04/19/2005 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s) | |
| Richard Heieren, Fairbanks | |
| Gary Atwood, Fairbanks | |
| Colleen Scanlon, Ketchikan | |
| HB81 | |
| SB169 | |
| SB168 | |
| SB165 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 168 | TELECONFERENCED | |
| *+ | SB 169 | TELECONFERENCED | |
| *+ | SB 165 | TELECONFERENCED | |
| = | HB 81 | ||
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 19, 2005
1:37 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 Hearings
Board of Veterinary Examiners
Dr. Timothy L. Bowser, D.V.M. - Soldotna
Dr. Cynthia Ann Trout, D.V.M. - Anchorage
Alfred Agree, D.V.M. - Trappers Creek
Alaska State Board of Public Accountancy
Carla J. Bassler - Anchorage
Kenneth L. Mayer - Kenai
Christy Morse - Anchorage
State Board of Registration for Architects, Engineers and Land
Surveyors
Richard C. Heieren - Fairbanks
Harley H. Hightower - Anchorage
Mark G. Morris - Juneau
Board of Barbers and Hairdressers
Alice Massie - Wasilla
Labor Relations Agency
Gary A. Atwood - Fairbanks
Aaron T. Isaacs, Jr. - Klawock
Colleen E. Scanlon - Ketchikan
CS FOR HOUSE BILL NO. 81(L&C)
"An Act establishing an administrative fine and procedure for
construction contractors in certain circumstances; increasing
the amount of a civil penalty for persons acting in the capacity
of contractors or home inspectors; modifying the elements of a
crime involving contractor registration and residential
contractors; modifying the exemptions from regulation under AS
08.18 for contractors; and exempting the administrative hearings
for imposing an administrative fine on construction contractors
from the hearings conducted by the office of administrative
hearings in the Department of Administration."
MOVED SCS CSHB 81(L&C) OUT OF COMMITTEE
SENATE BILL NO. 169
"An Act relating to release of information in individual
workers' compensation records for commercial purposes."
MOVED CSSB 169(L&C) OUT OF COMMITTEE
SENATE BILL NO. 168
"An Act relating to insurance rate-making and form filing."
MOVED SB 168 OUT OF COMMITTEE
SENATE BILL NO. 165
"An Act relating to card rooms and card operations."
HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 81
SHORT TITLE: CONTRACTOR LICENSE ENFORCEMENT
SPONSOR(s): REPRESENTATIVE(s) ANDERSON
01/19/05 (H) READ THE FIRST TIME - REFERRALS
01/19/05 (H) L&C, JUD, FIN
01/21/05 (H) L&C AT 3:15 PM CAPITOL 17
01/21/05 (H) Heard & Held
01/21/05 (H) MINUTE(L&C)
01/26/05 (H) L&C AT 3:15 PM CAPITOL 17
01/26/05 (H) Moved CSHB 81(L&C) Out of Committee
01/26/05 (H) MINUTE(L&C)
02/02/05 (H) L&C RPT CS(L&C) NT 5DP 1NR
02/02/05 (H) DP: LYNN, KOTT, LEDOUX, GUTTENBERG,
ANDERSON;
02/02/05 (H) NR: ROKEBERG
02/09/05 (H) JUD AT 1:00 PM CAPITOL 120
02/09/05 (H) Moved CSHB 81(L&C) Out of Committee
02/09/05 (H) MINUTE(JUD)
02/11/05 (H) JUD RPT CS(L&C) NT 3DP 3NR
02/11/05 (H) DP: GRUENBERG, KOTT, ANDERSON;
02/11/05 (H) NR: DAHLSTROM, COGHILL, MCGUIRE
03/02/05 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/02/05 (H) Heard & Held
03/02/05 (H) MINUTE(FIN)
03/07/05 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/07/05 (H) Moved CSHB 81(L&C) Out of Committee
03/07/05 (H) MINUTE(FIN)
03/09/05 (H) FIN RPT CS(L&C) NT 3DP 6NR
03/09/05 (H) DP: HAWKER, FOSTER, MEYER;
03/09/05 (H) NR: MOSES, JOULE, STOLTZE, CROFT,
KELLY, CHENAULT
03/16/05 (H) TRANSMITTED TO (S)
03/16/05 (H) VERSION: CSHB 81(L&C)
03/18/05 (S) READ THE FIRST TIME - REFERRALS
03/18/05 (S) L&C, JUD
04/07/05 (S) L&C AT 1:30 PM BELTZ 211
04/07/05 (S) Heard & Held
04/07/05 (S) MINUTE(L&C)
04/19/05 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 169
SHORT TITLE: WORKERS' COMPENSATION RECORDS
SPONSOR(s): SENATOR(s) THERRIAULT
04/11/05 (S) READ THE FIRST TIME - REFERRALS
04/11/05 (S) L&C
04/19/05 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 168
SHORT TITLE: PROPERTY/CASUALTY INSURANCE REGULATION
SPONSOR(s): LABOR & COMMERCE
04/11/05 (S) READ THE FIRST TIME - REFERRALS
04/11/05 (S) L&C
04/19/05 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 165
SHORT TITLE: CARD ROOMS & OPERATIONS
SPONSOR(s): SENATOR(s) COWDERY
04/08/05 (S) READ THE FIRST TIME - REFERRALS
04/08/05 (S) L&C, FIN
04/19/05 (S) L&C AT 1:30 PM BELTZ 211
WITNESS REGISTER
DR. TIMOTHY BOWSER, D.V.M.
Soldotna, AK
POSITION STATEMENT: Nominee to the Board of Veterinary Examiners
CYNTHIA ANN TROUT, D.V.M.
Anchorage, AK
POSITION STATEMENT: Nominee to the Board of Veterinary Examiners
DR. ALFRED AGREE, D.V.M.
Trapper Creek, AK
POSITION STATEMENT: Nominee to the Board of Veterinary Examiners
CARLA J. BASSLER
Anchorage, AK
POSITION STATEMENT: Nominee to the State Board of Public
Accountancy
CHRISTY MORSE
Anchorage, AK
POSITION STATEMENT: Nominee to the State Board of Public
Accountancy
RICHARD C. HEIEREN
Fairbanks, AK
POSITION STATEMENT: Nominee to the State Board of Registration
for Architects, Engineers and Land Surveyors
HARLEY H. HIGHTOWER
Anchorage, AK
POSITION STATEMENT: Nominee to the State Board of Registration
for Architects, Engineers and Land Surveyors
MARK G. MORRIS
Juneau, AK
POSITION STATEMENT: Nominee to the State Board of Registration
for Architects, Engineers and Land Surveyors
ALICE MASSEY
Wasilla, AK
POSITION STATEMENT: Nominee to the Board of Barbers and
Hairdressers
GARY A. ATWOOD
Fairbanks, AK
POSITION STATEMENT: Nominee to the Labor Relations Agency
COLLEEN E. SCANLON
Ketchikan, AK
POSITION STATEMENT: Nominee to the Labor Relations Agency
EUGENE HARNETT
Staff to Representative Anderson
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Commented on HB 81.
JOHN BITNEY
Alaska Homebuilders Association
Juneau AK
POSITION STATEMENT: Commented on HB 81.
SENATOR GENE THERRIAULT
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of SB 169.
SARAH MCNAIR GROVE, Property Casualty Actuary
Division of Insurance
Department of Community & Economic Development
PO Box 110800
Juneau, AK 99811-0800
POSITION STATEMENT: Commented on SB 169.
BRIAN MCKINSTER
Staff to Senator Cowdery
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Commented on SB 168.
BRETT FRIED, Economist
Department of Revenue
PO Box 110400
Juneau, AK 99811-0400
POSITION STATEMENT: Commented on SB 168.
PERRY GREEN
Juneau AK
POSITION STATEMENT: Supported SB 168.
ACTION NARRATIVE
CHAIR CON BUNDE called the Senate Labor and Commerce Standing
Committee meeting to order at 1:37:46 PM. Present were Senators
Davis and Chair Con Bunde. Senator Ellis arrived at 1:38:54 PM.
^CONFIRMATION HEARING(S)
CHAIR CON BUNDE announced the first order of business to come
before the committee was consideration of the nominees for the
Board of Veterinary Examiners.
^Board of Veterinary Examiners:
^DR. TIMOTHY L. BOWSER, D.V.M - Soldotna
DR. TIMOTHY L. BOWSER, D.V.M., Soldotna said he has enjoyed
being on the board for the last couple of years and is willing
to continue serving.
^DR. CYNTHIA ANN TROUT, D.V.M - Anchorage
DR. CYNTHIA ANN TROUT, D.V.M., Anchorage, said she is looking
forward to working on the board.
^DR. ALFRED AGREE, D.V.M., Trapper Creek
DR. ALFRED AGREE, D.V.M., Trapper Creek, said he is looking
forward to working on the board.
CHAIR BUNDE thanked them for their willingness to serve and for
being available to testify.
^Alaska State Board of Public Accountancy:
^CARLA J. BASSLER, Anchorage
CARLA J. BASSLER, Anchorage, said she is honored to be able to
serve for her profession in the State of Alaska.
^Kenneth Mayer, Kenai
CHAIR BUNDE noted that Kenneth Mayer was not available today.
^CHRISTY MORSE, Anchorage
CHRISTY MORSE, Anchorage, welcomed this opportunity to be of
service.
CHAIR BUNDE thanked them for contributing their time to Alaska.
^State Board of Registration for Architects, Engineers and Land
Surveyors:
^RICHARD HEIEREN, Fairbanks
RICHARD HEIEREN, Fairbanks, said he feels an obligation for
service to the state and the profession that have provided such
a successful life for him.
1:41:46 PM
SENATOR BETTYE DAVIS said that he checked "yes" on the question
of whether he or any member of his family could be affected
financially about decisions made by this board and she asked him
to explain that.
MR. HEIEREN explained that he was just trying to be honest, but
anything he works with would affect his economics.
SENATOR DAVIS asked if he was concerned that by being on the
board his visibility would increase, which would make his
business increase.
MR. HEIEREN replied that he hadn't thought that far along, but
he thought the visibility would affect his business.
CHAIR BUNDE asked if there was a specific project that might
increase his credibility and lead to financial gain.
MR. HEIEREN replied that is accurate. "I answered it too
literally probably."
1:43:13 PM
SENATOR RALPH SEEKINS joined the committee.
CHAIR BUNDE said, "We don't want to discourage honesty. It's not
as common as we'd like it to be."
1:43:59 PM
SENATOR BEN STEVENS joined the committee.
^HARLEY HIGHTOWER, Anchorage
HARLEY HIGHTOWER, Anchorage, said he enjoyed being in the public
process and has served on many boards and commissions and
appreciates the opportunity to serve on this board.
^MARK MORRIS, Juneau
MARK MORRIS, Juneau, said he would like to give back to the
state and to his profession.
CHAIR BUNDE thanked them all for their willingness to "give back
to your state."
^Board of Barbers and Hairdressers
^ALICE MASSEY, Wasilla
ALICE MASSEY, Wasilla, said that she was honored to be appointed
to this board and hoped she could bring knowledge and
professional advice to help it carry on its business.
^Labor Relations Agency
^GARY ATWOOD, Fairbanks
GARY ATWOOD, Fairbanks, said he has time to contribute and looks
forward to serving on the board. "It could be interesting."
1:46:30 PM
^AARON T. ISAACS, JR., Klawock
AARON T. ISAACS, JR., Klawock, was traveling and unavailable for
testimony.
^COLLEEN SCANLON, Ketchikan
COLLEEN SCANLON, Ketchikan, said this is her second term on the
Labor Board and she is glad to serve again.
CHAIR BUNDE thanked them for their willingness to serve.
1:47:51 PM
SENATOR SEEKINS moved to forward all the names to the joint
session, which didn't reflect an intention by any member to vote
for or against them. There were no objections and it was so
ordered.
1:48:35 PM
HB 81-Contractor License Enforcement
CHAIR BUNDE announced HB 81 to be up for consideration. He moved
CSHB 81(L&C), version L, and objected for discussion purposes.
EUGENE HARNETT, staff to Representative Anderson, introduced
John Bitney, Alaska Homebuilders Association, to testify.
JOHN BITNEY, Alaska Homebuilders Association, said he has been
working with the sponsor to address concerns and the only change
in the CS is deleting the clause requiring occupancy by an owner
builder on page 5, line 6.
1:51:00 PM
CHAIR BUNDE removed his objection and the CS was adopted.
SENATOR SEEKINS moved to pass CSHB 81(L&C) from committee.
Senators Ben Stevens, Davis, Seekins, Ellis and Chair Bunde
voted yea; and CSHB 81(L&C) was moved from committee.
SB 169-WORKERS' COMPENSATION RECORDS
CHAIR CON BUNDE announced SB 169 to be up for consideration.
SENATOR THERRIAULT, sponsor, said SB 169 is intended to close a
loophole in the privacy statutes with regards to information
that is collected by the Workers' Compensation system. Currently
it makes it illegal for an attorney to contact an injured worker
to solicit business to represent that person in the system. But
language does not make it clear that state agencies have the
power to withhold certain requests for information from the
system that can be used to make those solicitations. The bill
does not intend to inhibit disclosure of public record
information regarding the specific claim to a newspaper reporter
or an insurer seeking names of employers who are uninsured to
provide the workers' compensation insurance. It just intends to
keep the individual's information from being sold.
SENATOR THERRIAULT gave the committee some background saying
that an injured Alaska worker was contacted by out-of-state
attorneys who had received information about his claim. They did
not take his case, because, he surmised, it was not for enough
money. Senator Therriault said:
This is just a clear case of the type of activity that
we don't want to happen and if we want to prevent that
from happening, we need to make it very clear in the
statute that the state agency, and specifically the
Workers' Comp system, can refuse to disburse
information that would be used by these outside
sources.
1:55:11 PM
SENATOR SEEKINS proposed an immediate effective date as
Amendment 1.
SENATOR THERRIAULT said that was okay with him.
SENATOR SEEKINS moved conceptual Amendment 1 to insert an
immediate effective date. There were no objections and Amendment
1 was adopted.
1:56:06 PM
SENATOR SEEKINS moved CSSB 169(L&C) from committee with
individual recommendations and attached fiscal notes. Senators
Ben Stevens, Seekins, Davis, Ellis and Chair Bunde voted yea;
and CSSB 169(L&C) moved from committee.
SB 168-PROPERTY/CASUALTY INSURANCE REGULATION
1:57:18 PM At ease 1:57:55 PM
CHAIR CON BUNDE announced SB 168 to be up for consideration.
SARAH MCNAIR GROVE, Property Casualty Actuary, Division of
Insurance, explained that last year the director was asked to
work with industry representatives to make changes to the review
process and to move away from department approval for rate and
form filings submitted by insurers to the division.
The primary change from the current process is that some types
of rate and form filings were moved away from requiring the
division to approve them before an insurer can use them. There
is still the same statutory requirement that rates not be
inadequate, excessive or unfairly discriminatory. Hopefully the
process will be a little bit easier for both the division and
for the insurers to get new products into the market.
CHAIR BUNDE asked if this is a housekeeping measure.
MS. GROVE replied that it's a little bit more than a
housekeeping measure, because it makes some significant changes
to the way things are done. The division supports it.
1:59:50 PM
SENATOR DAVIS moved to pass SB 168 from committee. Senators
Davis, Ben Stevens and Chair Bunde voted yea; and SB 168 moved
from committee.
2:00:51 PM At ease 2:04:36 PM
SB 165-CARD ROOMS & OPERATIONS
CHAIR BUNDE announced SB 165 to be up for consideration.
BRIAN MCKINSTER, staff to Senator Cowdery, explained that SB 165
allows card rooms to exist in a controlled public environment,
but only non-bank games can be played such as poker and rummy.
He said there is a growing popularity for these games in the
country and the state and crime goes with hand in hand with
underground games; but in a public legal environment the games
will be regulated and followed closely by state officials. The
state would charge a $10,000 yearly fee per table with a $25,000
application fee. The yearly fee would not be prorated.
This bill addresses who can and who cannot hold a license and
limits the number of licenses to 1 per 30,000 in population.
These games are allowed at home so this is not necessarily and
expansion of gaming, but "We're just saying in a controlled
limited environment, you can play in a public venue that is
limited by the state for revenue and for criminal activity."
2:07:12 PM
CHAIR BUNDE said it is legal to gamble with cards for money in
Alaska as long as the house doesn't take a rake or some of the
money for operating costs.
MR. MCKINSTER agreed, but added that the clarification needs to
be made that there is a difference between a rake and the house
actually having a stake in the game.
You're not playing odds against the house like you
would at blackjack. The odds are even for every other
table and they're physically playing against each
other instead of the house. Basically, it's just a
rental fee for the table or otherwise known as rake.
2:08:08 PM
CHAIR BUNDE said the significant change this bill would make is
it would allow someone who has organized the game to charge for
table rental. He expressed a conflict in that he plays poker and
asked if this bill would allow tournaments.
MR. MCKINSTER replied that it doesn't address that except for
charity. Senator Cowdery thought it best to leave that to the
department to develop in regulations.
2:10:54 PM
SENATOR COWDERY noticed that the committee had an advertisement
for a world poker tour with players paying $15,000 for a chance
to win $1.7 million.
MR. MCKINSTER explained that the maximum dollar amounts would be
left up to the Department of Revenue.
2:11:59 PM
CHAIR BUNDE said the bill focuses on poker and asked if other
games, like cribbage, are covered.
MR. MCKINSTER said originally the sponsor didn't intend to name
the games in the bill, but wanted to leave that to the
department. However, some people wanted reassurances about what
games would be allowed under this statute and they are now
listed as poker, pan, rummy and cribbage.
2:13:37 PM
CHAIR BUNDE asked how wagers are addressed.
MR. MCKINSTER replied the department could decide how much
wagers would be, but he envisioned $1 - $4.
2:14:14 PM
SENATOR DAVIS was concerned about money made by people who own
the gaming rooms.
MR. MCKINSTER said this bill doesn't address that, but a sponsor
substitute could. The department would decide.
SENATOR DAVIS asked how many new jobs would this provide.
MR. MCKINSTER replied that it takes 7.5 people to run a table,
not considering food and beverage services.
CHAIR BUNDE asked what rates are in other areas.
MR. MCKINSTER replied that other areas charge a fairly small
percentage based on the size of the game that is played.
2:16:38 PM
CHAIR BUNDE asked if he thought serving alcohol should be
allowed in card rooms.
MR. MCKINSTER replied that serving alcohol is not addressed in
the bill. However, a couple of people he talked to said they
wouldn't need alcohol to sell this as an establishment and
that's obviously the case now.
He noted that state policy does not allow free alcohol to be
served as an incentive like in a Las Vegas casino, but the
Department of Revenue could decide that, also.
CHAIR BUNDE asked what the fiscal impact to the state is.
BRETT FRIED, Economist, Department of Revenue (DOR), replied
that it is difficult to generate a number. He doesn't know how
many card rooms or tables would end up in the card rooms. He
used the 2000 census for a maximum allowable number and divided
that by 30,000 and came up with 13. He used the maximum number
of card tables per room allowed in Washington state, which is 15
and 6.7 as the average number of gaming employees per table to
derive an estimate of $2.5 million in the first year and $2.1
million in the second year.
2:20:33 PM
PERRY GREEN, Alaskan card player, said the bill is well written
and is very stringent for a card room. "It's a wonderful way of
doing it."
He expressed that there is a lot of interest in this activity
and compared it to golf that has about 2,000 pros that are
playing for $100 million in prize money per year. He said:
Poker has blossomed so much that today the prize money
in tournaments is around $700 million. With Senator
Cowdery's bill we're not talking about this kind of
money. But I'm just saying that that is what's
happening.
He said that gambling happens in Alaskan waters on tour ships.
"So, if you think you're stopping gambling, you're not - by not
voting for this."
CHAIR BUNDE pointed out that cruise ships can gamble only
outside of state waters and asked what rake is standard for the
industry per game.
MR. GREEN replied that California charges for poker rooms get $3
or $4 to host one game and it takes three or four people to run
one table. They each need a dealer, security, janitors, relief,
floor supervisors, cashiers, maintenance, rush people and on-
call people.
CHAIR BUNDE asked how many games are played per hour and how
long a day is.
MR. GREEN answered that card rooms generally take in $90 per
hour per table - gross - and the games can run for any number of
hours. "It depends. Games start and break up and start again."
2:28:02 PM
SENATOR DAVIS noted that Senator Cowdery had pointed out flyers
describing all the money that can be made playing poker and said
those big games are happening here now.
SENATOR COWDERY added that he could find 15 underground games in
Anchorage per night if he wanted to. "It's unregulated and
that's a fact. I think it's a recreational game. Even my wife
has caught on to it."
2:30:22 PM
CHAIR BUNDE said TV gambling is a growing phenomenon. He asked
if on-line gambling is legal in Alaska if it's headquartered
somewhere else.
SENATOR COWDERY responded that he thought on-line games are
offshore.
MR. GREEN said about 90 percent of on-line poker goes to Costa
Rica, Dominican Republic, London, and other tax haven places. He
knew of a $7,200,000 tournament that was out of Aruba.
2:31:24 PM
CHAIR BUNDE asked if convicted felons would be allowed to run
games.
SENATOR COWDERY responded:
Before anybody could get a license, you might hope
that they would have to be cleared of any felony or
any crimes in their past just to try to keep this
above board to be run by individuals or people who are
aboveboard and citizens.... I think anyone who is
going to open one of these establishments should be
pretty up and coming people, not convicted felons.
MR. GREEN added that on-line sites charge $3 per game and that:
I know in games where you're playing for money, they
have no brick and mortar. By brick and mortar, they
don't have a plant or facility. All they have is a
computer line. And I noticed when "Poker Stars" dealt
their one-billionth hand - one-billionth hand - they
gave away $100,000 whether you were playing for five
and ten cents or you were playing for $1,000 or
%10,000.... They are just coining money and good luck
to them.
CHAIR BUNDE said that there were no further questions and closed
the hearing. The committee would wait for the CS. He then
adjourned the meeting at 2:34:13 PM.
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