Legislature(1997 - 1998)
05/05/1998 03:07 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
May 5, 1998
3:07 p.m.
MEMBERS PRESENT
Senator Loren Leman, Chairman
Senator Jerry Mackie, Vice Chairman
Senator Tim Kelly
Senator Mike Miller
MEMBERS ABSENT
Senator Lyman Hoffman
COMMITTEE CALENDAR
CS FOR HOUSE JOINT RESOLUTION NO. 65(L&C)
Requesting that Alaska wild salmon be included as an organic food
under federal law.
- MOVED CSHJR 65(L&C) OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 486(L&C)
"An Act relating to the Alaska Securities Act; and providing for an
effective date."
- MOVED CSHB 486(L&C) OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 343(TRA)
"An Act excluding certain motor vehicles from the definition of
commercial motor vehicle."
- MOVED CSHB 343(TRA) OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 203(JUD)
"An Act relating to actions for unlawful trade practices."
- MOVED CSHB 203(JUD) OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 474(RLS)
"An Act relating to the Alaska Police Standards Council and to
municipal correctional officers."
- MOVED CSHB 474(RLS) OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 458(RLS)
"An Act relating to establishing a golf course alcoholic beverage
license to allow sales of beer and wine; extending the termination
date of the Alcoholic Beverage Control Board; and providing for an
effective date."
- MOVED CSHB 458(RLS) OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 347(L&C)
"An Act relating to an exemption from overtime wage requirements
for certain motor vehicle mechanics."
- MOVED CSHB 347(L&C) OUT OF COMMITTEE
SENATE BILL NO. 353
"An Act relating to property exemptions; and providing for an
effective date."
- SCHEDULED BUT NOT HEARD
PREVIOUS SENATE COMMITTEE ACTION
HJR 65 - No previous action to record.
HB 486 - No previous action to record.
HB 343 - See Transportation minutes dated 4/30/98.
HB 474 - No previous action to record.
HB 458 - No previous action to record.
HB 347 - No previous action to record.
SB 353 - See Labor and Commerce Committee minutes dated 4/28/98.
WITNESS REGISTER
Representative Bill Hudson
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Prime Sponsor of HJR 65
Terry Elder, Senior Securities Examiner
Division of Banking, Securities & Corporations
Department of Commerce & Economic Development
P.O. Box 110807
Juneau, AK 99811-0807
POSITION STATEMENT: Testified in support of CSHB 486(L&C)
Representative Gary Davis
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Prime Sponsor of HB 343
Pat Harman, Staff to Representative Fred Dyson
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Presented overview on HB 203
James Beveridge
Alaska Public Interest Research Group
442 W. 5th Ave.
Anchorage, AK 99501
POSITION STATEMENT: Testified in support of HB 203
Ms. Peggy Mulligan
American Association of Retired Persons
Box 240335
Douglas, AK 99824
POSITION STATEMENT: Testified in support of HB 203
Kevin Jardell, Staff Counsel
House Judiciary Committee
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Presented overview on HB 474
Laddie Shaw, Director
Alaska Police Standards Council
P.O. Box 111200
Juneau, AK 99811-1200
POSITION STATEMENT: Offered information on HB 474
Representative Norman Rokeberg
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Prime Sponsor of HB 458
Ms. Shirley Armstrong
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Offered information on HB 458
Peter Torkelson, Staff to Representative John Cowdery
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Presented overview on HB 347
Ed Flanagan, Deputy Commissioner
Department of Labor
P.O. Box 21149
Juneau, AK 99802-1149
POSITION STATEMENT: Testified in support of HB 347
Steve Alwine
Alaska Auto Dealers Association
8725 Mallard
Juneau, AK 99801
POSITION STATEMENT: Testified in support of HB 347
ACTION NARRATIVE
TAPE 98-27, SIDE A
Number 001
CSHJR 65(L&C) - CLASSIFY WILD SALMON AS ORGANIC FOOD
CHAIRMAN LEMAN called the Senate Labor and Commerce Committee
meeting to order at 3:07 p.m., and brought HJR 65 before the
committee.
REPRESENTATIVE BILL HUDSON, prime sponsor of HJR 65, said Alaska is
in probably one of the most competitive marketing efforts that it
has ever been in marketing its vast quantity of salmon. HJR 65
requests supporting the congressional delegation in getting into
the arena as they develop standards for organic foods, which is a
major new market that is growing at the rate of 20 percent a year.
The resolution urges the U.S. Department of Agriculture to give
careful consideration to include Alaska wild salmon on its list of
organic foods.
SENATOR KELLY asked if there was any opposition to the resolution.
REPRESENTATIVE HUDSON replied there was none that he knew of.
There being no further testimony on HJR 65, CHAIRMAN LEMAN asked
for the pleasure of the committee.
SENATOR MACKIE moved CSHJR 65(L&C) and the accompanying zero fiscal
note be passed out of committee with individual recommendations.
Hearing no objection, it was so ordered.
CSHB 486(L&C) - ALASKA SECURITIES ACT
CHAIRMAN LEMAN brought CSHB 486(L&C) before the committee as the
next order of business.
TERRY ELDER, Senior Securities Examiner, Division of Banking,
Securities and Corporations, Department of Commerce and Economic
Development, stated the legislation will bring the Alaska
Securities Act into compliance with federal law that was changed in
1996. By doing so, it will preserve the state's ability to collect
fees for federally covered securities, which currently amount to
over $4 million a year, as well as preserve the state's ability to
continue regulating large investment advisors and helping Alaskans
in that regard.
CHAIRMAN LEMAN asked if there was any objection from the industry
or the public to this bill. MR. ELDER responded that he was not
aware of any expressed opposition.
SENATOR MACKIE asked if it was an accurate statement that failure
to do this means a loss of revenue to the state, and MR. ELDER
acknowledged that was correct. The informational fiscal note
provided to the committee shows the impact on state general fund
revenues if the statute is not amended.
Number 150
There being no further testimony on HB 486, CHAIRMAN LEMAN asked
for the pleasure of the committee.
SENATOR KELLY moved CSHB 486(L&C) be passed out of committee with
individual recommendations. Hearing no objection, it was so
ordered.
CSHB 343(TRA) - DEFINITION OF COMMERCIAL MOTOR VEHICLE
CHAIRMAN LEMAN brought CSHB 343(TRA) before the committee.
REPRESENTATIVE GARY DAVIS, prime sponsor of HB 343, said the
legislation brings the state into compliance with federal law. The
legislation amends the definition of "commercial motor vehicle" in
statute by expanding the exceptions to include "special mobile
equipment" (construction vehicles) that are driven on roads in
order to relocate the vehicle to a job site.
REPRESENTATIVE DAVIS said the Department of Administration has no
objection to the legislation.
There being no further testimony on the legislation, CHAIRMAN LEMAN
asked for the pleasure of the committee on HB 343.
SENATOR MACKIE moved CSHB 343(TRA) and the accompanying zero fiscal
note be passed out of committee with individual recommendations.
Hearing no objection, it was so ordered.
CSHB 203(JUD) - ACTIONS FOR UNLAWFUL TRADE PRACTICES
CHAIRMAN LEMAN brought CSHB 203(JUD) before the committee.
PAT HARMAN, staff to Representative Fred Dyson, explained the
legislation provides for a dispute resolution procedure for
consumer disputes. It provides that if there is a dispute, the
individual has to submit a letter to the business stating the
problem. It also contains a mediation option as a dispute
resolution option. It further provides the ability of the court to
grant injunctive relief so an individual doesn't have to experience
actual damages to be granted injunctive relief. There are fairly
severe penalties for frivolous lawsuits or lawsuits that are
brought forward for competitive advantage, and it provides for the
defendant to receive full reasonable attorney fees and costs if the
action is found to be frivolous.
JAMES BEVERIDGE, representing the Alaska Public Interest Research
Group (AKPIRG) and testifying via teleconference from Anchorage,
voiced the organization's support for CSHB 203(JUD). He noted
Alaska ranks very low on the states' lists in terms of consumer
protection, and the state has become somewhat of a haven for
unscrupulous individuals and dishonest businesses that rip off
millions of dollars each year from honest Alaskan businesses.
AKPIRG believes the legislation is an important step in addressing
this problem by empowering consumers and providing avenues for them
to more easily address their grievances.
Number 390
PEGGY MULLIGAN, representing the American Association of Retired
Persons (AARP), voiced AARP's support for the legislation. She
said the bill will put Alaskans pretty much in line with a lot of
the other states as far as protection for all of its citizens
against fraud.
There being no further testimony on CSHB 203(JUD), CHAIRMAN LEMAN
stated the bill would be set aside until a quorum could be
reestablished.
CSHB 474(RLS) - CERTIFY MUNICIPAL CORRECTIONAL OFFICERS
CHAIRMAN LEMAN brought CSHB 474(RLS) before the committee as the
next order of business.
KEVIN JARDELL, staff counsel for the House Judiciary Committee,
said the Alaska Police Standards Council contacted the committee
and asked that they introduce legislation that would place a new
section of officers called "municipal correctional officers" under
their authority. By doing this, the Alaska Police Standards
Council would have the ability to set minimum training standards
and minimum hiring standards for municipal correctional officers.
This would allow municipalities to hire less trained individuals
to staff holding cells, which are currently staffed by full-time
police officers.
SENATOR KELLY if these people would be commissioned officers
wearing badges and possessing firearms. LADDIE SHAW, Director,
Alaska Police Standards Council, explained that these will not be
gun carrying corrections officials. Their primary purpose is to be
a jailer, and the standards they will be meeting are slightly less
than a state correctional officer.
SENATOR KELLY asked what retirement system these individuals would
fall under. MS. KREITZER responded that they are employees of the
municipality so they would be covered by whatever agreement the
municipality already has in place for its public safety officers,
not withstanding the fact that they are not peace officers.
MR. SHAW explained it costs approximately $5,700 to train a police
officer who is presently running the small jails, and it costs
approximately $1,500 to train a municipal correctional officer who
will be working for the same municipality in place of a police
officer. A municipal correctional officer's salary would be based
on that municipality's salary cost, which could be anywhere from $8
an hour to $12 an hour, but much less than a police officer.
Number 433
CHAIRMAN LEMAN asked how many municipalities this legislation would
apply to. MR. SHAW replied that it would apply to 15
municipalities, but it would not include Anchorage because it does
not have a contract jail.
SENATOR KELLY asked if this group of correctional officers would
qualify for the 20-year and out provision under their retirement
system. MS. KREITZER replied that if a municipality had such a
provision in place for its employees, it would then be up to the
municipality to make that decision. MR. SHAW added that if all of
the jails were manned by municipal correctional officers, it would
probably be less than 40 individuals for the entire state.
There being no further testimony on CSHB 474(RLS), CHAIRMAN LEMAN
stated the bill would be set aside until a quorum was
reestablished.
CSHB 458(RLS) - GOLF COURSE BEER/WINE LICENSE
CHAIRMAN LEMAN brought CSHB 458(RLS) before the committee as the
next order of business.
SHIRLEY ARMSTRONG, staff to Representative Norman Rokeberg, said
this issue was brought to Representative Rokeberg's attention by a
gentleman at the Palmer golf course where they wanted to be able to
have beverages on the golf course as do some of the larger courses
outside the state. The legislation repeals the regulatory
municipal golf course beer/wine license and outlines in statute
exactly what a golf course alcoholic beverage license is.
REPRESENTATIVE ROKEBERG said the legislation provides for the
ability of a golf course to monitor and control the consumption of
alcohol on the golf course while still allowing it to be sold from
a motorized vehicle for food and beverages. He emphasized that
the legislation is not creating a new license, it's repealing one
and replacing it.
TAPE 98-27, SIDE B
CHAIRMAN LEMAN asked if there had been any testimony in opposition
to the bill. REPRESENTATIVE ROKEBERG stated the executive director
of the Governor's Advisory Board on Alcoholism and Drug Abuse took
exception to the bill voicing concern about creating a new license
and the control of alcoholic beverages on the course. However,
Representative Rokeberg believes the bill gives more control over
the consumption of alcoholic beverages on the golf course.
There being no further testimony on CSHB 458(RLS), CHAIRMAN LEMAN
stated the bill would be set aside until a quorum was
reestablished.
CSHB 347(L&C) - OVERTIME WAGE EXEMPTION FOR MECHANICS
CHAIRMAN LEMAN brought CSHB 347(L&C) before the committee as the
next order of business.
PETER TORKELSON, staff to Representative John Cowdery, said the
legislation was drafted in cooperation with the Department of Labor
and the Alaska auto dealers. It is essentially a compromise that
all parties believe addresses the key concerns, and will allow
flat-rate employers to work overtime to finish up a job or to
simply allow the flat-rate mechanic more by working extra hours.
MR. TORKELSON said employers currently prohibit their flat-rate
mechanics from working overtime because of complications in
existing regulations. HB 347 clarifies this by establishing a
floor and minimum conditions that an employer must meet to pay
overtime to a flat-rate employee.
ED FLANAGAN, Deputy commissioner, Department of Labor, stated the
department had objections to prior versions of the legislation, but
they worked extensively with the industry, the sponsor, and other
interested parties and were able to come up with a draft that
enables them to remove their opposition to the bill.
MR. FLANAGAN said the original bill would have protected the
employer against a recalculation of the hourly wage. That worked
to the benefit of the employee, but it had no floor for times when
the work is slow, other than minimum wage. The current version of
the bill has at least doubled the minimum wage or three-quarters of
the agreed upon flat rate as the minimum rate for all hours worked,
whether they are billing or not, would at least be available as a
minimum guarantee. It also preserves the concept of overtime after
eight hours at that rate and over forty hours.
SENATOR KELLY asked if there was any opposition to HB 347. MR.
FLANAGAN said the department was not aware of any opposition to the
legislation.
STEVE ALWINE, representing the Alaska Auto Dealers Association,
affirmed that the legislation was a compromise, and based on the
input from their employees, the Department of Labor, the AFL/CIO,
and the member dealers, they feel it is an excellent compromise.
MR. ALWINE said he knew Chairman Leman had a concern about the
twice Alaska minimum wage. However, that issue has been reviewed
at length and they don't feel that it will be an issue based on the
way these mechanics are paid and the abilities that they have. He
added it is an option to what already exists in state statute and
federal law so it gives the employers and the employees two ways to
approach this.
There being no further testimony on HB 347, CHAIRMAN LEMAN
requested a motion on the legislation.
SENATOR MACKIE moved CSHB 347(L&C) be passed out of committee with
individual recommendations. Hearing no objection, it was so
ordered.
CHAIRMAN LEMAN requested motions on the legislation that had been
set aside earlier in the meeting due to the lack of a quorum.
SENATOR MACKIE moved CSHB 474(RLS) be passed out of committee with
individual recommendations. Hearing no objection, it was so
ordered.
SENATOR MACKIE moved CSHB 203(JUD) be passed out of committee with
individual recommendations. Hearing no objection, it was so
ordered.
SENATOR MACKIE moved CSHB 458(RLS) be passed out of committee with
individual recommendations. Hearing no objection, it was so
ordered.
There being no further business to come before the committee, the
meeting adjourned at 4:15 p.m.
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