03/25/2008 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing - Alcohol Beverage Control Board and Regulatory Commission of Alaska | |
| SB179 | |
| SB77 | |
| SB179 | |
| SJR18 | |
| SB179 | |
| HB289 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | SB 77 | TELECONFERENCED | |
| *+ | SB 305 | TELECONFERENCED | |
| + | SJR 18 | TELECONFERENCED | |
| + | HB 289 | TELECONFERENCED | |
| += | SB 179 | TELECONFERENCED | |
| += | HB 320 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 25, 2008
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 Hearing: Alcohol Beverage Control Board - Joe
DelDonno
CONFIRMATION ADVANCED
SENATE BILL NO. 179
"An Act requiring family health care insurance coverage for
dependent children who are less than 26 years of age."
MOVED CSSB 179(L&C) OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 320(FIN)
"An Act relating to search and rescue training and search and
rescue parties; requiring certain search and rescue volunteers
to be considered state employees for purposes of workers'
compensation coverage; and allowing political subdivisions to
elect to provide workers' compensation insurance coverage for
search and rescue personnel."
MOVED CSHB 320(FIN) OUT OF COMMITTEE
SENATE BILL NO. 77
"An Act prohibiting use of agency shop fees for political
contributions or expenditures."
HEARD AND HELD
SENATE JOINT RESOLUTION NO. 18
Requesting the President of the United States to direct the
United States Consumer Product Safety Commission to test the
materials used in children's toys and other children's products
for toxicity and to make the results publicly available.
HEARD AND HELD
SENATE BILL NO. 305
"An Act relating to recorking, sealing, or packaging of wine
served with a meal and removal of recorked, sealed, or packaged
wine from licensed premises."
SCHEDULED BUT NOT HEARD
CS FOR HOUSE BILL NO. 289(FSH)
"An Act exempting employers from paying unemployment tax for
temporary services provided by fishing vessel crewmembers and
related to emergency oil spill training and response activities;
and providing for an effective date."
HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 179
SHORT TITLE: DEPENDENT HEALTH INSURANCE; AGE LIMIT
SPONSOR(s): SENATOR(s) DAVIS
05/14/07 (S) READ THE FIRST TIME - REFERRALS
05/14/07 (S) L&C, HES, FIN
03/18/08 (S) L&C AT 1:30 PM BELTZ 211
03/18/08 (S) Heard & Held
03/18/08 (S) MINUTE(L&C)
03/25/08 (S) L&C AT 1:30 PM BELTZ 211
BILL: HB 320
SHORT TITLE: SEARCH & RESCUE: CERTIFICATION/WORK.COMP
SPONSOR(s): REPRESENTATIVE(s) MEYER
01/15/08 (H) READ THE FIRST TIME - REFERRALS
01/15/08 (H) L&C, FIN
01/28/08 (H) L&C AT 3:00 PM CAPITOL 17
01/28/08 (H) Heard & Held
01/28/08 (H) MINUTE(L&C)
02/06/08 (H) L&C AT 3:00 PM CAPITOL 17
02/06/08 (H) Moved CSHB 320(L&C) Out of Committee
02/06/08 (H) MINUTE(L&C)
02/08/08 (H) L&C RPT CS(L&C) NT 5DP 1NR
02/08/08 (H) DP: GARDNER, BUCH, NEUMAN, RAMRAS,
OLSON
02/08/08 (H) NR: LEDOUX
02/18/08 (H) FIN AT 1:30 PM HOUSE FINANCE 519
02/18/08 (H) Moved CSHB 320(FIN) Out of Committee
02/18/08 (H) MINUTE(FIN)
02/19/08 (H) FIN RPT CS(FIN) NT 4DP 2NR 1AM
02/19/08 (H) DP: HAWKER, NELSON, THOMAS, MEYER
02/19/08 (H) NR: KELLY, STOLTZE
02/19/08 (H) AM: GARA
03/04/08 (H) TRANSMITTED TO (S)
03/04/08 (H) VERSION: CSHB 320(FIN)
03/05/08 (S) READ THE FIRST TIME - REFERRALS
03/05/08 (S) L&C, FIN
03/20/08 (S) L&C AT 1:30 PM BELTZ 211
03/20/08 (S) Heard & Held
03/20/08 (S) MINUTE(L&C)
03/25/08 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 77
SHORT TITLE: USING UNION DUES FOR POLITICAL PURPOSES
SPONSOR(s): SENATOR(s) BUNDE
02/09/07 (S) READ THE FIRST TIME - REFERRALS
02/09/07 (S) STA
02/12/07 (S) L&C REFERRAL ADDED AFTER STA
02/07/08 (S) STA AT 9:00 AM BELTZ 211
02/07/08 (S) Moved SB 77 Out of Committee
02/07/08 (S) MINUTE(STA)
02/08/08 (S) STA RPT 4DP
02/08/08 (S) DP: MCGUIRE, STEVENS, BUNDE, GREEN
03/25/08 (S) L&C AT 1:30 PM BELTZ 211
BILL: SJR 18
SHORT TITLE: CHILD PRODUCT SAFETY
SPONSOR(s): SENATOR(s) WIELECHOWSKI
02/19/08 (S) READ THE FIRST TIME - REFERRALS
02/19/08 (S) HES, L&C
03/14/08 (S) HES AT 1:30 PM BUTROVICH 205
03/14/08 (S) Heard & Held
03/14/08 (S) MINUTE(HES)
03/19/08 (S) HES AT 1:45 PM BUTROVICH 205
03/19/08 (S) Moved SJR 18 Out of Committee
03/19/08 (S) MINUTE(HES)
03/21/08 (S) HES RPT 5DP
03/21/08 (S) DP: DAVIS, ELTON, THOMAS, COWDERY,
DYSON
03/25/08 (S) L&C AT 1:30 PM BELTZ 211
BILL: HB 289
SHORT TITLE: EMPLOYMENT TAX EXEMPTION: SPILL RESPONSE
SPONSOR(s): REPRESENTATIVE(s) HARRIS, SEATON
01/04/08 (H) PREFILE RELEASED 1/4/08
01/15/08 (H) READ THE FIRST TIME - REFERRALS
01/15/08 (H) FSH, L&C
01/23/08 (H) FSH AT 8:30 AM BARNES 124
01/23/08 (H) Heard & Held
01/23/08 (H) MINUTE(FSH)
01/28/08 (H) FSH AT 8:30 AM BARNES 124
01/28/08 (H) Moved CSHB 289(FSH) Out of Committee
01/28/08 (H) MINUTE(FSH)
01/30/08 (H) FSH RPT CS(FSH) NT 4DP
01/30/08 (H) DP: HOLMES, EDGMON, JOHANSEN, SEATON
02/13/08 (H) L&C AT 3:00 PM CAPITOL 17
02/13/08 (H) Moved CSHB 289(FSH) Out of Committee
02/13/08 (H) MINUTE(L&C)
02/15/08 (H) L&C RPT CS(FSH) NT 4DP 2NR
02/15/08 (H) DP: GARDNER, LEDOUX, BUCH, GATTO
02/15/08 (H) NR: NEUMAN, OLSON
03/13/08 (H) TRANSMITTED TO (S)
03/13/08 (H) VERSION: CSHB 289(FSH)
03/14/08 (S) READ THE FIRST TIME - REFERRALS
03/14/08 (S) L&C, FIN
03/25/08 (S) L&C AT 1:30 PM BELTZ 211
WITNESS REGISTER
JOSEPH DELDONNO
Anchorage, AK
POSITION STATEMENT: Alcohol Beverage Control (ABC) Board
nominee.
ROBERT KLEIN
Anchorage, AK
POSITION STATEMENT: Alcohol Beverage Control (ABC) Board
nominee.
ROBERT M. PICKETT
Anchorage, AK
POSITION STATEMENT: Regulatory Commission of Alaska (RCA)
nominee.
LINDA HALL, Director
Division of Insurance
Department of Commerce, Community & Economic Development
Juneau, AK
POSITION STATEMENT: Answered questions on SB 179.
MEREDITH CAMERON
University of Alaska Fairbanks (UAF) student
Fairbanks, AK
POSITION STATEMENT: Supported SB 179.
JAKE HAMBURG, Student Body President
University of Alaska Fairbanks (UAF)
Fairbanks, AK
POSITION STATEMENT: Supported SB 179.
TOM OBERMEYER
Staff to Senator Davis
Alaska State Capitol
Juneau, AK
POSITION STATEMENT: Commented on SB 179 for the sponsor.
MIKE PALOWSKI
Staff to Representative Meyer
Alaska State Capitol
Juneau, AK
POSITION STATEMENT: Commented on HB 320 for the sponsor.
LT. RODNEY DIAL, Alaska State Troopers
Anchorage, AK
POSITION STATEMENT: Support CSHB 320 (FIN).
SENATOR CON BUNDE
Alaska State Capitol
Juneau, AK
POSITION STATEMENT: Sponsor of SB 77.
MARK TORGERSON, Administrator and Hearing Examiner
Alaska Labor Relations Agency
Department of Labor and Workforce Development (DOLWD)
Juneau, AK
POSITION STATEMENT: Answered questions on SB 77.
JOHN ALCANTRA, Government Relations Director
National Education Association (NEA) Alaska
Juneau, AK
POSITION STATEMENT: Opposed SB 77.
DON ETHERIDGE
Alaska AFL-CIO
Juneau, AK
POSITION STATEMENT: Commented on SB 77.
SENATOR WIELECHOWSKI
Alaska State Capitol
Juneau, AK
POSITION STATEMENT: Sponsor of SJR 18.
KATHERINE PUSTAY
Staff to Senator Wielechowski
Alaska State Capitol
Juneau, AK
POSITION STATEMENT: Answered questions on SJR 18.
SUZANNE ELY
Alaska Conservation Alliance
No address provided
POSITION STATEMENT: Supported SJR 18.
COLLEEN KEANE
Alaska Community Action on Toxics
No address provided
POSITION STATEMENT: Supported SJR 18.
REPRESENTATIVE PAUL SEATON
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of HB 289.
JAMES HERBERT, Fishing Vessel owner
Seward, AK
POSITION STATEMENT: Supported HB 289.
TRACEY MAYHEW, Port Representative
Seafarers International Union
No address provided
POSITION STATEMENT: Supported HB 289.
JERRY MCCUNE
United Fishermen of Alaska (UFA)
Cordova Fishermen United
Cordova, AK
POSITION STATEMENT: Supported HB 289.
ACTION NARRATIVE
CHAIR JOHNNY ELLIS called the Senate Labor and Commerce Standing
Committee meeting to order at 1:32:23 PM. Present at the call to
order were Senators Bunde, Davis, Stevens and Ellis.
^Confirmation hearing - Alcohol Beverage Control Board and
Regulatory Commission of Alaska
1:34:07 PM
JOSEPH DELDONNO, Alcohol Beverage Control Board nominee, said he
was born and raised in Alaska and is a home inspector by trade
and that the Governor asked him to serve on the board.
SENATOR BUNDE asked why he visited Georgia in 2007.
MR. DELDONNO answered he was taking a certification course.
SENATOR ELLIS asked him to comment on the board's past
enforcement actions and explain how aggressive he thought the
board should be in relation to sting operations. He asked what
direction he would like it to take in the future.
MR. DELDONNO answered that he didn't have any direction or
preconceived agenda in mind, but he stated he would exercise
good judgment in interpreting the state's laws.
1:36:42 PM
SENATOR BUNDE said a while back at least one member of the ABC
Board advocated carrying side arms and he asked if now that
Alaska has concealed carry laws, would that be an issue for him.
MR. DELDONNO replied no.
CHAIR ELLIS asked if he saw any improvements the ABC Board
needed to make.
MR. DELDONNO responded that alcohol abuse is a big issue in
communities all over the state, but he said this is an
evolutionary process and he was happy to be part of it and rely
on his common sense judgments.
CHAIR ELLIS said he received a letter in February from the
Regional Wellness Forum relating to the ABC Board that argued
for broader representation in terms of geographical
distribution, more public members and a greater sensitivity to
Alaska's alcohol abuse problem. He asked Mr. DelDonno if he had
any thoughts about those concerns.
MR. DELDONNO replied that he didn't have any comments at this
time.
CHAIR ELLIS noted no further questions or comments for Mr.
DelDonno and said they all appreciated his willingness to serve.
Next he asked Mr. Klein to comment on how he viewed his service
and where he wanted to see the board go.
1:40:48 PM
ROBERT KLEIN, ABC board nominee, said he spent all of his
working life in Alaska and in the retail business. He was with
the Carr-Gottstein organization for 28 years until its sale to
Safeway, and during the last 15 years he ran the Oaken Kegs. He
is now the operations manager for Brown Jug. He explained that
Title 4 requires industry members to be on the board and it was
his pleasure to already have served for 12 years, 9 of which he
served as chairman. He was replaced by Governor Murkowski and he
was happy to return under Governor Palin.
CHAIR ELLIS asked him to comment on what he accomplished in the
time he had already served.
MR. KLEIN answered that during the time he served there was an
excellent level of cooperation between the ABC and industry in
terms of adhering to the standards of behavior amongst licensees
and their employees. But now with the shift to the Department of
Public Safety (DPS), the emphasis seems to have drifted to the
police doing stings and issuing citations. No one in the
industry wants the bad people and he hoped to bring back the
spirit of cooperation.
CHAIR ELLIS asked if he envisioned pulling back on enforcement
actions, maintaining them with a greater sensitivity or how just
how did he think the board could calibrate its work better.
MR. KLEIN replied sensitivity is not necessary when talking
about those who are violating the public trust. One issue he has
with this effort is that state and national industry numbers
indicate that 97 percent of the alcohol going to kids comes from
friends and people buying for them; only 7 percent is coming
from license holders. And yet 100 percent of the sting activity
is spent going after license holders so he wanted to direct
efforts towards solving the real problems.
SENATOR STEVENS asked what Medical Pathfinders is.
MR. KLEIN answered it is a website that was founded a number of
years ago for people to access medical services. However, things
like Web M.D. have obviated the need for it.
SENATOR STEVENS asked how one stops friends from buying liquor
for under-aged kids.
MR. KLEIN replied that as operations manager of Brown Jug, he
teaches his clerks to be very aware of everyone in a party; they
check cars and actually ask people to present their licenses
even if they are not in the store buying. "Most of all is
education of the parents. I don't think parents realize how much
they are adding to this problem."
CHAIR ELLIS thanked Mr. Klein for his comments today and his
willingness to serve. He said his name as well as Mr. DelDonno's
would be forwarded for consideration to the Joint Session. He
said the committee would consider Mr. Pickett next as the
appointee to the RCA.
ROBERT M. PICKETT, Regulatory Commission of Alaska (RCA)
appointee, said he is a 33-year resident of Alaska and came here
in 1975 with the intent to pay off student loans and leave. He
was hooked by the state and intends to stay here. His work
experience has included blue collar, technical and professional
positions in both rural and urban settings, but for the last 21
years he has worked for Alaska Housing Finance Corporation
(AHFC) in a variety of positions, the last one being managing
the Low Income Housing Tax Creditor Program and special needs
counseling for AHFC.
He appreciates the challenges the state faces and as well as its
opportunities. The RCA with its broad authority to regulate
nearly 200 utilities and 21 pipelines impacts the economic
health of the state and the quality of life for all its
citizens. The RCA's mandate is to keep rates as low as possible,
yet allow the regulated utilities and pipeline companies to earn
a fair return. The commission must also conduct its business in
a manner that has the confidence and respect of all stakeholders
- the consumers, customers, utility companies, cooperatives,
local governments, pipeline carriers, and the legislative,
executive and judicial branches. Balancing all these varying
interests must also be done within the various statutory time
lines - openly and transparently - while respecting the due
process rights of all involved parties. He said he was excited
to bring his skills to the commission to assist in this
important work.
SENATOR BUNDE commented that probably a lot of college students
would be happy to know he was involved in creation of the Pell
grant and he thanked him for his work.
SENATOR STEVENS asked what he sees himself bringing to the
commission.
MR. PICKETT answered a lot of experience reviewing the financial
feasibility of projects. At the corporation he was responsible
for creating a new marketing study process for its affordable
housing programs. He has looked at a lot of balance sheets, pro-
formas, trending analyses and that type of thing. He said the
workload on the commission is tremendous and it would take a
while to figure out what to emphasize first.
SENATOR DAVIS wished him success.
SB 179-DEPENDENT HEALTH INSURANCE; AGE LIMIT
1:52:34 PM
CHAIR ELLIS announced SB 179 to be up for consideration.
LINDA HALL, Director, Division of Insurance, Department of
Commerce, Community & Economic Development, suggested the title
of SB 179 actually requires health care coverage for dependent
children less than age 26 and the body of the bill does not
require it - it merely requires that the coverage be offered.
She said the bill language itself would leave the decision
whether to cover dependents under 26 up to the individual or
with the employers, but language goes on to indicate that if the
employer or individual decides to no longer cover dependent
children up to 26, then an insurer would be prohibited from un-
enrolling them. She suggested if that's really not the intent,
they could simply add "at the option of a policy holder".
SENATOR DAVIS said the language in the body of the bill is what
she wants.
CHAIR ELLIS said the title language would be checked out.
1:55:59 PM
SENATOR BUNDE stated that a broad reading of the title would
require parents to cover their dependent children up to age 26.
What if the parent doesn't want to be responsible for the child
any longer? Could he tell the company to disenroll that formerly
dependent child?
MS. HALL replied that the division understands that couldn't
occur under current language.
1:56:52 PM
MEREDITH CAMERON, University of Alaska Fairbanks (UAF) student,
supported SB 179. She said insurance coverage is mandatory for
people who live on campus and if she has to purchase it from the
University, it can cost as much as $945/year and that number is
higher for students at UAA and UAS. The services provided by the
campus health center are extremely limited and there are stories
of long lines and lack of medication. As students, they are
always facing these rising costs of a college education and she
is already struggling to pay her tuition.
SENATOR BUNDE said he understands the bill requires parents to
cover students, but it might cost the parent $600 more. He asked
if that would be less than what the university coverage costs.
MS. CAMERON answered yes.
SENATOR BUNDE asked if she understood that the fewer people who
buy university insurance, probably the higher that premium would
be.
MS. CAMERON replied that was a possibility, but the university
would have to handle it.
SENATOR BUNDE remarked that perhaps they could cut out
basketball.
1:59:29 PM
JAKE HAMBURG, Student Body President, UAF, supported SB 179. He
explained that the university provides coverage for $945 per
year, but that - added to the 56 percent increase in tuition
over the last four years, rising text book costs, fuel prices,
housing, food and more - is a lot to students who are already
struggling to graduate in six years instead of four, largely
because of financial reasons.
He said the student coverage that exists is modest and that for
serious health problems the university suggests you get other,
more expensive, coverage.
SENATOR BUNDE asked Ms. Hall what COBRA coverage for young
people costs.
MS. HALL answered COBRA normally is applied to an employee or an
individual who leaves employment. Employers who have more than
25 or 50 [she didn't know which] employees are required to
provide COBRA to employees who terminate so they can keep that
coverage for 18 months. They continue on the group policy of the
employer at whatever the premium is. If the premium is $700/mo.,
that's what it would continue to be.
CHAIR ELLIS asked the sponsor about the title issue.
2:03:36 PM
TOM OBERMEYER, staff to Senator Davis, sponsor of SB 179,
responded that this is the first time the issue has been brought
up.
CHAIR ELLIS said he would set bill aside so the drafter could be
consulted.
CSHB 320(FIN)-SEARCH & RESCUE: CERTIFICATION/WORK.COMP
CHAIR ELLIS announced CSHB 320(FIN) to be up for consideration.
He said Senator Bunde expressed a concern at the last meeting
and that he had chosen not to prepare a CS.
MIKE PALOWSKI, staff to Representative Meyer, sponsor of HB 320,
said he talked to Senator Bunde as well as Mr. Owen, committee
staff, at length about it. But the distinctions in section 1 on
training are very important and subtle. The authority given to
the Department of Public Safety (DPS) to oversee and authorize
training exercises is critical to the bill.
SENATOR BUNDE said they had satisfied his concerns. One big
concern was if the state okayed some training program and
someone was injured or killed, would the state be liable. He has
been assured that will not be the case.
He was also concerned the troopers would get their email melted
down by various different groups that would suddenly want to
make themselves available to this coverage. His concerns there
had been satisfied as well.
LT. RODNEY DIAL, Alaska State Troopers, said they support CSHB
320 (FIN) and he offered to address concerns about the fiscal
note.
SENATOR BUNDE moved to report CSHB 320(FIN) from committee with
individual recommendations and attached fiscal notes. There were
no objections and it was so ordered.
SB 77-USING UNION DUES FOR POLITICAL PURPOSES
2:08:38 PM
CHAIR ELLIS announced SB 77 to be up for consideration.
SENATOR BUNDE, sponsor of SB 77, explained that there is a
difference between union dues and agency fees. An agency fee is
what everyone pays for activities of the union; it's the major
cost to an employee. Recent court cases have held that if a
union wants to use a portion of a member's fee to engage in
political activity, that member can "opt out." Unfortunately in
existing situations, the option comes after the fact. If an
employee's union, for instance, gets involved in a political
activity he disagrees with, he can file a notice of appeal
within 30 days that goes to a committee of the union and six
months or a year later, it will maybe decide to give him his
money back.
SB 77 very simply says we should have an "opt in" rather than an
"opt out" procedure. However, even if he gets his money back, he
can't withdraw the impact on the political activity. This bill
would require getting an "opt in" procedure from the employee
every year that allows the union to use the agency fee for
political activities. He explained that courts have held that
money is political speech and that people should have a lot of
control over it.
2:12:48 PM
SENATOR STEVENS said he is very sympathetic to Senator Bunde's
comments, because they were in the same union. He recalled that
he paid a small amount of dues and an enormous amount of agency
fees and those were moved around without his knowledge or
understanding. He asked if dues could also be used for political
purposes.
SENATOR BUNDE said he didn't have an answer, but his experience
is that the dues are nominal and the major fee is the agency
fee.
CHAIR ELLIS asked if something specific motivated this bill.
SENATOR BUNDE replied that he has heard from some folks as well
as having some personal experience. When his wife was a member
of a union that campaigned for his opponent unknown to her at
the time, she researched the issue and found and found she could
ask for her money back. She did receive it, but they had already
campaigned against him.
He said he followed this issue in the State of Washington where
it went to court and the employee prevailed - for an "opt in"
system. While he shared his personal experience, he said, it is
more than just Con Bunde against the universe here.
CHAIR ELLIS asked if this bill targeted a certain type of
operation that he disagreed with, because he is starting to
learn that different unions operate in different ways. Will this
bill affect some and not others?
SENATOR BUNDE said the title is focused on agency fees and
people who pay them should expect more.
2:17:31 PM
MARK TORGERSON, Administrator and Hearing Examiner, Alaska Labor
Relations Agency, Department of Labor and Workforce Development
(DOLWD), said he was available for questions and had a minor
suggestion.
SENATOR STEVENS asked if union dues can be used for political
purposes.
MR. TORGERSON replied the language in the proposed bill
discusses agency fees used for political contributions and
expenditures. Under the Alaska Public Employment Relations Act,
when non-members or employees start employment with the state,
they have 30 days to decide to be union members or non-union
members. If they decide to be a non-union member, they have to
pay, under proposed language, an "agency shop fee." This service
fee can only be used for three purposes based on a U.S. Supreme
Court case. The three purposes are for collective bargaining,
contract administration or grievance adjudication. He explained
that dues are currently divided into the service fee part and
the member's contribution, the smaller of the two.
SENATOR STEVENS asked if the agency fees and member dues of a
member of the union can be used for political purposes.
MR. TORGERSON answered yes; there is no prohibition on members'
fees being used for political purposes. Some unions have
political action committees that employees may join and perhaps
even make an additional contribution to. There is no statutory
prohibition against using a part of the members' dues for
political purposes.
2:21:50 PM
JOHN ALCANTRA, Government Relations Director, National Education
Association (NEA) Alaska, opposed SB 77. He said that about 400
of 13,000 NEA members are agency fee payers. They do not pay a
single dollar towards the political activity of NEA Alaska. Also
they do not contribute to the NEA Alaska Political Action
Committee for Education or the NEA Alaska PACE Committee. Since
"there is absolutely no political involvement through the use of
agency fee payers in the business of NEA Alaska," he asked, what
is the point of this legislation? Aren't there enough real
issues to deal with in the legislative process?
MR. ALCANTRA said that Senator Bunde states his constituents
have said they did not know their agency fees were being used
for political involvement until after the fact. But the fact is
as he stated, that of the NEA agency fee members, not a single
dollar is spent on political activity or campaigning related
activities. This means quite simply that only members pay for
his time in Juneau. NEA Alaska strictly adheres to all the rules
set forth by the legislature and the Alaska Public Offices
Commission; its campaign activity is conducted through NEA
Alaska PACE. His members are protected by the union and this
superfluous bill will do nothing to change that.
2:24:10 PM
SENATOR BUNDE asked why he opposes SB 77 if it doesn't affect
NEA.
MR. ALCANTRA answered it goes into tracking and accounting
issues. NEA's 400 agency payer fees add up to $6,000 and those
don't go into PACE. NEA already does everything this bill is
trying to address.
2:24:57 PM
DON ETHERIDGE, Alaska AFL-CIO, said he was concerned about
having to "opt in" every year instead of once in perpetuity.
That would generate a lot of wasted paper from its 60,000
members.
CHAIR ELLIS held SB 77 for further work.
2:26:12 PM at ease 2:27:06 PM
SB 179-DEPENDENT HEALTH INSURANCE; AGE LIMIT
2:27:06 PM
CHAIR ELLIS called the meeting back to order and announced SB
179 to be back before the committee.
MR. OBERMEYER said draft language for the title of SB 179 was
being sent to comport with language in the body of the bill.
CHAIR ELLIS held SB 179.
SJR 18-CHILD PRODUCT SAFETY
2:27:56 PM
CHAIR ELLIS announced SJR 18 to be up for its initial
consideration.
SENATOR WIELECHOWSKI, sponsor of SJR 18, said this measure calls
on the United States consumer product safety commission to test
the material used in toys and children's products for hazardous
products like lead. Over $15 billion worth of toys and
children's products were imported into the U.S. from China in
2006 and almost $10 billion in 2007. In 2007 over half the toy
and child product recalls by the Child Product Safety Commission
(CPSC) were due to chemical poisoning hazards.
He explained that the CPSC tests toys for choking, aspiration or
ingestion hazards, but relies on toy and child product
manufacturers to self-regulate the materials used in making
them. He noted that children's bodies and brains are developing
and are more susceptible to hazardous impacts to chemicals than
those of adults and that limiting their exposure is essential.
SENATOR WIELECHOWSKI said the Department of Environmental
Conservation (DEC) had testified in support of this resolution
and a number of states have already passed legislation limiting
lead or cadmium levels. He is not going that route, because he
thought it was more appropriate, at this point, for the federal
government to do something like this. He related according to
lab tests sponsored last fall by more than two dozen consumer
groups, about 25 percent of 2,500 randomly selected toys sold in
the U.S. contained lead in quantities that would exceed the
limit in the Washington State bill that just passed.
SENATOR STEVENS remarked that this issue has been in the news a
lot lately and asked if the federal government hasn't already
been working on it.
SENATOR WIELECHOWSKI answered that SR 4040 [he thought] recently
passed the U.S. Senate 79-13, but it still needs to get through
the House and to be signed by the president.
CHAIR ELLIS mentioned that lobbyists have been hired by
manufacturers outside of the U.S. to lobby against it; so it's
not a done deal.
SENATOR WIELECHOWSKI said all he is asking is that the toys get
tested. Parents have no idea what they're buying in a store for
their children and it is fair to ask the federal government to
come up with standards and tests for toys.
SENATOR BUNDE asked who initiated the recalls if it wasn't the
Consumer Protection Agency.
KATHERINE PUSTAY, staff to Senator Wielechowski, responded that
the recalls are predominantly done by the manufacturers
themselves. They include familiar names like Fischer-Price and
Mattel. The CPSC doesn't do them. The process has been that
watchdog groups test the toys.
SENATOR BUNDE asked if, in essence, this measure is asking for a
duplication of testing.
MS. PUSTAY replied that the American consumer is busy and
putting faith in someone that these toys have been tested. They
are tested by the Consumer Products Safety Commission for
choking and aspiration hazards, but they are not tested to see
if the plastic in the pacifier will have adverse affects on a
child's health. It's just not in their purview. The watch dog
groups are nonprofits and their testing is not comprehensive.
2:35:15 PM
SUZANNE ELY, Alaska Conservation Alliance, a consortium of 40
Alaska-based conservation groups, supported SJR 18. She
illustrated the need for this measure by noting that just this
weekend some Easter eggs were recalled because of high levels of
lead paint.
She said the federal agency testing these products is not funded
enough to include this activity. In fact, it has only one full-
time employee testing toys and only 15 inspectors policing all
consumer imports that are valued at about $614 billion. They
rely on self-reporting and have instances of poisoning before
recalling these toys.
MS. ELY said while the federal legislation has support, it is
not in the bag yet. SJR 18 would increase staffing budget; it
would create a public database for complaints about products; it
would give power to state prosecutors to act if they think the
federal government is not doing enough, which is incredibly
important for a state like Alaska, because it could empower
Alaskans to do what the federal government wasn't doing. It also
increases the possible maximum penalty for violations from $1.25
million to $20 million.
2:37:56 PM
COLLEEN KEANE, Alaska Community Action on Toxics, supported SJR
18. She said a lot of the recalls were due to lead and other
chemicals that have been found in children's toys and other
children's products. These toxins have been found to seriously
affect brain development, causing decreased I.Q. scores, shorter
attention spans, late learning in children and hypertension and
nerve problems in adults. Another group of chemicals commonly
found in children's toys is a plasticizer used to made plastics
flexible and resilient; they are found in a lot of babies' bibs,
teething rings and other soft plastic toys. This group of
chemicals has been linked to all sorts of male reproductive
development problems in humans. Children are among the most
susceptible groups in society for these poisons.
MS. KEANE said according to the Environmental Protection Agency,
environmental contaminants can affect children quite differently
than adults, both because children may be more highly exposed to
contaminants and because they may be more vulnerable to their
effects as they eat and drink more than adults in proportion to
their body weight.
2:41:36 PM
CHAIR ELLIS said SJR 18 would be held, but it would be back
before the committee in the very near future.
SB 179-DEPENDENT HEALTH INSURANCE; AGE LIMIT
2:43:17 PM
CHAIR ELLIS announced SB 179 to be back before the committee;
Amendment 1 was up for consideration.
25-LS0936\C.1
Chenoweth
AMENDMENT 1
OFFERED IN THE SENATE
TO: SB 179
Page 1, lines 1 - 2:
Delete all material and insert:
""An Act prohibiting a health care insurer who provides health
care insurance coverage of a child through family health care
insurance from denying enrollment and from disenrolling or
eliminating coverage for a dependent child of the insured who is
less than 26 years of age.""
SENATOR STEVENS moved to adopt Amendment 1. There were no
objections and it was adopted.
2:44:03 PM
SENATOR STEVENS asked if this will make the insurance available,
but at a cost.
MR. OBERMEYER replied there may be a cost and the average
premium is estimated to rise by 3-5 percent.
SENATOR STEVENS asked if there would any negative impact on
insurance companies.
MR. OBERMEYER replied that insurance companies handle these
issues in different ways; they could have extra riders for
adults up through 30 years, for instance. But he didn't have a
specific answer at this point.
SENATOR BUNDE asked if a parent could choose to insure a
dependent child to age 26, but they would not be required to.
MR. OBERMEYER answered yes; it requires insurers to offer the
coverage through age 26. There could be an additional charge for
the coverage, but that is handled in different ways by different
companies.
SENATOR DAVIS moved to report CSSB 179(L&C) from committee with
individual recommendations and zero fiscal note.
SENATOR BUNDE objected because it says a person who has been
insuring a dependent child cannot stop.
A roll call vote was taken. Senators Davis, Stevens and Ellis
voted yea; Senator Bunde voted nay; so CSSB 179(L&C) was
reported from committee.
CSHB 289(FSH)-EMPLOYMENT TAX EXEMPTION: SPILL RESPONSE
2:49:18 PM
CHAIR ELLIS announced CSHB 289(FSH) to be up for consideration.
2:50:07 PM
REPRESENTATIVE PAUL SEATON, sponsor of HB 289, explained this
measure deals with oil spill response. He explained that under
state and federal law, a contingency plan must exist for an oil
spill response. About 359 fishing vessels are under contract
right now for the contingency plan. These vessels undergo short
periods of training each year and HB 289 exempts them from state
unemployment insurance for these short periods of time. It only
applies if there is less than seven continuous days of training.
So if there is a major oil spill and people are employed for any
length of time, they are automatically required to be under the
unemployment insurance provisions.
He said this bill came about because many fishermen after
discovering that they would have to file quarterly reports and
all the paperwork that would entail. This would mean the state's
contingency plans wouldn't be in effect and oil might not be
able to transit Alaska. He noted that this measure only affects
commercial fishermen who are paid a percentage of the catch and
that his operation is a tender, so this does not affect him. It
doesn't cover tug boats or tenders or anyone that is an
employee.
SENATOR BUNDE asked if fishermen who are training for oil
response are covered by workers' compensation.
REPRESENTATIVE SEATON answered no; fishermen fall outside of
that regime and workers' compensation doesn't cover anyone on a
fishing vessel.
2:52:24 PM
JAMES HERBERT, Fishing Vessel owner, Seward, supported HB 289.
He said the bottom line is that the amount of revenue the state
thinks it's going to get from collecting unemployment insurance
from the three or so days of training will be minimal compared
to the aggravation of filing these quarterly reports throughout
the whole year. That would prompt an exodus of some of the
vessels that have participated in the program in the past. With
them will go their expertise and knowledge; more importantly if
another catastrophic oil spill ever happened, there would be a
delay in responding. It's important to keep people trained and
not burden them with regulations.
2:54:54 PM
TRACEY MAYHEW, Port Representative, Seafarers International
Union, supported HB 289. She said her union represents merchant
mariners working on board large ocean going vessels in Alaskan
waters. They support this bill because the contingency plan for
oil spill response relies upon the participation of fishermen.
If they don't participate, it could put contingency plans in a
non-compliant position and threaten the livelihood of her
members working on board those vessels. She emphasized that
local fishermen drill with tanker crews and are needed to help
maintain a good response team.
2:56:19 PM
JERRY MCCUNE, United Fishermen of Alaska (UFA), Cordova
Fishermen United, briefly stated that both organizations
supported HB 289. He noted that he is president of Cordova
Fishermen United where the contingency program is housed.
2:56:51 PM
CHAIR ELLIS closed the public hearing on HB 289 and held it for
further consideration. There being no further business to come
before the committee, he adjourned the meeting at 2:57:18 PM.
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