02/23/2012 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB175 | |
| SB122 | |
| SB25 | |
| SB174 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 25 | TELECONFERENCED | |
| += | SB 175 | TELECONFERENCED | |
| += | SB 122 | TELECONFERENCED | |
| += | SB 174 | TELECONFERENCED | |
| += | SB 116 | TELECONFERENCED | |
| *+ | SB 190 | TELECONFERENCED | |
| + | HB 168 | TELECONFERENCED | |
| += | SB 138 | TELECONFERENCED | |
| += | SB 157 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
February 23, 2012
1:32 p.m.
MEMBERS PRESENT
Senator Dennis Egan, Chair
Senator Joe Paskvan, Vice Chair
Senator Linda Menard
Senator Bettye Davis
Senator Cathy Giessel
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 175
"An Act relating to the practice of naturopathy; and providing
for an effective date."
- MOVED CSSB 175(L&C) OUT OF COMMITTEE
SENATE BILL NO. 122
"An Act relating to real estate transfer fees and increasing the
length of time title records must be maintained by a title
plant."
- MOVED CSSB 122(L&C) OUT OF COMMITTEE
SENATE BILL NO. 25
"An Act relating to participation by the Alaska Industrial
Development and Export Authority in energy projects."
- MOVED CSSB 25(L&C) OUT OF COMMITTEE
SENATE BILL NO. 174
"An Act requiring certain employers in the oil or gas production
industries to report certain job opportunities to the Department
of Labor and Workforce Development as public information and
requiring that information to be posted on the Alaska Online
Public Notice System; and adding to the duties of the Alaska
Workforce Investment Board."
- HEARD & HELD
SENATE BILL NO. 116
"An Act offering mediation of disputed workers' compensation
claims by a hearing officer or other classified employee of the
division of workers' compensation and allowing collective
bargaining agreements to supersede certain provisions of the
Alaska Workers' Compensation Act; and providing for an effective
date."
- SCHEDULED BUT NOT HEARD
SENATE BILL NO. 190
"An Act relating to activities, including violations and
penalties, under the supervision of the Big Game Commercial
Services Board; and creating a retired status master guide-
outfitter license."
- BILL HEARING POSTPONED
CS FOR HOUSE BILL NO. 168(JUD)
"An Act requiring the amount of the security given by a party
seeking an injunction or order vacating or staying the operation
of a permit affecting an industrial operation to include an
amount for the payment of wages and benefits for employees and
payments to contractors and subcontractors that may be lost if
the industrial operation is wrongfully enjoined."
- BILL HEARING POSTPONED
SENATE BILL NO. 138
"An Act relating to the inclusion of the charges of a vendor of
goods or services on the bills of certain telecommunications
carriers; and adding an unlawful act to the Alaska Unfair Trade
Practices and Consumer Protection Act."
- BILL HEARING POSTPONED
SENATE BILL NO. 157
"An Act allowing an insurer to cancel an insurance policy if
property becomes unoccupied and the vacancy increases the hazard
insured against."
- BILL HEARING POSTPONED
PREVIOUS COMMITTEE ACTION
BILL: SB 175
SHORT TITLE: PRACTICE OF NATUROPATHY
SPONSOR(s): SENATOR(s) MCGUIRE
01/25/12 (S) READ THE FIRST TIME - REFERRALS
01/25/12 (S) L&C
02/07/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/07/12 (S) Heard & Held
02/07/12 (S) MINUTE(L&C)
02/09/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/09/12 (S) Heard & Held
02/09/12 (S) MINUTE(L&C)
02/16/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/16/12 (S) Heard & Held
02/16/12 (S) MINUTE(L&C)
02/21/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/21/12 (S) -- MEETING CANCELED --
02/23/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 122
SHORT TITLE: REAL ESTATE TRANSFER FEES/TITLE PLANTS
SPONSOR(s): LABOR & COMMERCE
04/08/11 (S) READ THE FIRST TIME - REFERRALS
04/08/11 (S) CRA, L&C
01/24/12 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
01/24/12 (S) Heard & Held
01/24/12 (S) MINUTE(CRA)
01/31/12 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
01/31/12 (S) Moved CSSB 122(CRA) Out of Committee
01/31/12 (S) MINUTE(CRA)
02/01/12 (S) CRA RPT CS 4DP NEW TITLE
02/01/12 (S) DP: OLSON, KOOKESH, MENARD, WAGONER
02/02/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/02/12 (S) Heard & Held
02/02/12 (S) MINUTE(L&C)
02/21/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/21/12 (S) -- MEETING CANCELED --
02/23/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 25
SHORT TITLE: AIDEA SUSTAINABLE ENERGY PROGRAM
SPONSOR(s): MCGUIRE
01/19/11 (S) PREFILE RELEASED 1/7/11
01/19/11 (S) READ THE FIRST TIME - REFERRALS
01/19/11 (S) L&C, FIN
02/08/12 (S) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
02/08/12 (S) L&C, FIN
02/16/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/16/12 (S) Heard & Held
02/16/12 (S) MINUTE(L&C)
02/21/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/21/12 (S) -- MEETING CANCELED --
02/23/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 174
SHORT TITLE: OIL AND GAS INDUSTRY JOB NOTIFICATIONS
SPONSOR(s): FRENCH
01/25/12 (S) READ THE FIRST TIME - REFERRALS
01/25/12 (S) L&C, FIN
02/16/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/16/12 (S) Scheduled But Not Heard
02/21/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/21/12 (S) -- MEETING CANCELED --
02/23/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
DON HABEGAR, Director
Division of Corporations, Business and Professional Licensing
Department of Commerce, Community and Economic Development
(DCCED)
Anchorage, AK
POSITION STATEMENT: Clarified department history of prescriptive
authority issue in SB 175.
DR. WARD HURLBURT, Director and Chief Medical Officer
Division of Public Health
Department of Health and Social Services (DHSS)
Anchorage, AK
POSITION STATEMENT: Explained department perspective on SB 175
and the fiscal note.
JON SHERWOOD, Medicaid Special Projects
Medicaid and Health Care Policy
Department of Health and Social Services (DHSS)
POSITION STATEMENT: Explained the fiscal impacts of SB 175 on
the Medicaid program.
DANA OWEN, Staff
Senate Labor and Commerce Committee
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Explained Amendment 1 to CSSB 122(CRA).
MIKE PRICE, owner
Fidelity Title Insurance in Anchorage and Mat-Su Title Insurance
President, Alaska Land Title Association
Wasilla, AK
POSITION STATEMENT: Said CSSB 122(CRA) was acceptable to all
members of the industry.
LINDA HALL, Director
Division of Insurance
Department of Commerce, Community and Economic Development
(DCCED)
Juneau, AK
POSITION STATEMENT: Supported CSSB 122(CRA).
MIKE PAWLOWSKI, Staff
Senator Lesil McGuire
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Explained CSSSSB SB 25(L&C) for the sponsor.
MARK DAVIS, Director
Alaska Industrial Development and Export Authority (AIDEA)
Anchorage, AK
POSITION STATEMENT: Supported CSSSSB 174(L&C).
SENATOR HOLLIS FRENCH
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Sponsor of SB 174
SHARON LONG, Staff
Senator Cathy Giessel
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Explained Senator Giessel's amendment to SB
174.
DENNIS BAILEY, Attorney
Legislative Legal Division
Legislative Affairs Agency
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Was available to answer questions on SB 174.
PAULA SCAVERA, Legislative Liaison
Department of Labor and Workforce Development (DOLWD)
Juneau, AK
POSITION STATEMENT: Explained the impacts of SB 174 on DOLWD's
online job notification systems.
PAUL DICK, Director
Employment Security Division
Department of Labor and Workforce Development (DOLWD)
Juneau, AK
POSITION STATEMENT: Answered questions on the kind of data the
DOLWD's ALEXsys provides on employment in the state.
ACTION NARRATIVE
1:32:24 PM
CHAIR DENNIS EGAN called the Senate Labor and Commerce Standing
Committee meeting to order at 1:32 p.m. Present at the call to
order were Senators Paskvan, Giessel, Davis, and Chair Egan.
SB 175-PRACTICE OF NATUROPATHY
1:34:24 PM
CHAIR EGAN announced consideration of SB 175 and said that some
committee members had questions. [CSSB 175(L&C), 27-LS1230\B,
was before the committee.]
DON HABEGAR, Director, Division of Corporations, Business and
Professional Licensing, in the Department of Commerce, Community
and Economic Development (DCCED), introduced himself.
SENATOR PASKVAN asked Mr. Habegar to review the department's
position on the recent restrictions put upon naturopaths that no
one could identify the origin of and explain why nothing had
been done.
MR. HABEGAR replied that he had done a lot of digging in trying
find the mileposts on this issue and found that the department
has had a consistent interpretation of the statutes and
regulations about it: one was that naturopaths don't have
prescriptive authority.
He found several complaints over the last 18 years during which
naturopaths have been practicing. The first was dismissed
because of lack of evidence. The second one brought the issue to
the forefront and ended up with a consent agreement. The
division has maintained that naturopaths don't have prescriptive
authority, and that was the issue in this particular case. As it
unfolded, pharmacies started asking the department about what
prescriptive authority means and said they weren't supplying
legend drugs to naturopaths. That is what led to the discussion
before them today and the question of what the division is going
to do.
If legislation is not passed to correct the situation, he said
the division is in a position to go out with regulations to
clear up what is confusing language to all. Those regulations
won't go out until after going through the process. How they
proceed past that is yet undetermined.
SENATOR PASKVAN asked him to precisely state, assuming
legislation didn't pass, whether the regulations will be drafted
allowing the practice that has existed over the last 18 years or
not.
MR. HABEGAR replied that because the division has interpreted
statute to mean that no prescriptive authority has been granted
by the legislature, regulations will be developed to comport to
that.
SENATOR PASKVAN said he understood that anecdotal issues have
arisen - one a consent decree and the other dismissed - but it
begs the issue that directors have let a practice exist for 18
years without doing anything. He was troubled about why all of a
sudden they decided to do a 180 degree turn in terms of its
application, whatever the interpretation is.
1:40:24 PM
MR. HABEGAR said he recognized that there have been numerous
interpretations and that some pharmacists have prescribed in
response to written prescriptions, and if legislation is not
passed, they would give the issue careful consideration. He
believes it is important for regulations to support statute and
not confuse licensees.
SENATOR PASKVAN asked if he is supporting the legislation's
passage to remove any uncertainty about interpretation.
MR. HABEGAR replied yes, but SB 175 needs more clarity. For
instance, hydro-therapy means the use of water in all forms. Is
that the physical state of water that is deemed a liquid or is
it hydrotherapy with all its various components, i.e. saline
solution? And clarifying this language would help the division
immensely.
1:43:07 PM
CHAIR EGAN said this is the fourth meeting on this bill and the
department should have offered an amendment a couple of meetings
ago if it had issues. Testimony the committee has received
indicates that this legislation clarifies what has been done for
18 years; it isn't changing anything.
MR. HABEGAR responded that he had a fiscal note and part of it
was about getting a group of professionals together and help
them to hammer out the details. The mix of professionals wasn't
specified, but certainly MDs should be part of the process and
someone from the Board of Pharmacy.
SENATOR DAVIS asked if he truly understands what SB 175 does.
For 18 years naturopaths had the authority to prescribe
medicines from pharmacies and all of a sudden something happened
to take that authority away and the director just told them the
division plans to write regulations in support of that. So this
legislation won't do anything.
MR. HABEGAR responded that he thinks SB 175 takes regulation
that was supporting their interpretation of statute, which was
no prescriptive authority, and adds that prescriptive authority.
There is room for clarification through the regulatory process
and he would do that with the help of experts.
1:46:13 PM
SENATOR MENARD joined the committee.
SENATOR DAVIS asked if he had shared his idea of clarity with
anyone, because they had been working on this bill for a long
time; he had even testified on it. Now today when they are
getting ready to move it, he is saying it needs more
clarification and doesn't have anything to suggest.
MR. HABEGAR apologized for being remiss in addressing the
committee's concerns, but it is an ongoing process.
1:47:28 PM
SENATOR GIESSEL said her concern and the concern of her
colleagues is that a professional license with its accompanying
scope of practice is a property right and it sounds like the
division has plans to arbitrarily change it. Even if they do
pass this bill some tweaking will be done to it.
Another of her concerns was the $127,000 fiscal note for travel
expenses for two naturopath prescription drug task force
meetings that she didn't think would be needed. Another concern
she had was the task force consists of naturopaths, the medical
board, the pharmacy board and the division personnel, but this
scope of practice applies to naturopaths only, not the other two
professions. She was also concerned about the $36,000 fiscal
note each month for filling 100 Medicaid prescriptions. She
didn't think this bill needed a fiscal note.
MR. HABEGAR replied that the fiscal note isn't from his
department; it came from HSS. The $16,000 fiscal note was in
response to the original bill, and if it needs to be changed as
results of changes to the bill he would withdraw it.
CHAIR EGAN thanked him and announced other people on line who
could also answer fiscal note questions.
1:50:43 PM
DR. WARD HURLBURT, Director of the Division of Public Health,
and Chief Medical Officer for the Department of Health and
Social Services (DHSS), Anchorage, Alaska, said he understood
that clarification was needed and the language in this version
of SB 175 would expand the naturopathic scope of practice and
the fiscal note was based on the cost associated with expanding
that prescriptive practice. For instance, the manufacturer of
capsicum, a tincture of cayenne pepper that is used medicinally,
made it a prescription item. In allopathic medicine, if you ask
someone to take ibuprofen or Advil, the over-the-counter form is
200 milligrams and very few insurance policies would cover that.
Whereas a physician could prescribe an 800 milligram tablet and
it would likely be covered.
The bill's language notes that the prescriptive authority is for
drugs that are derived from natural substances and his recent
research and experience indicated that 25-50 percent of
pharmaceutical agents requiring a prescription are derived from
natural substances. That is the reason for the concern that it
would expand the scope and therefore expand the cost of health
care for items that are not now covered by insurance.
1:53:14 PM
SENATOR GIESSEL asked what the prescriptive cost to Medicaid has
been under existing regulations for the last 18 years.
DR. HURLBURT said he didn't have that information, but would get
it.
SENATOR GIESSEL said she was not interested in speculating about
expansion, but was only asking about practices for the past 18
years.
1:54:10 PM
SENATOR PASKVAN asked if he ever protested what the naturopaths
were doing in the last 18 years - even one time, because someone
is protesting now, and he was wondering what it was about.
DR. HURLBURT said he had been in his current position for 2.5
years and during that time he hadn't protested what naturopathic
doctors had been doing.
1:55:08 PM
CHAIR EGAN asked Dr. Hurlburt if any other chief medical
officers had protested naturopathic practices in the last 18
years.
DR. HURLBURT replied that he didn't know but would find out.
1:55:46 PM
JON SHERWOOD, Medicaid Special Projects, Medicaid and Health
Care Policy, Department of Health and Social Services (DHSS),
said Medicaid has two fiscal notes and that this issue has
stayed beneath their radar. He understood that naturopaths do
not have prescriptive authority and they are not included in the
Medicaid program, and since he doesn't pay them, they have not
had to enroll in the Medicaid program. Changes to Medicaid under
the Affordable Care Act require that any prescriber that
Medicaid is paying for a prescription needs to enroll in the
program so that their provider number can be captured. A one-
time cost for creating a way for them to enroll in the program
and $36,000 a year for 100 prescriptions per month was
estimated. But he emphasized that was only an estimate and that
a wide variety of medicines are prescribed, and it would help to
have a clearer understanding of what substances they would be
talking about.
SENATOR DAVIS asked him to explain the two fiscal notes.
MR. SHERWOOD explained that the Medicaid Assistance
Administration has a one-time cost of $75,000, $18,800 of which
would come from general funds; the other one is $36,000 per year
for health care Medicaid services and that is 50 percent
federal, 50 percent state general funds. The $16,000 fiscal note
is from the Department of Commerce, Community and Economic
Development (DCCED).
2:00:02 PM
SENATOR GIESSEL asked Dr. Jasper if naturopaths have national
provider identifier (NPI) numbers.
DR. JASPER answered yes.
SENATOR GIESSEL asked if they are reimbursed by insurance
companies.
DR. JASPER answered yes; Alaska statute provides for that
coverage in its group health policies.
SENATOR GIESSEL asked if any Alaska naturopaths have enrolled in
Medicaid or are Medicare providers.
DR. JASPER replied that naturopaths are not eligible to enroll.
Eligibility for Medicare is determined by federal laws, and the
eligibility for Medicaid is determined by state law; neither has
authorized naturopathic doctors to participate in Medicare or
Medicaid.
2:01:29 PM
DR. JASPER also added that hydrotherapy is the application of
hot and cold water packs to the body and shouldn't result in any
prescription expenses; it's not IV water or saline injections.
Maybe it would help Mr. Habegar to have that clarified.
2:02:32 PM
SENATOR PASKVAN moved to report CSSB 175(L&C), version B, from
committee with individual recommendations and attached fiscal
note(s) although he hoped the fiscal note would be removed.
There were no objections, and it was so ordered.
2:02:57 PM
At ease from 2:02 to 2:04 p.m.
SB 122-REAL ESTATE TRANSFER FEES/TITLE PLANTS
2:04:56 PM
CHAIR EGAN announced consideration of SB 122.
DANA OWEN, staff to the Senate Labor and Commerce Committee,
said at the last hearing on this bill they discussed an
amendment that would be forthcoming and it would answer issues
that had been raised amongst title insurers.
SENATOR PASKVAN moved to adopt Amendment 1 to CSSB 122(CRA),
version 27-LS0789\B.
CHAIR EGAN objected for discussion.
MR. OWEN explained that the one goal of the amendment is to
anchor title searches to the State of Alaska. Concerns have been
expressed to their office that because there is so much
offshoring of this kind of "back office" sort of work that we
would lose our ability to have title insurance searches done by
somebody who has an actual connection to Alaska and whose local
knowledge may prove instrumental in making sure that the title
searches are defensible. In order to do that, this amendment
adds a requirement that a title insurance contract can't be
issued until an examination has been done by a licensed title
insurance limited producer. Among the requirements to become a
licensed title insurance limited producer is one that you have a
locus (physical presence) of business in the state. This doesn't
guarantee that with online technology people outside the state
couldn't do the research, but it would at least mandate that one
person or a business located in Alaska has the final authority
to approve it.
The second section of the bill requires that a title insurance
limited producer must be a resident of the State of Alaska. A
memo in their packets argues that this may be in violation of
the privileges and immunities clause of the U.S. Constitution.
Anytime Alaska residency is required, this issue is raised.
Bills in the past have passed with these kinds of provisions and
the committee could decide to embrace that. This language has
been vetted between two contending factions in the title
industry, both of which are okay with this now.
2:08:56 PM
SENATOR MENARD said she wanted to hear from MatSu Title
Insurance.
2:10:22 PM
MIKE PRICE, owner, Fidelity Title Insurance in Anchorage and
Mat-Su Title Insurance in Wasilla said he is currently president
of the Alaska Land Title Association and that the CS is
acceptable to all members of the industry and they support its
passage. He said about 13 states had passed very similar
legislation in the last three or four years that specify
residents of their states will be the only licensed examiners
within those states. Since the last committee meeting, he,
personally, had been solicited three times from India and that
is the kind of thing they are trying to prohibit.
SENATOR MENARD said it's comforting to hear that he is
satisfied.
CHAIR EGAN asked Ms. Hall what she thought of the latest
version.
2:12:35 PM
LINDA HALL, Director, Division of Insurance, Department of
Commerce, Community and Economic Development (DCCED), said she
was pleased to hear Mr. Price testify that industry agrees with
this version, and she is especially supportive of Section 1,
because it clarifies there has to be at least a physical
location from which to do the title examination search in the
state. Language in Section 2 about off shore outsourcing was
strictly a legislative call, she said, and she understood
industry's concerns about it.
2:13:49 PM
SENATOR PASKVAN moved to report CSSB 122(L&C), as amended by
amendment B.2, from committee with individual recommendations
and attached zero fiscal note. There were no objections, and it
was so ordered.
2:14:13 PM
At ease from 2:14 to 2:15 p.m.
SB 25-AIDEA SUSTAINABLE ENERGY PROGRAM
2:15:50 PM
CHAIR EGAN announced consideration of SB 25.
2:16:02 PM
SENATOR PASKVAN moved to bring CSSSSB 25( ), version 27-
LS0290\E, before the committee for purposes of discussion. There
were no objections and it was so ordered.
MIKE PAWLOWSKI, staff to Senator McGuire, sponsor of SB 25,
explained the committee substitute (CS). He said that the bill
is about empowering and creating a new fund within the Alaska
Industrial and Development and Export Authority (AIDEA) to take
a portion of Alaska's savings and put it to work within the
state, financing the construction and development of energy
projects.
In the previous committee hearing, he said that Mr. Davis from
AIDEA testified that some technical amendments were needed to
ensure the ability to bond and to clarify the definition of
energy in the interest rate provisions.
MR. PAWLOWSKI reviewed the CS starting with Section 8 on page 6
where language in section 10 amended AS 44.88.159 that sets the
interest rates for AIDEA. He noted multiple different sources of
revenue that finance projects were also within that statute. So
AIDEA suggested clarifying that the new interest rate is applied
only to the new fund being created. So, sections 8, 9, 11 and 12
all amend different portions of AS 44.88.159 to ensure that the
interest rates are consistent with current practice. The
important thing about that is to ensure that AIDEA isn't giving
away money, but rather collecting an interest rate, earning
money on the investment that it makes. This is not a grant
program and is not designed to be one. Further, it also conforms
with the private sector so it doesn't crowd out Alaska's
financial institutions from the work they do in providing
capital.
2:18:42 PM
The next substantive change was on page 10, line 14, in a new
subsection within the powers and duties of the Authority. He
explained that AS 44.88.090 allows AIDEA to issue bonds and
borrow against the proceeds from the projects that it has
invested in. This section applies to that chapter. It was
originally the sponsor's thought that since this new section was
within the chapter, that power would apply to AIDEA in carrying
out the duties of this fund. AIDEA believed that making that
explicit strengthened the bill. So a new section makes it
extremely clear that AIDEA does have the ability to leverage
capital markets against the assets that it has loaned.
MR. PAWLOWSKI said the other material change was on page 10,
line 4. In the previous version, language was left in that said
"subject to lender approval defer principal payments" in that
AIDEA under this program is the lender. This was redundant
language that legal said could be taken out.
The final change was on page 11, line 4, in the definition of
"energy project." In the previous version the "transmission,
generation, storage or distribution of electricity" was the
description. And in working with more energy groups over the
Interim since the previous hearing, it was brought up that
several energy projects might not actually generate electricity
but could be used for heat, biomass being the most important of
those, and the goal was not to preclude AIDEA from helping that
type of energy project.
2:20:38 PM
SENATOR MENARD said she appreciated the format of his
presentation.
MR. PAWLOWSKI then pointed out a mistake on page 1, section 5,
and said this bill in no way deals with sport fishing guide
licenses and that would get fixed.
2:21:29 PM
SENATOR PASKVAN asked the AIDEA director to explain the
leveraging component on page 10, line 14.
MARK DAVIS, Director, Alaska Industrial Development and Export
Authority (AIDEA), responded that one of the concerns they had
with the original bill was that although the chapter says AIDEA
could issue bonds and borrow money, the language didn't
explicitly apply to the new fund. Bankers and lawyers tend to be
very careful, and in looking for a guarantee of leveraging they
want explicit statutory authority. The way it would work is that
now AIDEA could issue a bond to raise money for a loan or,
assuming there is some appropriation with this bill which there
is not, it could use those monies, or it could use its current
reserves. So, it gives AIDEA the flexibility to pick the best
pot of money to get the project going with the least possible
cost. This bill suggests that AIDEA put no more than one third
into a loan, which is already internal policy.
SENATOR PASKVAN asked if AIDEA would fund a $250 million project
with $80 million as the first step.
MR. DAVIS replied yes.
SENATOR PASKVAN asked if there is more leveraging once the $80
million is locked in.
MR. DAVIS replied that depends on how the deal is structured and
every transaction is different.
SENATOR PASKVAN asked at what point further legislative approval
enters into the process.
MR. DAVIS replied at the appropriation level, but even without
an appropriation, should this bill pass, AIDEA could issue a
bond to raise money for an energy loan.
SENATOR MENARD asked if there is a good reason the word
"leverage" is not part of the language.
MR. DAVIS replied that "leverage" is a term of art for putting
together financial packages, but it's not language that would be
put into a statute.
2:25:49 PM
MR. PAWLOWSKI pointed out language on page 8, line 28 through
page 10, line 22, requires legislative approval for projects
over $20 million.
2:27:10 PM
SENATOR PASKVAN moved to report CSSSSB 25(L&C) from committee
with individual recommendations and attached fiscal note. There
were no objections and it was so ordered.
2:27:32 PM
At ease from 2:27 to 2:30 p.m.
SB 175-PRACTICE OF NATUROPATHY
2:30:35 PM
CHAIR EGAN reconvened the meeting and returned attention to SB
175.
SENATOR PASKVAN moved to rescind the committee's previous action
to report SB 175 out of committee and restated the motion as
follows: to report CSSB 175(L&C), version \B from committee with
a restated Labor and Commerce fiscal note of zero with
individual recommendations. There were no objections and it was
so ordered.
2:31:43 PM
At ease from 2:30 to 2:31 p.m.
SB 174-OIL AND GAS INDUSTRY JOB NOTIFICATIONS
2:32:29 PM
CHAIR EGAN announced SB 174 to be up for consideration.
SENATOR HOLLIS FRENCH, sponsor of SB 174, said this bill had its
genesis from the work this committee did with respect to oil
industry hiring practices. Early results from the McDowell Group
report indicated large numbers of out-of-state residents being
hired on the North Slope, and he puzzled about what could be
done to tip the balance in favor of Alaska residents. In-state
hire cannot be mandated, but maybe Alaskans can be made more
aware of these fantastic job opportunities, and SB 174 is
designed to do just that. Senator French said he worked eight
years on the North Slope and they are great jobs.
SENATOR FRENCH said when big companies on the North Slope are
hiring, they tell the Department of Labor and Workforce
Development (DOLWD) and the department puts it on their website.
He was open to any reasonable suggestion, but the idea was to
just get the notification out there.
CHAIR EGAN remarked that the department was working hard to make
ALEXsys more user friendly.
2:35:04 PM
SENATOR GIESSEL said she appreciated the intent and possible
outcome of this bill and remarked that information in the
supporting documents also indicated that 75 percent of the
workforce in the seafood industry is non-resident. She said more
than one-third of Alaska's employers are in the food services
industry and employs lots of non-residents as well. So, she
wanted to offer an amendment that would broaden the scope of the
bill to include any non-profit that is licensed to do business
in the state with more than 100 employees.
2:36:35 PM
SENATOR GIESSEL moved conceptual Amendment 1 and asked her staff
to explain it.
27-LS0967\M.1
Bailey/Wayne
AMENDMENT 1
OFFERED IN THE SENATE
TO: SB 174 BY SENATOR GIESSEL
Page 1, line 1:
Delete "in the oil and gas production industries"
Page 1, line 3:
Delete "that"
Insert "job opportunity"
Page 1, line 8:
Delete "by oil and gas producer"
Page 1, line 9:
Delete "an oil or gas producer"
Insert "a for-profit business licensed to do
business in the state"
Page 1, line 10:
Delete "producer"
Insert "for-profit business"
Page 2, lines 12 - 13:
Delete "and notifies job service organizations as
required under AS 43.82.230(b); or"
Insert "in newspapers in the location where the
work is to be performed and in other publications
distributed throughout the state, including in rural
areas;
(2) the employer uses Alaska job service
organizations located throughout the state and not
just in the location where the work is to be performed
in order to notify Alaskans of work opportunities;
and"
Renumber the following paragraph accordingly.
Page 2, line 17:
Delete all material.
Page 2, line 18:
Delete "(2)"
Page 2, line 20:
Delete ";"
Insert "."
Page 2, lines 21 - 24:
Delete all material.
Page 3, line 6:
Delete "with oil or gas producers"
Page 4, line 4:
Delete "and"
Page 4, line 6, following "AS 23.05.095":
Insert "; and
(13) a statement of state and municipal job
opportunities"
2:37:19 PM
SHARON LONG, staff to Senator Giessel, explained that this
amendment broadens the bill to cover any for-profit business
doing business in Alaska. It would make any available jobs open
to Alaskans. Language on page 1, line 1, deletes "in the oil and
gas production industries", on line 3 it adds "job opportunity"
after "requiring", on line 8 it deletes "oil or gas producer".
The fourth change was on page 1, line 9, that deletes "an oil
and gas producer" and inserts "for-profit business licensed to
do business in the state". Page 1, line 10, deletes "producer"
and inserts "for-profit business". Page 2, lines 12 and 13,
deletes "and notifies job service organization as required under
AS 43.82.230(b) and inserts:
1. In newspapers in the location where the work is to
be performed and in other publications distributed
throughout the state including rural areas.
2. The employer uses Alaska job service organizations
located throughout the state and not just in the
location where the work is to be performed in order to
notify Alaskans of work opportunities.
Change 7 deletes language on page 2, line 17, deletes "2" on
page 2, line 18, and on line 20 inserts a period. Language is
deleted on page 2, lines 21-24.
On page 3, line 6, "with oil or gas producers" is deleted which
again broadens the application outside the oil and gas industry.
On page 4, line 4, "and" is deleted; on line 6 "and (13)
statement of state and municipal job opportunities" is inserted
after "AS 23.05.095."
SENATOR DAVIS asked what the sponsor thought of the amendment.
SENATOR FRENCH said he appreciated the sentiment behind it, but
was concerned about the reporting burden it puts on other
companies. The reason he focused on the oil and gas industry was
because of the information in "The Non-Residents Working in
Alaska Handbook" for 2010. This book indicates that the oil and
gas industry employs less than 5 percent of all Alaskan workers.
But it has a substantial impact on Alaska's economy; oil and gas
industry earnings are 2.7 times higher than average annual
earnings for all other industries combined! The same book
indicates that the percentage of non-resident workers in the oil
and gas industry has historically been higher than the statewide
average for all industries. So, he is aiming at the center of
the target - at the problem with the biggest economic impact,
out-of-state workers taking high paying oil jobs.
SENATOR FRENCH said he thought Senator Giessel's idea to broaden
it was a good one, but that maybe it should be in a stand-alone
bill and he wanted to hear from the Department of Labor about
what sorts of work would go into putting this into effect. If
they say it's no problem whatsoever and has no fiscal impact, he
would be fine with it.
He also pointed out that it's easier to get a tour guide job
with Gastineau Channel Guiding, because they are already
advertising on the radio and if you want to work in the seafood
industry, just show up. But if you want to work on the North
Slope "that's tougher," because of the high pay and the high
number of people coming up from out-of-state claiming those
jobs.
2:44:41 PM
SENATOR GIESSEL agreed with him but said that still doesn't
address the fact that 75 percent of the employees in the fish
processing industry are non-residents. In fact a high percent
are not even Americans. The same is true in the tourism
industry.
SENATOR PASKVAN said he understood precisely what she was
saying, but this bill has a zero fiscal note and he didn't know
what the notification requirements in newspapers and other
publications distributed throughout the state would mean. It
could cause significant problems.
CHAIR EGAN said the amendment was offered and it was his intent
to take it up again at the next meeting.
SENATOR MENARD asked if it applied only to for-profits licensed
to do business in Alaska as long as they have over 100
employees.
SENATOR GIESSEL said that was correct and it would not include
the film industry which is not required to be licensed in the
state.
2:47:58 PM
DENNIS BAILEY, Attorney, Legislative Legal Services, Legislative
Affairs Agency, Alaska State Legislature, said he didn't have
any comments but would answer questions.
SENATOR PASKVAN asked if he thought the zero fiscal note would
be changed with adoption of the amendment.
MR. BAILEY replied that his department doesn't deal with fiscal
notes.
SENATOR DAVIS said she wanted to know how this amendment would
affect the bill when it comes up for a hearing again.
2:49:52 PM
PAULA SCAVERA, Legislative Liaison, Department of Labor and
Workforce Development (DOLWD), pointed out that the notification
in the current version of SB 174 goes to the online public
notice system, which is an inter-departmental public system
where regulations and meetings are posted; it is not ALEXsys,
the jobs network system for which she prepared an explanation on
some handouts. She emphasized again that the online public
notice system was what was in the bill.
CHAIR EGAN said that could be easily amended to make it also
accessible to ALEXsys.
MS. SCAVERA said the system is currently available to all
businesses in Alaska. Just this morning she looked at all oil
and gas jobs on the ALEXsys system and found 12 oil and gas
producing companies that had 112 jobs posted.
SENATOR GIESSEL asked about companies in the medical field or
construction jobs.
MS. SCAVERA answered that they have construction, drafting,
waitressing and administrative assistant jobs posted and she
would be happy to show committee members the online system.
2:52:45 PM
SENATOR GIESSEL asked if the oil and gas companies are already
doing this as are multiple other industries in the state.
MS. SCAVERA replied yes.
SENATOR PASKVAN said they know what they post, but how does one
know what they haven't posted.
MS. SCAVERA acknowledged that.
SENATOR PASKVAN said it's more accurate to say they know what
their practice is, but they don't know if it is all-inclusive.
MS. SCAVARA said that was correct. They don't know if there are
10,000 jobs out there and only 112 of them were getting posted
as of this morning. She personally didn't know if three weeks
ago 400 jobs were posted and then filled. They do know how many
jobs have posted through the ALEXsys system to gain employees in
Alaska.
SENATOR GIESSEL asked when someone applies for unemployment and
is required to continue seeking work if this would be one of the
places they would be expected to search.
MS. SCAVARA answered yes.
SENATOR MENARD said she was interested in getting a better
understanding of how many hits the job site gets and asked if
they have that data.
2:55:16 PM
PAUL DICK, Director, Employment Security Division, Department of
Labor and Workforce Development (DOLWD), replied yes; last year
ALEXsys posted 35,000 jobs and had 300,000 visits.
SENATOR MENARD asked what industry the 35,000 jobs went to.
MR. DICK replied that they can look at the types of jobs that
are posted, but they don't have the results of whether a
particular person got employed or not.
SENATOR MENARD said they should be able to get that information
as they advance to find out if a job was actually secured.
MR. DICK answered that their records track re-employment rates.
2:57:32 PM
SENATOR PASKVAN said requiring notification through newspapers
in the location where the work is performed and in other
publications distributed throughout the state including rural
areas would seem to impose a criterion for entry into the
system.
MS. SCAVERA responded that right now the department is kind of
involved in the bill, but their system is not in the bill and
didn't know what the fiscal implications would be.
SENATOR PASKVAN said currently an employer can access their
system at no charge.
MS. SCAVERA answered yes.
CHAIR EGAN added that since it's maintained by the department
there wouldn't be any increased costs for posting on ALEXsys.
MS. SCAVERA replied the fiscal note would be about the
departmental notification to the other entities that the bill
requires. Right now there is no cost for a business to post a
job because the HR person for any business in the state can post
one.
CHAIR EGAN said it seems like a clever IT person could figure
out how it could be done.
MS. SCAVERA said the problem also is that not every community in
Alaska has broadband Internet. For instance, during this
winter's storms, St. George, St. Michael and St. Paul didn't
have Internet service for over a month. You have to be careful
what you mandate when it's for municipalities and communities.
CHAIR EGAN remarked that problem exists now, but be understood
what she was saying. He held the amendment and SB 174 in
committee.
3:02:46 PM
Finding no further business to come before the committee, Chair
Egan adjourned the Senate Labor and Commerce Standing Committee
meeting at 3:02 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 125 lttr supporting, AADA.pdf |
SL&C 2/23/2012 1:30:00 PM |
SB 125 |
| SB 125 Purpose of bill.PDF |
SL&C 2/23/2012 1:30:00 PM |
SB 125 |
| SB 125 Sectional Analysis - 2-3-12.pdf |
SL&C 2/23/2012 1:30:00 PM |
SB 125 |
| SB 125 Sponsor Statement.PDF |
SL&C 2/23/2012 1:30:00 PM |
SB 125 |
| SB 25 lttr supporting, AGC.pdf |
SL&C 2/23/2012 1:30:00 PM |
SB 25 |
| SB 25 lttr supporting, ARCTEC 021512.pdf |
SL&C 2/23/2012 1:30:00 PM |
SB 25 |
| SB 25 lttr supporting, MEA 021512.pdf |
SL&C 2/23/2012 1:30:00 PM |
SB 25 |
| SB 25 lttr supporting, RDC corrected 021712.pdf |
SL&C 2/23/2012 1:30:00 PM |
SB 25 |
| SB025-DCCED-AIDEA-02-10-12 (A).pdf |
SL&C 2/23/2012 1:30:00 PM |
SB 25 |
| SB025-DCCED-AIDEA-02-10-12 (B).pdf |
SL&C 2/23/2012 1:30:00 PM |
SB 25 |
| SB 25 ASSETS version E.PDF |
SL&C 2/23/2012 1:30:00 PM |
SB 25 |
| SB 25 lttr supporting, AIPPA 021612.pdf |
SL&C 2/23/2012 1:30:00 PM |
SB 25 |
| SB 175 CS L&C v B DRAFT.PDF |
SL&C 2/23/2012 1:30:00 PM |
SB 175 |
| SB 116 lttr opposing, ANC Muni Risk Mgt..pdf |
SL&C 2/23/2012 1:30:00 PM |
SB 116 |
| SB 116 lttr opposing, ABC 022212.PDF |
SL&C 2/23/2012 1:30:00 PM |
SB 116 |