Legislature(2005 - 2006)BELTZ 211
04/11/2006 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| CONFIRMATIONHEARING | |
| SB312 | |
| SB311 | |
| SB309 | |
| HB439 | |
| SB282 | |
| HB122 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 439 | TELECONFERENCED | |
| *+ | SB 282 | TELECONFERENCED | |
| += | HB 122 | TELECONFERENCED | |
| += | SB 311 | TELECONFERENCED | |
| += | SB 312 | TELECONFERENCED | |
| += | SB 309 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 11, 2006
1:34 p.m.
MEMBERS PRESENT
Senator Con Bunde, Chair
Senator Ralph Seekins, Vice Chair
Senator Ben Stevens
Senator Johnny Ellis
Senator Bettye Davis
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CONFIRMATION HEARING
Board of Chiropractic Examiners
Jeffrey A. Garness, Anchorage
CONFIRMATION ADVANCED
SENATE BILL NO. 312
"An Act relating to the promotion of live public events for
which tickets are sold in advance."
MOVED CSSB 312(L&C) OUT OF COMMITTEE
SENATE BILL NO. 311
"An Act relating to the athletic commission and the commissioner
of athletics; and relating to boxing, sparring, and wrestling
contests, matches, and exhibitions."
HEARD AND HELD
SENATE BILL NO. 309
"An Act establishing a construction trades training grant
program for award by the Department of Labor and Workforce
Development, providing for special employee unemployment
contributions to fund the program and an offsetting credit
against the employees' general unemployment contribution, and
providing for an expiration date for the program, contributions,
and credit; and providing for an effective date."
MOVED CSSB 309(L&C) OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 439(L&C) am
"An Act relating to authorizing the state to join with other
states in entering into the Interstate Insurance Product
Regulation Compact."
HEARD AND HELD
SENATE BILL NO. 282
"An Act relating to the use of broadcasting to promote raffles
and lotteries."
HEARD AND HELD
CS FOR HOUSE BILL NO. 122(FIN)
"An Act relating to certain relief concerning motor vehicle
leases, telephone services, education, utilities, state loans,
and hunting, fishing, and trapping licenses for members of the
Alaska National Guard deployed to a combat zone; relating to
reimbursement of premiums for Service members' Group Life
Insurance paid by members of the Alaska National Guard deployed
to a combat zone; and providing for an effective date."
HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 311
SHORT TITLE: ATHLETIC COMMISSION; BOXING & WRESTLING
SPONSOR(s): LABOR & COMMERCE
03/24/06 (S) READ THE FIRST TIME - REFERRALS
03/24/06 (S) L&C, FIN
04/04/06 (S) L&C AT 1:30 PM BELTZ 211
04/04/06 (S) Heard & Held
04/04/06 (S) MINUTE(L&C)
04/11/06 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 312
SHORT TITLE: CONCERT OR ATHLETIC EVENT PROMOTERS
SPONSOR(s): LABOR & COMMERCE
03/24/06 (S) READ THE FIRST TIME - REFERRALS
03/24/06 (S) L&C, FIN
04/04/06 (S) L&C AT 1:30 PM BELTZ 211
04/04/06 (S) Heard & Held
04/04/06 (S) MINUTE(L&C)
04/11/06 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 309
SHORT TITLE: CONSTR. TRAINING GRANT;UNEMPLOYMENT COMP.
SPONSOR(s): STATE AFFAIRS
03/15/06 (S) READ THE FIRST TIME - REFERRALS
03/15/06 (S) L&C, FIN
03/28/06 (S) L&C AT 1:30 PM BELTZ 211
03/28/06 (S) Heard & Held
03/28/06 (S) MINUTE(L&C)
03/30/06 (S) L&C AT 1:30 PM BELTZ 211
03/30/06 (S) Bill Postponed
04/11/06 (S) L&C AT 1:30 PM BELTZ 211
BILL: HB 439
SHORT TITLE: INSURANCE PRODUCT REGULATION COMPACT
SPONSOR(s): REPRESENTATIVE(s) COGHILL
02/10/06 (H) READ THE FIRST TIME - REFERRALS
02/10/06 (H) L&C, JUD
03/01/06 (H) L&C AT 3:15 PM CAPITOL 17
03/01/06 (H) Moved CSHB 439(L&C) Out of Committee
03/01/06 (H) MINUTE(L&C)
03/03/06 (H) L&C RPT CS(L&C) NT 3DP 3NR
03/03/06 (H) DP: LYNN, ROKEBERG, KOTT;
03/03/06 (H) NR: CRAWFORD, LEDOUX, GUTTENBERG
03/22/06 (H) JUD AT 1:00 PM CAPITOL 120
03/22/06 (H) <Bill Hearing Postponed to 03/24/06>
03/24/06 (H) JUD AT 1:00 PM CAPITOL 120
03/24/06 (H) Scheduled But Not Heard
03/27/06 (H) JUD AT 1:00 PM CAPITOL 120
03/27/06 (H) Moved CSHB 439(L&C) Out of Committee
03/27/06 (H) MINUTE(JUD)
03/28/06 (H) JUD RPT CS(L&C) NT 4DP 2AM
03/28/06 (H) DP: COGHILL, ANDERSON, KOTT, MCGUIRE;
03/28/06 (H) AM: GARA, GRUENBERG
04/05/06 (H) TRANSMITTED TO (S)
04/05/06 (H) VERSION: CSHB 439(L&C) AM
04/07/06 (S) READ THE FIRST TIME - REFERRALS
04/07/06 (S) L&C, JUD
04/11/06 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 282
SHORT TITLE: BROADCASTING PROMOTING CHARITABLE GAMING
SPONSOR(s): SENATOR(s) STEVENS G
02/13/06 (S) READ THE FIRST TIME - REFERRALS
02/13/06 (S) L&C, STA
04/11/06 (S) L&C AT 1:30 PM BELTZ 211
BILL: HB 122
SHORT TITLE: NATIONAL GUARD INSURANCE & OTHER RELIEF
SPONSOR(s): REPRESENTATIVE(s) DAHLSTROM
02/02/05 (H) READ THE FIRST TIME - REFERRALS
02/02/05 (H) MLV, L&C, FIN
02/02/05 (H) L&C REFERRAL REMOVED
02/17/05 (H) MLV AT 1:00 PM CAPITOL 124
02/17/05 (H) Heard & Held
02/17/05 (H) MINUTE(MLV)
03/17/05 (H) MLV AT 1:00 PM CAPITOL 124
03/17/05 (H) Moved CSHB 122(MLV) Out of Committee
03/17/05 (H) MINUTE(MLV)
03/21/05 (H) MLV RPT CS(MLV) NT 6DP
03/21/05 (H) DP: THOMAS, GRUENBERG, CISSNA, ELKINS,
MCGUIRE, LYNN
03/31/05 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/31/05 (H) <Bill Hearing Postponed to Tues.
4/5/05>
04/05/05 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/05/05 (H) Heard & Held
04/05/05 (H) MINUTE(FIN)
04/06/05 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/06/05 (H) Moved CSHB 122(FIN) Out of Committee
04/06/05 (H) MINUTE(FIN)
04/07/05 (H) FIN RPT CS(FIN) NT 10DP 1NR
04/07/05 (H) DP: HAWKER, HOLM, FOSTER, KELLY, CROFT,
JOULE, STOLTZE, MOSES, MEYER, CHENAULT;
04/07/05 (H) NR: WEYHRAUCH
04/14/05 (H) TRANSMITTED TO (S)
04/14/05 (H) VERSION: CSHB 122(FIN)
04/15/05 (S) READ THE FIRST TIME - REFERRALS
04/15/05 (S) L&C, FIN
04/26/05 (S) L&C AT 1:30 PM BELTZ 211
04/26/05 (S) -- Meeting Canceled --
05/05/05 (S) L&C AT 1:30 PM BELTZ 211
05/05/05 (S) -- Rescheduled to 05/06/05 --
05/06/05 (S) L&C AT 1:30 PM FAHRENKAMP 203
05/06/05 (S) -- Meeting Canceled --
04/11/06 (S) L&C AT 1:30 PM BELTZ 211
WITNESS REGISTER
JANE ALBERTS
Staff to Senator Con Bunde
State Capitol
Juneau AK
POSITION STATEMENT: Commented on SB 312 for the sponsor.
JILL HAAG SMART
Anchorage Amateur Boxing Club
Anchorage AK
POSITION STATEMENT: Opposed SB 311.
SENATOR GENE THERRIAULT
State Capitol
Juneau AK
POSITION STATEMENT: Sponsor of SB 309.
GREG O'CLARAY, Commissioner
Department of Labor & Workforce
Development
PO Box 21149
Juneau, AK 99802-1149
POSITION STATEMENT: Commented on SB 309.
WENDY REDMAN, Vice President
University Relations
University of Alaska Statewide System
Anchorage AK
POSITION STATEMENT: Supported SB 309.
REBECCA LOGAN, President
Associated Builders and Contractors of Alaska (ABC)
360 W. Benson
Anchorage AK
POSITION STATEMENT: Opposed SB 309.
DICK CATTANACH
Associated General Contractors (AGC)
Anchorage AK
POSITION STATEMENT: Supported SB 309.
REPRESENTATIVE JOHN COGHILL
State Capitol
Juneau AK
POSITION STATEMENT: Sponsor of HB 439.
LINDA HALL, Director
Division of Insurance
Department of Commerce, Community & Economic Development
PO Box 110800
Juneau, AK 99811-0800
POSITION STATEMENT: Supported HB 439.
JOHN GEORGE
American Counsel of Life Insurers
Juneau AK
POSITION STATEMENT: Supported HB 439.
SENATOR GARY STEVENS
State Capitol
Juneau AK
POSITION STATEMENT: Sponsor of SB 282.
DAN STICKLE, Economist
Department of Revenue
PO Box 110400
Juneau, AK 99811-0400
POSITION STATEMENT: Commented on SB 282.
DENNIS BOOKEY, General Manager
Morris Communications
Anchorage AK
POSITION STATEMENT: Supported SB 282.
REPRESENTATIVE NANCY DAHLSTROM
State Capitol
Juneau AK
POSITION STATEMENT: Sponsor of HB 122.
ACTION NARRATIVE
CHAIR CON BUNDE called the Senate Labor and Commerce Standing
Committee meeting to order at 1:34:44 PM. All members were
present at the call to order.
^#CONFIRMATION HEARING
#^Board of Chiropractic Examiners
CHAIR BUNDE announced that the confirmation hearing for the
Board of Chiropractic Examiners would be the first order of
business.
1:40:31 PM
SENATOR SEEKINS moved to forward the name of Jeffrey A. Garness,
Anchorage, for the Board of Chiropractic Examiners to the full
body for consideration. There were no objections and it was so
ordered.
SB 312-CONCERT OR ATHLETIC EVENT PROMOTERS
CHAIR BUNDE announced SB 312 to be up for consideration.
JANE ALBERTS, staff to Senator Bunde, explained that amendments
had been drafted based on discussions last week in committee and
that language on page 3, lines 16 - 17, said all of the net
proceeds from the covered event would go to nonprofit
corporations.
CHAIR BUNDE explained that the idea was to change the situation
in which Mothers Against Drunk Driving could hire someone to put
on an event and all the profits would have to go to the
organization rather than to the workers. This language would
allow people to work on a contingency basis with the net
proceeds going to the nonprofit. Currently, pulltab nonprofits
get a bigger percentage of the profits.
MS. ALBERTS explained that language in statute now says that a
promoter would be exempt if they operated within a municipality
having a population of 10,000 or less. She said she didn't think
the intent of this bill was to limit an individual who might be
known in his small community for bringing in music events or
other things enjoyed by the community and the committee could
consider keeping that in statute.
CHAIR BUNDE explained the other side of the issue is that a
promoter could abuse people in small communities as well as big
communities.
MS. ALBERTS agreed that a promoter could sell tickets and not
follow through with a show in a community of any size. She said
that educational organizations do not have an IRS status of
502(3)(c).
1:42:09 PM
CHAIR BUNDE moved conceptual Amendment 1 on page 3, lines 16 -
17, to insert "net" before "proceeds". There were no objections
and it was so ordered.
1:42:29 PM
CHAIR BUNDE moved Amendment 2 on page 3, to list exemptions in
Section 08.92.070 and objected for discussion purposes.
1:42:51 PM
SENATOR SEEKINS commented that he didn't have a problem with
restricting the same type of promotions for a small community as
for a large community unless it was a locally-sponsored
community event and was promoted by someone in the community.
1:43:48 PM
CHAIR BUNDE said that Amendment 2 could be amended to apply to a
promoter who was residing in a municipality. There were no
objections to Amendment 1 to Amendment 2.
1:45:08 PM
CHAIR BUNDE moved to adopt Amendment 3 that exempted educational
organizations. There were no objections and it was so ordered.
1:45:25 PM
SENATOR SEEKINS moved to report CSSB 312(L&C) from committee
with individual recommendations and attached fiscal note.
Senators Davis, Ben Stevens, Ellis, Seekins, and Chair Bunde
voted yea; and without objection CSSB 312(L&C) moved from
committee.
SB 311-ATHLETIC COMMISSION; BOXING & WRESTLING
CHAIR BUNDE announced SB 311 to be back before the committee.
1:46:29 PM
JILL HAAG SMART, Anchorage Amateur Boxing Club, said her club is
regulated by U.S.A. Boxing. She said that there are seven
promoters now and when the Athletic Commissioner sunsetted,
there were only two. Violations are now happening throughout the
state concerning youth and health issues.
The Athletic Commission had different regulations for things
like a 50 lb. limit on competing, but currently that rule is not
being followed and you could now see a 300-pounder fight a 150-
pounder. She knows of one fighter who was fighting here with a
detached retina, because he would not be allowed to compete down
south due to that injury. Two promoters are doing "cage
fighting" which is boxing and wrestling combined. She was also
concerned about potential conflicts between promoters from
trying to outdo each other with prize money.
MS. SMART also related that she has seen promoters in Ketchikan
and Wasilla using fighters as young as age 15 to fill cards and
you might see a 15-year old fighting a 19-year old in the early
hours of the morning in an alcoholic environment. The only thing
that is required for that to happen is a waiver signed by a
parent. This activity would eliminate a young fighter from ever
competing as an amateur in USA Amateur boxing.
CHAIR BUNDE said he appreciated her bringing this issue to the
committee's attention and said he would like to hold the bill
and consider the need for additional enforcement rather than
elimination of the commission.
1:50:47 PM
SENATOR BEN STEVENS asked if seven promoters are active now.
MS. HAAG replied yes - two in Fairbanks - one has cage fighting
or "ultimate" boxing and the other is club-boxing - one in
Ketchikan, one in Juneau, one in Wasilla and two in Anchorage.
She said there are up to 12 events per month around the state
mainly September through April.
1:51:58 PM
SENATOR BEN STEVENS asked if the ultimate matches would fall
under the promoters' bill if the Boxing Commission were
eliminated.
MS. SMART replied yes.
CHAIR BUNDE said he didn't think the Boxing Commission had
specific regulations for the safety issues she mentioned and he
wanted to hold the bill for more discussion.
1:53:20 PM
SB 309-CONSTR. TRAINING GRANT;UNEMPLOYMENT COMP.
CHAIR BUNDE announced CSSB 309(L&C), Version I, to be up for
consideration.
SENATOR GENE THERRIAULT, sponsor of SB 309, said that questions
were generated at the last hearing about the limitations of the
apprenticeship program and who sets them. He explained:
Per the U.S. Department of Labor, nationally, there
are 937 apprenticeship occupations approved. In Alaska
there are 275 employer-sponsors with registered
apprenticeship programs with 1,900 apprentices. There
are 71 occupations in Alaska, which have apprentices.
Eighty-five percent of the programs are non-union,
single employers and 15 percent are union-joint
apprenticeship training committee programs, which are
JATC. Eighty-five percent of the total apprentices are
in the union, JATCs.
In 2003, the Alaska Legislature enacted a law
requiring an individual to be in a registered
apprenticeship program in order to obtain a training
card for plumber, electrician and power-line
occupations. This caused an increase in the programs
and apprenticeships in those fields.
SENATOR THERRIAULT said there were questions last time about
incorporating a voucher program and he found that the state
currently offers something fairly similar to a voucher program
called the Individual Training Accounts (ATC). He explained that
ATCs are established in a partnership consisting of the job
center case manager, the worker and the trainer. The worker can
freely choose between a union or non-union training provider and
the subsidies that were paid over the last two fiscal years to
employers totaled $330,000. He said that more questions were
raised about other salaries and types of subsidies that exist
under the STEP and other state programs, if any.
1:56:41 PM
GREG O'CLARAY, Commissioner, Department of Labor and Workforce
Development (DOLWD), explained that the state has many different
programs - depending on the applicant. Employers can approach
the DOLWD to offset some costs associated with the training of
new workers - up to 50 percent of the wage over a defined period
of time. The efficiencies of the employer go down when they
spend time training new workers.
CHAIR BUNDE said he heard questions about accountability and how
the state knows funds are being used for their intended
purposes.
COMMISSION O'CLARAY responded that the funds are monitored very
closely. In many cases, individuals have a case manager. The
grant program has managers that monitor performance criteria.
CHAIR BUNDE related other concerns that funds in this bill would
not be distributed fairly between union and non-union entities.
SENATOR THERRIAULT replied that he heard from the Associated
Builders and Contractors of Alaska (ABC) that the problem was
finding employers who were willing to actually take on a trainee
who has lower productivity and who also detracts from an
experienced worker while he is sharing his skills - although, he
said, the state has some programs that help the employer with
that salary. He asked the Department if the current system was
at its capacity and he was told that those subsidies were
limited by the overall annual training funds made available by
the state, the lifetime limits and costs per participant, the
limits set by federal regulations and the number of employers
who are willing to share the on-the-job training type of
agreement with an individual.
He related that ABC said it was not really interested in being a
grants recipient and would rather have the individual employer
receive the money.
Another question was brought up regarding whether individual
contractors who belong to the ABC should be able to avail
themselves of the department's funds and other support services
for training directly without a union umbrella organization to
apply for them. Senator Therriault found that they are currently
able to do that. He said one of the criticisms is that the
proposed program is run through a union umbrella organization,
but yet the ABC didn't want to be a grant recipient, itself -
and rather wanted the individual employer or worker to get
assistance if they choose to do the training through some other
mechanism. It appears that the voucher system was already in
place, but he was open to discussing more funding.
2:01:56 PM
SENATOR SEEKINS remarked that the apprentice-journeymen ratio
used to be two journeymen to one apprentice and asked
Commissioner O'Claray if that was still the case.
COMMISSIONER O'CLARAY answered that the Federal Bureau of
Apprenticeship Training adopted the ratio of one to one and one
to three for each apprentice after the first apprentice until
recently. He just received word that it was now approving
apprenticeship ratios of one-to-one in all its pre-approved
programs in Alaska - in recognition that more slots need to be
opened.
2:03:43 PM
SENATOR SEEKINS said he thought that was an improvement. He said
the one-to-one apprenticeship program in the automotive industry
at the University of Alaska had been very successful.
2:04:27 PM
SENATOR THERRIAULT pointed out that if this funding mechanism
were put in place, it would take pressure off the STEP program
funding. He referenced an ABC suggestion to allocate 30 percent
of the funds to pre-apprenticeship training in high schools
where basic math and reading and writing skills were needed. ABC
didn't want the money used for capital projects or to purchase
capital equipment. However, the University would say it is not
equipped to do some of the training where access to heavy
equipment is needed and Senator Therriault agreed that there is
probably a need to purchase some of that equipment. He thought
the bill hit all the points between the interplay of the
proposed program and the STEP program.
CHAIR BUNDE cautioned that Department of Labor data indicated
the smallest part of Alaska's population in the next 20 years is
predicted to be the 30 to 50-year olds. The largest part will be
zero to five and 50 to 85.
2:07:43 PM
SENATOR SEEKINS asked if language could be added to direct the
money to the DOLWD for a grant to AWP or another organization
determined by the commissioner to be able to provide similar
training - still meeting stringent requirements.
SENATOR THERRIAULT replied he was open to that concept and added
that the University of Alaska supported the bill.
2:10:19 PM
WENDY REDMAN, Vice President, University Relations, Statewide of
Alaska University System, said she has the vocation and work
training programs under her aegis. The University initiated a
statewide forum with both the construction and oil and gas
industries to try and get a handle on where the jobs were over
the course of the next decade. She said, "So, I have a really
good and scary understanding of the incredible needs that we
have to do job training in the state."
MS. REDMAN said that Alaska Works is a very valuable partner for
the University and that it didn't have a lot of capacity
particularly in the construction area - Juneau has a small
construction technology program and a small one runs in rural
Alaska. Some training is done in Fairbanks through the Hutchison
Career Center in collaboration with the unions. Faculty is
shared back and forth and union or non-union has never been an
issue. The University can't function that way.
Alaska Works has helped the University write a grant for
development of construction training in rural Alaska that it has
pulled out of, but the program has continued to be successful.
She emphasized the need the state has to make an investment in
this kind of training and strongly felt that the funding needed
to go through the formal apprenticeship-training program. She
hoped that ABC would do more training because funding could be
tripled and it still would not be enough to meet the need a gas
line would create. She said the construction industry alone is
down about 3,000 workers from what it needs and a big block
right now is in the capacity of the apprenticeship programs.
MS. REDMAN said she was sensitive to the input problem. People
come out of high school or drop out thinking they can get into
an apprenticeship program, but it takes higher qualifications to
get into most of the apprenticeship programs than it does to get
into the University. It is an open admission institution and the
Plumbers and Pipefitters require college algebra and would like
people to have calculus, too. The University has been working
with the schools and others to get funding for the Youth
Initiative and she has put in place a program called Preparation
for the Trades. The construction math program is particularly
popular right now and that provides remedial work to get people
ready to go into the trades. She concluded:
So, anything we can put into the high schools to
elevate the level of academic expertise that the kids
have coming out so that they are ready to go into
these jobs will be money well spent, as well.
I strongly support it; I recognize some of the
concerns that you were talking about earlier, but I
think there are other options to deal with alternative
training, the salary subsidies - that was the first
time I'd heard about that today -
CHAIR BUNDE noted there were no questions of Ms. Redman and
began taking other testimony.
2:14:37 PM
REBECCA LOGAN, President, Associated Builders and Contractors of
Alaska (ABC), opposed SB 309. She said that most of the training
for Alaska's workforce is done outside of the federally
registered apprenticeship programs and those are the programs
that are getting all the funding, but can't meet the demand. On
the issue of Alaska Works being the organization that receives
the money, it is a union-funded program and she has a problem
with that and felt the bill provided ample opportunity to divide
the money in a fair way.
2:16:41 PM
CHAIR BUNDE asked if Senator Therriault was accurate in saying
that ABC didn't want to set up a competing organization to
Alaska Works.
MS. LOGAN replied that it is more accurate to say that ABC would
be interested in being a conduit for giving money to employers
who are interested in training.
2:17:13 PM
SENATOR BEN STEVENS asked if any of the ABC programs participate
in the STEP program at this point.
MS. LOGAN answered that ABC applied once, but was denied. She
informed them that last year the STEP program had $1.2 million
available to the construction industry for training and $1.1
million of it went to union apprenticeship programs with the
remainder going to an independent employer and to NIT.
SENATOR BEN STEVENS asked if she knew of nonunion training
programs receiving public funds.
MS. LOGAN replied no even though ABC runs a federally registered
apprenticeship program in ten different trades. Its biggest push
was in the electrical and mechanical trades because of the legal
requirement for a fitness card, which the employers pay for. She
was not aware of another nonunion program in the construction
industry that received funds for apprenticeships.
2:18:37 PM
DICK CATTANACH, Associated General Contractors (AGC), supported
SB 309 saying AGC has long recognized the significant labor
shortage facing the state and that half the trade workers would
be lost over the next decade. This comes at a time when fewer
people are choosing to enter the construction industry. All
kinds of strategies are being tried to appeal to the younger
workers. Many kids leave high school and they are ill prepared
to be apprentices because they don't have the basic skills. When
he went to school, a student would go through a shop class and
schools would provide a basic feeding ground into construction.
That isn't available because schools have backed away from shop
classes and students don't have the skills to qualify getting
into an apprenticeship program. The problem is bigger than
industry can deal with on its own.
CHAIR BUNDE remarked that he thought he shared a goal with Mr.
Cattanach of recognizing and promoting the dignity of working
with one's hands. They have both found perhaps a basic lack of
interest in work ethic.
MR. CATTANACH related how a survey of Fairbanks students from
ages 17 to 25 that indicated a lot of people knew about
construction trades, but because the work was too hard, they
were going to get a job in the government. Construction
represents about 6 percent of the Alaska workforce and it has to
capture over 20 percent of the high school graduates. "It's a
severe labor problem and it's not just construction; it's
everybody. We need a trained workforce and this is a good first
step."
2:24:04 PM
SENATOR BEN STEVENS asked him to explain the public policy of
local hire that prevents importation of workers that he referred
to earlier.
MR. CATTANACH answered that the Administration has a policy of
Alaskan jobs for Alaskans and it will fine employers who exceed
10 percent nonresident hire. Construction companies are forced
to file certified payrolls and his members get fined regularly
for not meeting those goals. Between 16 and 20 percent of AGC's
workforce is from outside are currently violating public policy.
CHAIR BUNDE asked if being in Alaska one month would qualify
someone as a resident.
MR. CATTANACH replied that the state uses the definition of
qualifying for a Permanent Fund dividend.
SENATOR BEN STEVENS asked if Mr. Cattanach mentioned that Alaska
Works Partnership trades focuses on vocations that incorporate 6
percent of the Alaskan workforce.
MR. CATTANACH indicated that was correct.
SENATOR BEN STEVENS said that the Unemployment Insurance (UI)
payment applies to 100 percent of the workforce.
MR. CATTANACH replied that is correct, but what is missing in
his comments is that the Workforce Development Board and the
Department of Labor have identified construction as the number-
one priority for the state. Construction and health care are the
two greatest needs the state has in the next decade. "We need to
do something for both of those areas if we are going to be able
to deal with it."
He elaborated that when Alaska built the oil pipeline, it was
able to import a lot of workers. The wages and hours were
attractive enough to attract a lot of people. Now, construction
labor is short nationwide and it will be harder to import
workers.
2:27:41 PM
SENATOR SEEKINS proposed an amendment on page 2, line 12, to
delete "successor" and on page 2, lines 12 and 13 to delete
"the principal purpose which is providing" and insert "the
commissioner has determined is able to successfully provide"
after "nonprofit corporation".
SENATOR ELLIS objected saying the system works fine now and the
change didn't seem necessary.
SENATOR SEEKINS replied that he supported the bill's objective
of training people to fill open jobs and he agreed that the
current system was working. His intent was to allow other
organizations to be able to set up a similar system to have the
ability to produce the same kind of results and leave that
discretion up to the commissioner.
SENATOR ELLIS asked what qualifications the commissioner would
use to make such a determination.
SENATOR SEEKINS remembered back when he was in the construction
trade and had a journeyman's card in the carpenter's union and
was a certified mill rate welder, he had to meet standards of
performance and needed to take tests on book learning and had to
perform to a particular skill level. He thought the commissioner
could successfully quantify similar standards.
SENATOR ELLIS asked if the commissioner would have to determine
a new organization to be equal to the existing Alaska Works
partnership in terms of performance, standards and expertise.
SENATOR SEEKINS replied yes.
SENATOR THERRIAULT commented that in reality Alaska Works is
probably going to be the odds-on favorite, but if another group
could meet the same standards, not precluding them from the get-
go was acceptable to him. As long as it could promise to meet
the same objectives and live by Subsection (e) and deliver the
product each year, it would be eligible.
CHAIR BUNDE asked if the language was permissive.
SENATOR THERRIAULT replied that it was permissive, but Alaska
Works has already been doing it for a number of years and would
be the odds-on favorite for a majority of the funds.
2:33:36 PM
CHAIR BUNDE called for a vote on Amendment 1. Senators Ellis and
Davis voted nay; Senators Ben Stevens and Seekins and Chair
Bunde voted yea; so, Amendment 1 was adopted.
2:34:07 PM
SENATOR SEEKINS moved to report CSSB 309(L&C) from committee
with individual recommendations.
2:34:35 PM
SENATOR BEN STEVENS objected to say he agreed with the vision of
more individuals being trained in the trades in anticipation of
the project that is mentioned on page 2, lines 15 and 16, but
from testimony on other pieces of legislation that have come
through the committee, he found it odd that those entities that
were trying to set up a training program for future jobs were
not promoting the project that creates the future jobs. He
wanted to see the representatives of the trade unions come
forward and say they support the construction of the gas
pipeline in order for him to support this bill - especially if
they would be using funds that are generated from other workers
across the state. He summarized:
If there is a "no" decision on the pipeline, there is
going to be no need for this program - at the level
that they are talking about - granted we all
understand there's a need for the aging workforce....
With that, Mr. Chairman, I'll remove my objection.
Senators Davis, Seekins, Ellis, Ben Stevens and Chair Bunde
voted yea; and CSSB 309(L&C) was reported from committee.
CSHB 439(L&C) AM-INSURANCE PRODUCT REGULATION COMPACT
CHAIR CON BUNDE announced CSHB 439(L&C) AM to be up for
consideration.
REPRESENTATIVE JOHN COGHILL, sponsor of HB 439, explained that
it would standardize products that are beneficial for the state
of Alaska. He was asked to do it, but he also supported it. It
would include the state in an interstate compact dealing with
life insurance products like life insurance annuities and long
term care products. He thought the nature of the insurance
industry demanded this because it wasn't as closely regulated on
a state-by-state basis and the federal government would probably
develop guidelines. The director of the Division of Insurance
would be a part of the commission so changes that may happen
would be well known and he thought this would be a better way to
do it.
CHAIR BUNDE asked him if he felt this bill would benefit Alaska
in terms of him being a state's rights, smaller government
person.
REPRESENTATIVE COGHILL replied yes and that Alaska could pull
out of the compact if "it starts yanking our chain" or if
consumers were not protected. However, he pointed out that the
compact has better consumer protections than some of the things
the state already is doing. He said the director could explain
those in much better detail.
2:43:10 PM
LINDA HALL, Director, Division of Insurance, said that she did
not request this bill to be introduced. She explained that the
interstate compact has been a creature of the National
Association of Insurance Commissioners and it has already been
adopted by 21 states. Twenty-six states must adopt this compact
before it can become effective. It originated with the
recognition that the insurance marketplace was changing - with a
lot of overlap in bank and insurance products. There is also
recognition of the increased mobility of the population.
One of the issues that has become a problem around the country
is uniform filing and getting new products to consumers. So,
there has been a real push to do "speed market" - a single
uniform standard single-filing system. The state participates in
"SERF," an electronic filing system that facilitates products
getting to consumers.
2:45:13 PM
MS. HALL noted her concern is that there is a growing push for
federal regulation of insurance, which would cause a loss of
consumer protection here. She explained that the "Optional
Federal Charter" was sponsored by some of the life insurance
companies who were looking for a more efficient way of being
regulated as opposed to having 50 different state regulators
with 50 different sets of rules and it was introduced last week
in Congress.
The basic structure is that each state that is a member of the
compact would send a delegate to that commission; the chief
regulator in Alaska is the director. For anything to occur in
that body would take a two-thirds majority vote. She said these
products don't include health insurance or property liability
workers' compensation type of insurances.
If a state chooses to opt out of a standard, it has 10 days to
do so and must provide some rationale for why it doesn't protect
its consumers. Legislatures can opt out at any time. The
commission is delegated the authority to adopt these standards.
It will only look at individual and group life insurance
annuities, disability income insurance and long-term care
products.
Her observation on this bill is that the insurers would still be
able to determine where they want to file their product -
through the traditional system with the state or through the
commission.
The original fear of this kind of proposal was that whatever
standards were accepted would be the lowest common denominator,
but she would not be here talking about this bill if she thought
would happen. She said there have been six meetings so far on
adopting standards and they now exceed those in Alaska statute.
For instance, the state has no standard for a "free look" which
is when a consumer has 10 days to look at a product and give it
back without any kind of penalty. She thought that kind of thing
would be good. She thought other good provisions would be for
creating binding arbitration and adopting readability standards.
MS. HALL also explained that generally the insurers who write
these products file their national products with her division
and she was already seeing a lot of filings for products that
exceed the state's statutory standards. Because it's easier and
more efficient than filing 50 separate products in 50 different
states, insurance companies were filing to the highest standard
and she was seeing the benefits from that. Standards help
insurance companies more readily get their products in the
marketplace, which is where they look for a competitive
advantage. Both the National Conference of State Legislatures
(NCSL) and the National Conference of Insurance Legislators
(NCOIL) have endorsed this compact and that this legislation has
been introduced in 16 other legislatures this year.
2:49:40 PM
CHAIR BUNDE asked if it's more likely to happen sooner than
later.
MS. HALL replied yes.
2:50:07 PM
JOHN GEORGE, American Counsel of Life Insurers, said he asked
for this legislation and Ms. Hall did a great job of explaining
it. He offered to answer questions, but there were none.
CHAIR BUNDE said he would hold HB 439 and bring it up again at
the first available opportunity.
2:51:19 PM at ease 2:53:36 PM
SB 282-BROADCASTING PROMOTING CHARITABLE GAMING
CHAIR BUNDE announced SB 282 to be up for consideration.
SENATOR GARY STEVENS, sponsor of SB 282, explained that it
levels the playing field for broadcasters to promote raffles and
lotteries in this state. Currently, radio and TV are banned from
advertising charitable games whereas newspapers are free to
advertise the same activities. Statutes also impede stations
from assisting not-for-profit organizations in raising money and
may also deny broadcasters equal protection under the federal
and state constitutions sections dealing with broadcast media
that are also engaged with print media. For example, local
church raffles cannot be promoted by local radio and TV stations
and Boy Scout fund raisers involving raffles may not be included
in public service announcements; not-for-profit groups, such as
the Boys and Girls Clubs, are excluded from promoting fund
raisers involving games of chance on radio and TV - even though
they can advertise in the print media; various statewide events,
such as the Iditarod, may not be promoted by broadcasters.
2:55:55 PM
SENATOR SEEKINS asked if lotteries were legal in Alaska and if
he anticipated any lotteries arriving from outside the state.
SENATOR GARY STEVENS replied that radio broadcasters could
better answer that question and he did not anticipate out of
state lotteries coming to the state.
CHAIR BUNDE thought that "lottery" and "raffle" might need a
definition.
SENATOR SEEKINS asked him to explain how this related to the
Iditarod.
REPRESENTATIVE GARY STEVENS replied that various statewide fund
raising activities such as the Iditarod may not be promoted by
broadcasters.
SENATOR SEEKINS recalled that certain Calcutta-type events were
allowed last year for groups like the Iditarod - that really
weren't a lottery process.
2:58:30 PM
CHAIR BUNDE noted that he had received information saying that
rat racing was prohibited from advertising. He then asked the
Department of Revenue representative about the definition of
raffle and lottery.
2:59:07 PM
DAN STICKLE, Economist, Department of Revenue, explained that
raffle and lottery were defined the same way in AS 05.15.690,
Section 38, as "the selling of rights to participate in the
awarding of prizes in a game of chance conducted by the drawing
for prizes by lot."
3:00:20 PM
CHAIR BUNDE asked if the impetus behind the bill was equal
access to advertising dollars by broadcast media.
REPRESENTATIVE GARY STEVENS replied yes.
3:01:30 PM
DENNIS BOOKEY, General Manager, Morris Communications,
Anchorage, said he manages six radio stations. He also has a
personal interest in an AM/FM small operation in Kodiak. He was
the past president of the Alaska Broadcasters' Association when
the original statute was enacted. He said that broadcasters
aren't asking to expand gaming, but just don't want one form of
media to be excluded over another. Most of this is public
service oriented; the money isn't very significant.
3:03:03 PM
CHAIR BUNDE asked why the original prohibition was created.
MR. BOOKEY replied that the FCC had regulations against this,
but the federal government realized that the restriction on
broadcasters for a charitable nonprofit organization did not fit
with the times and changed the law. It gave states time to come
up with their own law. At first broadcasters wanted to take
advantage of the change by doing some games of chance on the air
since they were already nonprofits. The Attorney General
suggested that while there was nothing in the law precluding
them from doing it, it might be a good idea to get a law saying
they could. The current statute brought that point up, but an
amendment was added that precluded it and broadcasters were not
able to stop it. He said, "So, it kind of got convoluted in the
process."
3:04:45 PM
CHAIR BUNDE asked if this legislation had a companion bill.
SENATOR GARY STEVENS replied yes.
CHAIR BUNDE said he didn't understand the prohibition for the
animal classics. He asked Senator Gary Stevens to explore that
for the next meeting.
SENATOR ELLIS asked if there is any limitation on these being
501(c)(3)s or some other category in state or could outside
charitable interests run their games here and advertise if this
were to be allowed.
SENATOR GARY STEVENS responded that he would find that out as
well for the next meeting.
3:05:39 PM
CHAIR BUNDE said he would hold SB 282 for a future meeting.
CSHB 122(FIN)-NATIONAL GUARD INSURANCE & OTHER RELIEF
CHAIR BUNDE announced CSHB 122(FIN) to be up for consideration.
SENATOR RALPH SEEKINS moved to adopt SCS CSHB 122(L&C), version
T, as the working document. There were no objections and it was
so ordered.
REPRESENTATIVE NANCY DAHLSTROM, sponsor of HB 122, explained
that it provides life insurance reimbursement as well as
complimentary hunting and fishing licenses to Alaska Guardsmen
during deployment on active duty in the military.
3:08:39 PM
CHAIR BUNDE noted a negative impact of $7,100 for the hunting
licenses and $300,000 for the life insurance premiums.
3:09:16 PM
SENATOR SEEKINS asked for clarification of the two years after
deployment for complimentary hunting and fishing licenses and if
an individual could live in another state and come back to
Alaska and still get a complimentary license.
REPRESENTATIVE DAHLSTROM replied they must return to live in
Alaska and apply for the license within two years of being back.
CHAIR SEEKINS asked how long the license was good for.
REPRESENTATIVE DAHLSTROM replied the usual time period of one
year. The intent is for a one-year exemption.
3:10:32 PM
SENATOR SEEKINS asked if the life insurance premium is the one
they belong to as a member of the National Guard or any group
life insurance.
REPRESENTATIVE DAHLSTROM replied that it applies to the
insurance that comes through the Guard, not any other.
SENATOR SEEKINS asked how much a year was the normal premium on
that.
REPRESENTATIVE DAHLSTROM replied $251,000 per year for all
members. She didn't have a per member break down, but said she
would get if for him.
3:11:48 PM
SENATOR BEN STEVENS asked if why Section .261 was inserted.
REPRESENTATIVE DAHLSTROM said that some things were unnecessary
in the original version of HB 122 because they were already
covered in the Soldier and Sailors Civil Relief Act and Service
Members Civil Relief Act.
SENATOR BEN STEVENS asked if Section 261 of the Finance version
dealing with relief for members who served abroad in a combat
zone and with a spouse or a spouse member's motor vehicle lease,
wireless phone was covered in existing language.
REPRESENTATIVE DAHLSTROM replied that some of those items were
covered in existing language; some items, such as motor lease
vehicles, were not covered. She chose to remove them after
discussions with several members of the House and Senate,
because of differences in banking laws. She needed to remove
motor leased vehicles in order to get the basics.
3:14:44 PM
SENATOR BEN STEVENS asked if credit at the University was
pulled.
REPRESENTATIVE DAHLSTROM explained that it was pulled out of the
original bill. Senator Huggins wanted her to go back to the
original language.
SENATOR BEN STEVENS said he wanted further discussion about
that. He said he supported elements that the state had control
of like the University. If someone is deployed while in
secondary education, the state could issue the credit and he
liked the original language - or language that would mention if
it's a state institution, therefore the state is controlling it,
not a commercial obligation.
CHAIR BUNDE said it was the committee's prerogative to flesh the
bill out as it saw fit.
3:16:59 PM
SENATOR SEEKINS explained that he had talked about lease payment
forgiveness with the sponsor and that no bank or independent
institute would grant a lease to someone that was in the
National Guard. So, you would be actually hurting them more than
helping. He wanted to look at language on page 1, line 10, that
talks about the complimentary license and maybe insert "good for
one calendar year" and on page 2, line 24 insert "for the time
the member was deployed in the combat zone" - to make it very
clear that payments would be made for that time rather than just
a general waiver.
CHAIR BUNDE asked them to work together on a CS.
3:18:40 PM
SENATOR ELLIS asked if they would continue the forgiveness
during the time of convalescence at a military hospital.
SENATOR SEEKINS replied that he wouldn't have a problem with
that.
REPRESENTATIVE DAHLSTROM also supported those changes.
CHAIR BUNDE said he would set HB 122 aside to address at a
future date. There being no further business to come before the
committee, he adjourned the meeting at 3:19:59 PM.
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