Legislature(2007 - 2008)BELTZ 211

03/01/2007 01:30 PM Senate LABOR & COMMERCE


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01:32:51 PM Start
01:36:56 PM Confirmation Hearing|| Workers' Compensation Appeals Commission
01:39:00 PM Confirmation Hearing || Alcoholic Beverage Control Board
02:00:00 PM Alaska Workers Compensation Board
02:13:53 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation of Governor's Appointees: TELECONFERENCED
Alcoholic Beverage Control Board -
Shirley A Gifford
Alaska Workers' Compensation Appeals
Commission - Stephan T Hagedorn
Alaska Workers' Compensation Board -
Mark A Crutchfield
Gloria O'Neill
Janet L Waldron
William K Williams
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         March 1, 2007                                                                                          
                           1:32 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Johnny Ellis, Chair                                                                                                     
Senator Gary Stevens, Vice Chair                                                                                                
Senator Bettye Davis                                                                                                            
Senator Con Bunde                                                                                                               
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Lyman Hoffman                                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
Confirmation Of Governor's Appointees:                                                                                        
                                                                                                                                
Alcoholic Beverage Control Board - Shirley A Gifford                                                                            
Alaska Workers' Compensation Appeals Commissioner - Stephan T.                                                                  
Hagedorn                                                                                                                        
Alaska Workers' Compensation Board - Mark A. Crutchfield, Gloria                                                                
O'Neill, Janet L. Waldron, William K. Williams                                                                                  
 CONFIRMATIONS ADVANCED                                                                                                         
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to consider                                                                                                  
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
STEVE HAGEDORN, Risk Manager                                                                                                    
Alaska Railroad Corporation                                                                                                     
Anchorage                                                                                                                       
POSITION STATEMENT: Appointee to the Worker's Compensation                                                                    
Appeals Commission.                                                                                                             
                                                                                                                              
SHIRLEY GIFFORD, Retired                                                                                                        
Soldotna AK                                                                                                                     
POSITION STATEMENT: Re-appointee to the Alcoholic Beverage                                                                    
Control Board (ABC).                                                                                                            
                                                                                                                                
GLORIA O'NEILL, CEO                                                                                                             
Cook Inlet Tribal Council                                                                                                       
Anchorage AK                                                                                                                    
POSITION   STATEMENT:   Appointee    to   the   Alaska   Workers'                                                             
Compensation Board.                                                                                                             
                                                                                                                                
JANET WALDRON, Director                                                                                                         
Human Resources                                                                                                                 
Harbor Enterprises, Inc.                                                                                                        
POSITION   STATEMENT:   Appointee    to   the   Alaska   Workers'                                                             
Compensation Board.                                                                                                             
                                                                                                                                
MARK CRUTCHFIELD, Business Manager                                                                                              
Alaska Millwrights and Machine Erectors - Local 1501                                                                            
Anchorage AK                                                                                                                    
POSITION   STATEMENT:   Appointee    to   the   Alaska   Workers'                                                             
Compensation Board.                                                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR JOHNNY ELLIS called the  Senate Labor and Commerce Standing                                                             
Committee meeting  to order at  1:32:51 PM. Members  present were                                                             
Senators Bunde, Davis, Stevens and Ellis.                                                                                       
                                                                                                                                
^Confirmation Hearing                                                                                                         
^Workers' Compensation Appeals Commission                                                                                       
                                                                                                                                
1:36:56 PM                                                                                                                    
CHAIR ELLIS announced the committee  would take up the Governor's                                                               
appointees.                                                                                                                     
                                                                                                                                
STEVE HAGEDORN,  appointee to  the Worker's  Compensation Appeals                                                               
Commission, was the first appointee.                                                                                            
                                                                                                                                
CHAIR ELLIS  thanked him for  his willingness to serve  and asked                                                               
him for  some highlights of his  background and to tell  them why                                                               
he wanted to serve.                                                                                                             
                                                                                                                                
MR. HAGEDORN  said he came  to Alaska in  1971 and took  his Army                                                               
discharge here.  He worked for  the Alaska Railroad for  the past                                                               
32 years  as its risk  manager. He  already served on  the Alaska                                                               
Workers' Compensation  Board for many  years and has  always been                                                               
interested in workers' compensation issues.                                                                                     
                                                                                                                                
SENATOR BUNDE asked if he  felt the state's Workers' Compensation                                                               
Program needed any changes.                                                                                                     
                                                                                                                                
MR. HAGEDORN replied that he  thought that the system was working                                                               
well. Approximately  24,000 claims were  filed with the  State of                                                               
Alaska last  year and very  few came before  the court -  and now                                                               
the Commission. He recalled that he  handled 300 - 350 hearings a                                                               
year and about  50 of those dealt with either  legal issues or an                                                               
unusual claim.                                                                                                                  
                                                                                                                                
CHAIR  ELLIS said  if there  were no  further comments,  his name                                                               
would be forwarded to the full body.                                                                                            
                                                                                                                                
^Confirmation Hearing                                                                                                         
^Alcoholic Beverage Control Board                                                                                               
                                                                                                                                
1:39:00 PM                                                                                                                    
SHIRLEY GIFFORD,  re-appointee to the Alcoholic  Beverage Control                                                               
Board  (ABC), said  she  is  a retired  Chief  of  Police of  the                                                               
Soldotna  Police  Department  after   serving  28  years  in  law                                                               
enforcement. She  has already  served the  remainder of  the term                                                               
for  Dwayne Udland's  position on  this Board  from October  2005                                                               
until today and reapplied for the position when it came open.                                                                   
                                                                                                                                
CHAIR ELLIS thanked  her for serving and asked her  to comment on                                                               
where the Board is going in the future.                                                                                         
                                                                                                                                
MS. GIFFORD  related that before  being on the Board  she already                                                               
had  a  lot  of  experience with  overseeing  licenses,  checking                                                               
backgrounds and  meeting with  bar owners  on violations  being a                                                               
part of the Anchorage police department.  Being on the Board is a                                                               
little different  because she is responsible  for controlling the                                                               
manufacture,   possession,  sale   and  bartering   of  alcoholic                                                               
beverages and for reviewing all  the applications and meeting out                                                               
sanctions for violations.  To that extent it has  been a learning                                                               
process that  she has enjoyed. She  said the Board is  a good one                                                               
because it has a good mix -  not all members think alike. She has                                                               
is diligent about  reading and studying her packet so  she can be                                                               
prepared for the meetings. She has vast experience with boards.                                                                 
                                                                                                                                
CHAIR ELLIS  thanked her and  noted complimentary letters  in her                                                               
packet.  He hoped  other members  of the  Board would  follow her                                                               
example.                                                                                                                        
                                                                                                                                
1:43:00 PM                                                                                                                    
CHAIR ELLIS asked how transferring  the Board from the Department                                                               
of Revenue (DOR) to Department  of Public Safety (DPS) to upgrade                                                               
enforcement  and compliance  functions  has worked.  Some in  the                                                               
liquor and  hospitality industry think  it should go back  to the                                                               
DOR because of heavy-handed tactics.  He didn't necessarily agree                                                               
with them  and supported  reasonable professional  enforcement of                                                               
the state's laws.                                                                                                               
                                                                                                                                
MS. GIFFORD replied that she is biased toward enforcement and                                                                   
good public safety and thought it important to keep the Board                                                                   
under DPS.                                                                                                                      
                                                                                                                                
     I  think enforcement  is very  very important.  We have                                                                    
     some pretty serious alcohol  abuse throughout our state                                                                    
     and  it's  critical  for  this   to  be  regulated  and                                                                    
     overseen by  communities and for  us to listen  to what                                                                    
     those  community issues  are. To  have the  enforcement                                                                    
     means  that  you're  also  going  to  have  compliance.                                                                    
     During the  time I  was Chief of  Police in  Soldotna I                                                                    
     was very pleased  with the level of  compliance that we                                                                    
     had  here in  the  community and  it  took a  community                                                                    
     effort   to   have   that   and   to   establish   good                                                                    
     relationships  with   the  bar  owners.   I  absolutely                                                                    
     believe in  free enterprise and  that people  should be                                                                    
     able to have their businesses.                                                                                             
                                                                                                                                
     You know,  not having  alcohol doesn't work  and that's                                                                    
     been  proven  out  and  so  I think  we  need  to  have                                                                    
     regulations  and we  need to  have  enforcement of  the                                                                    
     regulations. It not only makes  people, the law abiding                                                                    
     citizens who are  going to follow the rules  - it makes                                                                    
     them feel  pretty good,  too, to  know that  they're in                                                                    
     compliance  and  they're  doing  the  right  thing  and                                                                    
     they're not serving  to minors. You know,  kudos to the                                                                    
     bar  owners who  make every  effort to  do that.  If we                                                                    
     don't  have  any  enforcement, nobody  recognizes  that                                                                    
     effort  in taking  care of  our kids.  There have  been                                                                    
     times I've been accused of  being heavy handed and I've                                                                    
     been accused of that by our  chair and you know, he's a                                                                    
     bar owner -  and Mike Gordon is our chair  - and I have                                                                    
     a lot  of respect for  Mike and worked with  him during                                                                    
     the time I  was in Anchorage and with  his violations -                                                                    
     and  he was  tenacious and  he was  responsible and  he                                                                    
     came in  and talked  with me when  there were  issues -                                                                    
     and I would  hope that all bar owners  would follow his                                                                    
     lead on that.                                                                                                              
                                                                                                                                
1:47:00 PM                                                                                                                    
CHAIR ELLIS asked her to have the Board review some of the                                                                      
procedures used by enforcement officers for professionalism.                                                                    
                                                                                                                                
MS. GIFFORD responded that was excellent advice and she would                                                                   
follow up on it.                                                                                                                
                                                                                                                                
CHAIR ELLIS went to a  very complimentary letter from Gustavus on                                                               
her efforts on their behalf from  the mayor. However, it was also                                                               
critical of some of the  outdated information provided by the ABC                                                               
Board staff about a local ballot  measure for a package store. He                                                               
said the point is that the  ABC Board seemed ill-equipped to deal                                                               
with  small  communities on  "some  of  these contentious  liquor                                                               
issues." He asked for her thoughts on that.                                                                                     
                                                                                                                                
MS.  GIFFORD  replied  she  was  disappointed  to  see  what  had                                                               
happened  and hoped  the  Board  would be  more  diligent in  the                                                               
future. She knows the staff of  the ABC Board works very hard and                                                               
a lot  of issues before  it aren't  easy. She explained  that the                                                               
director  wants to  do the  right thing  and the  Board is  not a                                                               
predictable group. It  seems to be split, but  not always exactly                                                               
the same way. Some procedural issues  need to be looked at within                                                               
its staff and Board standards can be reviewed. She stated:                                                                      
                                                                                                                                
     It's critical that they  have up-to-date information. I                                                                    
     don't  know  how that  happened.  That  was a  travesty                                                                    
     right there that they were  working so closely with the                                                                    
     staff  and  trying so  hard  to  do exactly  the  right                                                                    
     thing, following  the procedures.  They're a  new city;                                                                    
     they want to do everything right.                                                                                          
                                                                                                                                
     I  saw no  hidden agendas  with the  representatives of                                                                    
     Gustavus. I  thought they were  doing a great  job. You                                                                    
     know how I  voted. I had hoped that we  could back them                                                                    
     up in what  they were trying to do and  just attack the                                                                    
     other issue  of having a  package store in  a different                                                                    
     way. But,  in my view, I  think they were trying  to do                                                                    
     everything  right and  they just  got slammed.  I don't                                                                    
     know how else to put  it....My personal opinion is that                                                                    
     we should  have backed  up the city,  but I'm  just one                                                                    
     vote.                                                                                                                      
                                                                                                                                
CHAIR ELLIS  noted that  the Board  voted two  or three  times to                                                               
deny  the  Council's  request   as  "arbitrary,  capricious,  and                                                               
unreasonable."  It was  protesting  the issuance  of the  package                                                               
store  based  on  the  lack  of public  safety  and  health  care                                                               
facilities that  might have been  impacted by an increase  in the                                                               
presence of alcohol in their community.                                                                                         
                                                                                                                                
He wanted to use this as an example  of the need for the Board to                                                               
have  training and  greater sensitivity  to small  communities in                                                               
general, not  just rural communities.  He has been told  that the                                                               
Board rejected the advice of  its assigned legal counsel numerous                                                               
times for  reasons that are  not explained on the  public record.                                                               
This happened in cases other than the Gustavus case.                                                                            
                                                                                                                                
MS. GIFFORD responded  that she would love to  see that training.                                                               
She thought the frustration level would decrease with it.                                                                       
                                                                                                                                
CHAIR ELLIS concluded  and thanked her for serving.  He said they                                                               
would forward her name on to the full body.                                                                                     
                                                                                                                                
1:56:00 PM                                                                                                                    
^Alaska Workers Compensation Board                                                                                              
CHAIR ELLIS announced  that that there were  other appointees for                                                               
the Alaska Workers' Compensation Board,  but he had selected four                                                               
names for the  committee to review today. He  started with Gloria                                                               
O'Neill  and asked  her  for background  highlights  and why  she                                                               
wanted to serve on the Board.                                                                                                   
                                                                                                                                
GLORIA  O'NEILL, CEO,  Cook Inlet  Tribal Council,  said she  has                                                               
been with the  organization for 15 years. She  works very closely                                                               
with the Anchorage  Museum Association and serves  as Vice Chair;                                                               
she also  serves on a couple  of national committees -  one being                                                               
the U.S. Census Board for  Race and Ethnicity and another working                                                               
with the Bureau of Indian  Affairs' budget committee. She works a                                                               
lot   with  people   in  developing   resources  to   bring  more                                                               
opportunities to the  community in general. She  looks forward to                                                               
contributing her experience  to the Board and  learning about the                                                               
workers' compensation program.                                                                                                  
                                                                                                                                
CHAIR ELLIS  thanked her for  her willingness to serve.  He asked                                                               
if service on  a state board was  new to her. She  replied no and                                                               
that she had already served on the Alaska Mental Health Board.                                                                  
                                                                                                                                
CHAIR  ELLIS said  the committee  would forward  her name  to the                                                               
full body.  He next asked Ms.  Waldron to give the  highlights of                                                               
her background that lent themselves to service on this board.                                                                   
                                                                                                                                
2:00:00 PM                                                                                                                    
JANET  WALDRON, appointee  to  the  Workers' Compensation  Board,                                                               
said her background  is in human resources  management (PHR). She                                                               
is  familiar with  working with  workers'  compensation from  the                                                               
management side. As  an employer cost containment -  looking at a                                                               
balance  between what  the employee  rights are  versus what  the                                                               
fiscal requirements  are - is a  role she is very  familiar with.                                                               
She has enjoyed hearing a few  cases so far. She enjoys the work.                                                               
For  background,  she  has  worked   in  the  oil  and  insurance                                                               
industries and most of her HR  background has been focused on the                                                               
benefits  arena working  on  the vendor  side  for the  insurance                                                               
companies.  She  promised to  resign  from  some other  volunteer                                                               
boards to be able to give enough time to this one.                                                                              
                                                                                                                                
CHAIR ELLIS  asked how she  strikes the balance  between employer                                                               
interests and labor.                                                                                                            
                                                                                                                                
MS. WALDRON replied that she listens  a lot. There are always two                                                               
sides to a story  and an issue is before the  Board for a reason.                                                               
She evaluates  the issues,  looks at  what has  been done  in the                                                               
past, looks  at the kind  of precedents  that are being  set, and                                                               
goes from there.                                                                                                                
                                                                                                                                
2:04:00 PM                                                                                                                    
MARK  CRUTCHFIELD,  Business   Manager,  Alaska  Millwrights  and                                                               
Machine Erectors -  Local 1501, said he has been  in Alaska since                                                               
2000 and  had been in  this position  since 2003. Before  that he                                                               
was a millwright working in the  field; he has also worked in the                                                               
power generation, oil and gas and conveyor industries.                                                                          
                                                                                                                                
He  thought  his  background  with  labor  relations  would  help                                                               
further the  Board's aims. He  has a little  different philosophy                                                               
as  far  as  most  unions  go.   They  try  to  work  with  their                                                               
contractors  and employers  as partners  rather than  adversaries                                                               
believing  if  they  can  work together,  they  can  further  the                                                               
industry  for everybody.  He said  he would  carry that  attitude                                                               
forward  to  the Workers'  Compensation  Board.  He said  workers                                                               
definitely need protection, but  he emphasized the protection has                                                               
to be fair.                                                                                                                     
                                                                                                                                
CHAIR  ELLIS   said  he  appreciated  Mr.   Crutchfield's  can-do                                                               
attitude.  He   asked  how  often   the  Board's   decisions  are                                                               
overturned on appeal.                                                                                                           
                                                                                                                                
MR. CRUTCHFIELD replied that he didn't know.                                                                                    
                                                                                                                                
CHAIR ELLIS  thanked him  for his willingness  to serve  and said                                                               
his  name would  be  forwarded  on. He  invited  Mr. Williams  to                                                               
testify next - mentioning that  he was a former Representative in                                                               
the Alaska Legislature.                                                                                                         
                                                                                                                                
2:08:00 PM                                                                                                                    
WILLIAM  K.  WILLIAMS,  appointee to  the  Workers'  Compensation                                                               
Board, said  he had been in  the Union since 1963  and has worked                                                               
with both employers and union groups  in what they called a Joint                                                               
Court   Labor  Relations   Committee.  He   mentioned  that   his                                                               
legislative experience and  being co-chair of Finance  would be a                                                               
good  background for  this Board  and he  also looked  forward to                                                               
doing something new.                                                                                                            
                                                                                                                                
CHAIR ELLIS thanked  him for his willingness  to continue serving                                                               
and said  he was confident he  would bring his good  qualities to                                                               
this position.                                                                                                                  
                                                                                                                                
SENATOR BUNDE quipped that dropping  a cribbage board on the foot                                                               
wouldn't be considered a workers' compensation claim.                                                                           
                                                                                                                                
2:12:00 PM                                                                                                                    
SENATOR STEVENS jested why he  didn't fund the Kodiak Bridge when                                                               
he was co-chair of Finance.                                                                                                     
                                                                                                                                
MR. WILLIAMS replied because it was already built.                                                                              
                                                                                                                                
CHAIR  ELLIS  thanked  him  again  and said  his  name  would  be                                                               
forwarded  on to  the full  body for  conformation. He  said that                                                               
there  were  other  appointees,  but   he  didn't  think  it  was                                                               
necessary  to  bring them  all  before  the committee.  He  asked                                                               
members to  let him know if  they had concerns about  the others.                                                               
That  being  said  he  stated  that  the  other  names  would  be                                                               
forwarded  on  also. There  being  no  further business  to  come                                                               
before the committee, he adjourned the meeting at 2:13:53 PM.                                                                 

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