Legislature(1997 - 1998)
03/12/1998 01:37 PM Senate L&C
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SENATE LABOR AND COMMERCE COMMITTEE
March 12, 1998
1:37 P.M.
MEMBERS PRESENT
Senator Loren Leman, Chairman
Senator Jerry Mackie, Vice Chairman
Senator Lyman Hoffman
MEMBERS ABSENT
Senator Tim Kelly
Senator Mike Miller
COMMITTEE CALENDAR
SENATE BILL NO. 329
"An Act establishing an exemption for investment clubs from the
business license requirement."
- MOVED SB 329 FROM COMMITTEE
SENATE BILL NO. 319
"An Act relating to arbitration; amending Rules 57(a) and 77(g),
Alaska Rules of Civil Procedure; and providing for an effective
date."
- MOVED CSSB 319(L&C) FROM COMMITTEE
SENATE BILL NO. 233
"An Act extending the termination date of the Alcoholic Beverage
Control Board."
- MOVED SB 233 FROM COMMITTEE
SENATE BILL NO. 330
"An Act relating to underground facilities."
- MOVED CSSB 330(L&C) FROM COMMITTEE
PREVIOUS SENATE COMMITTEE ACTION
SB 329 - No previous action to consider.
SB 319 - See Labor and Commerce Committee minutes dated 3/10/98.
SB 233 - No previous action to consider.
SB 330 - No previous action to consider.
WITNESS REGISTER
Ms. Annette Kreitzer, Staff
Senator Loren Leman
State Capitol Bldg.
Juneau, AK 99811-1182
POSITION STATEMENT: Commented on SB 329 for sponsor and on SB 330.
Mr. Floyd Damron, Co-President
Alaska Council of the National Association of Investors Corporation
(907) 276-6833
POSITION STATEMENT: Supported SB 329.
Ms. Catherine Reardon, Director
Division of Occupational Licensing
Department of Commerce and Economic Development
P.O. Box 110806
Juneau, AK 99811-0806
POSITION STATEMENT: Commented on SB 329.
Mr. Jerry Burnett, Staff
Senator Randy Phillips
State Capitol Bldg.
Juneau, AK 99811-1182
POSITION STATEMENT: Commented on SB 319 for sponsor.
Mr. Don Dapcevich, Executive Director
State Advisory Board on Alcoholism and Drug Abuse
P.O. Box 0608
Juneau, AK 99811
POSITION STATEMENT: Supported SB 233.
Ms. Charity Kadow, President
Spenard Community Council
(907) 563-6634
POSITION STATEMENT: Supported SB 233.
Mr. Doug Griffin, Director
Alcohol Beverage Control Board
550 W 7th, Ste 350
Anchorage, AK 99501
POSITION STATEMENT: Supported SB 233.
Mr. Jim Rowe, Executive Director
Alaska Telephone Association
201 E 56th Ave., Suite 114
Anchorage, AK 99518
POSITION STATEMENT: Supported SB 330.
Mr. Mike Golat
Unalaska, AK
(907) 581-1260
POSITION STATEMENT: Supported SB 330.
Mr. Randy Nelson
Alaska Telephone Association, Engineering and Planning Committee
201 E 56th Ave., Suite 114
Anchorage, AK 99518
POSITION STATEMENT: Supported SB 330.
ACTION NARRATIVE
TAPE 98-14, SIDE A
Number 001
SB 329 - INVESTMENT CLUB LICENSE EXEMPTION
CHAIRMAN LEMAN called the Senate Labor and Commerce Committee
meeting to order at 1:37 p.m. and announced SB 329 to be up for
consideration.
MS. ANNETTE KREITZER, Staff to the Senate Labor and Commerce
Committee, said this legislation was introduced because of a
discrepancy in how Alaska statutes are interpreted. Mr. Floyd
Damron, Alaska Regional Council and National Association of
Investors Corporation, contacted them regarding this issue saying
they had been advised that they need to purchase a business license
to be able to be an investment club in Alaska. That's not the case
in other states. Alaska is the sole exception to that.
MR. FLOYD DAMRON, Co-President, Alaska Council of the National
Association of Investors Corporation, said they are a newly formed
council that represents 112 investment clubs in Alaska with about
1,500 - 1,600 Alaska residents as members. Their national
organization has about 36,000 clubs made up of about 600,000
people. He explained that the primary purpose of the Alaska
Council and investment clubs is educational. A group of friends
get together with a small amount of money, so they can learn how to
invest in the U.S. stock market. The Securities and Exchange
Commission does not view this type of investment club as being
securities dealers or brokers.
MR. DAMRON said they are uncertain as to whether or not they need
to have a business license. Polls of investment clubs indicated
most of them have not purchased business licenses and they,
therefore, think that there is an exemption. He didn't think there
would be any significant decrease in monies to the State of Alaska
without licensing.
MS. CATHERINE REARDON, Director, Division of Occupational
Licensing, said they have no opposition to this bill. She said
they have given conflicting answers to investment clubs about
whether or not they need business licenses. Part of the problem
has been that the definition of business is extremely difficult for
staff and the public to understand. She thought it would be a good
idea to clarify it in the future. There are only a couple of
investment clubs that hold business licenses. Therefore, the
fiscal note shows $300 in lost revenue, but it may be less because
of her Division giving conflicting advice. She would feel
comfortable making a $0 fiscal note, so the bill would not need an
extra committee stop.
CHAIRMAN LEMAN said he thought it would be helpful if she could
provide a revised fiscal note.
MS. REARDON said she also had a revised definition of "business" to
offer "engaging or offering to engage in a trade, profession, or
activity with a goal of receiving a benefit in exchange for
provision of good services or property. Business does not include
the following activities...(include the exemptions that exist in
law)" and add to that the exemption for investment clubs and the
existing exemption for giving or supplying services as an employee,
and, finally, the current exemption for giving or furnishing of
goods and services by a person who does not represent to be
regularly engaged in those activities.
CHAIRMAN LEMAN asked if that definition would make it easier to
administer her Division.
MS. REARDON said it would, because it would delete language like
"calling or vocation." The whole world is business technically in
this definition.
Number 172
SENATOR HOFFMAN noted that fishermen are included as requiring a
business license, but then later they are exempt.
MS. REARDON explained that fishermen are one of the current
exemptions. She also noted that they would want to exempt liquor
sales from business, not a liquor license.
SENATOR MACKIE said he wasn't opposed to a rewrite.
CHAIRMAN LEMAN said they could send a proposed committee substitute
to the next committee of referral with the suggestion to work with
Ms. Reardon on the changes.
SENATOR MACKIE moved to pass SB 329 from Committee with the
accompanying fiscal note with individual recommendations. There
were no objections and it was so ordered.
SB 319 - ARBITRATION
CHAIRMAN LEMAN announced SB 319 to be up for consideration.
SENATOR MACKIE moved to adopt the committee substitute. There were
no objections and it was so ordered.
MR. JERRY BURNETT, Staff to Senator Randy Phillips, said the
committee substitute has changes that were recommended by the
Attorney General's office and reviewed them for the Committee.
CHAIRMAN LEMAN asked if anyone wanted to testify against this bill.
There was no response.
SENATOR MACKIE moved to pass SB 319 from Committee with individual
recommendations. There were no objections and it was so ordered.
SB 233 - ALCOHOL BEVERAGE CONTROL BOARD
CHAIRMAN LEMAN announced SB 233 to be up for consideration.
MR. DON DAPCEVICH, Executive Director, State Advisory Board on
Alcoholism and Drug Abuse, said he supported extension of the
sunset provisions for the Alcoholic Beverage Control Board (ABC).
CHAIRMAN LEMAN asked if he could respond to the audit concerns.
MR. DAPCEVICH answered that Ms. Kadow would do that.
MS. CHARITY KADOW, President, Spenard Community Council, said that
the ABC Board is one of their most stalwart partners in trying to
clean up the areas in the Spenard Community Council. Of the 480
liquor licenses in Anchorage, 150 are within the Spenard Community
Council boundaries and two more are to be added; they have only six
percent of the population. The ABC Board plays a very distinct
function within the industry, neighborhoods, and communities. She
supported the extension of the ABC as a partner in economic
development.
MR. DOUG GRIFFIN, Executive Director, ABC Board, said the Division
of Legislative Audit recommended a continuation of the Board. He
said the Board has tried to become more active in their enforcement
and have tried doing a little more outreach in terms of working
with other State agencies, community councils, and local
governments. The Anchorage Assembly passed a resolution supporting
the extension, reflecting their improving working relationship with
them.
MR. GRIFFIN said they had some difficulties over the last year with
staffing, because a staff person got sick in June and never came
back to work, but had accumulated a lot of leave, so they couldn't
afford to hire another person right away. As a result they have
gotten behind on getting licensing, but this does have an impact on
businesses and they will try very hard to get the backlog taken
care of. Their budget does not allow them to refill that position
right now.
He said they have requested funding for another position of an
enforcement investigator for Southeast Alaska, because they don't
have a presence in that part of the State. Currently, they try to
get an investigator there once a year for routine inspections, not
to conduct investigations or to provide the level of assistance
they would like to provide to the local police, state troopers, or
local businesses.
He said he disagreed with the first finding from the Legislative
Auditor, but agreed with the other two and is taking steps to
address those problems.
CHAIRMAN LEMAN urged him to continue to work within the
communities.
MR. GRIFFIN responded that since the audit came out, they have made
a real effort to get out to communities.
SENATOR HOFFMAN asked him which theater has a liquor license. MR.
GRIFFIN answered that the Fourth Avenue Theater had a liquor
license.
SENATOR MACKIE moved to pass SB 233 from Committee with individual
recommendations. There were no objections and it was so ordered.
SB 330 - LOCATING UNDERGROUND FACILITIES
CHAIRMAN LEMAN announced SB 330 to be up for consideration.
MS. ANNETTE KREITZER, Staff to Senator Labor and Commerce
Committee, pointed out all the changes that had gone on in creating
this legislation indicating a stack of papers in front of her. In
the process, amendments have been proposed, but not adopted.
She said SB 330 was introduced at the request of the Alaska
Telephone Association to provide an understanding of the standards
and responsibilities for locating and excavating underground
facilities throughout the State for utilities and contractors.
She explained three amendments had been proposed. The first one
makes a change to 42.30.410 (g), page 3, line 9 because this
Section doesn't address the situation where the excavation locate
extends for considerable distances. The request was to put
something in here that would allow for a charge beyond a certain
length (perhaps 330 ft.). But there is no prohibition in the bill
for charging, so that's why the amendment wasn't included in the
bill.
An additional definition for "repair" was requested for AS
42.30.490, the definition section. The problem is, if an excavator
digs up a newly installed underground facility and splices through
a cut cable, is the splice enough of a repair or should the entire
cable be replaced. If the Committee does define repair, it should
be to "accepted industry standards."
One other concern addresses the issue of excavators exposing high
voltage power cables and leaving them accessible to individuals
other than qualified personnel. The feeling among all participants
is that there are already specific provisions in industry standards
regarding this issue, like the National Electric Safety Code and
other federal codes dealing with high voltage lines.
Number 461
MR. JIM ROWE, Executive Director, Alaska Telephone Association,
said over two years ago its Engineering and Planning Committee got
together and recognized that standards are needed for locates.
Here he noted that nothing in this bill is directed just to
telephone utilities, but to all utilities. He explained that the
electric utility digs next to a water utility line, the telephone
utilities are digging near the gas utilities line, etc. He said
there are national pressures to come up with State standards and
this was modeled basically after the State of Washington and after
it was brought to this Committee, the state of Minnesota. Most
states have locate standards.
MR. ROWE said they wanted something that would benefit the citizens
of the State and would make utilities efficiently responsive and
allow the same thing for whoever the contractor may be.
CHAIRMAN LEMAN asked if he had any reaction to the definition of
the word "repair."
MR. ROWE responded that he agreed with Ms. Kreitzer's presentation.
He felt the definition would be extending beyond what they are
doing in the bill. The industry standard should not be raised if
the repairs have been done according to national standards in the
past.
CHAIRMAN LEMAN noted that by not having a definition, by its
omission, a standard has to be followed anyway.
MR. ROWE agreed that there are standards in effect now.
MR. MIKE GOLAT, Unalaska, said the bill takes positive steps
towards protecting the safety of the public and his utility workers
- and his assets. It also provides consistent guidelines for
locates It raises another issue of liability and clearly
establishes that. His problem with the bill is that they have
private utilities located on their city-owned rights-of-way and
have always taken a cooperative approach to utility management.
They have let other utility companies put their utilities in their
rights-of-way free of charge and have always been able to work out
where liability lies without having the State dictate it. This
creates a real lopsided situation, because they have three times as
many utilities in their city-owned rights-of-way as ITC has and
theirs are typically just below the surface. If there is any
digging to do in repairing the road, they are the most likely
utility to be hit. He understands that they have two options: one
is to get an exclusion from this bill. The other option is to
charge ITC for having their utilities in his rights-of-way, so he
can litigate some of their exposure. Mr. Dave Goggins understands
this and doesn't oppose it at all.
The second concern he has is that the liability is not clearly
defined when an operator can't reasonably locate with accuracy its
utilities (Section 42.30.410(b)). He has a solution that wouldn't
clearly define liability, but it would mitigate any disputes. When
the operator says he can't locate a utility with reasonable
accuracy, they should have a spotter from the utility on-site until
the contractor locates its utility.
MR. RANDY NELSON, Member, Alaska Telephone Association Engineering
and Planning Committee, said he is currently employed by GTE Alaska
and has been in the industry for 27 years. He has also worked in
other states and is here to answer questions. This bill is of
mutual benefit to both excavators and owners. All utilities find
themselves wearing both hats. The emphasis of a clear
understanding for both parties is mutually beneficial and will
result in a reduction of out services to all of their customers
and, in the long run, a reduction of costs to both parties.
CHAIRMAN LEMAN asked if he had any reaction to Mr. Golat's comments
on lines 15 - 19, when a utility cannot locate with reasonable
accuracy, they should have a spotter on-sight.
MR. NELSON said he has experience with those situations and that is
typically the best way to approach it. People from both parties
should be there until the utilities are found. He didn't object to
that. The owner definitely wants to help locate those facilities
to avoid damages and out-services.
TAPE 98-14, SIDE B
SENATOR HOFFMAN moved a conceptual amendment providing for an on-
site spotter. There were no objections and it was so ordered.
MR. ROWE agreed that it was a good amendment.
SENATOR MACKIE moved to pass CSSB 233(L&C) from Committee with
individual recommendations. There were no objections and it was so
ordered.
CHAIRMAN LEMAN adjourned the meeting at 2:15 p.m.
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