Legislature(1999 - 2000)
04/13/1999 01:40 PM Senate L&C
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE LABOR AND COMMERCE COMMITTEE
April 13, 1999
1:40 P.M.
MEMBERS PRESENT
Senator Jerry Mackie, Chairman
Senator Tim Kelly, Vice Chairman
Senator Dave Donley
Senator Loren Leman
Senator Lyman Hoffman
MEMBERS ABSENT
All Members Present
COMMITTEE CALENDAR
HOUSE BILL NO. 68
"An Act extending the termination date of the Board of Pharmacy to
June 30, 2005; and providing for an effective date."
-MOVED HB 68 OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 123(RLS)
"An Act relating to the exemption from the requirement for payment
of minimum wage and overtime compensation for certain volunteers of
nonprofit organizations; exempting individuals who provide ski
patrol services on a voluntary basis from the requirement for
payment of minimum wage and overtime compensation; and providing
for an effective date."
-HEARD AND HELD
CS FOR HOUSE BILL NO. 128(RLS)
"An Act relating to lease-purchases of personal property."
-MOVED CSHB 128(RLS)OUT OF COMMITTEE
HOUSE BILL NO. 94
"An Act removing employees of the Alcoholic Beverage Control Board
from the exempt service."
-MOVED HB 94 OUT OF COMMITTEE
PREVIOUS SENATE COMMITTEE ACTION
HB 68 - No previous action to consider.
HB 123 - No previous action to consider.
HB 128 - No previous action to consider.
HB 94 - No previous action to consider.
WITNESS REGISTER
Representative Rokeberg
State Capitol Bldg.
Juneau, AK 99811-1182
POSITION STATEMENT: Commented on HB 68 and HB 123.
Mr. Dwight Perkins, Deputy Commissioner
Department of Labor
P.O. Box 21149
Juneau, AK 99802-1149
POSITION STATEMENT: Supported on HB 123.
Ms. Lisa Murkowski
State Capitol Bldg.
Juneau, AK 99811-1182
POSITION STATEMENT: Sponsor of HB 128.
Mr. Brad Denison
Texas
POSITION STATEMENT: Commented on HB 128.
Mr. Pat Harmon, Aide
Representative Pete Kott
State Capitol Bldg.
Juneau, AK 99811-1182
POSITION STATEMENT: Commented for the sponsor on HB 94.
Mr. Doug Griffin
Acholic Beverage Control Board
550 W 7th #350
Anchorage, AK 99501
POSITION STATEMENT: Commented on HB 94.
ACTION NARRATIVE
TAPE 99-12, SIDE A
Number 001
HB 68-BOARD OF PHARMACY
CHAIRMAN MACKIE called the Senate Labor and Commerce Committee
meeting to order at 1:40 p.m. and announced HB 68 to be up for
consideration.
REPRESENTATIVE ROKEBERG explained that HB 68 is a housekeeping
measure that extends the termination date of the Board of Pharmacy
to 2005 and follows the recommendations of the Legislative Budget
and Audit Committee.
CHAIRMAN MACKIE noted that the standing policy is to extend Boards
for four years. He asked why they suggested six years.
REPRESENTATIVE ROKEBERG said there is the geographic differential
on the appointments to the Board members, but they try to get
different judicial districts.
SENATOR KELLY said he didn't have a problem with 2005.
SENATOR LEMAN said he didn't have a problem with this particular
Board, but he wanted to be consistent.
SENATOR LEMAN moved to change the effective date from 2005 to 2003.
There were no objections and it was so ordered.
REPRESENTATIVE ROKEBERG said he had no objections to the change,
but it requires a title change, also.
SENATOR LEMAN moved to rescind his motion and asked for unanimous
consent. There were no objections and it was so ordered.
SENATOR LEMAN moved to pass HB 68. There were no objections and it
was so ordered.
HB 123-MINIMUM WAGE & OVERTIME EXEMPTIONS
CHAIRMAN MACKIE announced HB 123 to be up for consideration.
REPRESENTATIVE ROKEBERG explained that the National Ski Patrol
requested an exemption from Alaska's Wage and Hour Act because in
many instances they work under the supervision of a profit making
organization; for example, Alyeska Ski Resort which employs
professional as well as volunteer patrollers and the supervisors
are paid. This bill only speaks to the volunteers and exempts them
from the Wage and Hour Act. He said that organized labor does not
oppose this legislation and are quite sympathetic.
SENATOR KELLY asked what the status was on the volunteers being
covered by Workmen's Compensation.
MR. DWIGHT PERKINS, Deputy Commissioner, Department of Labor,
testified that they are covered under the Worker's Compensation
Act.
SENATOR KELLY asked him to verify that.
REPRESENTATIVE ROKEBERG mentioned that Eaglecrest Ski resort is
under municipal ownership.
MR. PERKINS said the Department supported this bill. He explained
there are several nonprofits who have volunteers who are subject to
Wage and Hour and overtime laws if it wasn't changed. The
Department feels that certain organizations that are strictly
volunteer like the Iditarod Groups should have the ability to
volunteer their time and services without being paid compensation.
SENATOR LEMAN asked for an example in Alaska of an activity that
would not be a nonprofit activity of a nonprofit organization.
REPRESENTATIVE ROKEBERG said the Salvation Army Thrift Shop paying
its workers was one example.
MR. PERKINS added that there were a few organizations that are
selling T-shirts or trinkets as their for-profit side that may have
very different rules affecting them. Those people are being paid
and have to be compensated with minimum wage and overtime while
working in the store. The volunteers who wouldn't be paid are ones
working events like the Iditarod volunteers along the course.
SENATOR LEMAN said he wasn't sure the language "engaged in
nonprofit activities" was necessary.
CHAIRMAN MACKIE tried to clarify that in the case of the Salvation
Army, working in their Thrift shop is a forprofit activity, but for
a nonprofit organization.
SENATOR LEMAN wanted to know where Alaskan corporate laws separate
profit and nonprofit activities of a nonprofit organization.
MR. PERKINS explained if Senator Leman is the manager of the
Salvation Army Thrift Shop and he (Mr. Perkins) wants to work
there, and Senator Leman controls the days and hours he works
there, then there is an employer/employee relationship. Under
those guidelines, he would be eligible to be compensated for
minimum wage and overtime. The definition of volunteer is coming
and going as a volunteer.
SENATOR LEMAN said his problem is with the phrase "nonprofit" in
the first line and the last addition to the same paragraph. He
asked if we have nonprofit organizations that have profit making
activities that are allowed under the law. He wanted to know what
activities of nonprofit organizations exist that cause the
legislature to want to clarify that. He asked if there are
"nonprofit activities going on in Alaska of nonprofit organizations
that are not nonprofit activities."
SENATOR LEMAN said he thought the words on line 9 "or other
nonprofit organizations" was to make sure the Special Olympics and
the Ski Patrol were covered.
REPRESENTATIVE ROKEBERG added for background that last year the
Legislature redefined "business" to include nonprofit
organizations. The language in this bill actually came from Mr.
Randy Parr, Department of Labor, and it was reviewed by Legislative
Legal Service.
CHAIRMAN MACKIE announced that he intended to hold the bill over so
they could talk to the drafter to make sure it does what it's
intended to do.
HB 128-LEASE-PURCHASE OF PERSONAL PROPERTY
CHAIRMAN MACKIE announced HB 128 to be up for consideration.
REPRESENTATIVE LISA MURKOWSKI, sponsor of HB 128, said this is
basically the "rent to own" bill; this is a fledgling industry in
our state and is growing quickly throughout the country. It
applies to renting personal property mostly for people who are
temporary residents. This bill makes it clear for the consumer to
know what his or her obligations are and the lease/purchase owner's
disclosure requirements. There is nothing in the Alaska statutes
which addresses lease purchase situations. There have been no
specific problems in the industry; it's more preventative. Forty
four other states have similar legislation that addresses the
disclosure requirement. She said they looked at legislation from
South Dakota and received input from people within the industry in
Alaska.
SENATOR HOFFMAN asked if in the description of rent purchase
agreements, merchants don't require a security deposit or
downpayment. He asked if that was true in this legislation.
REPRESENTATIVE MURKOWSKI indicated that was true.
SENATOR LEMAN asked if there was a table that would establish what
a "fair market value" is and would it be the original purchase
price or depreciated value, for instance.
REPRESENTATIVE MURKOWSKI said she understands that the purpose of
the fair market value disclosure is that there are no hidden
agendas. If you're going to rent it, it's going to cost so much
per week or month. If you want to purchase it, you want to know
what the value of the T.V. will be.
SENATOR LEMAN noted that there is a late fee of $5 and asked if
there was a restriction on the amount of the fee and is there some
other way for a business to recover the cost of someone's payment
being late.
Number 450
REPRESENTATIVE MURKOWSKI responded that the reason a nominal late
fee was placed in there is because typically within the industry
they don't charge a late fee. It came from the industry as being
a reasonable sum. Usually, property is either returned voluntarily
or it is repossessed.
MR. BRAD DENISON, testifying from New Jersey, said this bill is
very similar to what most of the other states have. It's based on
suggested legislation from the Council of State Governments which
is existing Virginia state law. As far as he knows, no one in the
industry is charging a security deposit; and he didn't think this
bill addressed that issue. Industry's position is that late fees
should be left up to the individual dealer and should depend on the
market place.
There is no table of fair market value if the merchandise is
damaged, but there is a formula that most dealers use to determine
the value of the property at any time. It's based on the cash
price of the goods at the outset of the transaction. For instance,
if at the outset a T.V. is valued at $300, the customer can buy it
by tendering an amount equal to the cash price less 50 percent of
all the rent paid. The is the formula for determining fair market
value. As a practical matter, when something happens to the goods,
it turns out to be a loss for everyone, because many customers
don't have the cash to pay for the T.V. It hasn't been a big issue
in the industry.
MR. DENISON explained the late fee of $5 is to recover the cost of
having to either make phone calls or send letters. It also serves
as an incentive for the customer to make on-time payments.
Number 532
SENATOR LEMAN moved to pass HB 128 with individual recommendations.
There were no objections and it was so ordered.
HB 94-ABC BD EMPLOYEES NOT EXEMPT EMPLOYEES
CHAIRMAN MACKIE announced HB 94 to be up for consideration.
MR. PAT HARMON, Aide to Senator Kott, sponsor, said HB 94 is a
housekeeping measure. The statutes presently classify the agents
of the Alcoholic Beverage Control Board as exempt employees when
they are classified employees. They are no longer appointed; the
patronage system is no longer applied as they are basically
professional police officers. To delete that section would make
them classified employees by default which they actually are.
SENATOR KELLY asked how many there were.
MR. HARMON answered there were three with one supervisor.
SENATOR KELLY asked if they were union members.
MR. HARMON answered there was a union involved.
SENATOR KELLY asked if there were any retirement or benefits
involved.
Number 561
MR. DOUG GRIFFIN, ABC Board, said the Administration, the
Department, and the Board officially have no position on the bill
which came from employees who work for the ABC Board. There are
four positions affected by this legislation, the enforcement
investigative staff of the Board. The three investigative
positions are members of the general government bargaining unit.
The supervisor is a member of the supervisory bargaining unit. He
is glad that Representative Kott put this bill forward.
CHAIRMAN MACKIE asked if this changed their union status.
MR. GRIFFIN answered, "Absolutely not." They researched back 30
years and didn't find ABC investigators were ever exempt employees.
SENATOR KELLY asked once they become classified employees, can they
change unions.
MR. PERKINS answered that they have been classified employees in
the unions.
TAPE 99-12, SIDE B
He couldn't predict the future, but couldn't see any requirements
that would trigger them changing unions.
SENATOR LEMAN asked if they were currently evaluated for merit pay
and if their pay increases were based on that evaluation, and if
so, what is the process that is used. How many of the four
employees received the merit pay based on that process.
MR. PERKINS replied that they are evaluated like other classified
employees in state employment. They have an annual evaluation and
typically are awarded merit increases. They are evaluated on their
effectiveness in dealing with licensees, the thoroughness of their
investigations and reports. They look at how well they prepare the
occasional prosecutions and how well they conduct themselves in
discussing issues and problems with liquor licensees. They need to
have knowledge of Title 4.
SENATOR KELLY said he didn't have any problem with this bill if
they would not switch unions.
He moved to pass HB 94 from committee with individual
recommendations. There were no objections and it was so ordered.
CHAIRMAN MACKIE adjourned the meeting at 2:25 p.m.
| Document Name | Date/Time | Subjects |
|---|