Legislature(2003 - 2004)
02/27/2003 01:35 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
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
February 27, 2003
1:35 p.m.
TAPE(S) 03-7
MEMBERS PRESENT
Senator Con Bunde, Chair
Senator Ralph Seekins, Vice Chair
Senator Gary Stevens
Senator Bettye Davis
Senator Hollis French
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 73
"An Act relating to the authority of the Alaska Industrial
Development and Export Authority to issue bonds; and providing
for an effective date."
MOVED SB 73 OUT OF COMMITTEE
SENATE BILL NO. 43
"An Act extending the termination date of the State Medical
Board."
MOVED SB 43 OUT OF COMMITTEE
SENATE BILL NO. 54
"An Act exempting flight crew members of certain air carriers
from overtime pay requirements."
MOVED SB 54 OUT OF COMMITTEE
PREVIOUS ACTION
SB 73 - No previous action to consider.
SB 43 - No previous action to consider.
SB 54 - No previous action to consider.
WITNESS REGISTER
Mr. Ron Miller, Executive Director
Alaska Industrial Development and
Export Authority and Alaska Energy
Authority
813 W Northern Lights Blvd.
Anchorage, AK 99503
POSITION STATEMENT: Commented on SB 73.
Ms. Sara Fisher-Good, Financial Analyst
Alaska Industrial Development and
Export Authority and Alaska Energy
Authority
813 W Northern Lights Blvd.
Anchorage, AK 99503
POSITION STATEMENT: Commented on SB 73.
Senator Donny Olson
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of SB 43.
ACTION NARRATIVE
TAPE 03-7, SIDE A
CHAIR CON BUNDE called the Senate Labor and Commerce Standing
Committee meeting to order at 1:35 p.m. Present at the call of
the Chair were Senators Ralph Seekins, Gary Stevens, Bettye
Davis, Hollis French and Chair Con Bunde.
SB 73-AIDEA AUTHORITY TO ISSUE BONDS
CHAIR CON BUNDE announced SB 73 to be up for consideration.
MR. RON MILLER, Executive Director, Alaska Industrial Export
Development Authority (AIDEA), said SB 73 would extend AIDEA's
general bonding authority until July 1, 2007. Without this
extension, they would need legislative authorization to issue
bonds for development projects under $10 million and would be
restricted from issuing any bonds to finance the purchase of
loan participations without legislative authorization. Examples
of bond issues that would require legislative authorization
after July 1, 2003 are in the handout he provided. He noted:
The first was a series 1995 A revolving fund bond for
just over $8 million that provided tax exempt funds
for loan participation for Kodiak Fish Meal Company
for a fish by-product processing plant. The other is a
series 1991 A revolving fund bond for $7 million that
provided tax exempt bonds for expansion improvement of
the Unalaska Marine Center. That project also had
legislative authorization.
The following requirements are not affected by SB 73 -
all development projects over $10 million for which
bonds are to be issued do now require and still
require legislative authorization prior to issuing the
bonds. Prior to issuing bonds over $6 million, AIDEA
is required to receive approval from the local
government in which the project is to be located. All
development projects for which bonds are to be issued
require AIDEA to make findings that the project is
economically and financially feasible. This
legislation affects none of those requirements.
Recently, we've only issued refunded and conduit
revenue bonds, which are not affected by SB 73. If
this bill doesn't pass, we'll continue to have the
ability to issue refunding bonds and conduit revenue
bonds. However, the sunset extension provides AIDEA
the flexibility to assist in financing of key
development projects. If the sunset is allowed to go
forward, and depending on the timing of any potential
project, AIDEA would have to wait for legislative
authorization to issue bonds. Allowing this bond
authority to sunset would eliminate a tool for AIDEA
to use in economic development projects.
SENATOR SEEKINS questioned whether the due diligence requirement
of economic and financial feasibility would affected.
MR. MILLER replied that SB 73 wouldn't affect that.
SENATOR SEEKINS asked if the benefit is that AIDEA could offer
it on a tax-exempt basis and thereby make a project even more
economically feasible by potentially reducing the interest rate.
MR. MILLER replied that AIDEA has that authority now. He
explained that SB 73 would allow AIDEA to go forward with a
project that it would otherwise have to hold in abeyance until
the Legislature convenes.
SENATOR HOLLIS FRENCH asked how many bonding projects AIDEA
would take up in the next 12 months that are under $10-million.
MS. SARAH FISHER-GOOD, financial analyst for AIDEA and AEA,
explained that currently nothing is on AIDEA's docket that would
require issuing bonds for under $10-million.
SENATOR FRENCH asked the status of the two examples - the $8
million and $7 million bonding projects.
MR. MILLER replied that, in the past, those projects were funded
using this authorization.
SENATOR FRENCH asked how much bonding AIDEA does each year.
MS. FISHER-GOOD replied that the only bond AIDEA has issued
recently was a Federal Express refunding bond. The other issues
that are done are conduit revenue bonds.
CHAIR BUNDE closed the committee discussion on SB 73.
SENATOR RALPH SEEKINS moved to pass SB 73 from committee with
individual recommendations. There were no objections and the
roll was called. Senators Davis, French, Gary Stevens, Seekins
and Bunde voted in favor and SB 73 moved from committee.
SB 43-EXTEND STATE MEDICAL BOARD
CHAIR CON BUNDE announced SB 43 to be up for consideration.
SENATOR DONNY OLSON, sponsor of SB 43, read his sponsor
statement as follows:
This is the year for the legislative sunset review of
the Alaska State Medical Board's operations and
activities. I introduced SB 43 to extend the life and
function of the board based on a satisfactory
performance audit and my own experience, having served
on the medical board from 1994-2000.
The Legislative Budget and Audit Report (08-20017-02)
concludes that the board 'has carried out its
responsibilities in a manner consistent with statutes,
good administrative practice and the public interest.'
The report further recommends that the board's
termination date be extended for another eight years.
In my own view, I expect there will be a greater
necessity for the board's licensing function in the
near future to serve both the medical community's
expansion needs and the substantial replacement
anticipated from the retirement of many senior
professionals. Indeed, last year the Legislature
modified the state's locum tenens law specifically to
better recruit and retain medical personnel essential
for the future health care of the Alaskan population.
I respectfully urge your favorable consideration of SB
43.
CHAIR BUNDE asked if the questions about the verification of
paramedics, particularly from other jurisdictions, had been
addressed.
SENATOR OLSON replied that the State Medical Board doesn't
license just medical doctors; it also licenses physician
assistants, paramedics and those people who have medical
training who haven't gone to medical school. He wasn't sure that
there was a conclusive resolution as yet, but he thought there
would be one before the bill passes out of the Senate.
CHAIR BUNDE asked if Senator Olson had any concerns about the
length of the extension.
SENATOR OLSON said there was a concern about it, but eight years
is the length of time appointees have served because they are
appointed by governors and typically serve for their term.
CHAIR BUNDE said some medical doctors have expressed concern
about the effectiveness of the board in carrying out its
mission.
SENATOR OLSON responded saying he has heard both good and
critical comments about the medical board, which is to be
expected of any such entity. Medicine and licensing are becoming
more and more complicated with telemedicine and high tech health
care delivery system advances.
CHAIR BUNDE said there have been some high profile cases and the
Anchorage Daily News has suggested that a strong board is
necessary.
SENATOR OLSON responded that there has to be balance so that
many physicians aren't practicing in a defensive mode.
SENATOR SEEKINS moved to pass SB 43 from committee with
individual recommendations and its fiscal note that is user fee
supported. There were no objections and the roll was taken.
Senators Davis, French, Stevens, Seekins and Bunde voted in
favor and SB 43 passed from committee.
SB 54-OVERTIME PAY FOR AIRLINE EMPLOYEES
CHAIR BUNDE announced SB 54 to be up for consideration and told
members that he is a cosponsor of the legislation.
SENATOR OLSON, sponsor, stated:
I introduced SB 54 to bring certainty to the
interpretation of existing federal-state wage and hour
statutes as they pertain to the payment of overtime in
the aviation industry. Because of the uniqueness of
their working conditions, flight crews have been
considered professionals, but are exempt from a
standard eight-hour workday, forty-hour week and
associated overtime requirements as prescribed under
the Alaska statutes. In conjunction with the maximum
flight hour requirements set forth by the Federal
Aviation Administration, these exemptions at both the
state and federal level have allowed the industry to
structure wage and hour schedules best suited for the
work requirements of the flight crew personnel.
Several Alaska court decisions have raised a question
about the correct interpretation of state wage and
hour laws and the applications of overtime exemptions
for flight crews. Indeed, the confusion has stimulated
other court challenges.
SB 54 explicitly adds flight crews to the list of
occupations and employment situations that are exempt
from Alaska's overtime wage and hour requirements. The
bill cites the provisions of the Federal Railway Labor
Act that governs air carriers in order to provide
consistency between state and federal applications of
this exemption.
With that I ask your support for the passage of SB 54.
CHAIR BUNDE said the safety regulations governing flight time
for pilots are very strict so that pilots aren't working
incredible amounts of overtime.
SENATOR OLSON informed members that a pilot is able to
accumulate no more than eight hours. There are severe
consequences if that is breached - such as suspension of the
pilot's license.
SENATOR FRENCH asked if anything about this law would prevent an
employer and employee from contracting around it, if they
decided they wanted to operate on an hourly schedule and pay
pilots overtime for more than eight-hour days.
SENATOR OLSON replied that unions typically address those
concerns. The problem is that the misinterpretation concerns
have not been with the 121 carriers, they have been with the
smaller 135 operators.
SENATOR SEEKINS asked if he thought the federal regulations
provide a high degree of safety for people who are traveling in
aircraft in Alaska.
SENATOR OLSON replied that safety is a major issue in his
business and some people think the regulations are overly
protective.
SENATOR SEEKINS moved to pass SB 54 from committee with
individual recommendations and its zero fiscal note. A roll call
was taken and Senators Davis, French, Gary Stevens, Seekins and
Bunde voted in favor and SB 54 moved from committee.
CHAIR BUNDE adjourned the meeting at 2:00 p.m.
| Document Name | Date/Time | Subjects |
|---|