourse."
SENATOR KELLY said he didn't necessarily concur with deleting "oil
and gas" since he thought there was some public policy reason for
it. MR. BRADY said the reason they put in reference to oil and gas
operations was simply to stop a fear that they would be purchasing
stock of a corporation that has substantial oil and gas operations
in Alaska, or substantial income. The reason being if the price of
oil would go down, presumably the price of the stock would go down
and the state's revenue stream would go down as well. That would
be like a double whammy. The Permanent Fund owns some of Arco and
Exxon besides.
SENATOR LINCOLN said she had problems with deleting "oil and gas"
also.
SENATOR KELLY said they would continue to work on this bill and
bring it back before committee.
Number 464
SENATOR KELLY announced HB 300 (LIABILITY: COMMERCIAL RECREATION
ACTIVITY) to be up for consideration.
SENATOR SHARP moved to pass CSHB 300 (L&C) with individual
recommendations. There were no objections and it was so ordered.
SENATOR KELLY announced SB 298 (LICENSING OF PHYSICIANS) to be up
for consideration.
DON LYMAN, President, Alaska State Medical Association, supported
SB 298.
He suggested that "shall" be changed to "may" on page 1, line 5.
SENATOR SALO and SENATOR RIEGER had problems with changing that,
because they thought a face to face interview would be helpful.
SENATOR SALO asked if he knew of anyone being rejected after an
interview. MR. LYMAN said he wasn't certain. He had talked to a
member of the Medical Board who thought the language change was a
good idea.
SENATOR RIEGER moved to pass CSSB 298(HES) with individual
recommendations. There were no objections and it was so ordered.
Number 559
SENATOR KELLY announced SB 320 (OCCUPATIONAL LICENSING) to be up
for consideration.
SENATOR LEMAN, sponsor, said he had a CS deleting section 4.
SENATOR RIEGER asked if it still required a registered land
surveyor in order to teach at the University.
SENATOR LEMAN said that is still in the bill.
SENATOR RIEGER moved to adopt the CS to SB 320. There were no
objections and it was so ordered.
SENATOR RIEGER moved to pass CSSB 320 (L&C) with individual
recommendations. There were no objections and it was so ordered.
SENATOR KELLY announced SB 358 (ELIMINATE SOME STATE MULTIMEMBER
BODIES) to be up for consideration.
KRISTI LEAF said this is basically a government efficiency bill.
It deletes 8 boards that are no longer funded and haven't been
active for a number of years.
TAPE 94-29, SIDE B
SENATOR RIEGER said he is concerned with occupational licensing
boards that exist to perpetuate a closed shop more than enforce
high standards for members of their profession. MS. LEAF agreed
with that position.
SENATOR SALO asked if this would apply to new people, not the
existing Board.
An unidentified speaker explained that the Board is composed of 3
members, one a staff member. There is a hearing officer and 2 lay
Board members - one from industry and one from labor. When the
full Board meets it's an 11 member Board, including the
Commissioner of Labor.
SENATOR SALO asked if the backlog in hearings would be helped by
section 7. The speaker said they saw this as broadening the pool.
A panel still has to meet to hear the case, whether they draw from
a 10 or 8 member pool wouldn't increase the cost. They would just
improve the availability of members.
SENATOR RIEGER asked if section 14 applied to labor relations.
JAN DEYOUNG, Alaska Labor Relations Association, said it did apply
to the Railroad and they do have right to strike. Section 14,
regarding binding arbitration, is in law because the railroad
employees should be eligible to strike must exhaust any agency
requirement of arbitration. At the conclusion of the mediation, if
they are deadlocked, the workers may strike. The Railroad may go
to court to seek an injunction to bring them back. The cost of
doing that is binding interest arbitration. This is where the
possibility of an arbitrator becomes important.
What this bill does to section 14, Ms. DeYoung said, is remove the
requirement that the individual that served as the mediator before
the strike also serve as the arbitrator in the later binding
interest arbitration. The reason for this change is to permit the
Railroad to use the federal mediation facilitation service which
provides trained labor mediators at no cost. But it does not allow
the mediators to serve as arbitrators.
SENATOR RIEGER asked if this phase is required by federal law or is
it at the discretion of the state. MS. DEYOUNG said these are the
procedures that the state adopted.
SENATOR RIEGER said he has not been very happy with any binding
arbitration awards he has seen. He did not want to perpetuate them
without cleaning them up.
SENATOR SHARP moved to pass CSSB 358 (STA) from committee with
individual recommendations. There were no objections and it was so
ordered.
Number 459
SENATOR KELLY said they would have the confirmation hearings for
Jim McNamee, Alcoholic Beverage Control Board.
SENATOR JOHNNY ELLIS said in his time of serving the neighborhoods
in downtown Anchorage, there has never been another subject with
more complaints than the effect of alcohol on society.
He asked if there was a reason why the renewal process isn't
staggered so it's not an overwhelming workload at one time.
MR. MCNAMEE said as of this year they are staggered, half this year
and half next year.
SENATOR ELLIS said there is a lot of criticism of the staffing
level of the Board. He asked if he thought last year's enforcement
was adequate and if their funding was adequate for the next fiscal
year.
MR. MCNAMEE said, being from Fairbanks, they had been without an
investigator for over 2 years. He said their main concerns are
under age drinking, inebriates, and drunks buying liquor in liquor
stores. He thought enforcement would drastically reduce that. He
thought they would need 4 investigators to do a minimum job of
enforcing the statutes.
SENATOR ELLIS asked if he could comment on license hearings for a
particular community being held in a different community. MR.
MCNAMEE said they couldn't travel to all the communities because
they don't have the money, but they are going into teleconferencing
quite heavily.
Number 404
JIM ELKINS, Nominee, said by statute the ABC Board is required to
meet in the 4 judicial districts around the state every year. When
they travel and they always have a meeting in Anchorage to take
care of the immediate Anchorage area. A situation like he
mentioned would be unusual.
SENATOR ELLIS commented that it seems like the Board has come down
hard on Cyrano's Bookstore, but haven't done much to The Hub, a
lower division bar on 4th Street.
MR. ELKINS said in relation to Cyrano's, they asked the Attorney
General's office if the license was defendable in court. The staff
of Cyrano's was out of character and the AG's office said it was
defendable all the way to the Supreme Court.
He said the Board is working on a statute change to broaden the
license concept from a restaurant eating place to a theater and
other categories which would make enforcement easier.
MR. MCNAMEE commented that he didn't think the City of Anchorage
had ever filed a notice on The Hub.
SENATOR ELLIS asked how he balanced the rights of the owner of a
liquor license to own a legal establishment and to sell a legal
drug and make a profit with neighbor concerns with all the
nuisances that go along with a liquor operation.
MR. MCNAMEE said his first concern was the public, and if the
establishment was out of line, they would have to come down on it.
Number 253
DWIGHT D. ORNQUIST, Nominee for APUC, answered SENATOR KELLY'S
remarks regarding Senator Jacko's letter stating the University he
attended was not accredited at the time.
MR. ORNQUIST said the letter was in error and the director of the
Alexandria Technical Institute had written a letter to the Governor
saying his assistant was wrong.
SENATOR LINCOLN said she was concerned whether he, as a computer
programmer, could justify that as an engineering field. MR.
ORNQUIST explained that many universities around the country
recognize that information systems engineering is a valid degree.
SENATOR LINCOLN asked how that was going to help him with his
position on the APUC. MR. ORNQUIST answered that it already has
helped him in the area of communications.
SENATOR KELLY commented that his history of experience and
employment is very impressive.
MR. ORNQUIST added that information systems engineering is the
process of constructing a very complex system.
Number 99
SENATOR RIEGER asked what was the role of the APUC oversite with a
utility that is doing a project. MR. ORNQUIST said the APUC's role
is geared toward regulation of monopoly organizations.
SENATOR RIEGER asked how the cost goes into the rate base they
approve. MR. ORNQUIST explained that first they look at the cost
of the operation and add in a profit margin. If a utility makes a
bad decision, they can cover it out of their margins.
SENATOR KELLY said they would contact the Alexandria Technical
Institute and try to resolve that issue and thanked Mr. Ornquist.
He then announced they would hear from Dr. Roger Eichman. He noted
there was a letter from the Board of Dental Examiners not
recommending him to be confirmed.
TAPE 94-30, SIDE A
Number 001
SENATOR KELLY announced a recess from 3:20 - 3:25 p.m.
DR. EICHMAN said he is not a member of the State Dental Society and
he doesn't use silver mercury filling materials. He said he
disagrees with some of the Board's scientific standings on the
silver fillings and he briefly explained the method he uses. He
said he has a very stable practice and he thought if his dentistry
was not of quality care he wouldn't have that stable of a practice.
SENATOR RIEGER asked if it was correct that he was attempting to
influence the Board to list dental amalgam as a hazardous material.
DR. EICHMAN said that was not true and that the subject had never
come up at a Board meeting. He said using the new filling
materials makes other dentists uncomfortable because they require
a greater degree of skill and take more time.
SENATOR KELLY asked him if a dentist came up and applied for a
license, and was an amalgam silver man, would that influence his
judgement on whether he would receive a license. DR. EICHMAN said
it wouldn't affect it at all.
SENATOR RIEGER asked if the other dentists would license a non-
amalgam silver dentist. DR. EICHMAN said he didn't think the
subject would ever come up.
Number 115
SENATOR LINCOLN asked him to comment on the letter where it
questions his ability to judge and critic others.
DR. EICHMAN said he didn't have a problem with judging others and
he said he has been doing it, since he has been on the Board for a
few months already.
SENATOR LINCOLN asked why the Board would make such allegations.
DR. EICHMAN said they are very uncomfortable because he doesn't do
amalgam fillings. He knew of no other reasons. He had heard no
complaints. He has not spoken in public on this issue or written
any papers.
SENATOR KELLY asked him if the sentence, "At this time Dr. Eichman
has attempted to influence the Board of Dental Examiners to list
dental amalgam, the most used dental filling material for the last
160 years, as a hazardous material." was true.
DR. EICHMAN said it wasn't true. He does have a difference with
them in that he thinks the mercury is released from amalgam
fillings. This conviction comes from his field studies as a
prospector and he explained a test he conducted that showed him
that mercury is released from amalgam fillings.
SENATOR RIEGER said that his dentist in Anchorage, also, has chosen
not to use amalgam fillings.
DR. EICHMAN said this was why he did not belong to the Dental
Society.
Number 229
SENATOR LINCOLN commented that he hadn't spoken publicly, but yet
he said he had conducted this experiment.
DR. EICHMAN explained this was in a study group of 4 or 5 dentists
that meet regularly for continuing education in Southeast Alaska.
SENATOR KELLY thank Dr. Eichman for his testimony and adjourned the
meeting at 3:45 p.m.
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