HOUSE FINANCE COMMITTEE March 24, 1994 8:35 A.M. TAPE HFC 94 - 81, Side 2, #000 - end. TAPE HFC 94 - 82, Side 1, #000 - #336. CALL TO ORDER Co-Chair Larson called the House Finance Committee meeting to order at 8:35 A.M. PRESENT Co-Chair Larson Representative Foster Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Grussendorf Representative Therriault Representative Hoffman was not present for the meeting. ALSO PRESENT Representative Bill Hudson; Representative Gail Phillips; Laddie Shaw, Executive Director, Alaska Police Standards Council, Department of Public Safety; Clark Gruening, Alaska Visitor's Association, Juneau; Ken Erickson, Staff to Senator Drue Pearce; Paul Rusanowski, Director, Division of Governmental Coordination, Office of Governor. SUMMARY SB 238 An Act establishing a procedure for review of proposed projects under the Alaska coastal management program, and relating to petitions for compliance with and enforcement of district coastal management programs under that program and to the disposition of those petitions. SB 238 was HELD in Committee for further consideration. HB 300 An Act relating to civil liability for commercial recreational activities; and providing for an effective date. CS HB 300 (JUD) was reported out of Committee with a "do pass" recommendation and with zero fiscal notes by the Department of Administration and the Department of Commerce and Economic Development. 1 HB 302 An Act excluding certain recreational activities sponsored by an employer from coverage provided under workers' compensation, unless participation is required as a condition of employment; and providing for an effective date. HB 302 was HELD in Committee for further consideration. HB 319 An Act relating to the training of law enforcement and corrections officers; to the establishment of surcharges to be assessed for violations of certain traffic offenses; creating the Alaska Police Standards Training Fund; and providing for an effective date. CS HB 319 (FIN) was reported out of Committee with "no recommendations" and with a fiscal note by the Department of Public Safety and zero fiscal notes by the Alaska Court System and the Department of Law. HOUSE BILL 319 "An Act relating to the training of law enforcement and corrections officers; to the establishment of surcharges to be assessed for violations of certain traffic offenses; creating the Alaska Police Standards Training Fund; and providing for an effective date." LADDIE SHAW, EXECUTIVE DIRECTOR, ALASKA POLICE STANDARDS COUNCIL, DEPARTMENT OF PUBLIC SAFETY, updated the Committee stating that the fiscal notes had been changed and that the effective date would become January 1, 1996. An RSA adjustment had been made to the Alaska Court System note under the contractual component. Discussion followed among Committee members regarding the fiscal needs for police and officer training. Co-Chair MacLean advised that during the interim the Governor had established a Contract Jail Task Force which summarized the need for statewide correction and peace officer training. Representative MacLean suggested that the funds generated from the surcharge could be used for training needs. Representative Brown inquired how the program could be introduced to rural areas. Mr. Shaw noted that currently there are a number of satellite dishes which are not used during the entire day. The Department could use those satellite dishes effectively for a small cost. The 2 intention initially, would be to coordinate with the distance learning base through software programs. Co-Chair MacLean MOVED to adopt work draft 8-LS1237\R, Luckhaupt, 3/16/94 for HB 319. There being NO OBJECTION, it was adopted. Representative Brown MOVED to adopt Amendment #1 which would delete the $10 dollar surcharge while keeping the $25 dollar surcharge for the more serious violations. [Copy on file]. Co-Chair MacLean OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Brown OPPOSED: Hanley, Martin, Navarre, Parnell, Therriault, Foster, Larson, MacLean Representatives Grussendorf and Hoffman were not present for the vote. The MOTION FAILED (1-8). Co-Chair MacLean MOVED to report CS HB 319 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTIONS, it was so ordered. CS HB 319 (FIN) was reported out of Committee with "no recommendations" and with a fiscal note by the Department of Public Safety and zero fiscal notes by the Alaska Court System and the Department of Law. HOUSE BILL 302 "An Act excluding certain recreational activities sponsored by an employer from coverage provided under workers' compensation, unless participation is required as a condition of employment; and providing for an effective date." Representative Navarre requested that the House Finance Committee WAIVE HB 302 from Committee. He advised that the legislation would exclude certain sport officials and recreational activities sanctioned by an employer from coverage provided under worker's compensation. Discussion followed among Committee members regarding the bill and the action. Co-Chair Larson acknowledged the request and offered to present the recommendation on the House floor the following day (3/25/94) unless members objected. 3 HB 302 was HELD in Committee for further discussion. HOUSE BILL 300 "An Act relating to civil liability for commercial recreational activities; and providing for an effective date." REPRESENTATIVE BILL HUDSON stated that the proposed legislation has the support of the Alaska Visitors Association and the Alaska Wilderness Recreation Association. HB 300 was introduced to establish responsibility of persons who operate and participate in commercial recreational activities. Representative Hudson added that similar legislation introduced in Colorado impacted the state by decreasing insurance premiums fifteen to twenty percent (15% -20%). Representative Navarre noted his concern with Sec. 05.45.020, "Contributory Negligence" and asked if the language was new. Representative Hudson replied that it was existing language. He added that this section would provide provisions similar to the ski bill which previously passed the Committee. Operators have the responsibility to explain fundamental and inherent risks which are not apparent to an inexperienced participant. The proposed legislation would not modify the individuals liability. Representative Parnell referenced Page 2, Line 17, and asked if the word "using" would be restrictive. Representative Hudson clarified that the language suggests control of your person, children and any equipment or devices and animals that should engage in the activity must take responsibility. Representative Navarre stressed that the person maintaining the operation must be given equal responsibility. Representative Hudson advised that the legislation would not eliminate all potential litigations. CLARK GRUENING, ALASKA VISITOR'S ASSOCIATION, JUNEAU, informed the Committee members that HB 300 differs from the ski bill which dealt with the "inherent risk" of skiing. In that legislation, the attempt was to define "inherent risk". HB 300 does not attempt to define a bar to recovery which falls within the risk area. This legislation addresses the "contributory negligence". Mr. Gruening continued that the section which deals with "contributory negligence" is new. That section requires the operator to explain the risks and to provide instruction in order to protect the user. 4 Representative Brown asked if "weather" would be considered an "inherent risk". Mr. Gruening stated it would. Discussion followed among Committee members regarding activities which involve weather conditions and guide operators. (Tape Change, HFC 94-82, Side 1). Representative Foster MOVED to report CS HB 300 (JUD) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CS HB 300 (JUD) was reported out of Committee with a "do pass" recommendation and with zero fiscal notes by the Department of Commerce and Economic Development and the Department of Administration. SENATE BILL 238 "An Act establishing a procedure for review of proposed projects under the Alaska coastal management program, and relating to petitions for compliance with and enforcement of district coastal management programs under that program and to the disposition of those petitions." KEN ERICKSON, STAFF TO SENATOR DRUE PEARCE, stated that the Coastal Policy Committee (CPC) coordinates State agencies and local coastal districts in reviewing and issuing State permits for proposed development projects affecting natural resources in Alaska's coastal zones. SB 238 would clarify when and how certain parties can petition the Coastal Policy Council during an Alaska Coastal Management Program consistency review. He added that the bill would correct a problem that occurs when a petition is brought before the council after a final commission level decision on a consistency review has been made. Under the current Alaska Coastal Management Program statutes and regulations, the State's resource commissioners cannot delegate their responsibility to participate in an elevation consistency determination to the commissioner level, nor may they delegate their authority to decide a petition in the final consistency determination. The clarifications would ensure that complaints are heard and addressed in a timely manner. Mr. Erickson summarized that the bill would ensure that citizens, State agencies, and affected projects have a voice in the development policies of the state's coastal areas. PAUL RUSANOWSKI, DIRECTOR, DIVISION OF GOVERNMENTAL 5 COORDINATION, OFFICE OF THE GOVERNOR, provided the Committee with background information on the proposed legislation. In 1977, when the Legislature enacted AS 46.40.100, it created an ability for certain people to appeal issues to the CPC through "petitions". In 1984, when the CPC promulgated it's regulations creating the consistency review process for consistency determinations in 6 AAC 50, it amended a section of the regulations that specifically allowed consistency determinations to be reviewed by the CPC, intending to have consistency determinations appealed to court rather than to the CPC. At that time there was no commensurate statutory change to AS 46.40.100. Since regulations cannot remove a statutory right, the ability to bring a petition from a final consistency determination to the COC remains. The situation has created a dual appeal mechanism, consequently, conflicts have arisen. Representative Brown questioned how the legislation would affect the oil and gas lease sale. Mr. Rusanowski acknowledged there would be no change in how the system determination was made for an oil or gas lease sale. The legislation would provide an opportunity for the public to comment on the system determination. Mr. Rusanowski noted that the Commissioner of the Department of Natural Resources would be prohibited from making a final determination until disposal of the appeal. He added that the Coastal Policy Council would have thirty (30) days to address the consideration of comments which would have to occur at the regional or director level. Representative Foster commented on a letter of opposition from Unalakleet, the Bering Straits Coastal Resource Service Area Board indicating their concern with the deletion of due deference to that local coastal district. [Copy on file]. Mr. Rusanowski responded that a representative from the Bering Straits participated in the meetings which generated the consensus bill and that they are aware of the process. The board objects because there has been a petition which was handled in their district in which the process had been unsatisfactory in addressing local interest and concerns. Representative Foster asked if the Bering Straits Coastal Resource Service Area Board continues to oppose the legislation. Mr. Rusanowski stated they do. Representative Hanley MOVED to report CS SB 238 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. Representative Foster OBJECTED. 6 A roll call was taken on the MOTION. IN FAVOR: Hanley, Martin, Navarre, Therriault, Brown. OPPOSED: Foster, Grussendorf, Larson. Representatives Hoffman, Parnell and MacLean were not present for the vote. Lacking six votes to move a bill from Committee, the MOTION FAILED (5-3). SB 238 was HELD in Committee for further consideration. ADJOURNMENT The meeting adjourned at 9:40 A.M. HOUSE FINANCE COMMITTEE March 24, 1994 8:35 A.M. TAPE HFC 94 - 81, Side 2, #000 - end. TAPE HFC 94 - 82, Side 1, #000 - #336. CALL TO ORDER Co-Chair Larson called the House Finance Committee meeting to order at 8:35 A.M. PRESENT Co-Chair Larson Representative Foster Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Grussendorf Representative Therriault Representative Hoffman was not present for the meeting. ALSO PRESENT Representative Bill Hudson; Representative Gail Phillips; Laddie Shaw, Executive Director, Alaska Police Standards Council, Department of Public Safety; Clark Gruening, Alaska Visitor's Association, Juneau; Ken Erickson, Staff to Senator Drue Pearce; Paul Rusanowski, Director, Division of Governmental Coordination, Office of Governor. SUMMARY 7 SB 238 An Act establishing a procedure for review of proposed projects under the Alaska coastal management program, and relating to petitions for compliance with and enforcement of district coastal management programs under that program and to the disposition of those petitions. SB 238 was HELD in Committee for further consideration. HB 300 An Act relating to civil liability for commercial recreational activities; and providing for an effective date. CS HB 300 (JUD) was reported out of Committee with a "do pass" recommendation and with zero fiscal notes by the Department of Administration and the Department of Commerce and Economic Development. HB 302 An Act excluding certain recreational activities sponsored by an employer from coverage provided under workers' compensation, unless participation is required as a condition of employment; and providing for an effective date. HB 302 was HELD in Committee for further consideration. HB 319 An Act relating to the training of law enforcement and corrections officers; to the establishment of surcharges to be assessed for violations of certain traffic offenses; creating the Alaska Police Standards Training Fund; and providing for an effective date. CS HB 319 (FIN) was reported out of Committee with "no recommendations" and with a fiscal note by the Department of Public Safety and zero fiscal notes by the Alaska Court System and the Department of Law. HOUSE BILL 319 "An Act relating to the training of law enforcement and corrections officers; to the establishment of surcharges to be assessed for violations of certain traffic offenses; creating the Alaska Police Standards Training Fund; and providing for an effective date." LADDIE SHAW, EXECUTIVE DIRECTOR, ALASKA POLICE STANDARDS COUNCIL, DEPARTMENT OF PUBLIC SAFETY, updated the Committee stating that the fiscal notes had been changed and that the 8 effective date would become January 1, 1996. An RSA adjustment had been made to the Alaska Court System note under the contractual component. Discussion followed among Committee members regarding the fiscal needs for police and officer training. Co-Chair MacLean advised that during the interim the Governor had established a Contract Jail Task Force which summarized the need for statewide correction and peace officer training. Representative MacLean suggested that the funds generated from the surcharge could be used for training needs. Representative Brown inquired how the program could be introduced to rural areas. Mr. Shaw noted that currently there are a number of satellite dishes which are not used during the entire day. The Department could use those satellite dishes effectively for a small cost. The intention initially, would be to coordinate with the distance learning base through software programs. Co-Chair MacLean MOVED to adopt work draft 8-LS1237\R, Luckhaupt, 3/16/94 for HB 319. There being NO OBJECTION, it was adopted. Representative Brown MOVED to adopt Amendment #1 which would delete the $10 dollar surcharge while keeping the $25 dollar surcharge for the more serious violations. [Copy on file]. Co-Chair MacLean OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Brown OPPOSED: Hanley, Martin, Navarre, Parnell, Therriault, Foster, Larson, MacLean Representatives Grussendorf and Hoffman were not present for the vote. The MOTION FAILED (1-8). Co-Chair MacLean MOVED to report CS HB 319 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTIONS, it was so ordered. CS HB 319 (FIN) was reported out of Committee with "no recommendations" and with a fiscal note by the Department of Public Safety and zero fiscal notes by the Alaska Court System and the Department of Law. HOUSE BILL 302 9 "An Act excluding certain recreational activities sponsored by an employer from coverage provided under workers' compensation, unless participation is required as a condition of employment; and providing for an effective date." Representative Navarre requested that the House Finance Committee WAIVE HB 302 from Committee. He advised that the legislation would exclude certain sport officials and recreational activities sanctioned by an employer from coverage provided under worker's compensation. Discussion followed among Committee members regarding the bill and the action. Co-Chair Larson acknowledged the request and offered to present the recommendation on the House floor the following day (3/25/94) unless members objected. HB 302 was HELD in Committee for further discussion. HOUSE BILL 300 "An Act relating to civil liability for commercial recreational activities; and providing for an effective date." REPRESENTATIVE BILL HUDSON stated that the proposed legislation has the support of the Alaska Visitors Association and the Alaska Wilderness Recreation Association. HB 300 was introduced to establish responsibility of persons who operate and participate in commercial recreational activities. Representative Hudson added that similar legislation introduced in Colorado impacted the state by decreasing insurance premiums fifteen to twenty percent (15% -20%). Representative Navarre noted his concern with Sec. 05.45.020, "Contributory Negligence" and asked if the language was new. Representative Hudson replied that it was existing language. He added that this section would provide provisions similar to the ski bill which previously passed the Committee. Operators have the responsibility to explain fundamental and inherent risks which are not apparent to an inexperienced participant. The proposed legislation would not modify the individuals liability. Representative Parnell referenced Page 2, Line 17, and asked if the word "using" would be restrictive. Representative Hudson clarified that the language suggests control of your person, children and any equipment or devices and animals that should engage in the activity must take responsibility. 10 Representative Navarre stressed that the person maintaining the operation must be given equal responsibility. Representative Hudson advised that the legislation would not eliminate all potential litigations. CLARK GRUENING, ALASKA VISITOR'S ASSOCIATION, JUNEAU, informed the Committee members that HB 300 differs from the ski bill which dealt with the "inherent risk" of skiing. In that legislation, the attempt was to define "inherent risk". HB 300 does not attempt to define a bar to recovery which falls within the risk area. This legislation addresses the "contributory negligence". Mr. Gruening continued that the section which deals with "contributory negligence" is new. That section requires the operator to explain the risks and to provide instruction in order to protect the user. Representative Brown asked if "weather" would be considered an "inherent risk". Mr. Gruening stated it would. Discussion followed among Committee members regarding activities which involve weather conditions and guide operators. (Tape Change, HFC 94-82, Side 1). Representative Foster MOVED to report CS HB 300 (JUD) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CS HB 300 (JUD) was reported out of Committee with a "do pass" recommendation and with zero fiscal notes by the Department of Commerce and Economic Development and the Department of Administration. SENATE BILL 238 "An Act establishing a procedure for review of proposed projects under the Alaska coastal management program, and relating to petitions for compliance with and enforcement of district coastal management programs under that program and to the disposition of those petitions." KEN ERICKSON, STAFF TO SENATOR DRUE PEARCE, stated that the Coastal Policy Committee (CPC) coordinates State agencies and local coastal districts in reviewing and issuing State permits for proposed development projects affecting natural resources in Alaska's coastal zones. SB 238 would clarify when and how certain parties can petition the Coastal Policy Council during an Alaska Coastal Management Program 11 consistency review. He added that the bill would correct a problem that occurs when a petition is brought before the council after a final commission level decision on a consistency review has been made. Under the current Alaska Coastal Management Program statutes and regulations, the State's resource commissioners cannot delegate their responsibility to participate in an elevation consistency determination to the commissioner level, nor may they delegate their authority to decide a petition in the final consistency determination. The clarifications would ensure that complaints are heard and addressed in a timely manner. Mr. Erickson summarized that the bill would ensure that citizens, State agencies, and affected projects have a voice in the development policies of the state's coastal areas. PAUL RUSANOWSKI, DIRECTOR, DIVISION OF GOVERNMENTAL COORDINATION, OFFICE OF THE GOVERNOR, provided the Committee with background information on the proposed legislation. In 1977, when the Legislature enacted AS 46.40.100, it created an ability for certain people to appeal issues to the CPC through "petitions". In 1984, when the CPC promulgated it's regulations creating the consistency review process for consistency determinations in 6 AAC 50, it amended a section of the regulations that specifically allowed consistency determinations to be reviewed by the CPC, intending to have consistency determinations appealed to court rather than to the CPC. At that time there was no commensurate statutory change to AS 46.40.100. Since regulations cannot remove a statutory right, the ability to bring a petition from a final consistency determination to the COC remains. The situation has created a dual appeal mechanism, consequently, conflicts have arisen. Representative Brown questioned how the legislation would affect the oil and gas lease sale. Mr. Rusanowski acknowledged there would be no change in how the system determination was made for an oil or gas lease sale. The legislation would provide an opportunity for the public to comment on the system determination. Mr. Rusanowski noted that the Commissioner of the Department of Natural Resources would be prohibited from making a final determination until disposal of the appeal. He added that the Coastal Policy Council would have thirty (30) days to address the consideration of comments which would have to occur at the regional or director level. Representative Foster commented on a letter of opposition 12 from Unalakleet, the Bering Straits Coastal Resource Service Area Board indicating their concern with the deletion of due deference to that local coastal district. [Copy on file]. Mr. Rusanowski responded that a representative from the Bering Straits participated in the meetings which generated the consensus bill and that they are aware of the process. The board objects because there has been a petition which was handled in their district in which the process had been unsatisfactory in addressing local interest and concerns. Representative Foster asked if the Bering Straits Coastal Resource Service Area Board continues to oppose the legislation. Mr. Rusanowski stated they do. Representative Hanley MOVED to report CS SB 238 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. Representative Foster OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Hanley, Martin, Navarre, Therriault, Brown. OPPOSED: Foster, Grussendorf, Larson. Representatives Hoffman, Parnell and MacLean were not present for the vote. Lacking six votes to move a bill from Committee, the MOTION FAILED (5-3). SB 238 was HELD in Committee for further consideration. ADJOURNMENT The meeting adjourned at 9:40 A.M. 13