Legislature(2005 - 2006)BELTZ 211

04/11/2006 01:30 PM LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 439 INSURANCE PRODUCT REGULATION COMPACT TELECONFERENCED
Heard & Held
*+ SB 282 BROADCASTING PROMOTING CHARITABLE GAMING TELECONFERENCED
Heard & Held
+= HB 122 NATIONAL GUARD INSURANCE & OTHER RELIEF TELECONFERENCED
Heard & Held
Confirmation:
Board of Chiropractic Examiners
Jeffrey Garness
Bills Previously Heard/Scheduled
Including But Not Limited to:
+= SB 311 ATHLETIC COMMISSION; BOXING & WRESTLING TELECONFERENCED
Heard & Held
+= SB 312 CONCERT OR ATHLETIC EVENT PROMOTERS TELECONFERENCED
Moved CSSB 312(L&C) Out of Committee
+= SB 309 CONSTR. TRAINING GRANT;UNEMPLOYMENT COMP. TELECONFERENCED
Moved CSSB 309(L&C) Out of Committee
                    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.                                                                            
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects