Legislature(1993 - 1994)
04/13/1993 01:30 PM Senate L&C
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE LABOR AND COMMERCE COMMITTEE
April 13, 1993
1:30 p.m.
MEMBERS PRESENT
Senator Tim Kelly, Chairman
Senator Steve Rieger, Vice Chairman
Senator Bert Sharp
Senator Georgianna Lincoln
Senator Judy Salo
MEMBERS ABSENT
All present
COMMITTEE CALENDAR
HOUSE BILL NO. 101
"An Act relating to the adoption of the National Electrical
Code and the National Electrical Safety Code."
CS FOR HOUSE BILL NO. 102(FIN)
"An Act relating to the Alaska Labor Relations Agency; and
providing for an effective date."
SENATE BILL NO. 184
"An Act relating to civil liability of employees and
volunteers of certain nonprofit corporations; and providing
for an effective date."
SENATE BILL NO. 188
"An Act permitting certain municipalities to participate in
the deferred compensation program for state employees."
SENATE BILL NO. 177
"An Act relating to salmon marketing, a salmon marketing
tax, and the Alaska Seafood Marketing Institute; and
providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
HB 101 - See Labor & Commerce minutes dated 3/23/93.
HB 102 - See Labor & Commerce minutes dated 3/23/93.
SB 184 - No previous action to consider.
SB 188 - No previous action to consider.
SB 177 - See Labor & Commerce minutes dated 4/8/93.
WITNESS REGISTER
Josh Fink, Legislative Aide
to Senator Kelly
State Capitol
Juneau, Alaska 99811-1182
POSITION STATEMENT: Commented on HB 101 and HB 102
Senator Steve Frank
State Capitol
Juneau, Alaska 99811-1182
POSITION STATEMENT: Sponsor of SB 184.
Mike Ford, Attorney
Division of Legal Services
Legislative Affairs Agency
130 Seward, #404
Juneau, Alaska 99801-1219
POSITION STATEMENT: Commented on SB 184.
Joe Ambrose, Legislative Aide
to Senator Robin Taylor
State Capitol
Juneau, Alaska 99811-1182
POSITION STATEMENT: Commented on SB 188.
Pete Halgren, Assembly member
City/Borough of Sitka
P.O. Box 1203
Sitka, Alaska 99835
POSITION STATEMENT: Supported SB 188.
Bob Stalnaker, Director
Division of Retirement and Benefits
Department of Administration
P.O. Box 110203
Juneau, Alaska 99811-0203
POSITION STATEMENT: Opposed SB 188.
Richard Lauber
321 Highland
Juneau, Alaska 99801
POSITION STATEMENT: Commented on SB 188.
Dean Paddock
Bristol Bay Driftnetters Association
P.O. Box 20312
Juneau, Alaska 99802
POSITION STATEMENT: Commented on SB 188.
Kim Elton, Executive Director
Alaska Seafood Marketing Institute
1111 W. 8th St. Suite 100
Juneau, Alaska 99801-1895
POSITION STATEMENT: Supported SB 177.
Kate Troll
Southeast Alaska Seiners Association
9226 Long Run Drive
Juneau, Alaska 99801
POSITION STATEMENT: Commented on SB 177.
Commissioner Paul Fuhs
Department of Commerce and Economic Development
P.O. Box 110800
Juneau, Alaska 99811-0800
POSITION STATEMENT: Supported SB 177.
Tom Tilden
Dillingham, Alaska
POSITION STATEMENT: Opposed SB 177.
ACTION NARRATIVE
TAPE 93-28, SIDE A
Number 001
SENATOR KELLY called the Senate Labor and Commerce meeting
to order at 1:30 p.m. and announced HB 101 (NATIONAL
ELECTRICAL CODE) to be up for consideration.
JOSH FINK, Legislative Aide to Senator Kelly, explained the
proposed changes in SCS HB 101(L&C), which was before the
committee for its consideration.
SENATOR SHARP moved to adopt SCS HB 101(L&C). There were no
objections and it was so ordered.
SENATOR SHARP moved to pass SCS HB 101(L&C) from committee
with individual recommendations. There were no objections
and it was so ordered.
SENATOR KELLY announced CSHB 102(FIN) (PANEL MEMBERS ON AK
LABOR REL. AGENCY) to be up for consideration.
JOSH FINK explained the proposed changes in SCS CSHB
102(L&C) which was before the committee for its
consideration.
SENATOR SALO moved to adopt SCS CSHB 102(L&C). There were
no objections and it was so ordered.
Number 100
SENATOR SALO moved to pass SCS CSHB 102(L&C) from committee
with individual recommendations. There were no objections
and it was so ordered.
SENATOR KELLY announced SB 184 (VOLUNTEERS AND EMPLOYEES OF
NONPROFITS) to be up for consideration.
SENATOR FRANK, sponsor, explained changes made in a proposed
committee substitute . He said there was support from the
nonprofit agencies.
SENATOR KELLY asked why on line 6 " recklessness" was used
with "gross negligence... or intentional misconduct."
SENATOR FRANK explained SB 184 would limit the liability on
simple negligence, and recklessness was a standard legal
term to be used on a scale of seriousness.
SENATOR LINCOLN asked him if everyone who draws a salary is
covered under this provision. SENATOR FRANK answered yes.
Number 160
SENATOR FRANK commented that the amendment brought the
corporation, itself, under the Act, as opposed to just the
volunteers and employees.
SENATOR LINCOLN asked why "certain non-profit corporations"
was inserted on page 1, line 1.
MIKE FORD, Legislative Legal Counsel, explained the Title
refers to civil liability of only the employees and
volunteers. This is actually a third category, the
corporation, itself. It is in addition to the employees and
volunteers.
MR. FORD said they were capping the civil liability damages
for employees and volunteers at $200,000 and $500,000. The
employer volunteer, himself, is not liable. The corporation
is liable up to the insured amount.
SENATOR SALO asked if there is already some liability
protection for non-profits. MR. FORD responded that there
is a provision in AS 09.17 that provides limited immunity
for officers and directors of non-profits. The employees
and volunteers are protected in the same manner in this
bill.
Number 275
SENATOR KELLY closed the public hearing on SB 184, stating
that the bill would be held in committee.
SENATOR KELLY announced SB 188 (MUNICIPAL PARTICIPATION ST.
DEFERRED COMP) to be up for consideration.
JOE AMBROSE, staff to Senator Taylor, said the City/Borough
of Sitka requested this bill.
PETE HALGREN, Sitka Assembly, said he didn't think this bill
would add any employees or cause additional expense to the
state. He said the state has much better buying power than
a city in terms of the investments made for the deferred
compensation program. This bill allows political
subdivisions that are participating in the Supplement
Benefits System (SBS) program to go to the state deferred
compensation program.
SENATOR KELLY asked who he thought should have the liability
to make sure those funds are accurate. MR. HALGREN said he
didn't have a problem with the City having the liability
that the money the state transfers is accurate. However,
once the money is transferred, it goes to Great West
Insurance, and neither the City nor the state should have
liability for investment losses.
BOB STALNAKER, Director, Division of Retirement and
Benefits, said they don't support SB 188, because the state
is not the appropriate entity to administer deferred
compensation plans for other political subdivisions. He
remarked that there are private sector financial
institutions and insurance companies that will provide
deferred compensation plans for any employer, public or
private.
Secondly, if Alaska Federal is eliminating 14 or 15
different public employers, he didn't think it was a good
idea to limit this to just those who are participating in
the SBS program. There is no tie with the 457 deferred
compensation plan and social security, he explained. The
fact that a public employer may be participating in social
security doesn't mean they don't need a deferred
compensation plan or that they wouldn't like to have the
same advantage Sitka would gain from this. The 457 plan is
a provision in the Internal Revenue Code that allows an
employer to sponsor a plan.
This bill intends to allow the Department of Administration
to become a third party administrator for these political
subdivisions.
SENATOR KELLY asked if we were doing any of that right now.
MR. STALNAKER said we weren't. He said they have estimated
it would increase their staff by two people which he thought
was a conservative estimate on what the interface
requirements would be in accepting contributions.
Number 435
SENATOR SALO asked him to explain how limiting the scope of
participation wasn't fair. MR. STALNAKER explained that you
cannot participate in supplemental benefits if you are
participating in social security.
MR. STALNAKER said the cost to the state for administering
the program is .95 percent which is supposed to be paid by
the participants. He admitted that there are economies of
scale with larger groups.
SENATOR LINCOLN commented that she didn't think the costs
had been explored fully. She asked if he had been working
with Senator Taylor's office to come up with some solution.
He said he had not discussed the issue with his office, but
he would like to.
MR. STALNAKER said the difficulty with the fiscal note was
that it should be considered for all political subdivisions
and not just a few, because if Sitka does it this year,
Ketchikan will do it next year, etc. They are talking about
varying degrees of sophistication with different employers.
TAPE 93-28, SIDE B
Number 580
MR. HALGREN said he wanted it made clear they were not
trying to get into anything different than what the state
already has.
SENATOR SALO asked if he thought it a good idea for the
state to charge a 1.5 percent fee. MR. STALNAKER said no.
The Department's position is that they shouldn't be getting
into the role of a third party administrator for third party
political subdivisions when those concerns can be met in the
private sector.
SENATOR KELLY said they would hold the bill for another time
and announced a 10 minute recess.
Number 525
SENATOR KELLY announced SB 177 (SALMON MARKETING, TAX;ASMI
BOARD & DUTIES) to be up for consideration.
MR. FINK explained the changes contained in the new
committee substitute which were included after discussion
during the previous meeting.
SENATOR LINCOLN asked what guarantees that representatives
from the small discrete fisheries on the Yukon and Kuskokwim
Rivers, and Norton and Kotzebue Sound were going to be
heard. MR. FINK said there were no provisions stipulating
those concerns. He said this bill restricts administrative
costs to 10 percent and the remaining 90 percent would go to
domestic marketing.
RICK LAUBER, Pacific Seafood Processors Association,
commented that the language on page 4, line 7 was confusing.
It could be interpreted as establishing grades,
classifications, etc. instead of establishing a futures
market. The language he suggested was "...product forms and
to explore the development of futures markets for salmon
products."
DEAN PADDOCK, Bristol Bay Driftnetters Association, said the
fishermen want to be reassured that if they are going to
pay, they are going to be able to play a substantial part in
determining where the money goes and that is accomplished by
deleting the "9" on line 29 and adding "8."
SENATOR LINCOLN asked what assurance there is that it will
not tax the fisherman whose product occupies a specialty
market niche without providing visible benefits to them.
Number 440
MR. ELTON said there probably isn't any assurance. He
pointed out that the market is extremely diverse and there
are many new product forms.
A representative from the Alaska Trollers Association
opposed SB 177. Trollers feel that marketing is not their
problem, she said. Not catching enough fish is their
problem.
SENATOR RIEGER moved to adopt the amendment and then asked a
question on "e". He thought they should refer to the "whole
salmon enhancement tax" instead of "three percent" because
the figure may vary.
KATE TROLL, Southeast Alaska Seiners Association, explained
that they want to be able to petition the Commissioner of
Department of Commerce and Economic Development directly to
repeal the tax because they didn't want to have an
institutional perspective involved.
PAUL FUHS explained the only provisions in there are for a
repeal, because other people might want to change it. He
said it is a matter of democracy that the people who
establish it should have the right to vote on it.
SENATOR SALO asked if there wasn't an easier way to solve
the problem of having to repeal everything before
instituting a new tax rate. COMMISSIONER FUHS said he did
believe this was the most direct way to do it given all the
circumstances.
Number 275
TOM TILDEN, a commercial fisherman from Dillingham, said
there was a lot of opposition to the bill in its present
form. There was a lot of fear regarding who was going to
dominate the governing board. He said there were no
stipulations for the commercial fishermen although there
were for the processors. He feared domination by the
seafood processors.
SENATOR KELLY asked if there was objection to the amendment.
SENATOR SALO and SENATOR LINCOLN objected. SENATOR SHARP,
SENATOR RIEGER, and SENATOR KELLY supported the amendment
and the amendment was adopted.
SENATOR RIEGER moved to pass the CSSB 177 (L&C) out of
committee with individual recommendations. SENATOR LINCOLN
objected. She pointed out that there has been considerable
language change to the bill and there were other amendments
that need to be made before it moves to the other
committees. SENATOR KELLY said there was ample time to look
at the changes before it moved from the Finance Committee.
SENATOR SHARP, SENATOR RIEGER, SENATOR KELLY, and SENATOR
SALO favored moving the bill and SENATOR LINCOLN was
opposed. The Chairman stated the motion to move SB 177
out of committee had passed.
SENATOR KELLY adjourned the meeting at 2:55 p.m.
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