03/10/2009 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB39 | |
| SB14 | |
| SB86 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 86 | TELECONFERENCED | |
| *+ | SB 14 | TELECONFERENCED | |
| *+ | SB 39 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 10, 2009
2:21 p.m.
MEMBERS PRESENT
Senator Joe Paskvan, Chair
Senator Joe Thomas, Vice Chair
Senator Bettye Davis
Senator Kevin Meyer
Senator Con Bunde
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 39
"An Act extending the termination date of the Board of Public
Accountancy; and providing for an effective date."
HEARD AND HELD
SENATE BILL NO. 14
"An Act expanding the motor fuel tax suspension period."
HEARD AND HELD
SENATE BILL NO. 86
"An Act establishing requirements and limitations related to the
payment of sick leave by certain employers; and providing for an
effective date."
HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 39
SHORT TITLE: EXTEND BOARD OF PUBLIC ACCOUNTANCY
SPONSOR(s): SENATOR(s) THERRIAULT
01/21/09 (S) PREFILE RELEASED 1/9/09
01/21/09 (S) READ THE FIRST TIME - REFERRALS
01/21/09 (S) L&C, FIN
03/10/09 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 14
SHORT TITLE: EXTEND MOTOR FUEL TAX SUSPENSION
SPONSOR(s): SENATOR(s) DAVIS
01/21/09 (S) PREFILE RELEASED 1/9/09
01/21/09 (S) READ THE FIRST TIME - REFERRALS
01/21/09 (S) L&C, TRA, FIN
03/10/09 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 86
SHORT TITLE: PAID SICK LEAVE
SPONSOR(s): SENATOR(s) ELLIS
01/26/09 (S) READ THE FIRST TIME - REFERRALS
01/26/09 (S) L&C, FIN
03/10/09 (S) L&C AT 1:30 PM BELTZ 211
WITNESS REGISTER
SENATOR GENE THERRIAULT
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Sponsor of SB 39.
TOM OBERMEYER
Staff to Senator Davis
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Commented on SB 14 for the sponsor.
JOHANNA BALES, Deputy Director
Tax Division
Department of Revenue (DOR)
POSITION STATEMENT: Supported SB 86.
SENATOR JOHNNY ELLIS
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Sponsor of SB 86
NICK MOE
Staff to Senator Ellis
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Commented on SB 86 for the sponsor.
STEPHANIE STERN
Work and Family Policy Analyst
National Partnership for Women & Families
Washington D.C.
POSITION STATEMENT: Supported SB 86.
ACTION NARRATIVE
2:21:32 PM
CHAIR JOE PASKVAN called the Senate Labor and Commerce Standing
Committee meeting to order at 2:21 p.m. Present at the call to
order were Senators Thomas, Davis, Meyer and Paskvan.
SB 39-EXTEND BOARD OF PUBLIC ACCOUNTANCY
CHAIR PASKVAN announced SB 39 to be up for consideration.
2:22:59 PM
SENATOR BUNDE joined the committee.
SENATOR GENE THERRIAULT, sponsor of SB 39, said it asks to
extend the termination date for the Board of Public Accountancy.
The Legislative Audit Division reviewed the board to see if it
was following its statutory mandate, and recommended some
changes to improve the function, but none of them require
statutory change.
He explained that the auditor recommended that the board come up
for review in four years instead of eight, because of its
interaction with national entities and changing the way they do
business.
CHAIR PASKVAN said he would hold SB 39 until Thursday.
SB 14-EXTEND MOTOR FUEL TAX SUSPENSION
2:25:55 PM
CHAIR PASKVAN announced SB 14 to be up for consideration.
TOM OBERMEYER, staff to Senator Davis, sponsor of SB 14, said it
extends the motor fuel tax suspension period. The governor
originally suspended the tax to help stimulate the economy in
Alaska. However, Alaska continues to pay some of the highest
motor fuel prices in the nation; it affects the price of all
goods that have to be shipped here.
Air and cruise travel to Alaska is also declining because of the
current recession. Extending the suspension of the motor fuel
tax will have a major impact on the enormous quantities of fuel
consumed in the transport of goods and people in Alaska. It will
encourage cargo carriers to maintain flights and cargo hubs in
Alaska, and it will encourage air and cruise lines to reduce
fares to stimulate demand.
2:28:39 PM
SENATOR MEYER asked if the gist of the bill is to give some
relief to their constituents who are suffering with the
recession and to help tourists come to the state, which helps
the economy. Last year the gist was that the state had plenty of
money, but constituents were still suffering because they were
paying high prices for motor fuel. He is perfectly okay with
helping constituents, and, "Folks do need every break that they
can get." He wanted to know if the suspension affects the
state's ability to receive any federal highway funds.
MR. OBERMEYER answered that the tax affects not just to the
average consumer, but also to people in the Bush. It affects
aviation and water craft fuel prices, as well. These are very
substantial amounts of money; they have just heard that 28
pilots are being transferred from FedEx and fuel usage in Alaska
is being reduced due to the current recession. This measure will
help maintain the economy as well as helping the average
consumer.
2:31:36 PM
JOHANNA BALES, Deputy Director, Tax Division, Department of
Revenue (DOR), said the previous legislation required motor fuel
dealers to continue to report the amount of fuel used to the
department so it could provide the information required by the
U.S. Division of Highways. Some of the information is estimated,
but the federal Department of Highways is fine with that, and
said the state does not have to impose a fuel tax, but it still
has to provide them with the amounts of fuel used on the road.
SENATOR MEYER said last year this was the administration's
proposal and asked if the governor still supports it.
MS. BALES answered yes.
2:33:56 PM
SENATOR BUNDE said the sponsor statement talks about cruise
lines and asked if they pay a gas tax on their bunker fuel.
MS. BALES answered that it's possible for the ships to have
enough fuel if they take it on in Washington. The state doesn't
have actual data that shows the end users; they only get
information from the qualified dealers.
SENATOR BUNDE asked if the highway tax is imposed on bunker
fuel.
MS. BALES answered no.
SENATOR BUNDE said, then, that if a cruise line bought fuel in
Alaska, they wouldn't pay the tax because they use bunker fuel.
He wanted to know how this would change the state's revenues.
CHAIR PASKVAN said he just got the fiscal note, and he didn't
intend to pass the bill today.
SENATOR BUNDE asked how the fuel tax impacts the state's budget
for upgrading roads.
2:36:30 PM
MS. BALES said the fuel tax doesn't cover the total amount
needed to upgrade the state's roads.
SENATOR BUNDE said he saw how this bill would reduce income, and
asked how the cost of maintaining roads would be funded without
the motor fuel tax.
CHAIR PASKVAN also asked if the proceeds of the motor fuel tax
are a "pass through" from the Department of Revenue directly to
the Department of Transportation and Public Facilities for road
maintenance and repair.
MS. BALES answered that tax revenue is deposited into the
general fund.
2:37:59 PM
CHAIR PASKVAN asked if the money is identified for road
maintenance and repair.
MS. BALES replied, "Not that I'm aware of."
MR. OBERMEYER inserted that AS 43.40.010 indicates that the
proceeds of the taxes go into a specific highway fuel tax
account in the state's general fund.
SENATOR THOMAS asked if the change in revenue between 2010 and
2011 in the fiscal note were based on the expectation the state
will have fewer travelers in 2011 than 2010.
MS. BALES answered that the department already prepared a fiscal
note that addressed the first two months of 2010. So, the new
fiscal note represents just this piece of legislation. The total
change in revenues would be approximately $40 million if you add
the amount from the previous fiscal note for FY2010.
SENATOR THOMAS asked if she knew the per capita impact this has
on the driving public.
MS. BALES answered that it is a savings of approximately
$50/year for a normal commuter.
2:41:00 PM
CHAIR PASKVAN asked the sponsor if AS 43.40.010(f)(g)(h)(j)
allocates tax money to the account for water and harbor
facilities for direct expenditure by DOTPF or is it matched by
available federal aide highway money. So, if there is no money
in that fund, is there a potential risk for losing matching
federal dollars?
MR. OBERMEYER responded that someone else could better answer
that question. He also said the governor's office indicated
support of this bill.
2:43:05 PM
SENATOR MEYER asked if they thought about not putting an end
date on it. How did they come up with two years?
SENATOR DAVIS said she came up with two years as an arbitrary
time for reviewing how the missing revenues are affecting the
state.
CHAIR PASKVAN said he would hold SB 14 for another meeting.
SB 86-PAID SICK LEAVE
2:44:34 PM
CHAIR PASKVAN announced SB 86, version R, to be up for
consideration.
SENATOR ELLIS, sponsor of SB 86, said the paid sick leave issue
is important to thousands of Alaskans. The U.S. Department of
Labor statistics estimate that 120,000 Alaskans work without the
safety net of a paid sick leave policy, and are often forced to
choose between coming to work sick and losing their employment.
Many of these workers have jobs in places such as restaurants,
nursing homes and child care facilities where a sick employee is
not only a threat to other employees, but a threat to the
public's health as well.
He encouraged them to read a January 27, 2009 Forbes article
that encapsulated how this view is friendly to employees,
businesses and the public health and safety. Businesses can
benefit and often save money by offering paid sick leave
programs, because when an employee comes to work sick, they
expose other employees to the illness. Because of this, more
workers need to take time off and recover from their illness
instead of just the person who started the illness in the
workplace.
Federal inaction on this issue to date has inspired dozens of
local governments to pass paid sick leave laws. About 15 states
currently are considering this nearly identical legislation.
Three cities have already passed paid sick leave laws of their
own.
2:47:39 PM
SENATOR BUNDE said the article says $180 billion a year is being
lost from non-productive and absent employees, and asked if that
$180 billions isn't also lost when employees are absent because
they are on sick leave.
SENATOR ELLIS responded that the reference is to the other folks
who are infected in the workplace and what that does to
productivity.
SENATOR BUNDE said he remembered when he was a teacher they went
through "the game of sick leave" where people were sick because
of sunburn or something. In many instances it's called personal
leave because that more accurately reflects what really happens
- you had to take a day off because someone else was sick or
something like that. Had the sponsor thought about calling it
personal leave instead of sick leave?
SENATOR ELLIS answered that he would appreciate that discussion,
because there could be a more accurate way to refer to this.
2:49:11 PM
SENATOR MEYER said he supports the idea of sick leave, but even
their own employees come to work if they just have a cold or a
sore throat, because they want to cash in their sick leave. In
theory it sounds good, but the culture in the market place has
to also reflect that.
SENATOR ELLIS said he hoped to discuss those practical
considerations with introduction of the bill.
2:51:22 PM
NICK MOE, aide to Senator Ellis, sponsor of SB 86, explained
section 1 on page 1, line 4, says that all employers must post
sections of this law in a conspicuous location at the workplace,
and the state will offer copies at no additional cost to them.
Sections 2 and 3, beginning on page 1, line 10, describe the
action taken if an employee is not given proper paid sick leave
saying the employer will be liable for the amount of unpaid
minimum wages, unpaid overtime compensation or unpaid sick
leave.
Section 4, on page 2, line 14, establishes the paid sick leave
itself saying for every 40 hours of work an employer will
provide one hour of sick leave to employees residing in the
state of Alaska as well as to those employees who aren't under a
collective bargaining agreement. Section 4, on page 2, line 21,
states if an employer already has paid sick leave for their
employees this doesn't apply to them.
Section 4(d) on page 2, line 30, describes what the paid sick
leave may be used for. It may be used for the prevention,
diagnosis, or the treatment of the employee and paid sick leave
may also be permitted for a member of the employees' immediate
family for a mental or physical illness, injury or health
condition.
2:53:32 PM
Section 4 on page 3, line 7, goes on to explain the potential
employer violations of the section. Section 5 provides an
effective date of October 1, 2009.
2:53:54 PM
SENATOR BUNDE asked if people can cash out sick leave and
remarked that some places have a use it or lose it sick leave
policy.
MR. MOE answered that this bill doesn't allow cashing out sick
leave.
SENATOR BUNDE asked if this requires an employer to pay for sick
leave at the time of termination.
MR. MOE answered no.
2:55:16 PM
STEPHANIE STERN, Work and Family Policy Analyst, National
Partnership for Women & Families, Washington D.C., supported SB
86. She said she had submitted written testimony.
MS. STERN said one of their proudest accomplishments is leading
a nation-wide movement to ensure that all workers are guaranteed
paid sick days to use when they are ill or need to care for a
sick family member. They lead a broad coalition of over 150
groups dedicated to advocating for paid sick days at the federal
level, and they also support advocates who are working at the
state and city level to advance the issue through their
legislative bodies and on the ballot.
She said chances are that each of us will get sick or need to
take care of a family member this year, but not all have the
option to take time off from work to get better. In the U.S.
today, nearly half of the private sector workers don't have a
single paid sick day. Currently no state or federal law insures
that workers have paid sick days when they need them. Three
localities, San Francisco, the District of Columbia, and
Milwaukee, have passed paid sick day standards to date.
2:58:32 PM
Low-wage workers a hit hardest by the lack of paid sick days;
only 1 in 4 low-wage workers have access to paid sick leave and
they often hold jobs that require frequent contact with the
public.
Paid sick days are also important for public health. When people
have no choice but to go to work sick, they risk infecting
others. For example, only 1 in 5 food service or hotel workers
has any paid sick days, and child care, retail and nursing home
workers are also very unlikely to have paid sick days.
This policy is also incredibly important for children. Research
shows that children get better faster with a parent at home to
take care of them. This benefits older relatives the same way,
as well.
MS. STERN said that paid sick leave is also important for
victims of domestic violence and sexual assault. Approximately
7.6 million people per year are the victims of intimate partner
violence. Paid sick and safe days will insure that all survivors
of domestic violence, stalking or sexual assault are guaranteed
paid sick time when they need it most to leave a violent
situation and access necessary services without risk of losing
their jobs or their paychecks.
Finally, she said, they know that paid sick days are good for
the U.S. economy. Those workers who have no paid sick days go to
work sick and spread sickness to their colleagues lowering their
overall productivity and cost the employer greatly. When workers
are guaranteed paid sick days, employers benefit as healthy
workers are more productive and spread of illness is reduced.
Employers also reap savings by having reduced turnover, the
costs of which include advertising, interviewing, and training
replacement workers. These costs are generally far greater than
the cost of providing paid sick time to retain existing workers.
She also added that paid sick days are critically important
during times of economic downturns. Losing pay for even a day
can be a blow to a family's budget that is already stretched to
the limits. Losing a job due to missing work can result in
financial catastrophe.
3:01:14 PM
In a recent poll, 1 in 6 respondents reported that they or a
family member had been fired, suspended, punished or had been
threatened with being fired for taking the time off for personal
illness.
CHAIR PASKVAN said he would hold SB 86.
SENATOR BUNDE asked that they address the "safe" language,
because Ms. Stern mentioned it and it wasn't in the title.
3:04:59 PM
There being no further business to come before the committee,
Chair Paskvan adjourned the meeting at 3:04 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 14 Bill Packet.pdf |
SL&C 3/10/2009 1:30:00 PM |
SB 14 |
| SB 14 Fiscal Note.pdf |
SL&C 3/10/2009 1:30:00 PM SL&C 3/24/2009 1:30:00 PM |
SB 14 |
| SB 39 Bill Packet.pdf |
SL&C 3/10/2009 1:30:00 PM |
SB 39 |
| SB 86 Bill Packet.pdf |
SL&C 3/10/2009 1:30:00 PM SL&C 3/24/2009 1:30:00 PM |
SB 86 |
| SB 86 Back-Up Steffany Stern Testimony.pdf |
SL&C 3/10/2009 1:30:00 PM SL&C 3/24/2009 1:30:00 PM |
SB 86 |