Legislature(2003 - 2004)
04/01/2003 01:35 PM Senate L&C
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* first hearing in first committee of referral
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ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 1, 2003
1:35 p.m.
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
CS FOR HOUSE BILL NO. 146(HES)
"An Act repealing the termination date of certain provisions
that require the reporting of social security numbers and
automated data matching with financial institutions for child
support enforcement purposes; relating to social security
numbers on applications for commercial fishing licenses; and
providing for an effective date."
MOVED CSHB 146(HES) OUT OF COMMITTEE
SENATE BILL NO. 120
"An Act relating to the state's sovereign immunity for certain
actions regarding injury, illness, or death of state-employed
seamen and to workers' compensation coverage for those seamen;
and providing for an effective date."
MOVED SB 120 OUT OF COMMITTEE
SENATE BILL NO. 151
"An Act relating to the regulation of natural gas pipelines
under the Pipeline Act."
MOVED CSSB 151(L&C) OUT OF COMMITTEE
SENATE BILL NO. 93
"An Act relating to limitations on actions to quiet title to,
eject a person from, or recover real property or the possession
of it; and providing for an effective date."
MOVED CSSB 93(L&C) OUT OF COMMITTEE
SENATE BILL NO. 113
"An Act relating to the frequency of examinations of certain
persons licensed to engage in the business of making loans of
money, credit, goods, or things in action; repealing the
requirement for a state examination and evaluation of the Alaska
Commercial Fishing and Agriculture Bank; and providing for an
effective date."
MOVED SB 113 OUT OF COMMITTEE
PREVIOUS ACTION
HB 146 - See Labor and Commerce minutes dated 3/27/03.
SB 120 - See Labor and Commerce minutes dated 3/25/03.
SB 151 - See Labor and Commerce minutes dated 3/27/03.
SB 93 - See Labor and Commerce minutes dated 3/11/03.
SB 113 - See Labor and Commerce minutes dated 3/25/03.
WITNESS REGISTER
Mr. Keith Hilyard
Staff to Representative Lesil McGuire
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Commented on HB 146.
Ms. Susan Cox, Assistant Attorney General
Department of Law
PO Box 110300
Juneau, AK 99811-0300
POSITION STATEMENT: Commented on SB 120.
Mr. Paul Grossi, Director
Division of Workers' Compensation
Department of Health &
Social Services
PO Box 110601
Juneau, AK 99801-0601
POSITION STATEMENT: Commented on SB 120.
Mr. Brad Thompson, Director
Division of Risk Management
Department of Administration
PO Box 110200
Juneau, AK 99811-0200
POSITION STATEMENT: Commented on SB 120.
Ms. Amy Seitz
Staff to Senator Wagoner
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Commented on SB 93.
MR. John McKinnon, Deputy Commissioner
Department of Transportation &
Public Facilities
3132 Channel Dr.
Juneau, AK 99801-7898
POSITION STATEMENT: Commented on SB 93.
Mr. Jon Tillinghast
Sealaska Corporation
One Sealaska Plaza
Juneau AK 99801
POSITION STATEMENT: Commented on SB 93.
Mr. Mark Davis, Director
Division of Banking, Securities and Corporations
Department of Community & Economic Development
PO Box 110800
Juneau, AK 99811-0800
POSITION STATEMENT: Commented on SB 113.
ACTION NARRATIVE
TAPE 03-17, SIDE A
CSHB 146(HES)-CHILD SUPPORT/SOCIAL SECURITY NUMBERS
CHAIR CON BUNDE called the Senate Labor and Commerce Standing
Committee meeting to order at 1:35 p.m. All members were
present. He announced CSHB 146(HES) to be up for consideration.
MR. KEITH HILYARD, Staff to Representative Lesil McGuire,
sponsor of HB 146, said he would answer any questions members
have.
SENATOR SEEKINS moved to pass CSHB 146(HES) and its accompanying
fiscal note from committee with individual recommendations.
A roll call vote was taken. SENATORS STEVENS, FRENCH SEEKINS,
DAVIS AND BUNDE voted yea, and the bill moved from committee.
SB 120-CLAIMS BY STATE-EMPLOYED SEAMEN
CHAIR BUNDE announced SB 120 to be up for consideration.
MS. SUSAN COX, Assistant Attorney General, summarized that at
the last hearing she was requested to draft a response to some
legal questions raised in a letter from a constituent, Lanning
Trueb of Beard Stacey Trueb & Jacobsen. She laid out the
background for the legal approach taken in the bill and why the
Department of Law believes that approach is not only acceptable,
but is expressly authorized by language in a decision of the
Alaska Supreme Court. She also commented on why SB 120 would not
violate the Alaska Constitution's equal protection provision,
federal maritime law supremacy issues, and the argument for some
need for uniformity of maritime law that would supercede state
sovereign immunity. In addition, sovereign immunity is not an
issue the legislature can deal with in statute.
MR. PAUL GROSSI, Director, Division of Workers' Compensation,
said, regarding the $71,000 fiscal note, that the division is
hoping this universe of employees is not going to be too
different than other employee groups and that amount would be
enough to cover them. He noted it could be a little bit more.
CHAIR BUNDE asked what the compensation was under the old
system.
MR. GROSSI replied that the division doesn't really have good
records prior to the use of computers.
CHAIR BUNDE asked if losses would have been higher than $71,000.
MR. GROSSI replied that the fiscal note only covers the
adjudication and administration of the claims. The losses would
be covered through risk management but would be paid by the
individual departments where those losses occurred.
SENATOR SEEKINS noted that according to the data, there are more
cases under the Jones Act and the awards are higher. He asked
why it would cost more.
MR. GROSSI explained the fiscal note reflects the cost of
administrating and litigating any claims under Workers'
Compensation. He didn't have a guesstimate of what the claims
would be under Workers' Compensation next year.
SENATOR SEEKINS asked if the division made any effort to compare
the cost of litigation to what the state is now experiencing.
MR. GROSSI replied this proposal uses a different system so it
would be hard to say exactly what the amount would be.
SENATOR SEEKINS said the committee needs more than the fiscal
note to determine what the impact would be on the treasury of
the State of Alaska.
CHAIR BUNDE thought the committee needed a negative fiscal note
from the Department of Law.
MR. BRAD THOMPSON, Director, Division of Risk Management,
indicated the reason the fiscal note is not negative is because
of the method of funding the claims under the state's self
insurance program. He explained:
There is expected savings of very significant numbers.
If you recall my testimony last committee meeting,
comparing on a 100 full-time equivalent basis the rate
of claim and the severity where the dollars paid per
100 - if you take those comparisons between the Jones
Act and Workers' [Compensation] on an average of a
five-year history that I presented, it should show us
if it pencils out the same average - about $850,000 in
the future savings. The reason I don't show a negative
for that amount is again because of the method. Risk
Management is appropriated the dollars that we collect
from the state agencies that fiscal year for the
claims to be paid that fiscal year. So, this will save
the state dollars, but it's just the method that we at
Risk Management are funded.
CHAIR BUNDE said it should save about $800,000.
MR. THOMPSON agreed.
SENATOR SEEKINS asked if the division is subject to Rule 82 if
there is litigation.
MR. THOMPSON replied that his numbers reflect the total cost,
including defense expenses.
SENATOR SEEKINS moved to pass SB 120 and its fiscal note from
committee with individual recommendations.
The roll was called. SENATORS DAVIS, STEVENS, FRENCH, SEEKINS
and BUNDE voted yea and SB 120 moved from committee.
SB 151-REGULATION OF NATURAL GAS PIPELINES
CHAIR BUNDE announced SB 151 to be up for consideration.
MS. MARY JACKSON, staff to Senator Wagoner, sponsor, said at
last week's hearing, two issues were outstanding: the sponsor
asked the committee to insert an immediate effective date, which
the committee substitute (CS) does; and the second issue was the
fiscal note from the Department of Natural Resources (DNR). She
handed members a revised fiscal note from DNR and a fiscal note
from the Department of Community and Economic Development (DCED)
that reflects the impact on the Regulatory Commission of Alaska
(RCA). She pointed out that the change in the fiscal note is on
the very last line on the second page and reads:
"...for the Kenai Kachemak Pipeline. However these
dynamics are unlikely as only 63% of the line's total
capacity has been contracted for."
SENATOR SEEKINS moved to adopt the CS to SB 151, Version D.
There were no objections and it was so ordered.
SENATOR FRENCH asked if the CS contains any other differences
than the two the Ms. Jackson mentioned.
MS. JACKSON said there were none.
SENATOR SEEKINS asked if all this bill does is to allow other
natural gas pipeline carriers to piggyback onto current
statutes.
MS. JACKSON replied that is correct. The bill removes "North
Slope" so that the Act can apply statewide.
SENATOR SEEKINS moved to pass CSSB 151 (L&C) from committee with
individual recommendations.
The roll was called. SENATORS SEEKINS, DAVIS, STEVENS, FRENCH
and BUNDE voted yea, and CSSB 151(L&C) moved out of committee.
SB 93-ADVERSE POSSESSION
CHAIR BUNDE announced SB 93 to be up for consideration.
MS. AMY SEITZ, staff to Senator Wagoner, sponsor of SB 93, said
the Department of Transportation and Public Facilities (DOTPF)
had concerns with road construction and rights-of-way. Those
concerns have been worked in the new committee substitute (CS).
SENATOR SEEKINS moved to adopt the CS to SB 93, Version Q. There
were no objections and it was so ordered.
MS. SEITZ reviewed the changes for the committee.
SENATOR FRENCH recalled this bill would not interrupt anyone's
pending claim of adverse possession.
MS. SEITZ verified that is correct.
SENATOR FRENCH asked if anyone who still thinks they have a
claim to land under adverse possession would be able to pursue
that claim.
MS. SEITZ replied they must have already filed.
MR. JOHN MACKINNON, Deputy Commissioner, Department of
Transportation and Public Facilities, said Senator Wagoner was
very helpful in helping DOTPF address its concerns and that this
particular language probably takes care of 80-85% of them. He
noted they are still working on the other issues.
SENATOR FRENCH asked what the remaining differences are.
MR. MACKINNON replied that the differences have to do with
things that may not occur exactly on the right-of-way, for
instance, on a wayside where part of the slope extends out of
the right-of-way or where drainage improvements on the highways
could cause problems down slope. DOTPF does not want those
issues to come back at it in the future.
MR. JON TILLINGHAST, counsel for Sealaska Corporation, corrected
a previous answer to Senator French's question about existing
adverse possession claims by saying they would be protected
under this bill if the person has possessed the property for the
requisite period of years under existing law. However, claimants
need not have filed by the effective date of this act.
SENATOR FRENCH asked if some big dispute out there that Sealaska
is trying to extinguish is going to get settled by this
legislation.
MR. TILLINGHAST replied that Sealaska is not involved in a
current dispute or litigation with a squatter that this
legislation would settle, but Sealaska has had difficulties in
the past with squatters. He expects future problems if a bill
like this is not enacted.
SENATOR SEEKINS moved to pass CSSB 93(L&C) from committee with
individual recommendations.
The roll was called. SENATORS FRENCH, STEVENS, DAVIS, SEEKINS
and BUNDE voted yea, therefore CSSB 93(L&C) moved from
committee.
SB 113-FINANCIAL INSTITUTION EXAMINATIONS/CFAB
CHAIR BUNDE announced SB 113 to be up for consideration.
MR. MARK DAVIS, Director, Division of Banking, Securities and
Corporations, reported information about audited statements, but
the recording was indiscernible.
CHAIR BUNDE thanked him and asked if it is still accurate to say
that extending the audit schedule from one year to 18-months
will reduce the cost by about $126,000.
MR. DAVIS replied yes.
SENATOR SEEKINS moved to pass SB 113 with its fiscal note from
committee with individual recommendations.
The roll was called. SENATORS SEEKINS, FRENCH, STEVENS, DAVIS
and BUNDE vote yea, therefore SB 113 moved from committee.
CHAIR BUNDE adjourned the meeting at 2:10 p.m.
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