Legislature(2005 - 2006)Juneau LIO Conf Rm

02/09/2006 01:30 PM Senate LABOR & COMMERCE


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01:30:35 PM Start
01:31:53 PM Confirmation Hearings || Commissioner, Department of Commerce, Community and Economic Development (dcced)
01:55:36 PM Workers’ Compensation Appeals Commission
02:20:28 PM Alaska Labor Relations Agency
02:22:57 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Location Change --
-- Teleconference <Listen Only> --
-- Teleconference <Invitation Only> --
Confirmation Hearings
Commissioner - Dept. of Commerce,
Community and Economic Development
William Noll
Alaska State Board of Public Accountancy
Johnny Floyd, Daniel J. Rozema, Elaine R.
Williamson
Alcohol Beverage Control Board
Shirley A. Gifford
State Board of Registration for
Architects, Engineers and Land Surveyors
Terry Gorlick, Burdett B. Lent, Daniel E.
Walsh
Board of Chiropractic Examiners
Dr. Gregory M. Culbert, Dr. Rosemary E.
Zimmerman
Alaska Labor Relations Agency
Matthew R. McSorley
Board of Certified Real Estate Appraisers
Steve McSwain, Richard D. Olmstead
Real Estate Commission
Timothy J. Worthen
Workers Compensation Appeals Commission
John Giuchici, Kristin Knudsen, Jim E.
Robinson, Marc D. Stemp, Philip E. Ulmer
Alaska Workers' Compensation Board
Raymond S. Bridges, Stephen T. Hagedorn,
Linda F. Hutchings, David B. Robinson
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                        February 9, 2006                                                                                        
                           1:30 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Con Bunde, Chair                                                                                                        
Senator Johnny Ellis                                                                                                            
Senator Bettye Davis                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Ralph Seekins, Vice Chair                                                                                               
Senator Ben Stevens                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
Confirmation Hearings                                                                                                         
Commissioner, Department of Commerce, Community & Economic                                                                      
Development - William Noll                                                                                                      
     CONFIRMATION ADVANCED                                                                                                      
                                                                                                                                
Alaska State Board of Public Accountancy - Johnny Floyd, Daniel                                                                 
J. Rozema, Elaine R. Williamson                                                                                                 
     CONFIRMATIONS ADVANCED                                                                                                     
                                                                                                                                
Alcohol Beverage Control Board - Shirley Gifford                                                                                
     CONFIRMATION ADVANCED                                                                                                      
                                                                                                                                
State Board of Registration for Architects, Engineers and Land                                                                  
Surveyors - Terry Gorlick, Burdett B. Lent, Daniel E. Walsh                                                                     
     CONFIRMATIONS ADVANCED                                                                                                     
                                                                                                                                
Board of Chiropractic Examiners - Dr. Gregory M. Culbert, Dr.                                                                   
Rosemary E. Zimmerman                                                                                                           
     CONFIRMATIONS ADVANCED                                                                                                     
                                                                                                                                
Alaska Labor Relations Agency - Matthew R. McSorley                                                                             
CONFIRMATION ADVANCED                                                                                                           
                                                                                                                                
Board of Certified Real Estate Appraisers - Steven McSwain,                                                                     
Richard D. Olmstead                                                                                                             
     CONFIRMATIONS ADVANCED                                                                                                     
                                                                                                                                
Real Estate Commission - Timothy J. Worthen                                                                                     
     CONFIRMATION ADVANCED                                                                                                      
                                                                                                                                
Workers Compensation Appeals Commission  - John Giuchici, Kristin                                                               
Knudsen, Jim E. Robinson, Marc D. Stemp, Philip E. Ulmer                                                                        
     CONFIRMATIONS ADVANCED                                                                                                     
                                                                                                                                
Alaska Workers  Compensation Board - Raymond  S. Bridges, Stephen                                                               
T. Hagedorn, Linda F. Hutchings, David B. Robinson                                                                              
     CONFIRMATIONS ADVANCED                                                                                                     
                                                                                                                              
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record.                                                                                                   
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
WILLIAM NOLL                                                                                                                    
Anchorage AK                                                                                                                    
POSITION STATEMENT:  Nominee for  commissioner of  the Department                                                             
of Commerce, Community & Economic Development (DCCED).                                                                          
                                                                                                                                
TIM WORTHEN                                                                                                                     
Anchorage AK                                                                                                                    
POSITION STATEMENT: Nominee to the Real Estate Commission.                                                                    
                                                                                                                                
JOHN GIUCHICI                                                                                                                   
Anchorage AK                                                                                                                    
POSITION STATEMENT:  Nominee to the Workers  Compensation Appeals                                                             
Commission.                                                                                                                     
                                                                                                                                
KRISTIN KNUDSEN                                                                                                                 
Anchorage AK                                                                                                                    
POSITION STATEMENT: Nominee to  the Workers' Compensation Appeals                                                             
Commission.                                                                                                                     
                                                                                                                                
JIM ROBINSON                                                                                                                    
Anchorage AK                                                                                                                    
POSITION STATEMENT: Nominee to  the Workers' Compensation Appeals                                                             
Commission.                                                                                                                     
                                                                                                                                
MARC STEMP                                                                                                                      
Bethel AK                                                                                                                       
POSITION STATEMENT: Nominee to  the Workers' Compensation Appeals                                                             
Commission.                                                                                                                     
                                                                                                                                
PHILIP ULMER                                                                                                                    
Anchorage AK                                                                                                                    
POSITION STATEMENT: Nominee to  the Workers' Compensation Appeals                                                             
Commission.                                                                                                                     
                                                                                                                                
MATTHEW R. MCSORLEY                                                                                                             
Anchorage AK                                                                                                                    
POSITION  STATEMENT:  Nominee  to   the  Alaska  Labor  Relations                                                             
Agency.                                                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR CON  BUNDE called  the Senate  Labor and  Commerce Standing                                                             
Committee meeting  to order at  1:30:35 PM. Present  were Senator                                                             
Johnny Ellis  and Chair  Con Bunde.  He said  they would  take up                                                               
confirmation hearings today.                                                                                                    
                                                                                                                                
1:31:53 PM                                                                                                                    
^CONFIRMATION HEARINGS                                                                                                        
^Commissioner,  Department of  Commerce,  Community and  Economic                                                             
Development (DCCED)                                                                                                           
                                                                                                                                
WILLIAM   NOLL  expressed   his   anticipation   of  serving   as                                                               
commissioner of  Department of  Commerce, Community  and Economic                                                               
Development. He  already served as deputy  commissioner for about                                                               
two years.  He has lived in  Alaska for about 38  years mostly in                                                               
the  Anchorage  area.  He  has  considerable  experience  in  the                                                               
private sector  in natural resource extraction  industries, power                                                               
generation, several  commercial fishing investments  and tourism.                                                               
His public experience  covers serving as city  council member and                                                               
mayor of  Seward and  member of  the Board  of Directors  for the                                                               
Alaska Sea Life Center.                                                                                                         
                                                                                                                                
SENATOR ELLIS  said consumer  protection is a  big issue  for him                                                               
and  studies indicate  that seniors,  and the  Alaskan population                                                               
generally, is targeted  by scam artists from  across the country.                                                               
He  asked Mr.  Noll  what he  saw as  the  interplay between  his                                                               
duties if  he is confirmed  and the Attorney General's  office on                                                               
consumer protection issues.                                                                                                     
                                                                                                                                
MR. NOLL replied that the  department had also identified that as                                                               
an important issue.  Mark Davis is the director  for the Division                                                               
of Banking and  Securities and he is a former  prosecutor. He was                                                               
able to  secure federal funding  of about $80,000 to  $100,000 in                                                               
cooperation  with the  Department of  Health and  Social Services                                                               
(DHSS) and kicked off a  senior fraud campaign several weeks ago.                                                               
These  funds are  matched  with  private funds  and  he said  the                                                               
program would be continued.                                                                                                     
                                                                                                                                
SENATOR ELLIS  said those  were good  answers and  he appreciates                                                               
the  efforts.  He urged  Mr.  Noll  to  follow through  with  the                                                               
campaign.                                                                                                                       
                                                                                                                                
1:37:33 PM                                                                                                                    
SENATOR  ELLIS  asked   him  what  his  general   goals  for  the                                                               
department are, because of the  continuing concern about the loss                                                               
of  some of  its community  and regional  affairs emphasis  after                                                               
consolidation of the two departments.                                                                                           
                                                                                                                                
1:38:23 PM                                                                                                                    
MR. NOLL  replied that  the Alaskan economy  is doing  very well.                                                               
The coal,  timber and mining  industries are actually  paying for                                                               
themselves.  Fishing  and tourism  is  also  moving forward.  The                                                               
Governor's Chief  of Staff, Jim  Clark, Jack Phillips  from DCCED                                                               
and the U.S.  Forest Service are collaborating on an  MOU to make                                                               
a more logical use of the Tongass Forests.                                                                                      
                                                                                                                                
The  department's overall  2006  vision includes  support of  the                                                               
commercial fishing industry's efforts  at marketing where exports                                                               
rose from  $1.74 billion in 2004  to $2 billion in  2005. Exports                                                               
were at a low  of $700 million in the late  90s. He reported that                                                               
the Community  Development Quota (CDQ) program,  which affects 65                                                               
communities out West, is also  doing well. Since its inception in                                                               
1992, communities in the program  have received over $700 million                                                               
in revenues; they are holding over  $400 million in assets and of                                                               
those assets,  $217 million are  in cash.  He said, "We  are very                                                               
proud of that."                                                                                                                 
                                                                                                                                
The  CDQ program  translates into  10 percent  of the  Bering Sea                                                               
fishing quota going to local  communities that can put that money                                                               
to work  for them. That 10  percent has been allocated  in two or                                                               
three-year cycles,  but he wants  to change that allocation  to a                                                               
10-year cycle  so a  CDQ group  could invest in  a ship  or other                                                               
capital  asset  and  have  a  10-year  instead  of  a  three-year                                                               
amortization  schedule. He  also  wants to  release the  spending                                                               
authority of the CDQ groups  from only fishing related matters to                                                               
20  percent  non-fishing  matters,  but still  remaining  in  the                                                               
region.  This has  to be  done  with transparency  so that  every                                                               
member is aware of how the money is being allocated.                                                                            
                                                                                                                                
1:44:30 PM                                                                                                                    
SENATOR DAVIS arrived.                                                                                                          
                                                                                                                                
1:45:57 PM                                                                                                                    
MR. NOLL  related how the  job centers have been  vastly improved                                                               
statewide  and described  the  Business  Outreach Program,  which                                                               
acquaints  people with  resources that  are available  to set  up                                                               
small businesses.                                                                                                               
                                                                                                                                
MR.  NOLL  admitted  that  he heard  talk  about  separating  the                                                               
commerce and community development back  out and treating it as a                                                               
separate  entity,   but  he  assured   the  committee   that  the                                                               
department had not lost any  of its professionalism. The director                                                               
of the Division  of Community Advocacy, Mike Black,  has 25 years                                                               
in state  service. That division has  50 people and they  spend a                                                               
lot  of time  on community-type  activities. They  recognize huge                                                               
problems  in  rural  Alaska  mostly   dealing  with  the  end  of                                                               
municipal revenue sharing and the  cost of energy. He was pleased                                                               
with projects like Donlin Creek and  the Pogo Mine as well as the                                                               
CDQ program where people can get jobs.                                                                                          
                                                                                                                                
CHAIR BUNDE asked for a breakdown of CDQ money by community.                                                                    
                                                                                                                                
MR. NOLL replied  that the 65 communities organized  12 years ago                                                               
into six groups.  Some have only a few communities  and some have                                                               
more  than 20.  They  have absolutely  accurate  figures and  the                                                               
department has a manager for the CDQ program.                                                                                   
                                                                                                                                
CHAIR BUNDE thanked  him for his time with the  committee and for                                                               
his willingness to serve.                                                                                                       
                                                                                                                                
1:50:10 PM                                                                                                                    
^REAL ESTATE COMMISSION                                                                                                       
                                                                                                                                
TIM WORTHEN, nominee  to the Real Estate Commission,  said he has                                                               
lived in Alaska since 1981 and he  is to fill one of the consumer                                                               
positions.                                                                                                                      
                                                                                                                                
SENATOR   ELLIS  asked   about  the   nature  of   some  personal                                                               
information that was crossed out  on his resume', but Mr. Worthen                                                               
needed a copy faxed to him before he could comment.                                                                             
                                                                                                                                
SENATOR  ELLIS asked  if he  spent a  lot of  time elsewhere  for                                                               
business  reasons, would  he be  willing  to teleconference  into                                                               
meetings.                                                                                                                       
                                                                                                                                
MR.WORTHEN replied  that he  would attend  all the  meetings even                                                               
though he travels a lot.                                                                                                        
                                                                                                                                
SENATOR ELLIS  referenced a political  campaign that  Mr. Worthen                                                               
lost and remarked  that it was an  odd thing to put  on a resume'                                                               
to the Legislature.                                                                                                             
                                                                                                                                
MR.  WORTHEN explained  that was  an attempt  to provide  a clear                                                               
picture that he has no hard feelings.                                                                                           
                                                                                                                              
^WORKERS' COMPENSATION APPEALS COMMISSION                                                                                     
1:55:36 PM                                                                                                                    
JOHN GIUCHICI,  Workers' Compensation Appeals  Commission (WCAC),                                                               
said  he   has  lived   for  52  years   in  Alaska   and  listed                                                               
organizations  in which  he participates.  He has  served on  the                                                               
Workers' Compensation Board for the  past 14 years. He understood                                                               
that the Goal  of the Commission is to speed  the appeals process                                                               
and have more  consistent rulings than have come  out of Superior                                                               
Court in the past.                                                                                                              
                                                                                                                                
1:58:07 PM                                                                                                                    
KRISTIN KNUDSEN, Chair,  Workers' Compensation Appeals Commission                                                               
(WCAC),  said she  has  worked  with a  labor  law  firm and  the                                                               
Workers'  Compensation  Board  while in  the  Attorney  General's                                                               
Office. The WCAC has only been  in existence 11 weeks and in that                                                               
time  it  has been  able  to  get  its  website up  and  running;                                                               
decisions have already  been posted on it. The  board has adopted                                                               
emergency regulations and the comment  period has now expired. It                                                               
has set up a quarterly  meeting schedule and established contacts                                                               
with  different  training  organizations like  the  International                                                               
Association of  Industrial Accident  Boards and  Commissions, the                                                               
National   Judicial   College   and,  hopefully,   the   National                                                               
Association of Women Judges.                                                                                                    
                                                                                                                                
MS.  KNUDSEN said  she  has  worked out  a  docket processes  and                                                               
identified   resources   for   the   commission   members,   like                                                               
communication systems so the members  can communicate very easily                                                               
back and forth.  Members have moved into  their permanent offices                                                               
even though the furniture is borrowed.  At this point in time, 10                                                               
appeals  and four  motions for  extraordinary review  are on  the                                                               
docket. Of those,  two of the appeals have  already been settled.                                                               
Of the  four motions for  extraordinary review, one  has settled,                                                               
one has been  decided and one has a draft  circulating. The other                                                               
is about to be heard.                                                                                                           
                                                                                                                                
SENATOR  ELLIS asked  if  the group  elected her  or  if she  was                                                               
appointed by the governor.                                                                                                      
                                                                                                                                
MS.  KNUDSEN  replied  that  she was  appointed  because  of  her                                                               
experience as an attorney and the  position of chair has to be an                                                               
attorney  admitted to  practice in  the State  of Alaska  with at                                                               
least  five  years   of  experience  in  the   area  of  Workers'                                                               
Compensation. She is the only attorney member on the commission.                                                                
                                                                                                                                
SENATOR ELLIS asked her to  describe her goals for the commission                                                               
and her guiding philosophy.                                                                                                     
                                                                                                                                
MS.KNUDSEN replied  that workers' compensation is  unique because                                                               
it is only  about 100 years old. Because it  is purely statutory,                                                               
it is derived  entire from the enabling  legislation. The members                                                               
wish to be  careful that they do  not step into the  realm of the                                                               
court in looking  at the statutes they  are essentially applying.                                                               
One of  the first goals of  the commission is to  delineate where                                                               
its authority lies.                                                                                                             
                                                                                                                                
2:04:12 PM                                                                                                                    
JIM ROBINSON,  Workers' Compensation Appeals  Commission nominee,                                                               
said  he  has  been  in  Alaska for  60  years  and  related  his                                                               
extensive  employment history  including  representing labor  and                                                               
management. He  has already served  on the  Workers' Compensation                                                               
Board.                                                                                                                          
                                                                                                                                
SENATOR  ELLIS  asked  what  he   thought  about  granting  death                                                               
benefits through  the Workers' compensation  system and  what his                                                               
philosophy is regarding the commission's work.                                                                                  
                                                                                                                                
MR.  ROBINSON  replied that  in  the  past  he had  supported  $1                                                               
million in death  benefits, but the present rate is  one that can                                                               
be dealt with.  He said the commission would have  to continue to                                                               
update regulations  according to  policies the  legislature sets.                                                               
He thought  the legislature  should ask the  ad hoc  committee to                                                               
get back together  and work on putting people back  to work, safe                                                               
work places, and guidelines to positions.                                                                                       
                                                                                                                                
2:09:27 PM                                                                                                                    
MARC  STEMP,   nominee  to  the  Workers'   Compensation  Appeals                                                               
Commission, related that he has lived  in Alaska for 32 years and                                                               
has  worked in  rural Alaska  for 30  years. He  has been  on the                                                               
Workers' Compensation  Board since 1971  and he is happy  to help                                                               
on  this  ground-breaking  commission  and views  it  as  a  real                                                               
challenge.                                                                                                                      
                                                                                                                                
2:12:30 PM                                                                                                                    
PHILIP  ULMER,  nominee  to  the  Workers'  Compensation  Appeals                                                               
Commission, testified that  he has been in  the safety profession                                                               
for  35 years  and in  workers' compensation  management for  the                                                               
last 15  years. He  came to Alaska  in 1983. He  said that  it is                                                               
critical to have  a system that moves forward and  it needs to be                                                               
fair,  expedient,   consistent,  and   adhere  to   the  Workers'                                                               
Compensation Act.                                                                                                               
                                                                                                                                
2:19:29 PM                                                                                                                    
^ALASKA LABOR RELATIONS AGENCY                                                                                                
                                                                                                                                
MATTHEW  R.  MCSORLEY,  nominee to  the  Alaska  Labor  Relations                                                               
Agency, related  how he came  to Alaska  in 1993 on  a basketball                                                               
scholarship  and became  a firefighter.  He finished  college and                                                               
became involved in the labor movement,  which has been one of his                                                               
passions through  the past eight  years. He stated that  he looks                                                               
forward to serving Alaska.                                                                                                      
                                                                                                                                
2:20:28 PM                                                                                                                    
CHAIR BUNDE  read the  names of appointees  not present,  but who                                                               
had been reviewed, into the record as follows:                                                                                  
                                                                                                                                
^ALASKA STATE BOARD OF PUBLIC ACCOUNTANCY                                                                                     
Johnny Floyd, Daniel J. Rozema, and Elaine R. Williamson                                                                        
                                                                                                                                
^ALCOHOL BEVERAGE CONTROL BOARD                                                                                               
Shirley Gifford                                                                                                                 
                                                                                                                                
^BOARD OF REGISTERED ARCHITECTS, ENGINEERS AND LAND SURVEYORS                                                                 
Terry Gorlick, Burdett B. Lent, and Daniel E. Walsh                                                                             
                                                                                                                                
^BOARD OF CHIROPRACTIC EXAMINERS                                                                                              
Dr. Gregory M. Culbert, and Dr. Rosemary E. Zimmerman                                                                           
                                                                                                                                
^BOARD OF CERTIFIED REAL ESTATE APPRAISERS                                                                                    
Steven McSwain, Richard D. Olmstead                                                                                             
                                                                                                                                
^ALASKA WORKERS' COMPENSATION BOARD                                                                                           
Raymond S. Bridges, Stephen T.  Hagedorn, Linda F. Hutchings, and                                                               
David B. Robinson                                                                                                               
                                                                                                                              
CHAIR  BUNDE  announced  that  all   the  names  would  be  moved                                                               
forwarded, but that  is not a commitment and  doesn't reflect any                                                               
intent  by  any  member  to  vote  for  or  against  any  of  the                                                               
appointees in  future floor sessions.  There were  no objections.                                                               
There being no further business  to come before the committee, he                                                               
adjourned the meeting at 2:22:57 PM.                                                                                          

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